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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 Number:9229T
Alpha Airports Group PLC
3 April 2002
ALPHA AIRPORTS GROUP PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY 2002
3 April 2002
Highlights
• EBITDA* of £33.1m, up 15.7% from £28.6m last year
• Operating profit* of £22.4m, up 21.7% from £18.4m last year
• Second half operating profit* of £10.6m, up 1.9% from £10.4m last year
• Exceptional items of £23.1m arising principally from the tragic events
of September 11th giving a full year pre-tax loss of £6.9m (2000/01
profit £5.9m)
• Net debt of £1.3m, down from £3.4m last year despite £14.4m spent on
acquisitions
• New 5 year £60m loan facility secured in October 2001 with 3 new banks
• Final dividend increased to 2.6 pence per share (2000/01: 2.4 pence per
share), giving a total dividend for the year of 3.6 pence per share
(2000/01: 3.4p per share) an increase of 5.9%
* Before goodwill amortisation and exceptional items.
Commenting today Kevin Abbott, Chief Executive said:
"We had a strong first half trading performance. Our ability to react quickly
to changes in business conditions meant that, at an operating level*, the impact
of September 11th was minimised. We see signs that a recovery in airline travel
is underway, and the actions we have taken position us well to benefit from this
recovery."
Enquiries:
ALPHA Airports Group Plc
Kevin Abbott, Chief Executive Tel: 020 7554 1400 (today)
Heather McRae, Finance Director Tel: 020 8580 3200 (thereafter)
Gavin Anderson & Company
Laura Hickman Tel: 020 7554 1400
Amelia Hine Tel: 020 7554 1400
Website: www.alpha-group.com
Results
Despite an exceptionally difficult end year aviation market, ALPHA managed to
maintain its recovery momentum with operating profit* up 21.7% to £22.4m. After
a first half operating profit* up 47% to £11.8m, the tragic events of September
11th led to a sharp reduction in the number of passengers flying. However, an
improvement in second half operating profit* of some 1.9% to £10.6m was achieved
through energetic cost cutting to rebalance our service capacity to match
reduced demand. This necessitated much restructuring of the business,
generating £23.1m of exceptional items comprising £15.7m of redundancy, flight
kitchen closures in Australia, asset impairment and goodwill write-off costs,
with the associated loss of 923 jobs primarily in flight services. In addition,
two Retail contracts in the UK and USA, which have experienced a dramatic
reduction in international passenger numbers became more onerous, with the need
for a further provision for future anticipated losses and asset impairment
costing £8.1m. We also generated a gain on disposal of businesses of £0.9m from
the release of a provision set up in earlier years and a loss on disposal of our
retail operation in Barbados of £0.2m.
Since September 11th, the group has reinforced its focus on cash control, and it
is pleasing that year-end working capital is some £11.2m lower than last year's
level, with a group net debt of only £1.3m, again lower than last year's £3.4m
net debt, despite significant investment and £14.4m of international
acquisitions. Since September 11th the group has also refinanced all its loan
facilities and UK banking arrangements, with new banks appointed - The Royal
Bank of Scotland, Barclays Bank and Allied Irish Banks - providing a £60 million
multi-currency revolving facility for a 5 year term.
Earnings per Share
A net loss per share of 8.15 pence (2000/01: loss per share of 0.29 pence)
reflects the exceptional charges made. On an adjusted basis, earnings per share
has increased 10.8% to 7.26 pence per share (2000/01: earnings of 6.55 pence per
share) reflecting the increase in underlying operating profit*.
Dividend
Despite second half profits tempered by exceptional items, the Board recommends
an increase in the final dividend to 2.6 pence per ordinary share (2000/01 2.4
pence). Together with the interim dividend of 1.0 pence per ordinary share,
this results in a total dividend for 2001/2 of 3.6 pence per ordinary share
(2000/01: 3.4 pence per share), an increase of 5.9%.
Flight Services
Flight Services started the year well with first half sales up 3% and first half
operating profit* up 20% from continuing operations. The full year ended with
sales from continuing operations of £261.7m, which were 1% below the previous
year with UK meal volumes reducing 6%; however operating profit* from continuing
operations improved 8%, due to further improvements in productivity and wastage
control.
