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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Alpha Airports | LSE:AAP | London | Ordinary Share | GB0000281328 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 109.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
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RNS No 1252c
ALPHA AIRPORTS GROUP PLC
28 September 1999
Results for the six months ended 31st July 1999
Unaudited 28th September 1999
Highlights
* Pre tax profits * #13.3 m (1998/99 #12.3m)
* Sale of our US Ground Handling business in August 1999 for $155m (#98.1m)
eliminated debt and will increase shareholders funds by about #60m
* ALPHA Catering Services extends major contracts with British Airways and
United Airlines for ten and seven years respectively
* ALPHA Catering Services reported operating profits* of #8.6m, up 26% on the
first half of last year
* Intra EU duty and tax free allowances were abolished on 30 June 1999. Duty
and tax free allowances remain for Non EU travellers
* Seven year management contract for nine upgraded "Booksplus" concessions
signed with BAA Group
* Net earnings per share 4.59 pence (1998/99 1.35 pence)
Mr Kevin Abbott, Chief Executive, commenting on the results today said:
"ALPHA Catering Services has secured major catering contract extensions with
British Airways and United Airlines. These contracts, along with internal
process improvement, have built a strong base upon which to develop our
catering business throughout Europe.
We have unfortunately seen considerable confusion in the duty and tax free
industry since 30 June 1999. Our Retail business is responding to the
upheaval created by the abolition of Intra EU duty and tax free allowances by
reconfiguring our Travel Retail concepts under extended profit sharing
contracts at most airports."
* Before goodwill amortisation and exceptional items.
Enquiries
ALPHA Airports Group Plc
Kevin Abbott, Chief Executive Tel: 0171 457 2345 (28 September 1999)
Stuart Siddall, Finance Director Tel: 0181 580 3200 (thereafter)
Gavin Anderson & Company Tel: 0171 457 2345
Marc Popiolek
Laura Hickman
Summary
Sales in our Catering, Inflight Retail and Ground Services businesses
increased over the first half of last year. As expected with the expiry of
our BAA duty free management contracts, (June 1999 and March 1998) the decline
in sales in our Retail business more than offset the growth elsewhere.
Despite the decline in Retail sales, pre tax profits (before goodwill
amortisation and exceptional items) increased to #13.3m (1998/99 #12.3m).
Adjusted earnings per share at 5.18 pence were marginally above last year.
Net Debt
With the acquisition of the Gatwick kitchen from British Airways in June 1999
for #14m our net debt at 31 July 1999 increased to #87.1m. However, following
the sale of DynAir in August 1999 for $155m (#98.1m) the group has now
eliminated its debt.
Taxation
The underlying tax rate on profits (before goodwill amortisation and
exceptional items) was 29%, slightly above last's year level of 28.4%.
Following the sale of DynAir we expect the underlying tax rate to rise up to
34% reflecting the loss of ongoing US tax relief for goodwill arising on the
acquisition of DynAir in 1994.
Dividend
In line with the realignment of the dividend declared earlier this year, the
Board has declared an Interim dividend of 1.0pence per ordinary share (1998/99
Interim dividend: 1.84 pence). This dividend, with scrip alternative, will be
payable on 24th November 1999 to shareholders on the Register as at 8th
October 1999.
ALPHA Catering Services
The results for ALPHA Catering Services in the first half of the year
demonstrate that the action taken in early 1998, including the establishment
of our Innovate best practice initiative, is now starting to deliver positive
results.
Following the acquisition of the British Airways kitchen at Gatwick and the
signing of a 10 year supply agreement in June we are confident that we can
generate benefits for both ALPHA and British Airways through improved
purchasing and productivity.
United Airlines is our key customer at Heathrow, and we are pleased to
announce the signing of a new seven year contract. As a consequence of this
we will enhance our Heathrow capabilities with the building of a new kitchen
with an initial capital investment of up to #6m.
In Paris Orly we reported a small profit but with the transfer of our major
customer, American Airlines to Charles de Gaulle airport later in the year,
the outlook is uncertain. However, we are actively continuing to pursue
replacement business for the Paris Orly kitchen, and are developing a new
charter kitchen at Paris Roissy CDG airport.
ALPHA Retail Services
Sales in our UK concessions (excluding the BAA duty free management contracts)
at #71m were similar to the first half of 1998/99. However, profits from our
UK concessions declined following the renegotiation and extension of most of
our duty and tax free contracts. The new terms anticipated the uncertainty
that we expected to arise following the abolition of duty and tax free
allowances for Intra EU travellers.
