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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
Premium
RNS Number:2618J
Alpha Airports Group PLC
27 March 2003
ALPHA AIRPORTS GROUP PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY 2003
27 March 2003
Highlights
* Group profit before tax and exceptional items in line with expectations
up 14.8% to #18.6m (2001/02: #16.2m), reflecting the ongoing recovery in UK
Retail, and our International Flight Services expansion both of which helped to
offset the decline in UK Flight Services. Group profit before tax for the year
was #20.7m (2001/02: loss before tax of #6.9m).
* EBITDA* before exceptional items in line with expectations at #33.1m
(2002: #33.1m), reflecting a continued tight focus on costs, productivity and
flexibility in a difficult and fast changing aviation market. Second half
EBITDA* before exceptional items up 3.6% to #17.0m (2002: #16.4m), 5.6% ahead
of the first half result. Operating profit for the year was #19.9m (2001/02:
operating loss of #3.9m).
* Full year sales from continuing businesses maintained at #419.3m (2001/
02: #419.4m), with a modest second half sales recovery of 0.9%, against a first
half sales decline of a similar amount.
* Adjusted earnings per share improved by 3.3% to 7.50p per share (2001/
02: 7.26p per share). Earnings per share of 6.91p (2001/02: loss per share of
8.15p).
* Final dividend per share held at 2.6p per share (2001/02: 2.6p), giving
a total dividend for the year held at 3.6p per share.
* ALPHA retains a strong balance sheet with net debt at 31 January 2003 of
only #0.3m (2002: #1.3m).
*EBITDA represents operating profit before depreciation on tangible assets and
amortisation of goodwill as shown in the Group's profit and loss account.
EBITDA is presented as the directors consider it is a financial measure used
widely by analysts, investors and other interested parties in the industry.
Commenting on the results today, Graham Frost, Chairman stated:
"In a difficult aviation market, we have delivered a robust set of results. We
continue to focus on further improving our core business offerings, and are
investing in new business concepts for future growth. We finish the year as we
started, with major uncertainty as regards travellers' confidence, and hence may
face a short-term disruption in airline activity. Our experience in taking the
necessary action when faced with similar business pressures holds us in good
stead to react to any changes in our business as it occurs during the current
conflict."
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
Sales Overview
Against a difficult aviation market sales from continuing businesses remained
unchanged at #419.3m (2002: #419.4m). We experienced a gradual recovery
throughout the year in UK passenger numbers, led by the low-cost airlines. The
aviation market, especially in our core UK market, is undergoing dramatic
change. The low-cost airline sector, flying predominantly from regional
airports where ALPHA has a strong presence, continues to show substantial growth
in short-haul services. In response to this a number of short-haul scheduled
and charter airlines are reducing fares to compete more effectively with the
low-cost airlines, and are radically cutting costs and reshaping their networks,
with some converting to a low-cost format. These market factors resulted in a
significant 15.8% decline in sales in our UK Flight Catering business.
Conversely, UK Inflight Retail and UK Retail, with a high exposure to low-cost
airlines, enjoyed a combined sales growth of 14.9%.
Profit Overview
Group profit before tax and exceptional items increased 14.8% to #18.6m (2001/
02: #16.2m).
As a consequence of the 15.8% decline in UK Flight Catering sales, operating
profit before goodwill amortisation and exceptional items from this part of our
business declined nearly 37%. Conversely, the combined 14.9% sales growth in
our UK Inflight Retail and UK Retail business, enhanced by major supply-chain
rationalisation benefits in UK Retail, led to a dramatic recovery in operating
profit in these businesses, albeit still achieving only a modest 2.2% return on
sales, this ratio up from 0.6% before exceptional items in 2001/02.
Internationally, the Group enjoyed a strong, initial full year contribution from
our Flight Services investment in Jordan. Sri Lanka Retail continued to return
another excellent contribution. As anticipated the Australian Flight Services
result declined, reflecting both the full year impact following the demise of
Ansett in September 2001 and the costs of acquiring and upgrading the seven
empty Ansett flight kitchens.
