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AAP Alpha Airports

109.00
0.00 (0.00%)
Last Updated: 01:00:00
Delayed by 15 minutes
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

Final Results - Part 2

29/03/2001 8:00am

UK Regulatory


RNS Number:2596B
Alpha Airports Group PLC
29 March 2001



Part 2
                                       
           PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST JANUARY 2001
                                  HIGHLIGHTS
                                       
                                                                 29 March 2001
                                                                              
Group Profit and Loss Account
for the year ended 31 January 2001
                                                                          
                                                 2001                   2000
                      Notes                        #m                     #m
                    
Turnover                 1                                                   
  - Continuing                                 431.5                  441.2
  - Discontinued                                 1.5                   73.9
                                               ------               --------
                                               433.0                  515.1
Cost of sales                                 (296.5)                (334.5)
                                              -------               --------
Gross profit                                   136.5                  180.6   
Administration expenses                       (121.3)                (159.8)  
                                              -------                -------  
                                                       
                                                                            
EBITDA                   2                      28.6                   35.3   
                 
Depreciation on                                                    
tangible fixed assets                          (10.2)                 (11.6)
Amortisation of goodwill                        (3.2)                  (2.9)  
Operating profit                                15.2                   20.8   
                 
Operating profit                                                          
  - Continuing                                 16.3                   16.1
  - Discontinued                               (1.1)                   4.7    
                                              ---------            ---------
                            3                  15.2                   20.8    
                                              --------             ---------
                                                                     
Share of operating                                                       
loss of associates                                                       
(including goodwill                           (0.2)                      -
amortisation of
#0.2m)
(Loss)/profit on                                                         
disposal of discontinued                                                      
operations                   11               (8.4)                   1.7     
                                              -------              --------
Profit on ordinary                                                       
activities before            
interest                      1                6.6                  22.5      
                                                    
Interest receivable                            0.2                   0.5      
Interest payable                              (0.9)                 (3.7)  
                                              -------             --------    
              
Profit on ordinary                                                       
activities before             1                5.9                  19.3      
taxation             
Taxation on profit on       
ordinary activities           4               (6.4)                 (8.2)     
                                              --------              -------   
    
(Loss)/profit on                                                         
ordinary activities after taxation             (0.5)                 11.1   
Minority interest                                                        
(equity)                                         -                  (0.6)
                                              --------             --------
(Loss)/profit for the                          (0.5)                 10.5     
financial year                                                       
Equity dividends              5                (5.8)                 (5.6)
                                              -------              --------
Retained                                                                 
(loss)/profit for the        
 financial year               8                (6.3)                  4.9     
                                              ---------            ---------  
                 
(Loss)/earnings per           6               (0.29p)                 6.07p
share
Diluted                       6               (0.29p)                 6.06p
(loss)/earnings per
share
IIMR headline                 6                6.55p                  7.70p
earnings per share
Adjusted earnings per         6                6.55p                  7.64p
share
                                              ---------            ---------
                                                                             
Statement of total recognised  gains and losses
for the year ended 31  January 2001
                                                  2001                    2000
                                                    #m                      #m
(Loss)/profit for the                                                       
financial year                                    (0.5)                   10.5
Currency translation differences                                          
on foreign currency net assets                    
and certain loans                                   0.3                  (2.3)
                                                ---------             --------
Total recognised gains and losses for the         (0.2)                    8.2
year
                                                                            
There are no differences between the Group and Company reported results for
the current and prior year and the results for those years on an
historical cost basis.


Balance Sheet                                                               
at 31 January 2001                                                            

                                      Group                     Company
                                  2001        2000         2001          2000
                          Notes    #m          #m           #m            #m
Fixed assets                                                                  

Intangible assets                 17.7        15.8            -             -
Tangible assets                   60.0        57.9            -             -
Investments                        2.6           -        210.6         210.6
                                  -----      ------      -------       ------
                                  80.3        73.7        210.6         210.6
Current assets                                                                

Stocks                            24.6        20.6            -           -   
                                                                           
Debtors                           28.0        26.2         48.2          66.3
Cash at bank and in 
hand                       7       4.5        10.3          6.1          30.2   
                                --------     -------    ---------     ------- 
                                 