(* Before goodwill amortisation and exceptional items)
A number of small acquisitions were made during the year in Australia and,
together with our partner Servair, we acquired a 25% minority stake in AirChef
2000, a business which operates 15 kitchens throughout Italy. We also made our
first step into the Middle East in August, acquiring a 51% majority stake in a
flight catering business in Jordan for a consideration of £8.9m. This business
has traded well since acquisition. Our Australian business has now stabilised
despite the collapse of both Ansett and the Tesna consortium's offer to acquire
Ansett from the administrators.
At year-end, ALPHA Flight Services was awarded ISO9001 - 2002 accreditation
throughout its UK network of flight kitchens and bond warehouses confirming the
progress made with our Innovate process improvement model.
Retail Services
Retail enjoyed a good start to the year, with first half sales up 10%, and first
half operating profit* from continuing operations more than doubled primarily
due to the restructuring in the first quarter. In the second half the momentum
was maintained despite lower passenger numbers, as the dwell times at airports
increased after September 11th, generating improvements in both penetration and
spend.
Overall, the year ended with sales from continuing operations 5% ahead of last
year, with operating profit* from continuing operations up 59%.
A key driver of our 11% UK like-for-like sales improvement was our new shop at
Manchester T1 which has been a great success. We also extended our relationship
with Manchester Airport Plc, and entered into a new contract for duty and tax
free shopping at Terminals 2 and 3. This contract commenced in January 2002.
Our business in Sri Lanka was impacted following the terrorist activity at the
end of July, but the trend is improving and with a new government in place
committed to generating peace on the island, we are hopeful of a recovery in
sales and profitability as tourist numbers recover.
Pensions
The Group has complied with FRS17 "Retirement Benefits" for the year-end
financial statements. The transitional requirement permits the Group to
disclose the effects of FRS17 on the balance sheet but not to account under this
method. For the Group, there is a worldwide net pension deficit which would
have resulted in a £5.6m charge to group distributable reserves at 31 January
2002. The triennial actuarial valuation of the UK pension scheme will be
conducted at 5 April 2002 and following this review, the future funding strategy
of the UK scheme will be decided. The pension charge of £2.8m continues to be
computed on a SSAP24 basis. Under FRS17 and on the basis of the deficit of
£5.6m, the net pension charge would rise to £2.9m.
(* Before goodwill amortisation and exceptional items)
People
This year has seen enormous pressure on our people particularly following the
necessary downsizing since September 2001, and the Board thanks each and
everyone of them for their support and dedication in what became a difficult and
pressurised market environment.
Strategy and Outlook
The company's strategy remains focused on the continued development of our core
skills of catering and retailing for airlines and airports, and building deeper
and wider outsourcing relationships with our customers. After a challenging
period of change the group is in good shape, both managerially and financially,
to grow and make investments and acquisitions, both in the UK and
internationally.
For both our divisions the year has started well with passenger figures above
our expectations albeit still below the previous year's levels. Customer
forecasts now indicate that passenger activity should have recovered fully by
the second half of the year. The actions we have taken position us well to
benefit from this recovery particularly in the second half.
(* Before goodwill amortisation and exceptional items)
Group Profit and Loss Account
for the year ended 31 January 2002
Before Exceptional
Exceptional Items
Items (Note 3) Total Total
2002 2002 2002 2001
