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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 |
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RNS Number:2900R
Alpha Airports Group PLC
21 September 2000
ALPHA Airports Group Plc
Results for the Six Months ended 31 July 2000
Unaudited
HIGHLIGHTS
* As expected operating profit* from continuing operations at #9.1m
(1999/00 #11.1m), on sales down #29.3m
* Flight Services, our major business activity, reported operating profit*
of #8.4m from continuing operations, 8% up on last year
* Costs associated with the closure of our Paris Orly kitchen lower than
anticipated
* As expected UK Travel Retail seriously affected by the abolition of intra
EU Duty and Tax Free allowances last year
* New 5 year airport services contract with TBI Plc and a 10 year contract
with RoadChef for UK motorway services gives rise to confidence in the
future prospects of UK Travel Retail
* Joint European development strategy agreed with Servair, ALPHA's major
industrial shareholder
* Strong balance sheet, with shareholders' funds of #62.0m (31 July 1999:
#3.7m) and net debt of #5.6m (31 July 1999: #87.1m), provides financing
scope for significant international investment
* Before goodwill amortisation and exceptional items
Mr Kevin Abbott, Chief Executive, commenting on the results today said:
"With strong core UK service networks and credentials, European development
opportunities with partners such as Servair, and international opportunities
in our target markets, we are confident of recovery from this the last stage
of our enforced down-sizing."
Enquiries:
ALPHA Airports Group Plc
Kevin Abbott, Chief Executive Tel: 020 7457 2345 (today)
Heather McRae, Finance Director Tel: 020 8580 3200 (thereafter)
Gavin Anderson & Company
Laura Hickman Tel: 020 7457 2345
Website: www.alpha-group.com
SUMMARY
Sales
Sales in Flight Services (including In-flight Retail) have increased by some
5% over the first six months of last year. As expected, with the abolition of
EU Duty and Tax Free allowances last June and the end of the BAA retail
management contract at London Gatwick in the first half of last year, the
decline in sales in Travel Retail continued in the first six months, but since
July 2000 sales have recovered by some 10% over the same period last year.
Net Debt
Net debt at 31 July 2000 was #5.6m reflecting international investment, and
the buy back of 2.85 million (1.6%) of the Group's shares.
Taxation
The underlying tax rate for the first half was 33.8%. As previously reported
this higher rate reflects the mix of overseas business and the loss of the
low-tax benefits previously received from DynAir.
Dividend
The Board has declared an interim dividend of 1.0 pence per ordinary share
(1999/00 Interim: 1.0 pence). This dividend will be paid on 3 November
2000 to shareholders on the Register as at 6 October 2000.
ALPHA Flight Services
The Flight Services division reported a 5% growth in sales from continuing
operations and an 8% growth in profits despite incurring additional property
costs associated with our new kitchen at Heathrow, which will open in
November 2000. The operations in our two existing Heathrow kitchens will
transfer completely to the new kitchen by the end of this financial year and
those kitchens will close.
We continue to realise enhanced results from our Innovate process improvement
programme.
Trading from our Paris, Orly kitchen ceased at the end of June. In a
declining, but highly competitive market environment, it was evident that the
kitchen would not return to an acceptable level of profitability within the
foreseeable future. The closure, assisted by the French courts, is
substantially complete. The loss on cessation is #0.2m before the elimination
of goodwill of #8.1m. The first half trading loss, pre-closure was #1.1m.
Our In-flight Retail business has renegotiated an extended contract with Air
Canada and Canadian Airlines, following the merger of these airlines. In the
UK, our In-flight Retail concessions have been successfully reconfigured
following the abolition of intra EU Duty and Tax Free allowances; for the low-
cost airlines, these concessions now focus principally on food and beverage
provision.
ALPHA Travel Retail
As expected sales and profits in our UK shops have been reduced significantly
due to the abolition of intra EU Duty and Tax Free allowances last year.
Summer 2000 sales have improved by over 10% year on year as travellers begin
to understand the on-going travel retail opportunities available to them.
Traveller confusion, however, still exists and our staff have worked
diligently to enhance customer understanding and thus satisfaction through
clear promotions, changed merchandise mix and improved presentation formats.
With major passenger terminal developments at both Luton and Newcastle, our
retail and restaurant concessions at these airports have been adversely
affected by the ensuing disruption.
Off-airport, following on the success of our new World News format, we have
entered the first stages of a potential 10 year contract with RoadChef at 20
UK motorway service stations. This is the first off-airport evidence of our
wider ambitions in UK travel retail.
Outlook
We continue to anticipate a good second half performance, to deliver a result
for the full year in line with expectations.