                                  57.1        57.1         54.3          96.5
                                 -------     -------     --------      -------
Creditors: amounts falling due within
one year
Bank and other          7        (7.4)       (0.6)        (6.0)             -
borrowings
Other creditors                 (58.0)      (60.4)       (22.3)        (76.8)
                                -------     -------      --------     --------
                                (65.4)      (61.0)       (28.3)        (76.8)
Net current                      
(liabilities)/assets             (8.3)       (3.9)         26.0          19.7
                                 -------    -------      --------      -------
Total assets less               
current liabilities               72.0        69.8        236.6         230.3
                                 -------    --------      -------     --------
Creditors: amounts                                                            
falling due after more than one year

Other creditors                   (1.0)       (0.4)            -             -
Provisions for                   
liabilities and charges           (8.0)       (8.6)            -             -
                                  ------      ------      -------      -------
Total net assets        1          63.0        60.8        236.6         230.3
Capital and reserves                                                          

Called up share capital            17.1        17.5         17.1          17.5
Share premium account              42.2        42.2         42.2          42.2
Capital redemption      13          0.4           -          0.4             -
reserve
Other reserves                        -           -        152.3         152.3
Profit and loss account             3.3         0.8         24.6          18.3
                                 --------    --------     --------     -------
Shareholders' funds     8          63.0        60.5        236.6         230.3
Minority interests (equity)           -         0.3            -             -
Total equity                       63.0        60.8        236.6         230.3
                                 ========    ========     ========     =======

Approved by the Board of Directors
on 29 March 2001 Kevin Abbott, Chief Executive Heather McRae, Finance Director


Group Cash Flow Statement for the
year ended 31 January 2001                                                    
                                                    2001                  2000
                    Notes                           #m                     #m
                   9.1                           20.3                     37.9

Net cash inflow from 
operating activities
Returns on investments
and servicing of finance                          0.2                     0.5
Interest received                                (0.9)                   (4.9)
Interest paid                                     
Interest element
of finance lease rental
payments                                           -                     (0.1)
Dividends paid to 
minority shareholders                            (0.1)                   (0.5)
in subsidiary undertakings 
                                               --------               --------
Net cash outflow from 
returns on investments
and servicing of finance                         (0.8)                  (5.0) 
                                               =========              ========
                                                 
Taxation                                         (6.7)                  (8.2) 
                                               ---------              --------
                                        
Capital expenditure                 
Purchase of tangible 
fixed assets                                   (16.1)                   (12.8)
Sale of tangible fixed assets                    3.8                      1.5
                                               ---------              -------
                                     
Net cash outflow for
capital expenditure                            (12.3)                   (11.3)
                                               --------               ------- 
                                                                  
Acquisitions and disposals
  
Purchase of minority 
interests in subidiary
undertakings                       10            (3.2)                    - 
Purchase of associates             10            (2.8)                    -
Purchase of business               10            (0.2)                (14.6) 
Disposals of businesses            11             0.7                  90.3
                                   -------      ------               -------
Netcash(outflow)/inflow 
for acquisitions and disposals                  (5.5)                  75.7
                                                ------               -------  
                                                  
Equity dividends paid                            (5.6)                 (2.3)  
                                                 ------               -------
                                                (12.3)                  86.8
                                                 -------               ------
Netcash(outflow)/inflow before financing                                      
                                      
Financing                                         
Purchase of own shares                           (1.7)                    -
Unsecured loan less than 1 year                   6.0                     -   
Repayment of long-term loan                        -                   (90.0) 
Capital element 
of finance lease payments                        (0.6)                  (0.8)
                                                ---------              -------
Net cash inflow/(outflow)
from financing                                    3.7                  (90.8)
Decrease in cash                9.2              (6.9)                  (4.0)
                                                 ========               ======
                                          

Notes to the Financial Information
                                                                              
 
1.  Segmental analysis                                                        
  
                             Turnover       Profit/(loss)       Net assets/
                                                  before        (liabilities)
                                                interest
                           2001    2000     2001     2000       2001      2000
                             #m       #m       #m      #m         #m        #m
(a) Business sector                                                           
    analysis


Flight Services           
- continuing
operations                274.7    254.1     17.0    12.8       53.5      42.4
-discontinued
operations                   1.5      9.2    (1.1)       -         -       0.2

- share of operating
loss of associates
(including
goodwill amortisation)        -        -      (0.2)        -        -       - 
 - goodwill amortisation      -        -      (1.4)     (1.1)       -       - 
   