As announced in the first half, the exceptional profit of #2.1m primarily
reflects the disposal of our 25% investment in an associated company, Inflight
Sales Group (Asia) Limited, and the transfer of a related airline contract to
the purchaser. Following this disposal, our Inflight Retail business is now
focussed on the UK and Europe. In the second half we released #0.2m of excess
environmental provisions established in 1999 on the disposal of our US ground
handling business.
Overall, Group profit before tax for the year was #20.7m (2001/02: loss before
tax of #6.9m).
Earnings per Share
Earnings per share of 6.91 pence increased from a loss per share of 8.15 pence
in 2001/02 as the loss reflected the exceptional restructuring, onerous contract
and impairment provisions required post September 11th 2001. There is an
underlying 3.3% increase in adjusted earnings per share to 7.50 pence per share
(2001/02: 7.26 pence per share).
Dividend
The Board is pleased to announce a final dividend per share held at 2.6 pence
per share, giving a total dividend for the year held at 3.6 pence per share.
This will be paid on 4 June 2003 to shareholders on the register at the close of
business on 11 April 2003.
Balance Sheet
The Group retains a very strong balance sheet, with net debt at the year-end of
only #0.3m (2001/02: #1.3m) against shareholders' funds of some #49.9m (2001/02:
#43.3m). The major change year-on-year has been a #9.7m investment in working
capital, as a result of both higher stocks in Retail, and earlier payments to
our trade partners, in both Flight Services and Retail compared with the period
following September 11th. The Company continues to have significant headroom in
its #60m bank facility.
Pensions
The triennial actuarial valuation of the UK pension scheme was conducted at 6th
April 2002. This valuation indicated an unsmoothed deficit of #7.7m, and a
smoothed deficit of #5.0m. The Pension Trustees and the Board have proposed a
joint funding programme to redress the deficit and to retain existing pension
benefits going forward, recognising that the pension scheme is relatively
immature with more than six active members to every current pensioner. Pension
fund members are being invited to increase their contributions by 2% from 6% of
salary to 8% of salary from 1st August 2003 with a similar increase in
contributions from the company to cover both future service and the financing of
the smoothed deficit of #5.0m over the next 12 years.
For the Group, the pension charge in 2002/03 of #3.0m continues to be calculated
on a SSAP24 basis.
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 and on the profit and loss
account, but not to account under this method. For the Group, there is a
world-wide net pension deficit as at 31 January 2003 which would have resulted
in a #17.3m charge to group reserves if we had adopted FRS 17 at that date. On
the basis of the deficit of #17.3m, and with an enhanced company contribution to
future funding under FRS 17, the net pension charge in the profit and loss
account would have been #3.0m.
Flight Services
Post September 11th 2001, market conditions remained challenging throughout the
year. In line with our expectations, total sales from continuing operations
declined 6.2% to #245.4m (2001/02: #261.7m), with a first half decline of 8.1%,
followed by a reduced decline of 4.2% in the second half. Profit before tax
from continuing operations (before goodwill amortisation and exceptional items)
was down by 11.8% to #15.7m (2001/02: #17.8m).
UK scheduled and charter meal volumes declined 13.5%. With our UK airline
customers continuing to seek savings in the difficult market conditions, average
meal spend declined 1.4%, generating an overall sales reduction in our major UK
Flight Catering business of 15.8%. As expected with the transfer of many
British Airways' short and long-haul flights from Gatwick to Heathrow, our
Gatwick Flight kitchens suffered an #11 million decline in activity. Following
implementation of full domestic back-catering by both British Airways and bmi
towards the year-end, our regional kitchens also suffered. However, the
continued application of our Innovate process improvement model across our UK
Flight Services operations enabled us to achieve a further 6% improvement in our
wage cost to sales ratio, thereby mitigating some of the profits decline from
depleted customer meal budgets and lower meal volumes.