Notes £m £m £m £m
Turnover
- Continuing 419.4 - 419.4 413.5
- Discontinued 11.4 - 11.4 19.5
Turnover 1 430.8 - 430.8 433.0
Cost of sales (283.3) - (283.3) (296.5)
Gross profit 147.5 - 147.5 136.5
Administration expenses (129.3) (22.1) (151.4) (121.3)
EBITDA 33.1 (10.3) 22.8 28.6
Depreciation on tangible assets (10.7) (1.2) (11.9) (10.2)
Amortisation of goodwill (4.2) (10.6) (14.8) (3.2)
Operating profit/(loss) 18.2 (22.1) (3.9) 15.2
Operating profit/(loss)
- Continuing 17.9 (22.1) (4.2) 15.9
- Discontinued 0.3 - 0.3 (0.7)
18.2 (22.1) (3.9) 15.2
Share of operating loss of
associates (including goodwill
charges of £2.3m) (0.7) (1.7) (2.4) (0.2)
Profit/(loss) on disposal of
discontinued operations - 0.7 0.7 (8.4)
Profit/(loss) on ordinary 1 17.5 (23.1) (5.6) 6.6
activities before interest
Interest receivable 0.2 - 0.2 0.2
Interest payable (1.5) - (1.5) (0.9)
Profit/(loss) on ordinary 1 16.2 (23.1) (6.9) 5.9
activities before taxation
Taxation on profit/(loss) on 4 (7.8) 1.6 (6.2) (6.4)
ordinary activities
Profit/(loss) on ordinary 8.4 (21.5) (13.1) (0.5)
activities after taxation
Minority interest (equity) (0.8) - (0.8) -
Profit/(loss) for the financial 7.6 (21.5) (13.9) (0.5)
year
Equity dividends 5 (6.1) - (6.1) (5.8)
Retained profit/(loss) for the 1.5 (21.5) (20.0) (6.3)
financial year
Loss per share 6 (8.15p) (0.29p)
Diluted loss per share 6 (8.15p) (0.29p)
IIMR headline earnings per share 6 2.28p 6.55p
Adjusted earnings per share 6 7.26p 6.55p
Statement of total recognised gains and losses
for the year ended 31 January 2002
2002 2001
£m £m
Loss for the financial year (13.9) (0.5)
Currency translation differences on foreign (0.9) 0.3
currency net assets and certain loans
Total recognised gains and losses for the year (14.8) (0.2)
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 Sheets
at 31 January 2002
Group Company
-------------------- ----------------------------------------
2002 2001 2002 2001
Notes £m £m £m £m
Fixed assets
Intangible assets 14.7 17.7 - -
Tangible assets 56.9 60.0 - -
Investments 3.1 2.6 201.0 210.6
74.7 80.3 201.0 210.6
Current assets
Stocks 18.9 24.6 - -
Debtors 24.1 28.0 35.9 48.2
Cash at bank and in hand 21.8 4.5 41.1 6.1
64.8 57.1 77.0 54.3
Creditors: amounts falling due within one year
Bank and other borrowings 7 (23.1) (7.4) (23.0) (6.0)
Other creditors (60.0) (58.4) (35.4) (22.3)
(83.1) (65.8) (58.4) (28.3)
Net current (liabilities)/assets (18.3) (8.7) 18.6 26.0
Total assets less current liabilities 56.4 71.6 219.6 236.6
Creditors: amounts falling due after more than
one year
Other creditors - (0.6) - -
Provisions for liabilities and charges (12.2) (8.0) - -
Total net assets 44.2 63.0 219.6 236.6
Capital and reserves
Called up share capital 17.1 17.1 17.1 17.1
Share premium account 42.2 42.2 42.2 42.2
Capital redemption reserve 0.4 0.4 0.4 0.4
Other reserves - - 152.3 152.3
Profit and loss account (16.4) 3.3 7.6 24.6
Shareholders' funds 43.3 63.0 219.6 236.6
Minority interests (equity) 0.9 - - -
Total equity 44.2 63.0 219.6 236.6
Approved by the Board of Directors on 3 April 2002
Kevin Abbott, Chief Executive Heather McRae, Finance Director
Group Cash Flow Statement
for the year ended 31 January 2002
2002 2001
Notes £m £m
Net cash inflow from operating activities 9.1 40.8 20.3
Returns on investments and servicing of finance
Interest received 0.2 0.2
Interest paid (1.5) (0.9)
Dividends paid to minority shareholders in subsidiary undertakings (0.5) (0.1)
Net cash outflow from returns on investments and servicing of finance (1.8) (0.8)
Taxation (8.2) (6.7)
Capital expenditure
Purchase of tangible fixed assets (11.5) (16.1)
Sale of tangible fixed assets 2.3 3.8
Net cash outflow for capital expenditure (9.2) (12.3)
Acquisitions and disposals
Purchase of businesses 10 (11.6) (0.2)
Disposal of businesses 11 1.2 0.7
Purchase of minority interests in subsidiary undertakings - (3.2)
Purchase of associates 10 (2.8) (2.8)
Net cash outflow for acquisitions and disposals (13.2) (5.5)
Equity dividends paid (5.8) (5.6)
Net cash inflow/(outflow) before financing 2.6 (10.6)