Group Profit and Loss Account
Unaudited Six months ended Year ended
31 July 31 July 31 Jan
2000 1999 2000
Notes #m #m #m
Turnover
- Continuing 211.7 241.0 442.0
- Discontinued 1.0 70.0 73.1
Turnover 2 212.7 311.0 515.1
Cost of sales (142.7) (190.9) (334.5)
Gross profit 70.0 120.1 180.6
Administration expenses (62.0) (103.4)* (156.9)
before goodwill amortisation
Goodwill amortisation (1.6) (1.3) (2.9)
Total administration expenses (63.6) (104.7) (159.8)
Other operating charges - (0.1) -
Operating profit
- Continuing 7.5 9.8 16.3
- Discontinued (1.1) 5.5* 4.5
6.4 15.3 20.8
(Loss)/profit on disposal
of discontinued
operations 10 (8.3) - 1.7
(Loss)/profit on ordinary
activities before interest 2 (1.9) 15.3 22.5
Interest receivable 0.1 0.3 0.5
Interest payable (0.4) (3.2) (3.7)
(Loss)/profit on ordinary
activities before taxation 2 (2.2) 12.4 19.3
Taxation on profit on
ordinary activities (2.6) (4.0) (8.2)
(Loss)/profit on ordinary
activities after taxation (4.8) 8.4 11.1
Minority interest (equity) - (0.5) (0.6)
(Loss)/profit for the
financial period (4.8) 7.9 10.5
Equity dividends 3 (1.7) (1.7) (5.6)
Retained (loss)/profit
for the financial period (6.5) 6.2 4.9
(Loss)/earnings per share 4 (2.76p) 4.59p 6.07p
Diluted (loss)/earnings
per share 4 (2.76p) 4.58p 6.06p
IIMR headline earnings
per share 4 2.93p 5.41p 7.70p
Adjusted earnings
per share 4 2.93p 5.18p 7.64p
* The amounts for the 6 months ended 31 July 1999 includes an exceptional
item as described in Note 8.
Statement of total recognised gains and losses
(Loss)/profit for the
financial period (4.8) 7.9 10.5
Currency translation
differences on foreign
currency net assets and
certain loans 0.5 (0.3) (2.3)
Total recognised gains and
losses for the period (4.3) 7.6 8.2
Prior year adjustment - - 0.3
(Note 7)
Total gains and losses
recognised since last
Annual Report (4.3) 7.6 8.5
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 31 Jan
2000 1999* 2000
Notes #m #m #m
Fixed assets
Intangible assets 17.2 15.0 15.8
Tangible assets 60.9 85.1 57.9
Investments 0.4 0.1 -
78.5 100.2 73.7
Current assets
Stocks 27.4 25.8 20.6
Debtors 39.0 62.2 26.2
Cash at bank and
in hand 5.2 13.0 10.3
71.6 101.0 57.1
Creditors: amounts
falling due within
one year
Bank and other (2.9) (2.8) (0.6)
borrowings
Other creditors (69.6) (91.2) (60.4)
(72.5) (94.0) (61.0)
Net current (0.9) 7.0 (3.9)
(liabilities)/assets
Total assets less
current liabilities 77.6 107.2 69.8
Creditors: amounts
falling due after more
than one year
Bank and other
borrowings (7.0) (95.9) -
Other creditors (0.4) (2.1) (0.4)
(7.4) (98.0) (0.4)
Provisions for
liabilities (8.2) (4.6) (8.6)
and charges
Total net assets 62.0 4.6 60.8
Capital and reserves
Called up share capital 17.2 17.3 17.5
Share premium account 42.2 41.5 42.2
Capital redemption 11 0.3 - -
reserve
Profit and loss account 2.3 (55.1) 0.8
Shareholders' funds 5 62.0 3.7 60.5
Minority interests
(equity) - 0.9 0.3
Total equity 62.0 4.6 60.8
* The amounts at 31 July 1999 have been restated as described in Note
7.
Group Cash Flow Statement
Unaudited Six Six months Year
months
ended ended ended
31 July 31 July 31 Jan
2000 1999 2000
Notes #m #m #m
Net cash inflow from
operating activities 6(1) 4.7 19.5 37.9
Net cash outflow from
returns on investments
and servicing of finance (0.5) (4.0) (5.0)
Taxation paid (1.6) (2.7) (8.2)
Net capital expenditure (8.4) (8.0) (11.3)
Purchase of businesses (3.0) (14.0) (14.6)
Disposal of business (0.4) - 90.3
Equity dividends paid (3.9) (1.3) (2.3)
Purchase of own shares 11 (1.2) - -
Net cash (outflow)/inflow
before financing (14.3) (10.5) 86.8
Financing
Debt due beyond one year
- Unsecured loan repayable
in 2003 7.0 6.0 -
Repayment of long-term loan - - (90.0)
Capital element of finance
lease payments (0.2) (0.4) (0.8)
Net cash inflow/(outflow)
from financing 6.8 5.6 (90.8)
Decrease in cash 6(2) (7.5) (4.9) (4.0)
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 2000.