-loss on disposal of
discontinued operations        -        -     (8.4)     (0.2)       -       - 
                             ------   ------  ------     ------   ----  ------
                            276.2    263.3      5.9      11.5     53.5    42.6
 
Retail Services                                                           
- continuing operations    156.8    187.1      2.5        6.2    18.3     15.5

- goodwill amortisation        -        -     (1.8)     (1.8)    -         - 
 
- exceptional items
(continuing operations)       -        -        -        -      (3.2)    (3.3)
                            ------  ------    ------    ------  ------- ------
                           156.8    187.1      0.7        4.4    15.1     12.2
Ground Services
- discontinued 
operations                    -      64.7        -        4.7        -       -
                        
- profit on disposal 
of discontinued operation     -        -         -        1.9        -       -
                              -      64.7        -        6.6        -       -
                          433.0     515.1      6.6       22.5     68.6    54.8
Corporate provisions          -        -         -        -       (2.2)   (2.6)
                          ------   ------    ------  -----     -------  ------
                          433.0     515.1      6.6       22.5     66.4    52.2

Net interest payable        -        -      (0.7)    (3.2)         -         -
Net (borrowings)/cash       -        -        -        -        (3.4)      8.6
Turnover,profit on 
ordinary activities      
before taxation
and net assets            433.0    515.1      5.9    19.3       63.0      60.8
                          =====    ======     =====  ====     =======    =====

In-flight Retail previously reported separately is now included in Flight
Services to reflect the new operational structure. The prior year figures have
been restated to show the segments on a comparable basis.

Net interest payable has not been allocated recognising the centre's role and
responsibility in allocating financial resources.

Notes to the Financial Information
continued
                                                                              
 
1.  Segmental analysis (continued)
                                                                              
 
                          Turnover       Profit/ (loss)          Net
                                                before    assets/(liabilities)
                                              interest                        
                            2001    2000     2001      2000     2001      2000
                             #m      #m       #m        #m       #m        #m
(b) Geographical analysis                                                     
 
United Kingdom                                                                
 
                  
-continuing 
operations                356.5   373.3     12.1      13.5     52.5      42.3 
                          
-goodwill
amortisation                 -       -     (1.3)     (1.1)        -         -
                         ------   -----   -------    ------   ----    -------
                         356.5   373.3     10.8      12.4     52.5      42.3
                         ------  ------    ------   -------   -----   -------
Rest of the World                                                             
 
                          
-continuing 
operations                 75.0    67.9      7.4       5.5     19.3      15.6 
                            
-discontinued
operations                  1.5    73.9    (1.1)       4.7        -       0.2 
-goodwill
amortisation                -       -      (1.9)     (1.8)        -         - 
           
-share of operating
loss of associates          -       -     (0.2)         -         -         -
(including goodwill 
amortisation)              
-exceptional items 
(continuing operations)     -       -        -          -    (3.2)     (3.3)
-(loss)/profit on disposal
of discontinued 
operations                  -       -      (8.4)       1.7     -       -  
                          -----  ------   ------   -------  ------  ------    
                          76.5   141.8    (4.2)      10.1    16.1     12.5
                         ------  ------   ------   ------   ------  -------   
                         433.0   515.1    6.6        22.5     68.6     54.8
Corporate
provisions                 -        -       -      (2.2)       -      (2.6)
                         433.0   515.1    6.6      22.5      66.4      52.2
                                                
Net interest payable       -       -     (0.7)     (3.2)        -         -   
                                                      
Net (borrowings)/
cash                        -       -        -         -    (3.4)       8.6
                         -----  ------   ------     -----   ------   -------
Turnover, profit on                                                           
ordinary activities                                                           
before taxation and net  
assets                    433.0   515.1      5.9      19.3     63.0      60.8
                         ======   =======   =======   ======  ======  ======= 
                                                           
Turnover is disclosed by origin. There is no material difference in turnover
by destination.

Net interest payable has not been allocated recognising the centre's role and
responsibility in allocating financial resources.


Notes to the Financial Information
continued                                                                     
                                                                            
2. Accounting policies
                                                                              
 
The accounting policies are the same as those set out in the financial
statements of the Group for the year ended 31 January 2000.
                                                                              
The directors consider that EBITDA (earnings before interest, taxation,
depreciation and amortisation) is a standard measure used widely by analysts,
investors and other interested parties in the industry. Accordingly, the
profit and loss account has been amended to provide this information.