Trading results in Orlando (where we made an exceptional loss provision in
1998/99) improved as we had expected.
In Sri Lanka sales levels were satisfactory but an exceptionally high level of
stock theft, amounting to #0.4m led to a reduction in profits for the half
year. Action has been taken to strengthen local and expatriate management.
Duty and tax free allowances for Intra EU travellers were abolished on 30 June
1999. The travel retail industry had of course expected to see a reduction in
the level of sales following the abolition. From early data it appears that
the fall in sales across the industry has been larger than previously
anticipated. In part this reduction in sales has arisen because fewer Non-EU
travellers are entering the shops because of the confused statements regarding
duty and tax free opportunities.
Sales in our UK concessions have, since 30 June 1999, fallen by about 37%
compared to the 23% fall we had previously anticipated. We believe sales
levels will improve as shops are reconfigured, merchandise is realigned to the
new conditions and the customer confusion across Europe reduces as travel
retail reasserts itself as a traditional value for money shopping opportunity
and pleasure.
With the changes to Intra EU duty and tax free allowances, our "specialist"
retail formats involving books, magazines, newspapers, toys, confectionery,
jewellery, watches, sunglasses, cosmetics and destination merchandise will
play an increasingly important role in our development. In the last month we
have reinforced this specialist business with the signing of a seven year
management contract with the BAA Group for nine upgraded Booksplus stores
across the UK. ALPHA is one of only two principal operators of books and
magazine stores in UK airports with 24 Booksplus shops.
Our Inflight Retail business has continued to grow and has reported a small
profit. This business is similarly working to renegotiate its UK contracts to
offset the impact of the abolition of duty and tax free allowances to Intra EU
travellers.
ALPHA Ground Services
The increase in operating profit of #1m to #4.7m is largely attributable to an
increase in sales (up 9.3% on 1998/99) and higher levels of deicing income
where profit retention is high.
YEAR 2000 COMPLIANCE
The Group continues to use all reasonable efforts to ensure Year 2000
readiness, and the Directors believe that they are taking all reasonable steps
to minimise the risk of Year 2000 related failures disrupting the Group's
business.
The project to review and upgrade computer equipment and systems, and areas
where embedded microprocessors may impact on the operational ability for the
UK businesses to trade normally is now nearing completion.
We are continuing with our supplier and customer evaluation programme -
developed to establish the current and prospective Year 2000 status of key
suppliers and customers and to target areas of potential risk to the Group.
It is however unlikely that we will receive categorical assurances that they
and their systems will be compliant.
The operational contingency planning programme, developed to reduce the risk
of business disruption from Year 2000 factors is well underway. These plans
include developing alternative means of transacting business, securing
alternative sources of supply and planning for staff availability. Whilst
significant progress has been made in this area, such detailed plans can only
be finalised later in the year.
Overseas based operations form only a small part of Group activities and the
current level of compliance will vary from country to country. Our operations
in the USA and Sri Lanka have carried out business system reviews and have
initiated upgrade programs that are expected to be completed and installed by
the end of October. Our businesses in Europe and Australia are either
compliant or expect to be compliant for all business critical systems by the
end of the year. In Canada an external review of our operational systems is
underway.
Outlook and Group Strategy
As stated previously ALPHA Retail's UK duty free performance will be adversely
affected by the abolition of duty and tax free allowances for EU travellers.
However, ALPHA Retail is well placed and is responding to this change in its
market by expanding its specialist Retail concepts in the unique airport
environment.
ALPHA Catering Services is expected to report results* for the full year in
line with expectations but the improvement may be constrained by trading
uncertainty in our Paris kitchen.
With the completion of the sale of our US Ground Handling business in August
1999 we have eliminated the group's debt. The Group is now focused on its
predominately European businesses - Travel Retailing and Inflight Catering.
Over the next few months we will be evaluating all possibilities to continue
to enhance these businesses within Europe and elsewhere where opportunities
are identified that will offer superior returns.