Financing
Purchase of own shares - (1.7)
Unsecured loan less than 1 year 17.1 6.0
Capital element of finance lease payments (0.5) (0.6)
Net cash inflow from financing 16.6 3.7
Increase/(decrease) in cash 19.2 (6.9)
Notes to the Financial Information
1. Segmental analysis
Turnover Profit/(loss) before Net assets/
interest (liabilities)
2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m
(a) Business sector analysis
Flight
Services
- continuing operations * 261.7 263.9 17.8 16.4 50.1 53.5
- discontinued operations 7.8 12.3 0.8 (0.5) - -
- share of operating loss of associates
(including goodwill charges) - - (2.4) (0.2) - -
- goodwill amortisation - - (2.3) (1.4) - -
- exceptional items - - (13.1) - (11.3) -
(continuing operations)
- loss on disposal of - - - (8.4) - -
discontinued operations
269.5 276.2 0.8 5.9 38.8 53.5
Retail
Services
- continuing operations * 157.7 149.6 4.3 2.7 16.9 18.3
- discontinued operations 3.6 7.2 (0.5) (0.2) - -
- goodwill amortisation - - (1.9) (1.8) - -
- exceptional items - - (9.0) - (9.7) (3.2)
(continuing operations)
- loss on disposal of - - (0.2) - - -
discontinued operations
161.3 156.8 (7.3) 0.7 7.2 15.1
430.8 433.0 (6.5) 6.6 46.0 68.6
Corporate exceptional item - - 0.9 - (0.5) (2.2)
430.8 433.0 (5.6) 6.6 45.5 66.4
Net interest payable - - (1.3) (0.7) - -
Net borrowings - - - - (1.3) (3.4)
Turnover, (loss)/profit on ordinary
activities before
taxation and net assets 430.8 433.0 (6.9) 5.9 44.2 63.0
* Before goodwill amortisation and exceptional items.
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) before Net assets/(liabilities)
interest
2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m
(b) Geographical analysis
United
Kingdom
- continuing operations * 357.2 356.5 14.9 12.1 40.0 52.5
- goodwill amortisation - - (1.3) (1.3) - -
- exceptional items - - (15.2) - (12.6) -
(continuing operations)
357.2 356.5 (1.6) 10.8 27.4 52.5
Rest of the
World
- continuing operations * 62.2 57.0 7.2 7.0 27.0 19.3
- discontinued operations 11.4 19.5 0.3 (0.7) - -
- goodwill amortisation - - (2.9) (1.9) - -
- share of operating loss
of associates (including
goodwill charges) - - (2.4) (0.2) - -
- exceptional items - - (6.9) - (8.4) (3.2)
(continuing operations)
- loss on disposal of - - (0.2) (8.4) - -
discontinued operations
73.6 76.5 (4.9) (4.2) 18.6 16.1
430.8 433.0 (6.5) 6.6 46.0 68.6
Corporate exceptional item - - 0.9 - (0.5) (2.2)
430.8 433.0 (5.6) 6.6 45.5 66.4
Net interest - - (1.3) (0.7) - -
Net - - - - (1.3) (3.4)
borrowings
Turnover, (loss)/profit on
ordinary activities before 430.8 433.0 (6.9) 5.9 44.2 63.0
taxation and net assets
* Before goodwill amortisation and exceptional
items.
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.
2. The accounts have been prepared under the historical cost convention and in
accordance with applicable accounting standards. The accounting policies are
the same as those used last year, except for the adoption of FRS 18 "Accounting
Policies" and FRS 19 "Deferred Taxation" and the adoption of the transitional
arrangements of FRS 17 "Retirement Benefits" which are effective for the first
time this year.
In respect of Retirement Benefits, in accordance with the transitional
arrangements permitted by FRS 17, the Group's results do not include the effect
of fully implementing FRS 17. However, the impact on the balance sheet at 31
January 2002 as if FRS 17 were fully implemented has been disclosed in note 12.
In adopting FRS 18, we have reviewed the accounting policies and estimation
techniques used by the Group and the Directors have satisfied themselves that
these are the most appropriate policies for the Group. As a result of this
review there have been no changes to the Group's accounting policies arising
from the adoption of FRS 18.
FRS 19 requires that full provision is made for deferred taxation on all
timing differences and replaces the previous policy which required partial
provisions only. The adoption of this standard did not necessitate a prior year
adjustment on the grounds of materiality.