3. Operating profit is analysed between continuing and discontinued operations
   as follows:
                                                                           
               Continuing Discontinued         Continuing Discontinued        
               operations operations    Total operations  operations    Total
                     2001       2001     2001     2000        2000      2000
                      #m         #m       #m       #m          #m        #m
Turnover              431.5      1.5    433.0    441.2       73.9     515.1
Cost of sales        (294.5)     (2.0)  (296.5)  (282.9)     (51.6)   (334.5)
                     -------    ------  -------  --------   -------   -------
Gross Profit          137.0      (0.5)   136.5    158.3      22.3      180.6
                     (120.7)     (0.6)  (121.3)  (142.2)    (17.6)   (159.8)
Administration
expenses               
                                                                            
EBITDA                29.7        1.1   28.6      28.6      6.7       35.3
Depreciation 
on fixed tangible          
assets               (10.2)       -    (10.2)     (9.6)    (2.0)      (11.6)
Amortisation of
goodwill              (3.2)       -     (3.2)     (2.9)      -           - 
                      -------   ------   ------    ------ ------      ------  
                                                                       
Operating             
profit/(loss)         16.3      (1.1)   15.2       16.1      4.7      20.8    
                                  
                                                        
                                                                            
4. Taxation                                                                   
                                                      2001               2000
                                                       #m                 #m
United Kingdom corporation tax                        7.1                5.9
at  30 %  (1999/00 - 30.2%)
Double tax  relief                                   (3.2)               1.8)
Prior year adjustments                               (0.4)               (0.1)
Overseas taxation                                     3.0                 2.7
Movement in deferred tax                             (0.1)                1.5
                                                     -----              ------
                                                      6.4                 8.2
                                                     -----              ------
Taxation as a percentage of  profit before           
taxation                                              108%                 42%
Taxation as a percentage of profit before             
taxation, exceptional items and goodwill
amortisation                                           36%                 33%

The movement in deferred tax of #1.5m in the year ending 31 January 2000 arose
from the disposal of DynAir.

Compared to 1999/00, taxation at 108% of profit before tax is unusually high
principally due to a goodwill write-off of #9.0m on the disposal of
discontinued businesses. 

Notes to the Financial Information continued                                  
                                    
                                                                     
5.  Equity dividends                                                          
  
                                                         2001           2000
                                                          #m             #m
Interim dividend of 1.0p per ordinary share
(1999/00 -1.0p)                                            1.7            1.7
Proposed final dividend of                                 4.1            3.9
2.4p per ordinary share
(1999/00 - 2.2p)
Total dividend of 3.4p per                                 5.8            5.6
ordinary share (1999/00 -
3.2p)
                                                                              
 
6.  Earnings per share                                                        
  
                     (Loss)/profit for the year  (Loss)/earnings per share
                         2001     2000              2001          2000
                          #m       #m              Pence         Pence
                    
Loss/profit
for the financial
year and (loss)
/earnings per
share                   (0.5)      10.5             (0.29)          6.07
                  
Adustment
for loss/(profit)
on disposal of
discontinued
operations                8.4      (1.7)             4.87          (0.98)
Adjustment
for loss
on sale of
fixed assets               -        0.1              -             0.06
Adjustment
for goodwill
amortisation              3.4       2.9             1.97           1.68
Taxation                  
relating  to
these items                -        1.5              -             0.87
                         ------    -------        -------        --------
Adjusted
profit and IIMR
headline earnings
per share                 11.3     13.3            6.55           7.70
Adjustment for
loss on sale
of fixed assets           -       (0.1)            -            (0.06)
                         ------    -------        -------        -------
Adjusted
profit and
adjusted
earnings per
share                     11.3     13.2             6.55          7.64
                         ======    ======         =======       ========      
                                                    
The weighted average number of shares in issue during the year was
172,491,309(1999/00:172,889,466).Earnings per share are calculated by dividing
the profit for the financial year  by the weighted average number  of shares
in issue during the year. An additional measure of earnings per share has been
recommended  by theInstitute ofInvestment Management and Research (IIMR).  The
IIMRheadline earnings require the adjustment  of earnings to eliminate certain
items, adjusted for any tax effect.