* (before goodwill amortisation and exceptional items)
Group Profit and Loss Account
Unaudited
Six months ended Year Ended
31 July 31 July 1998 31 Jan 1999
1999
Notes #m #m #m
Turnover
- Continuing operations 246.3 266.1 519.8
- Discontinued operations 64.7 59.2 121.1
--- --- ---
Turnover 311.0 325.3 640.9
Cost of Sales (190.9) (188.9) (406.2)
--- --- ---
Gross Profit 120.1 136.4 234.7
Administration and other
costs before goodwill
amortisation (103.4)* (128.0)* (210.4)*
Goodwill amortisation (1.3) (0.6) (1.5)
--- --- ---
Total administration and
other costs (104.7) (128.6) (211.9)
--- --- ---
Other operating charges (0.1) - (0.3)
--- --- ---
Operating profit
- Continuing operations 10.2 4.1* 13.9*
- Discontinued operations 5.1* 3.7 8.6*
--- --- ---
15.3 7.8 22.5
--- --- ---
Losses from interest in
associates - (0.4) (0.4)
Profit on ordinary
activities before interest 15.3 7.4 22.1
Interest receivable 0.3 0.2 0.6
Interest payable (3.2) (2.9) (6.2)
--- --- ---
Profit on ordinary
activities before taxation 12.4 4.7 16.5
Taxation on profit on ordinary
activities (4.0) (1.6) (5.5)
--- --- ---
Profit on ordinary activities
after taxation 8.4 3.1 11.0
Minority interest ( equity) (0.5) (0.8) (1.2)
--- --- ---
Profit for the financial
period 7.9 2.3 9.8
Equity dividends 3 (1.7) (3.1) (5.1)
--- --- ---
Retained profit for the
period 6.2 (0.8) 4.7
--- --- ---
Net earnings per share 5 4.59p 1.35p 5.77p
Diluted earnings per share 5 4.58p 1.35p 5.77p
IIMR headline earnings per
share 5 5.41p 2.66p 7.77p
Adjusted earnings per share 5 5.18p 4.94p 9.83p
* The amounts for the six months ended 31 July 1999 and 31 July 1998 and for
the year ended 31 January 1999 include exceptional items as described in Note
4.
Statement of total
recognised gains and
losses
Profit for the financial
period 7.9 2.3 9.8
Currency translation
differences on foreign
currency net assets and
certain loans (0.3) (0.1) (0.2)
--- --- ---
Total recognised
gains and losses for the
period 7.6 2.2 9.6
--- --- ---
There are no differences between the reported results for the current and
prior periods and the results for those periods restated on an historical cost
basis.
Group Balance Sheet
Unaudited
31 July 31 July 1998 31 Jan 1999
1999
Notes #m #m #m
Fixed assets
Intangible assets 8 15.0 - 4.7
Tangible assets 85.1 80.7 80.7
Investment 0.1 - 0.1
--- --- ---
100.2 80.7 85.5
--- --- ---
Current assets
Stocks 25.8 29.4 23.5
Debtors 62.2 63.5 54.7
Cash at bank and in hand 13.0 5.3 15.2
--- --- ---
101.0 98.2 93.4
--- --- ---
Creditors: amounts
falling due within one
year
Bank and other borrowings (2.8) (1.8) -
Other creditors (91.2) (95.7) (85.2)
--- --- ---
(94.0) (97.5) (85.2)
--- --- ---
Net current assets 7.0 0.7 8.2
Total assets less current 107.2 81.4 93.7
liabilities
Creditors: amounts
falling due after more
than one year
Bank and other borrowings (95.9) (75.4) (89.5)
Other creditors (2.1) (4.6) (1.1)
--- --- ---
(98.0) (80.0) (90.6)
--- --- ---
Provisions for liabilities
and charges (4.9) (9.5) (5.8)
--- --- ---
Total net assets/
(liabilities) 4.3 (8.1) (2.7)
--- --- ---
Capital and reserves
Called up share capital 17.3 17.1 17.2
Share premium account 41.5 40.7 41.1
Profit and loss account (55.4) (68.4) (61.9)
--- --- ---
Shareholders' funds 6 3.4 (10.6) (3.6)
Minority interests
( equity) 0.9 2.5 0.9
--- --- ---
Total equity 4.3 (8.1) (2.7)
--- --- ---
Group Cash Flow Statement
Unaudited
Six months ended Year ended
31 July 31 July 1998 31 Jan
1999 1999
Notes #m #m #m
Net cash inflow from
operating activities 7 (1) 19.5 14.2 40.8
Net cash outflow from
returns on investments and
servicing of finance (4.0) (3.1) (5.7)
Taxation paid (2.7) (0.8) (10.7)
Net capital expenditure (8.0) (8.1) (14.8)
Acquisition of subsidiary
undertakings - (1.3) (8.1)
Purchase of business (14.0) - -
Equity dividends paid (1.3) (3.6) (6.2)
--- --- ---
Net cash outflow before
financing (10.5) (2.7) (4.7)
--- --- ---
Financing
Debt due beyond a year
- Unsecured loan repayable
in 2000 - 8.0 -
- Unsecured loan repayable
in 2003 6.0 - 89.5
Repayment of external - (1.5) (69.0)
borrowings
Capital element of finance (0.4) (0.4) (0.7)
lease payments
--- --- ---
Net cash inflow from 5.6 6.1 19.8
financing
--- --- ---
( Decrease)/ increase in cash (4.9) 3.4 15.1
--- --- ---
Notes to the Financial Information
1. Basis of accounting
The consolidated interim financial statements have been prepared under the
historical cost convention and in accordance with applicable accounting and
financial reporting standards. The accounting policies are the same as those
set out in the financial statements of the Group for the year ended 31 January
1999.