Notes to the Financial Information
continued
3. Operating profit is analysed between continuing and
discontinued operations as follows:
Continuing Discontinued Exceptional Continuing Discontinued
operations operations items Total operations operations Total
2002 2002 2002 2002 2001 2001 2001
£m £m £m £m £m £m £m
Turnover 419.4 11.4 - 430.8 413.5 19.5 433.0
Cost of sales (276.8) (6.5) - (283.3) (284.4) (12.1) (296.5)
Gross Profit 142.6 4.9 - 147.5 129.1 7.4 136.5
Administration
expenses (124.7) (4.6) (22.1) (151.4) (113.2) (8.1) (121.3)
EBITDA 32.6 0.5 (10.3) 22.8 28.9 (0.3) 28.6
Depreciation on
tangible assets (10.5) (0.2) (1.2) (11.9) (9.8) (0.4) (10.2)
Amortisation of
goodwill (4.2) - (10.6) (14.8) (3.2) - (3.2)
Operating profit/
(loss) 17.9 0.3 (22.1) (3.9) 15.9 (0.7) 15.2
Exceptional items
The exceptional items for the year ended 31 January 2002 comprise :
In respect of operating profit from continuing operations:
1) £3.0m of restructuring costs incurred, principally in the UK, of which
£2.0m was paid during the year and £1.0m was outstanding at the year end.
2) a further provision of £4.9m in respect of the duty free retail
operation in Orlando, being the directors' estimate of the unavoidable net
costs accruing under this onerous contract following the extension of the
contract up to a further three years from June 2002 by the Greater Orlando
Aviation Authority.
3) a provision of £2.4m in respect of UK retail operations, being the
directors' estimate of unavoidable net costs accruing under an onerous
contract, together with an impairment provision of £0.8m against fixed assets.
4) a fixed asset write down of £0.4m in Australia following the reduction
of flight catering operations in that region.
5) a goodwill impairment charge of £9.1m in respect of the Gatwick
operation following the announcement by British Airways of planned reductions
of operations at that airport and £1.5m in respect of the Banksia Pacific Pty
Ltd acquisition in Australia.
In addition, goodwill impairment charges were made in relation to the Group's
associate investments in VECATS S.A./N.V. (£0.4m) and Inflight Sales Group
(Asia) Limited (£1.3m).
The disposal of A G Retail Inc (Barbados) for nominal consideration generated
a loss on disposal of £0.2m, offset by a release of a provision of £0.9m which
was no longer required. This provision related to environmental exposures and
was set up in an earlier year, giving an exceptional net profit on disposal of
businesses of £0.7m.
Notes to the Financial Information
continued
4. Taxation
2002 2001
£m £m
Before exceptional items:
United Kingdom corporation tax at 30 % (2000/01 - 30%) 7.4 7.1
Double tax relief (3.0) (3.2)
Prior year adjustments (0.1) (0.4)
Overseas taxation 3.7 3.0
Movement in deferred tax (0.2) (0.1)
7.8 6.4
Tax on exceptional items
- current tax (0.6) -
- deferred tax (1.0) -
6.2 6.4
Taxation as a percentage of profit before taxation before exceptional 48% 108%
items
Taxation as a percentage of profit before taxation, exceptional items and 37% 36%
goodwill amortisation
5. Equity Dividends
2002 2001
£m £m
Interim dividend of 1.0p per ordinary share (2000/01 - 1.0p) 1.7 1.7
Proposed final dividend of 2.6p per ordinary share (2000/01 - 2.4p) 4.4 4.1
Total dividend of 3.6p per ordinary share (2000/01 - 3.4p) 6.1 5.8
6. Earnings per share
(Loss)/profit for the year
2002 2001 2002 2001
£m £m Pence Pence
Loss for the financial year and (loss)/earnings
per share (13.9) (0.5) (8.15) (0.29)
Adjustment for loss/(profit) on disposal of
discontinued operations (0.7) 8.4 (0.41) 4.87
Adjustment for impairment in fixed assets 1.2 - 0.70 -
Adjustment for loss on disposal of fixed assets 0.2 - 0.12 -
Adjustment for goodwill amortisation and
impairment 17.1 3.4 10.02 1.97
Adjusted profit and IIMR headline earnings per
share 3.9 11.3 2.28 6.55
Adjustment for exceptional items 10.3 - 6.04 -
Adjustment for loss on disposal of fixed assets (0.2) - (0.12) -
Taxation relating to these items (1.6) - (0.94) -
Adjusted profit and adjusted earnings per share 12.4 11.3 7.26 6.55
The weighted average number of shares in issue during the year was 170,581,815
(2000/01: 172,491,309). 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
the Institute of Investment Management and Research (IIMR). The IIMR headline
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 share by eliminating the effect of
exceptional items and the loss on sale of fixed assets, adjusted for any tax
effect.