Finally, the IIMR headline earnings per share is adjusted to arrive at an
adjusted earnings per shar by eliminating the effect of exception  alite ms
and profits and losses on sale of fixed assets, adjusted for any tax effect.
                                                                              
Diluted loss per share of 0.29 p (1999/00:earnings per share of 6.06p) has
been calculated by reference to the loss for the financial year of #0.5m
(1999/00: profit of #10.5m) and the weighted average number of shares in issue
during the year of 172,491,309 (1999/00:172,889,466), as adjusted for
potentially dilutive ordinary shares of 208,976 (1999/00: 281,535).

Notes to the
Financial Information continued
                                                                              
   
7.  Net cash/(borrowings)                                                     
   
                                                    2001              2000
                                                     #m                #m
7.1 Bank and other borrowings
Unsecured loans                                   (6.0)                 -
Bank overdrafts                                   (1.4)              (0.6)
                                                  ------           -------    
Total bank and other borrowings                   (7.4)              (0.6)
                                                  ------           -------    
                                                                          
7.2 Repayment analysis                                                        
   
Repayable otherwise than by instalments:
- within one year or on demand                   (7.4)               (0.6)
                                                                              
7.3 Net (borrowings)/cash                                                     
   
Total bank and other borrowings                  (7.4)               (0.6)
                                                                              
  
Finance lease obligations:
-due within one year                             (0.3)               (0.7)
-due between one and two years                   (0.2)               (0.3)
-due between two and five years                    -                 (0.1)  
                                                 ------            -------
                                                 (0.5)               (1.1)
                                                                              
   
Cash at bank and in hand                          4.5                 10.3    
                                                 ------             -------   
 Net (borrowings)/cash                           (3.4)                 8.6
                                                                              

7.4 Currency Analysis                                                         
   
Bank and other borrowingts are payable
in the following currencies:
-Sterling                                     (7.4)                    -
-French Franc                                   -                     (0.2)
-Barbados Dollar                                -                     (0.4)  
                                                -----                 ------
                                              (7.4)                   (0.6)
                                                                              
   
Cash at Bank and in hand is analysed in the following
currencies:
-Australian Dollar                            0.4                       0.4
-Canadian Dollar                              0.6                       0.2
-Sterling                                       -                       5.8
-United States Dollar                         2.2                       2.7
-Netherland Guilder                           1.0                       1.1
-Others                                       0.3                       0.1 
                                             ------                  -------
                                              4.5                      10.3
                                             ======                  =======
Notes to the Financial Information
continued                                                                     
                                                                              
   
8.  Reconciliation of movements in
    shareholders' funds
                                          2001                      2000
                                           #m                        #m
(Loss)/profit for the financial
year                                     (0.5)                      10.5
Dividends                                (5.8)                     (5.6)
                                         ------                    -------
Retained (loss)/profit for the 
financial year                           (6.3)                       4.9
Issue of additional share capital
to shareholders                              -                       1.4      
Currency translation differences on
foreign currency net assets and
certain loans                             0.3                     (2.3)
Goodwill reinstated on disposal of
businesses                                9.0                      58.6
Goodwill charged to the profit and loss
account previously written off
directly to reserves                     1.2                       1.2
Purchase of own shares (Note 13)        (1.7)                         -
                                        ------                    -------
Net increase in shareholders' funds      2.5                      63.8
Opening shareholders' funds             60.5                     (3.3)
                                        -----                     -------
Closing shareholders' funds as at
31 January 2001                         63.0                      60.5        
                                        =====                    =======

In the year ending 31 January 2000 an exchange loss of #0.5m on relevant
foreign currency loans was taken to reserves and offset against the exchange
profit arising on the translation of the net investments in overseas
subsidiary undertakings.
                                                     
Goodwill of #10.3m which arose on the acquisition of the original shareholding
of Orient Lanka Limited in 1996 was written off to reserves. With effect from
1 February 1998 this is being amortised through the profit and loss account
over 8.5 years (the remaining life of the licence as at that date).
Accordingly, the charge in the profit and loss account of #1.2m (1999/00:
#1.2m) has been added back into shareholders' funds.
                                                                              