The interim financial statements are unaudited but have been reviewed by the
auditors and their report to the Directors is set out on page 13. The
comparative figures for the year to 31 January 1999 have been extracted from
the Group's financial statements which have been delivered to the Registrar of
Companies. The auditors' report on those statements was unqualified and did
not include a statement under Section 237(2) or (3) of the Companies Act 1985.
2. Segmental Analysis
Six months Six months ended Year ended
ended 31 July 1998 31 Jan 1999
31 July 1999
#m #m #m
(a) Turnover
Business sector analysis
ALPHA Catering services 119.3 115.6 232.1
ALPHA Retail Services 104.1 132.4 248.7
ALPHA Inflight Retailing 22.9 18.1 39.0
ALPHA Ground Services
(discontinued operation) 64.7 59.2 121.1
--- --- ---
Total Turnover 311.0 325.3 640.9
---- --- ----
Geographical analysis
United Kingdom 208.6 233.3 448.0
USA
- continuing operations 7.0 7.0 15.9
- discontinued operations 64.4 58.9 120.5
--- --- ---
71.4 65.9 136.4
--- --- ---
Rest of the world
-continuing operations 30.7 25.8 55.9
- discontinued operations 0.3 0.3 0.6
--- --- ---
31.0 26.1 56.5
--- --- ---
--- --- ---
Total Turnover 311.0 325.3 640.9
--- --- ---
Notes to the Financial Information
Continued
2. Segmental Analysis continued
Six months Six months Year
ended Ended ended
31 July 31 July 31 Jan 1999
1999 1998
Notes #m #m #m
(b) Profit before taxation
Business sector analysis
ALPHA Catering Services
-continuing operations* 8.6 6.8 13.5
-goodwill amortisation (0.4) - -
-exceptional items 4 - 1.0 1.2
( continuing operations)
-exceptional items
(discontinued operations) 4 0.4 - 0.2
--- --- ---
8.6 7.8 14.9
--- --- ---
ALPHA Retail Services
-continuing operations* 2.8 4.6 9.3
-goodwill amortisation (0.9) (0.6) (1.5)
-exceptional items
(continuing operations) 4 - (5.9) (6.1)
--- --- ---
1.9 (1.9) 1.7
--- --- ---
ALPHA Inflight Retailing
-continuing operations* 0.1 (0.1) (0.6)
- exceptional items
(continuing operations) 4 - - (0.2)
--- --- ---
0.1 (0.1) (0.8)
--- --- ---
ALPHA Ground Services
-discontinued operations 9 4.7 3.7 8.4
--- --- ---
15.3 9.5 24.2
Corporate exceptional
items 4 - (2.1) (2.1)
--- --- ---
15.3 7.4 22.1
Net interest (2.9) (2.7) (5.6)
--- --- ---
Profit on ordinary activities
before taxation 12.4 4.7 16.5
Geographical analysis
United Kingdom
- continuing operations* 9.1 9.4 17.1
- goodwill amortisation (0.4) - -
- exceptional items
( continuing operations) 4 - 1.0 1.0
--- --- ---
8.7 10.4 18.1
--- --- ---
USA
-continuing operations* 0.1 (0.9) (0.7)
- discontinued operations 9 4.8 3.6 8.5
- exceptional items
( continuing operations) 4 - (5.9) (5.9)
- exceptional items
(discontinued operations) 4 0.4 - 0.2
--- --- ---
5.3 (3.2) 2.1
--- --- ---
Notes to the financial information
Continued
Rest of the World
- continuing operations* 2.3 2.8 5.8
- discontinued operations 9 (0.1) 0.1 (0.1)
- goodwill amortisation (0.9) (0.6) (1.5)
- exceptional items
( continuing operations) 4 - - (0.2)
--- --- ---
1.3 2.3 4.0
--- --- ---
15.3 9.5 24.2
Corporate exceptional items 4 - (2.1) (2.1)
15.3 7.4 22.1
--- --- ---
Net interest (2.9) (2.7) (5.6)
--- --- ---
Profit on ordinary activities
before taxation 12.4 4.7 16.5
--- --- ---
*before goodwill amortisation and exceptional items
3. Dividends
An interim dividend of 1.0pence (31 July 1998 1.84pence) per ordinary share
will be paid on 24 November 1999 to shareholders on the register at the close
of business on 8 October 1999.