The interim financial statements are unaudited but have been reviewed
by the auditors and their report is set out in the Interim Report to
shareholders. The comparative figures for the year ended 31
January 2000 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 Year
ended ended ended
31 July 31 July 31 Jan
2000 1999 2000
#m #m #m
(a) Turnover
Business sector analysis
ALPHA Flight Services
- continuing operations 137.2 130.0 254.9
- discontinued operation 1.0 5.3 8.4
138.2 135.3 263.3
ALPHA Travel Retail 74.5 111.0 187.1
ALPHA Ground Services - 64.7 64.7
(discontinued operation)
Total turnover 212.7 311.0 515.1
Geographical analysis
United Kingdom 176.5 208.6 373.3
Rest of the world
- continuing operations 35.2 32.4 68.7
- discontinued operations 1.0 70.0 73.1
36.2 102.4 141.8
Total turnover 212.7 311.0 515.1
2. Segmental analysis (continued)
Six months Six months Year
ended ended ended
31 July 31 July 31 Jan
2000 1999 2000
#m #m #m
(b) Profit before taxation
Business sector analysis
ALPHA Flight Services
- continuing operations 8.4 7.8 13.0
- discontinued operation (1.1) 0.4 (0.2)
- goodwill amortisation (0.7) (0.4) (1.1)
- exceptional items
(discontinued operation) - 0.4 -
- loss on disposal of
discontinued operations (8.3) - (0.2)
(1.7) 8.2 11.5
ALPHA Travel Retail
- continuing 0.7 3.3 6.2
operations
- goodwill amortisation (0.9) (0.9) (1.8)
(0.2) 2.4 4.4
ALPHA Ground Services
- discontinued operation - 4.7 4.7
- profit on disposal of
discontinued operation - - 1.9
- 4.7 6.6
(1.9) 15.3 22.5
Net interest (0.3) (2.9) (3.2)
(Loss)/profit on ordinary
activities before taxation (2.2) 12.4 19.3
Geographical analysis
United Kingdom
- continuing operations 5.7 9.1 13.5
- goodwill amortisation (0.6) (0.4) (1.1)
5.1 8.7 12.4
Rest of the World
- continuing operations 3.4 2.0 5.7
- discontinued operations (1.1) 5.1 4.5
- goodwill amortisation (1.0) (0.9) (1.8)
- (loss)/profit on
disposal (8.3) 0.4 1.7
of discontinued operations
(7.0) 6.6 10.1
(1.9) 15.3 22.5
Net interest (0.3) (2.9) (3.2)
(Loss)/profit on ordinary (2.2) 12.4 19.3
activities before taxation
ALPHA Inflight Retailing previously reported separately is now included in
ALPHA Flight Services and the prior year figures have been restated to show
the segments on a comparable basis.
3. Dividends
An interim dividend of 1.0 pence (31 July 1999 1.0 pence) per
ordinary share will be paid on 3 November 2000 to shareholders on
register at the close of business on 6 October 2000.
4. Earnings per share
Profit/(loss) Earnings per
for the period share
31 31 31 31 31 31
July July Jan July July Jan
2000 1999 2000 2000 1999 2000
#m #m #m Pence Pence Pence
(Loss)/profit for
the financial period
and (loss)/earnings
per share (4.8) 7.9 10.5 (2.76) 4.59 6.07
Adjustment for (loss)/
profit on disposal
of
discontinued operations 8.3 - (1.7) 4.77 - (0.98)
Adjustment for loss on
sale of fixed assets - 0.1 0.1 - 0.06 0.06
Adjustment for goodwill
amortisation 1.6 1.3 2.9 0.92 0.76 1.68
Taxation relating to
these items - - 1.5 - - 0.87
Adjusted profit and
IIMR headline earnings
per share 5.1 9.3 13.3 2.93 5.41 7.70
Adjustment for
exceptional items - (0.4) - - (0.23) -
Adjustment for loss
on sale of fixed assets - (0.1) (0.1) - (0.06) (0.06)
Taxation relating to
these items - 0.1 - - 0.06 -
Adjusted profit and
adjusted earnings
per share 5.1 8.9 13.2 2.93 5.18 7.64
The weighted average number of shares in issue during the six months
ended 31 July 2000 were 173,976,555 (31 July 1999: 172,113,187 and 31
January 2000: 172,889,466).