Notes to the Financial                                  
Information continued                                                         
             
9.  Notes to the cash flow statement

9.1 Reconciliation of operating profit to net cash inflow from operating
activities
                      Continuing   Discontinued        Total            Total
                            2001           2001         2001             2000
                              #m             #m           #m               #m
Operating                  16.3          (1.1)         15.2             20.8
profit/(loss)
Loss on sale of fixed         -              -            -              0.1
assets
Depreciation               10.2              -         10.2             11.6
Goodwill amortisation       3.2              -          3.2              2.9
(Increase)/decrease                                                           
in stocks                  (3.4)             -        (3.4)              2.3
(Increase)/decrease                                                           
in debtors                 (3.0)          (0.2)       (3.2)              6.8
Decrease)/increase                                                            
in creditors               (1.9)           0.2        (1.7)            (6.6)
                           ------          ------      ------         -------
Net cash inflow from       
operating activities       21.4          (1.1)         20.3             37.9
                           =======       =======      =======         ======= 
                                                            
9.2 Reconciliation of net cash flow to movement in net debt                   
                                                        
                                                    2001              2000
                                                    #m               #m
(Decrease) in cash in the period                    (6.9)             (4.0)
(Increase)/decrease in debt                     
and lease financing                                 (5.4)             90.8
                                                    ------          -------
Change in net cash from cash flows                 (12.3)             86.8
Translation differences                              0.3              (2.0)
                                                    -------         -------
Movements in net cash in period                    (12.0)             84.8
Net cash/(debt) at 1 February 2000                   8.6             (76.2)
                                                    ------           ------
Net (debt)/cash at 31 January 2001                  (3.4)              8.6
                                                    ======            ======
                                                                              
 
9.3  Analysis of net debt   

                     1 February           Cash     Exchange        31 January
                           2000          flows     movement              2001
                            #m             #m           #m                #m
Cash at bank and in       
hand                       10.3          (6.1)          0.3               4.5 
Overdrafts                (0.6)          (0.8)            -              (1.4)
                           9.7           (6.9)          0.3               3.1
                              
Debt  due within 1          
year                          -          (6.0)            -              (6.0)
                           
Finance leases due         
after 1 year               (1.1)          0.6             -              (0.5)
                           ------        ------        ------           ------
                           (1.1)         (5.4)            -              (6.5)
                           -----         -------       ------           ------
Total                       8.6          (12.3)          0.3             (3.4)
                           ======        =======       ======           ======
     


Notes to the Financial Information
continued
                                                                              
 
10. Acquisitions of businesses
                                                                              
                                                             Provisional
              ALPHA                                       fair value and
           Flight    Tax Free                              book value at the
          Services      Shops      ISG    AIFR     ATS     date of acquistion
              Pty       
              #m         #m       #m      #m      #m              #m          
      
Goodwill          1.8        0.6      1.8     1.2     0.9             6.3

Share of      
net assets
acquired           -         0.4     -        -       -              0.4   
Minority
interest          0.1        -       -       0.1      -              0.2
                -------     ------   ------  ------  ------        -----
Total net 
assets acquired    1.9       1.0      1.8    1.3     0.9             6.9     
Satisfied by:   
Cash
(including costs
of acquisitions)   1.9       1.0      1.8    1.3     0.2             6.2      
Deferred             
consideration       -                  -       -     0.7             0.7
                  ------    ------    ------ -----  -------        --------
                   1.9       1.0      1.8     1.3    0.9             6.9
                                                                              
On 1 February 2000 the Group acquired the remaining 15% minority interest in
ALPHA Flight Services Pty. Limited for a consideration of #1.9m. This resulted
in a further #1.8m of goodwill which is being amortised over 20 years.
                                                                              
On 15 June 2000 the Group paid #1.0m to Virgin Express, Brussels for a 49.98%
interest in Tax Free Shops. This resulted in provisional goodwill of #0.6m
which is being amortised over the life of the in-flight retailing contract
with Virgin Express (5 years).
                                                                              
 
On 4 October 2000 the Group acquired a 25% interest in Inflight Sales Group
(Asia) Limited ("ISG"), a Hong Kong based in-flight retailer, with operations
in the USA and Far East. The consideration was US $2.5m (#1.8m) and goodwill
of #1.8m arising on this acquisition will be written off over 5 years. An
additional deferred consideration of up to US$2.5m would be payable contingent
on ISG's profits exceeding a target in the year to 31 August 2001 which, based
on latest forecasts, ISG is unlikely to achieve. Therefore, no provision for
deferred consideration has been made.
                                                                              