Inflight Retail, providing onboard retail services (including food and beverage
trolley service sales) for low-cost and charter airline customers, continued to
grow with sales ahead of last year by 21.9% and now representing nearly 29% of
our UK Flight Services activity.
Internationally the results benefited from a strong full year contribution from
our recent Jordan flight kitchen acquisition, which more than offset a reduced
contribution from Australia. The seven ex-Ansett flight kitchens that we
acquired on short-term leases are being refurbished, with four already
operational serving Australian regional airlines.
Retail
The Retail division enjoyed a sales growth of 10.3% to #173.9m from continuing
operations, with operating profits before goodwill amortisation and exceptional
items up 58.1% to #6.8m (2001/02: #4.3m). UK Retail sales increased 12.2%, with
like-for-like sales growth in ALPHA Airport Shopping (duty and tax-free) at UK
regional airports up 10% on a 6% growth in passengers led by continued growth of
the low-cost airlines. Following two years of losses, UK Retail has returned an
operating profit of #2.1m (a 1.4% return on sales), due to a combination of
sales growth, supply-chain simplification, divisional overhead savings and a
withdrawal from loss-making contracts.
International Retail results (from continuing businesses) were maintained, with
the ongoing recovery in Sri Lanka tourist arrivals continuing throughout the
second half.
Business Development
To drive future sales and profit growth, we are currently expensing some #1m of
costs on an annualised basis through our investment in two key Flight Services
development initiatives. Firstly, the development of our Inflight Service
Management concept in the UK to manage the total inflight catering requirements
of our network airline customers. We are delighted that British Airways
CitiExpress, the UK and European short-haul subsidiary of British Airways
operating outside London, will be our launch customer and we are investing in
the necessary people and technology infrastructure to fulfil this initiative.
Secondly, the development of ALPHA D'Lish, our internet pre-order meal project
for short-haul travellers booking their airline tickets on the internet, with an
anticipated trial and launch date in 2003. Costs this year include people,
market research and website development expenditure.
People
After the trauma of the loss of 923 jobs at the end of 2001/02, we thank all our
ALPHA colleagues for their excellent on-going commitment and flexibility in
achieving service success in a very challenging and fast changing market. We
are continuing to invest in the further development of our people and, via
annual Employee Opinion Surveys, we listen acutely and responsively to their
needs. We are pleased that satisfaction rates across the UK have increased
significantly during the past year.
Board
I have thoroughly enjoyed my first year as Chairman of ALPHA. We have seen
significant change in the Board during the year, ending with the imminent
retirement of Sir Hugh Bidwell as a Non-Executive Director on 31 March 2003. We
thank him for his tremendous input and service over 10 years. I am delighted
that in Terry Stannard and Lesley James we have been able to recruit to the
Board high quality, independent Non-Executive Directors with appropriate
catering and retailing backgrounds. As previously announced on 1 February 2003,
we also welcome David King to the Board as Executive Director for ALPHA Airport
Shopping in the UK, whose personal contribution to the recovery of this business
has been significant.
Strategy and Outlook
The company's strategy remains focussed 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. The company is in good
shape, both managerially and financially, to grow organically and by
acquisition, both in the UK and internationally.
Under normal circumstances, ALPHA would be well positioned to deliver growth in
sales and profits in the coming year. However, given the recent commencement of
military action in Iraq and continued concerns about terrorism, it is possible
that traveller confidence and hence aviation activity could be negatively
affected over the peak Summer months, with a consequent impact on ALPHA's
business during this critical period in our financial year.