4. Exceptional items
An exceptional item for the half year to 31 July 1999 of #0.4m arose primarily
from the recovery of debtors previously written off on the sale of a business
in the USA.
The exceptional items in the full year to 31 January 1999, comprised #5.9m (31
July 1998: #5.9m) in respect of the duty free retail operation in Orlando (an
impairment provision of #1.6m in respect of fixed assets and #4.3m being the
directors' estimate of the unavoidable net costs accruing under this onerous
contract) and costs of #2.1m ( 31 July1998: #2.1m) associated with the
unsuccessful sale of the retail division. In addition to provisions made in
the previous year, a further provision of #0.2m ( 31 July 1998: #Nil) was made
in respect of costs associated with closing an overseas business of ALPHA
Inflight Retailing and #0.2m ( 31 July 1998: #Nil) relating to a joint venture
in Hong Kong. Total exceptional costs were offset by the release of #1.2m (31
July 1998:#1.0m) of the provision for exceptional closure costs made in
1997/98 which was no longer required and #0.2m ( 31 July 1998:#Nil) from the
recovery of debtors previously written off on the sale of a business in the
USA.
Notes to the Financial Information
Continued
5. Earnings per share
Profit/(loss) for the Earnings per share
period
31 July 31 July 31 Jan 31 July 31 July 31 Jan
1999 1998 1999 1999 1998 1999
#m #m #m Pence Pence Pence
Profit for the
financial period
and net earnings
per share 7.9 2.3 9.8 4.59 1.35 5.77
Adjustment for
impairment in fixed
assets - 1.6 1.6 - 0.95 0.94
Adjustment for
loss on sale of
fixed assets 0.1 - 0.3 0.06 - 0.18
Adjustment for
goodwill 1.3 0.6 1.5 0.76 0.36 0.88
amortisation --- --- --- --- --- ---
Adjusted profit
and IIMR headline
earnings per share 9.3 4.5 13.2 5.41 2.66 7.77
Adjustment for
exceptional items (0.4) 5.4 5.4 (0.23) 3.22 3.18
Adjustment for loss
on sale of fixed
assets (0.1) - (0.3) (0.06) - (0.18)
Taxation relating
to these items 0.1 (1.6) (1.6) 0.06 (0.94) (0.94)
--- --- --- --- --- ---
Adjusted profit and
adjusted earnings
per share 8.9 8.3 16.7 5.18 4.94 9.83
--- --- --- --- --- ---
Weighted average number of shares in issue during the six months to 31 July
1999 were 172,113,187 (31 July 1998:168,607,435 and 31 January 1999:
169,924,375).
Net earnings per ordinary share are calculated by dividing the profit for the
financial period by the weighted average number of shares in issue during the
period. An additional measure of earnings per share has been recommended by
the Institute of Investment Management and Research (IIMR). The IIMR headline
earnings require the adjustment of standard earnings to eliminate certain
items, adjusted for any tax effect. Finally, we have adjusted the IIMR
headline earnings per share to arrive at an adjusted earnings per share by
eliminating the effect of exceptional items and loss on sale of fixed assets,
adjusted for any tax effect.
Diluted earnings per share of 4.58p (1998/99: 1.35p) has been calculated by
reference to the profit for the financial period of #7.9m (1998/99: #2.3m) and
the weighted average number of shares in issue during the period, as adjusted
for potentially dilutive ordinary shares of 213,644 (1998/99: 244,408).