 
On  23 October 2000 the Group acquired the remaining 20% minority interest in
ALPHA On Board Sales and Services (later renamed as ALPHA In-flight Retail
Limited), for a consideration of #1.3m. This resulted in goodwill of #1.2m
which is being written off over 20 years.
                                                                              
 
On  28 January 2001 ALPHA Flight Services Pty. Limited purchased the business
of ATS Air Terminal Services Pty Limited, a catering business based in
Brisbane, for a consideration of #0.8m payable in four instalments, of which
#0.2m was paid on acquisition.  In addition, a final amount of #0.1m will
become payable in 2003 provided the airline contract is renewed prior to the
date of that payment.  Total goodwill of #0.9m arose on the acquisition and is
being amortised over 22 months (the remaining life of the airline catering
contract).
   
Notes to the Financial Information                              
continued
                                                                              
 
11. Disposals of businesses
                                                                              
 
                               ALPHA Flight                   
                                  Services              OBSS                 
                                        SAS         Sri Lanka            Total
                                         #m                #m               #m
Net assets disposed of:
Tangible fixed assets                  0.4                 -              0.4
Stocks                                 0.1                 -              0.1
Debtors                                0.9               0.5              1.4
Creditors                             (1.5)             (0.3)            (1.8)
                                      ------           -------           -----
                                      (0.1)               0.2              0.1
Goodwill previously eliminated
against reserves                       8.1               0.9              9.0
Loss on disposal of discontinued
businesses                            (8.1)             (0.3)            (8.4)
                                      (0.1)               0.8              0.7
                                                                        
Satisfied by:
Closure costs                         (0.1)                -            (0.1)
Cash consideration                       -               0.8              0.8
                                      ------           ------         ------- 
                                     (0.1)               0.8              0.7
                                                                              
 
  
On 25 June 2000 the flight kitchen at Paris Orly ceased trading and was closed
shortly afterwards, assisted by the French courts. Losses of #1.1m up until
the date of cessation of operations have been reported within trading profit.

The loss on disposal of discontinued business (#8.1m) includes the costs of
cessation together with goodwill of #8.1m previously charged against reserves.
                                                                              
   
On 23 October 2000 the Group sold its interest in OBSS Sri Lanka for a
consideration of #0.8m which resulted in a loss on sale of #0.3m after
charging goodwill of #0.9m previously eliminated against reserves.
                                                                              
         
12. Post balance sheet events
                                                                             
Since the year end the Group has acquired a 25% interest in Airchef 2000 Srl,
for #2.9m.
                                                                              
In December 2000, the Group paid a deposit of #0.1m in respect of a proposed
purchase for the flight catering business of Banksia Pacific Pty Ltd. The
purchase was completed on 6 March 2001 for a total consideration of #1.7m.  

13. Purchase of own shares

During the year the Company purchased a total of 4.1m shares representing
2.35% of the ordinary share capital of the Company as at 31 January 2000. The
nominal value of the shares purchased (#0.4m) has been credited to the capital
redemption reserve.

The total cost of the purchase of #1.1m has been charged to the profit and
loss account reserve (Note 8).

14.  Preliminary Announcement

The preliminary results for the year ended 31 January 2001 are unaudited.  The
financial information set out above does not constitute the Group's audited
statutory accounts within the meaning of Section 240 of the Companies Act
1985.  The financial information for the year ended 31 January 2000 has been
extracted from the statutory accounts for that year which have been delivered
to the Registrar of Companies: the report of the auditors on those accounts
was unqualified and did not contain a statement under section 237 (2)or (3) of
the Companies Act 1985.  The Group accounts for the year ended 31 January 2001
will be finalised on the basis of the financial information presented by the
Directors in the Preliminary announcement.

15.  Dividend

The record date for the final dividend is 6 April 2001 and payment date is 6
June 2001.

16. Issue of Annual Reports and Accounts

The 2001 Annual Report and Accounts will be posted to shareholders by 4 May
2001.  Copies may be obtained after this date from the Company Secretary,
ALPHA Airports Group Plc, Europa House, 804 Bath Road, Cranford, Middlesex,
TW5 9US.  Telephone No. 020 580 3200.

17.  Annual General Meeting

The 2001 Annual General Meeting of ALPHA Airports Group Plc will be held in
the Aviation Suite, Heathrow Park Hotel, Bath Road, Longford, West Drayton,
Middlesex UB7 0EQ on 31 May 2001, at 11am.                                    
                   
                                       

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