Group Profit and Loss Account
for the year ended 31 January 2003
Before Exceptional
Exceptional Items
Items (Note 2) Total
2003 2002 2002 2002
Notes #m #m #m #m
Turnover
- Continuing 419.3 419.4 - 419.4
- Discontinued - 11.4 - 11.4
Turnover 1 419.3 430.8 - 430.8
Cost of sales (267.1) (283.3) - (283.3)
Gross profit 152.2 147.5 - 147.5
Administration
expenses (132.3) (129.3) (22.1) (151.4)
EBITDA 2 33.1 33.1 (10.3) 22.8
Depreciation on
tangible assets (10.3) (10.7) (1.2) (11.9)
Amortisation of
goodwill (2.9) (4.2) (10.6) (14.8)
Operating profit/
(loss) 2 19.9 18.2 (22.1) (3.9)
Operating profit/
(loss)
- Continuing 19.6 17.9 (22.1) (4.2)
- Discontinued 0.3 0.3 - 0.3
19.9 18.2 (22.1) (3.9)
Share of operating
profit/(loss) of
associates
(including goodwill
charges of #0.1m
(2001/02: #2.3m)) 0.2 (0.7) (1.7) (2.4)
Profit on disposal
of discontinued
operations 2 2.1 - 0.7 0.7
Profit/(loss) on
ordinary activities
before interest 1 22.2 17.5 (23.1) (5.6)
Interest
receivable 0.4 0.2 - 0.2
Interest payable (1.9) (1.5) - (1.5)
Profit/(loss) on
ordinary activities
before taxation 1 20.7 16.2 (23.1) (6.9)
Taxation on profit/
(loss) on ordinary
activities 3 (7.2) (7.8) 1.6 (6.2)
Profit/(loss) on
ordinary activities
after taxation 13.5 8.4 (21.5) (13.1)
Minority interest
(equity) (1.7) (0.8) - (0.8)
Profit/(loss) for
the financial year 11.8 7.6 (21.5) (13.9)
Equity dividends 4 (6.2) (6.1) - (6.1)
Retained profit/
(loss) for the
financial year 7 5.6 1.5 (21.5) (20.0)
Earnings/(loss) per
share 5 6.91p (8.15p)
Diluted earnings/
(loss) per share 5 6.87p (8.15p)
IIMR headline
earnings per share 5 7.50p 2.28p
Adjusted earnings
per share 5 7.50p 7.26p
Statement of total recognised gains and losses
for the year ended 31 January 2003
2003 2002
#m #m
Profit/(loss) for the
financial year 11.8 (13.9)
Currency translation
differences on foreign
currency net assets and
certain loans (0.5) (0.9)
Total recognised gains
and losses for the year 11.3 (14.8)
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 2003
Group Company
2003 2002 2003 2002
Notes #m #m #m #m
Fixed assets
Intangible assets 13.0 14.7 - -
Tangible assets 53.5 56.9 - -
Investments 3.7 3.1 201.4 201.0
70.2 74.7 201.4 201.0
Current assets
Stocks 20.2 18.9 - -
Debtors 25.7 24.1 42.0 35.9
Cash at bank and in hand 6 6.4 21.8 0.3 41.1
52.3 64.8 42.3 77.0
Creditors: amounts falling due
within one year
Bank and other borrowings 6 (6.7) (23.1) (6.0) (23.0)
Other creditors (57.5) (60.0) (20.4) (35.4)
(64.2) (83.1) (26.4) (58.4)
Net current (liabilities)/
assets (11.9) (18.3) 15.9 18.6
Total assets less current
liabilities 58.3 56.4 217.3 219.6
Provisions for liabilities and
charges (7.5) (12.2) - -
Total net assets 1 50.8 44.2 217.3 219.6
Capital and reserves
Called up share capital 17.1 17.1 17.1 17.1
Share premium account 42.5 42.2 42.5 42.2
Capital redemption reserve 0.4 0.4 0.4 0.4
Other reserves - - 152.3 152.3
Profit and loss account (10.1) (16.4) 5.0 7.6
Shareholders' funds 7 49.9 43.3 217.3 219.6
Minority interests (equity) 0.9 0.9 - -
Total equity 50.8 44.2 217.3 219.6
Approved by the Board of Directors on 27 March 2003
Kevin Abbott, Chief Executive Heather McRae, Finance Director
Group Cash Flow Statement
for the year ended 31 January 2003
2003 2002
Notes #m #m
Net cash inflow from operating activities 8.1 23.5 40.8
Returns on investments and servicing of finance
Interest received 0.4 0.2
Interest paid (1.9) (1.5)
Dividends paid to minority shareholders in subsidiary
undertakings (1.6) (0.5)
Dividends received from associates 0.1 -