Diluted loss per share of 8.15p (2000/01: loss per share of 0.29p) has been
calculated by reference to the loss for the financial year of £13.9m (2000/01:
loss of £0.5m) and the weighted average number of shares in issue during the
year of 170,581,815 (2000/01: 172,491,309), as adjusted for potentially dilutive
ordinary shares.
Notes to the Financial Information
continued
7. Net borrowings
2002 2001
£m £m
7.1 Bank and other borrowings
Unsecured loans (23.1) (6.0)
Bank overdrafts - (1.4)
Total bank and other borrowings (23.1) (7.4)
7.2 Repayment analysis
Repayable otherwise than by instalments:
- within one year or on demand (23.1) (7.4)
7.3 Net borrowings
Total bank and other borrowings (23.1) (7.4)
Finance lease obligations :
- due within one year - (0.3)
- due between one and two years - (0.2)
- (0.5)
Cash at bank and in hand 21.8 4.5
Net borrowings (1.3) (3.4)
7.4 Currency Analysis
Bank and other borrowings are payable in the following
currencies:
- Sterling (23.0) (7.4)
- Australian Dollar (0.1) -
(23.1) (7.4)
Cash at Bank and in hand is analysed in the following
currencies:
- Sterling 14.5 -
- Australian Dollar 0.5 0.4
- Canadian Dollar 0.9 0.6
- United States Dollar 3.9 2.2
- Euro 1.8 -
- Netherlands Guilder - .0
- Others 0.2 0.3
21.8 4.5
Notes to the Financial Information
continued
8. Reconciliation of movements in shareholders'
funds
2002 2001
£m £m
Loss for the financial year (13.9) (0.5)
Dividends (6.1) (5.8)
Retained loss for the financial year (20.0) (6.3)
Currency translation differences on foreign currency net (0.9) 0.3
Goodwill reinstated on disposal of businesses - 9.0
Goodwill charged to the profit and loss account previously written off directly
to reserves 1.2 1.2
Purchase of own shares - (1.7)
Net (decrease)/increase to shareholders' funds (19.7) 2.5
Opening shareholders' funds 63.0 60.5
Closing shareholders' funds as at 31 January 2002 43.3 63.0
In the year ending 31 January 2002 an exchange loss of £Nil (2000/01: £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 (2000/01: £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
2002 2002 2002 2001
£m £m £m £m
Operating profit/ (4.2) 0.3 (3.9) 15.2
(loss)
Loss on sale of fixed 0.2 - 0.2 -
assets
Depreciation 11.7 0.2 11.9 10.2
Goodwill amortisation 14.8 - 14.8 3.2
Decrease/(increase) in stocks 2.7 0.4 3.1 (3.4)
Decrease/(increase) in debtors 3.2 1.2 4.4 (3.2)
Increase/(decrease) in 13.4 (3.1) 10.3 (1.7)
creditors
Net cash inflow from operating activities 41.8 (1.0) 40.8 20.3
9.2 Reconciliation of net cash flow to movement in net debt
2002 2001
£m £m
Increase/(decrease) in cash in the period 19.2 (6.9)
(Increase) in debt and lease financing (16.6) (5.4)
Change in net cash from cash flows 2.6 (12.3)
Translation differences (0.5) 0.3
Movements in net cash in period 2.1 (12.0)
Net (debt)/cash at 1 February (3.4) 8.6
Net debt at 31 January (1.3) (3.4)
9.3 Analysis of net debt 1 February Cash Exchange
2001 flows movement 2002
£m £m £m £m
Cash at bank and in hand 4.5 17.8 (0.5) 21.8
Overdrafts (1.4) 1.4 - -
3.1 19.2 (0.5) 21.8
Debt due within 1 year (6.0) (17.1) - (23.1)
Finance leases (0.5) 0.5 - -
(6.5) (16.6) - (23.1)
Total (3.4) 2.6 (0.5) (1.3)
Notes to the Financial Information
continued
10. Acquisition of businesses Jordan
Flight Provisional
Banksia Catering fair value
and
Pacific Company book value
at the
Pty Ltd Canberra Limited date of
acquisition
£m £m £m £m
Tangible fixed assets 0.1 - 0.5 0.6
Stocks - - 0.4 0.4
Debtors - - 1.1 1.1
Cash at bank and in hand - - 0.4 0.4
Creditors - - (1.2) (1.2)
0.1 - 1.2 1.3
Minority interest - - (0.6) (0.6)
Net assets acquired 0.1 - 0.6 0.7
Goodwill 1.6 1.4 8.3 11.3
Consideration 1.7 1.4 8.9 12.0
Satisfied by:
Cash (including costs of
acquisitions) 1.7 1.4 8.9 12.0
1.7 1.4 8.9 12.0
Net cash outflow arising on acquisitions of £m
businesses comprised:
Cash consideration 12.0
Cash at bank and in hand
acquired (0.4)
11.6
On 6 March 2001 the Group purchased the flight catering business of Banksia
Pacific Pty Ltd. for a consideration of £1.7m. This resulted in goodwill of
£1.6m which was initially being amortised over 10 years, but as a result of
changes in trading activity, the remaining goodwill at 31 January 2002 has been
fully written off.