Notes to the Financial Information
Continued
6. Reconciliation of movements in shareholders' funds
Six months Six months Year ended
ended ended 31 January 1999
31 July 1999 31 July 1998
#m #m #m
Profit for the financial 7.9 2.3 9.8
period
Dividends (1.7) (3.1) (5.1)
--- --- ---
Retained profit/(loss) for
the financial period 6.2 (0.8) 4.7
Issue of additional share
capital to shareholders 0.5 2.3 2.8
Currency translation
differences on foreign
currency (0.3) (0.1) (0.2)
net assets and certain loans
Goodwill charged to profit
and
loss account previously 0.6 0.6 1.2
written
off directly to reserves
Adjustment to goodwill
relating - - 0.5
to an acquisition in a prior --- --- ---
year
Net increase in
shareholders' 7.0 2.0 9.0
funds
Opening shareholders' funds (3.6) (12.6) (12.6)
--- --- ---
Closing shareholders' funds 3.4 (10.6) (3.6)
--- --- ---
7. Notes to the Cash Flow Statement
(1) Reconciliation of operating profit to net cash inflow from operating
activities
Six months Six months Year ended
ended 31 ended 31 July 31 Jan
July 1999 1998 1999
#m #m #m
Operating profit 15.3 7.8 22.5
Loss on sale of fixed assets 0.1 - 0.3
Depreciation
( including exceptional items) 6.5 7.9 14.5
Goodwill amortisation 1.3 0.6 1.5
( Increase)/ decrease in stocks (2.3) (0.8) 4.8
( Increase) in debtors (7.3) (8.9) (1.9)
Increase/ (decrease) in creditors 5.9 7.6 (0.9)
--- --- ---
Net cash inflow from operating
activities 19.5 14.2 40.8
--- --- ---
Notes to the Financial Information
Continued
(2) Reconciliation to net debt
Six months ended Six months Year ended
31 July 1999 ended 31 January 1999
31 July 1998
#m #m #m
(Decrease)/increase in
cash in the period (4.9) 3.4 15.1
(Increase) in debt and
lease financing (5.6) (6.1) (19.8)
--- --- ---
Change in net debt
from (10.5) (2.7) (4.7)
cash flows
Translation (0.4) (0.1) (0.2)
differences --- --- ---
Movements in net debt (10.9) (2.8) (4.9)
in period
Opening net debt (76.2) (71.3) (71.3)
--- --- ---
Closing net debt (87.1) (74.1) (76.2)
--- --- ---
8. Intangible assets
The Group has entered into a ten year supply agreement with British Airways,
which commenced on 1 April 1999, for the continued supply of in-flight
catering services at Gatwick and eight UK regional airports. The transaction
included the purchase of fixed assets at a fair value of #3.1m for the
catering facility at Gatwick. The total cash consideration was #14.0m,
resulting in goodwill of #10.9m which was capitalised and added to
intangibles. This amount will be amortised over the duration of the contract.
9. Post Balance Sheet Event
A shareholders' circular was published on 13 July 1999 outlining the proposed
disposal of DynAir, the Group's ground handling business, to the SAir Group
for a consideration of US$155.0 million (#98.1million), subject to a net asset
adjustment upon finalisation of the closing balance sheet. The disposal was
subject to the approval of shareholders which was given at an Extraordinary
General Meeting on 29 July 1999 and the sale was completed on
3 August 1999. The consideration was used to reduce net borrowings.
The profit on sale, based on the amounts disclosed in the shareholders'
circular, after adjusting for movements in exchange from 13 July 1999 to 3
August 1999, is expected to be approximately #2.3m. This profit will be
subject to adjustment once the net asset adjustment has been finalised.
The net assets of the group increased by approximately #60million as a result
of this disposal.
10 Approval of Financial Statements
The financial statements were approved by a committee of the Board of
Directors on
28 September 1999.
Independent review report to ALPHA Airports Group Plc
Introduction
We have been instructed by the company to review the financial information set
out on pages 5 to 12 and we have read the other information contained in the
interim report for any apparent misstatements or material inconsistencies with
the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing
Rules of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes,
and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A review consists principally
of making enquiries of group management and applying analytical procedures to
the financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on
the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 July 1999.
PricewaterhouseCoopers
Chartered Accountants
London
END
IR LDFLLKKKFBKE
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