Net cash outflow from returns on investments and
servicing of finance (3.0) (1.8)
Taxation (6.7) (8.2)
Capital expenditure and financial investment
Purchase of tangible fixed assets (6.8) (11.5)
Purchase of own shares 9 (0.5) -
Sale of tangible fixed assets - 2.3
Net cash outflow for capital expenditure and financial
investment (7.3) (9.2)
Acquisitions and disposals
Purchase of businesses - (11.6)
Disposal of businesses 10 1.3 1.2
Purchase of associates - (2.8)
Net cash inflow/(outflow) for acquisitions and
disposals 1.3 (13.2)
Equity dividends paid (6.1) (5.8)
Net cash inflow before financing 1.7 2.6
Financing
(Decrease)/increase in unsecured loans less than 1 year (17.1) 17.1
Issue of shares 0.3 -
Capital element of finance lease payments - (0.5)
Net cash (outflow)/inflow from financing (16.8) 16.6
(Decrease)/increase in cash (15.1) 19.2
Notes to the Financial Information
1. Segmental analysis
Profit/(loss) before Net assets/
Turnover interest (liabilities)
2003 2002 2003 2002 2003 2002
#m #m #m #m #m #m
(a) Business sector analysis
Flight Services
- continuing operations * 245.4 261.7 15.7 17.8 38.3 39.5
- discontinued operations - 7.8 0.3 0.8 (0.5) -
- share of operating profit/(loss)
of associates (including goodwill
amortisation) - - 0.2 (0.7) - -
- exceptional item -
associates goodwill
impairment charge - - - (1.7) - -
- goodwill amortisation - - (1.1) (2.3) - -
- exceptional items (continuing - - - (13.1) - (0.7)
operations)
- profit on disposal
of discontinued operations - - 1.9 - - -
245.4 269.5 17.0 0.8 37.8 38.8
Retail
- continuing operations * 173.9 157.7 6.8 4.3 13.3 16.9
- discontinued operations - 3.6 - (0.5) - -
- goodwill amortisation - - (1.8) (1.9) - -
- exceptional items
(continuing operations) - - - (9.0) - (9.7)
- loss on disposal of
discontinued operations - - - (0.2) - -
173.9 161.3 5.0 (7.3) 13.3 7.2
419.3 430.8 22.0 (6.5) 51.1 46.0
Corporate
- profit on disposal
of discontinued operations - - 0.2 0.9 - (0.5)
419.3 430.8 22.2 (5.6) 51.1 45.5
Net interest
payable - - (1.5) (1.3) - -
Net borrowings - - - - (0.3) (1.3)
Turnover, profit/
(loss) on ordinary
activities before
taxation and net
assets 419.3 430.8 20.7 (6.9) 50.8 44.2
* 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)
Notes to the Financial Information
continued
1.Segmental analysis (continued)
Profit/(loss)
before Net assets/
Turnover interest (liabilities)
2003 2002 2003 2002 2003 2002
#m #m #m #m #m #m
(b) Geographical analysis
United Kingdom
- continuing operations * 355.5 357.2 13.3 14.9 30.4 30.8
- goodwill amortisation - - - (1.3) - -
- exceptional items - - - (15.2) - (3.4)
(continuing operations)
355.5 357.2 13.3 (1.6) 30.4 27.4
Rest of the World
- continuing operations * 63.8 62.2 9.2 7.2 21.2 25.6
- discontinued operations - 11.4 0.3 0.3 (0.5) -
- goodwill amortisation - - (2.9) (2.9) - -
- share of operating
profit/(loss) of
associates
(including goodwill - - 0.2 (0.7) - -
amortisation)
- exceptional item -
associates goodwill
impairment charge - - - (1.7) - -
- exceptional items
(continuing
operations) - - - (6.9) - (7.0)
- profit/(loss) on
disposal of
discontinued
operations - - 1.9 (0.2) - -
63.8 73.6 8.7 (4.9) 20.7 18.6
419.3 430.8 22.0 (6.5) 51.1 46.0
Corporate
- profit on
disposal of
discontinued
operations - - 0.2 0.9 - (0.5)
419.3 430.8 22.2 (5.6) 51.1 45.5
Net interest - - (1.5) (1.3) - -
Net borrowings - - - - (0.3) (1.3)
Turnover, profit/(loss)
on ordinary activities
before taxation and
net assets 419.3 430.8 20.7 (6.9) 50.8 44.2
* 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.