On 19 May 2001 the Group purchased the flight catering business of Hyatt Hotel
Canberra for a consideration of £1.4m. This resulted in goodwill of £1.4m which
is being amortised over 10 years.
On 1 August 2001 the Group acquired 51% of the Jordan Flight Catering Company
Limited for a consideration of £8.9m. The acquisition resulted in provisional
goodwill of £8.3m which is being amortised over 10 years, being the life of the
contract of the principal customer, Royal Jordanian Airlines.
In addition to the acquisition of businesses, on 2 April 2001 the Group acquired
a 25% interest in AirChef 2000 Srl for a consideration of £2.8m . This resulted
in goodwill of £2.5m which is being amortised over 20 years.
continued
11. Disposal of businesses
In-flight
Retail AG Retail
Canada Inc Total
£m £m £m
Net assets disposed of:
Intangible fixed assets - 0.1 0.1
Tangible fixed assets - 0.6 0.6
Stocks 1.3 1.9 3.2
Debtors - 0.2 0.2
Creditors - (2.0) (2.0)
Bank overdraft - (0.6) (0.6)
1.3 0.2 1.5
Loss on disposal of discontinued businesses - (0.2) (0.2)
1.3 - 1.3
Satisfied by:
Cash consideration 1.3 - 1.3
Net cash inflows arising on the disposal of businesses £m
comprised:
Cash consideration for Alpha In-flight Retail Canada 1.3
Bank overdraft of AG Retail Inc 0.6
Payment in respect of litigation settlement arising from the disposal of
DynAir in a previous year (0.7)
1.2
At the end of October 2001 the Group disposed of its 51% holding in AG Retail
Inc (Barbados) for a nominal amount. The balance sheet at that date included
external borrowings of £0.6m, hence a net cash inflow to the Group on disposal.
In November 2001 the Group disposed of its In-flight Retail Canada operation,
transferring stocks and fixed assets at net book value, for which £1.3m was
received. The payment for the sale of the business of approximately £1.0m has
been deferred due to uncertainties and will be recognised when received.
12. Pensions
The relevant transitional rules for FRS 17 "Retirement Benefits" have been
adopted for the first time this year. The Group's actuaries, Bacon & Woodrow,
have assessed the impact of FRS 17 on the Group's balance sheet. A charge to
Group distributable reserves of £5.6m would have arisen if the Group had
accounted for pensions under FRS 17 at 31 January 2002. The market value of the
assets at 31 January 2002 were £40.9m and the net present value of the schemes'
liabilities were £48.9m, resulting in a charge of £8.0m before a deferred tax
credit of £2.4m, leaving a net charge of £5.6m.
13. Preliminary Announcement
The preliminary results for the year ended 31 January 2002 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 2001 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 2002 will
be finalised on the basis of the financial information presented by the
Directors in the preliminary announcement.
14. Dividend
The record date for the final dividend is 12 April 2002 and payment date is 5
June 2002.
15. Issue of Annual Reports and Accounts
The Annual Report 2001/02 will be posted to shareholders by 29 April 2002.
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 8580 3200.
16. Annual General Meeting
The Annual General Meeting of ALPHA Airports Group Plc will be held at the Le
Meridien Hotel, Bath Road, Heathrow on 30 May 2002.
This information is provided by RNS
The company news service from the London Stock Exchange
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