Earnings per 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
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 2.76p (1999/00: earnings per share of 4.58p)
has been calculated by reference to the loss for the financial period
of #4.8m (1999/00: profit #7.9m) and the weighted average number of
shares in issue during the period of 173,976,555 (1999/00:
172,113,187), as adjusted for potentially dilutive ordinary shares of
200,558 (1999/00: 213,644).
5. Reconciliation of movements in shareholders'funds
Six months Six months Year
ended ended ended
31 July 31 July 31 Jan
2000 1999* 2000
#m #m #m
(Loss)/profit for the
financial (4.8) 7.9 10.5
period
Dividends (1.7) (1.7) (5.6)
Retained (loss)/profit for
the financial period (6.5) 6.2 4.9
Issue of additional share
capital to shareholders - 0.5 1.4
Currency translation
differences
on foreign currency net assets 0.5 (0.3) (2.3)
and certain loans
Goodwill reinstated on
disposal of businesses 8.1 - 58.6
Goodwill charged to the profit
and loss account previously
written off directly to 0.6 0.6 1.2
reserves
Purchase of own shares
(Note 11) (1.2) - -
Net increase in shareholders'
Funds 1.5 7.0 63.8
Opening shareholders' funds
As previously reported 60.5 (3.6) (3.6)
Prior year adjustment
(Note 7) - 0.3 0.3
As restated 60.5 (3.3) (3.3)
Closing shareholders'
funds 62.0 3.7 60.5
* The amounts for the six months ended 31 July 1999 have been
restated as described in Note 7
6. Notes to the cash flow statement
6.1 Reconciliation of operating profit to net cash inflow from
operating activities
Six months Six months Year
ended ended ended
31 July 31 July 31 Jan
2000 1999 2000
#m #m #m
Operating profit 6.4 15.3 20.8
Loss on sale of fixed assets - 0.1 0.1
Depreciation 5.1 6.5 11.6
Goodwill amortisation 1.6 1.3 2.9
(Increase)/decrease in
stocks (6.3) (2.3) 2.3
(Increase)/decrease in
debtors (13.3) (7.3) 6.8
Increase/(decrease) in
creditors 11.2 5.9 (6.6)
Net cash inflow from
operating activities 4.7 19.5 37.9
6. Notes to the cash flow statement (continued)
6.2 Reconciliation of net debt
Six months Six months Year
ended ended ended
31 July 31 July 31 Jan
2000 1999 2000
#m #m #m
Decrease in cash in
the period (7.5) (4.9) (4.0)
(Increase)/decrease in
debt and lease financing (6.8) (5.6) 90.8
Change in net (debt)/cash
from cash flows (14.3) (10.5) 86.8
Translation differences 0.1 (0.4) (2.0)
Movements in net (debt)/
cash in period (14.2) (10.9) 84.8
Opening net cash/(debt) 8.6 (76.2) (76.2)
Closing net (debt)/cash (5.6) (87.1) 8.6
7. Prior year adjustment
The application of FRS 12 in the year ending 31 January 2000 required a prior
year adjustment in that year's accounts in respect of a provision created in
1997/98. The balance sheet as at 31 July 1999 reflects the elimination of the
provision brought forward at 31 January 1999 of #0.5m, together with a related
deferred tax balance of #0.2m. The change in accounting policy has had no
impact on the profit and loss account of the current or prior year.
8. Exceptional item
There were no exceptional items in the half year ended 31 July 2000. An
exceptional item for the half year ended 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.
9. Acquisitions
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 #1.7m of goodwill which is being amortised over 20 years.
On 15 June 2000 the Group paid #1.0m to Virgin Express based in Brussels for a
49.98% interest in Tax Free Shops. This resulted in goodwill of #0.6m which is
being amortised over the life of the Inflight Retailing contract with Virgin
Express (5 years).
10. Disposal of business
On 25 June 2000 the flight kitchen at Paris, Orly ceased trading and its
closure, assisted by the French courts, is substantially complete. Losses up
until the date of cessation of operations have been reported within trading
profit. The loss on disposal of discontinued business (#8.3m) includes the
costs of cessation together with goodwill of #8.1m previously eliminated
against reserves.
11. Purchase of own shares
During the six months ended 31 July 2000 the Company purchased a total of
2,850,000 shares (representing 1.63% of the ordinary share capital of the
Company as at 31 January 2000). The nominal value of the shares purchased
(#0.3m) has been credited to the capital redemption reserve. The total cost of
the purchase of #1.2m has been charged to the profit and loss account reserve
(Note 5).
12. Approval of Financial Statements
The financial statements were approved by a committee of the Board of
Directors on 21 September 2000.
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