Notes to the Financial Information
continued
2. Operating profit is analysed between continuing and discontinued operations as follows:
Continuing Discontinued Continuing Discontinued Exceptional
operations operations Total operations operations items Total
2003 2003 2003 2002 2002 2002 2002
#m #m #m #m #m #m #m
Turnover 419.3 - 419.3 419.4 11.4 - 430.8
Cost of sales (267.3) 0.2 (267.1) (276.8) (6.5) - (283.3)
Gross profit 152.0 0.2 152.2 142.6 4.9 - 147.5
Administration
expenses (132.4) 0.1 (132.3) (124.7) (4.6) (22.1) (151.4)
EBITDA 32.8 0.3 33.1 32.6 0.5 (10.3) 22.8
Depreciation on
tangible assets (10.3) - (10.3) (10.5) (0.2) (1.2) (11.9)
Amortisation (2.9) - (2.9) (4.2) - (10.6) (14.8)
of goodwill
Operating profit/(loss) 19.6 0.3 19.9 17.9 0.3 (22.1) (3.9)
Exceptional items
The only exceptional item in the year ended 31 January 2003 arose from the
profit on disposal of discontinued operations of #2.1m comprising a profit of
#1.1m arising on the disposal of the Group's associate investment in Inflight
Sales Group Asia Limited, deferred consideration of #0.8m which was received in
July 2002 relating to the disposal of the Group's In-Flight Retail Canada
operation in November 2001 which was not recognised in 2001/02 and a release of
a provision of #0.2m no longer required.
The results for the year ended 31 January 2002 included the following
exceptional items:
A net profit on disposal of discontinued operations of #0.7m arose on the
disposal of AG Retail Inc (Barbados) which generated a loss on disposal of
#0.2m, offset by the release of a provision of #0.9m no longer required in
respect of environmental exposures set up following the disposal of the Group's
US ground handling operation, DynAir.
A charge of #22.1m against operating profit which comprised restructuring costs
in the UK (#3.0m), provisions made for onerous contracts in Orlando (#4.9m) and
the UK (#2.4m), fixed asset write down in the UK (#0.8m) and Australia (#0.4m)
and goodwill impairment charges in respect of the Group's Gatwick operation
(#9.1m) and the Banksia Pacific Pty Ltd acquisition in Australia (#1.5m).
A charge of #1.7m included in the share of operating loss of associates where
goodwill impairment charges were made in relation to the Group's associate
investments in Virgin Express Catering Services N.V. (formerly Virgin Express
Tax Free Shops S.A/N.V.) (#0.4m) and Inflight Sales Group (Asia) Limited
(#1.3m).
3. Taxation
2003 2002
#m #m
Current tax
United Kingdom
Corporation tax at 30% (2001/02 - 30%) 5.9 7.4
Double tax relief (1.1) (3.0)
Tax on exceptional items 0.1 (0.6)
Prior year adjustments - (0.1)
4.9 3.7
Overseas
Corporation taxes 2.6 3.7
Share of taxation of associates 0.3 0.1
Prior year adjustments 0.3 -
Total current tax 8.1 7.5
Deferred tax
United Kingdom
Origination and reversal of timing differences (0.7) (0.3)
Tax on exceptional items - (0.7)
(0.7) (1.0)
Overseas
Origination and reversal of timing differences (0.2) -
Tax on exceptional items - (0.3)
Total deferred tax (0.9) (1.3)
Total tax on profit on ordinary activities 7.2 6.2
Taxation as a percentage of profit/(loss) before taxation 35% (90%)
Taxation as a percentage of profit before taxation before 38% 48%
exceptional items
Taxation as a percentage of profit before taxation, 33% 37%
exceptional items and goodwill amortisation
4. Equity Dividends
2003 2002
Interim dividend of 1.0p per ordinary share (2001/02 - 1.0p) 1.7 1.7
Proposed final dividend of 2.6p per ordinary share (2001/02 - 4.5 4.4
2.6p)
Total dividend of 3.6p per ordinary share (2001/02 - 3.6p) 6.2 6.1
5. Earnings/(loss) per share
Profit/(loss) for the year Earnings/(loss) per share
2003 2002 2003 2002
#m #m Pence Pence
Profit/(loss) for the financial year
and earnings/(loss) per share 11.8 (13.9) 6.91 (8.15)
Adjustment for profit on disposal of
discontinued operations (2.1) (0.7) (1.23) (0.41)
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 3.0 17.1 1.76 10.02
Taxation relating to these items 0.1 - 0.06 -
Adjusted profit and IIMR headline
earnings per share 12.8 3.9 7.50 2.28
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 12.8 12.4 7.50 7.26
The weighted average number of shares in issue during the year was 170,722,782
(2001/02: 170,581,815). 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 earnings per share of 6.87p (2001/02: loss per share of 8.15p) has been
calculated by reference to the profit for the financial year of #11.8m (2001/02:
loss of #13.9m) and the weighted average number of shares in issue during the
year of 170,722,782 (2001/02: 170,581,815), as adjusted for potentially dilutive
ordinary shares of 883,836 (2001/02: nil).
Notes to the Accounts
6. Net debt
2003 2002
#m #m
6.1 Bank and other borrowings
Unsecured loans (6.0) (23.1)
Bank overdrafts (0.7) -
Total bank and other borrowings due within one (6.7) (23.1)
year
6.2 Net debt
Total bank and other borrowings (6.7) (23.1)
Cash at bank and in hand 6.4 21.8
Net debt (0.3) (1.3)
7. Reconciliation of movements in shareholders'
funds
2003 2002
#m #m
Profit/(loss) for the financial year 11.8 (13.9)
Dividends (6.2) (6.1)
Retained profit/(loss) for the financial year 5.6 (20.0)
Currency translation differences on foreign currency
net assets and certain loans (0.5) (0.9)
Goodwill charged to the profit and loss account
previously written off directly to reserves 1.2 1.2
Issue of shares 0.3 -
Net increase/(decrease) to shareholders' funds 6.6 (19.7)
Opening shareholders' funds 43.3 63.0
Closing shareholders' funds as at 31 January 2003 49.9 43.3
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 (2001/02: #1.2m) has been added
back into shareholders' funds.
Notes to the Accounts
continued
8. Notes to the cash flow statement
8.1 Reconciliation of operating profit to net cash inflow from operating
activities
2003 2002
#m #m
Operating profit/(loss) 19.9 (3.9)
Loss on sale of fixed assets - 0.2
Depreciation 10.3 11.9
Goodwill amortisation 2.9 14.8
Long term incentive plan amortisation charge 0.1 -
(Increase)/decrease in stocks (1.8) 3.1
(Increase)/decrease in debtors (2.0) 4.4
(Decrease)/increase in creditors (5.9) 10.3
Net cash inflow from operating activities 23.5 40.8
8.2 Reconciliation of net cash flow to movement in net debt
2003 2002
#m #m
(Decrease)/increase in cash in the period (14.4) 19.2
Increase in overdrafts in the period (0.7) -
Decrease/(increase) in debt and lease financing 17.1 (16.6)
Change in net debt from cash flows 2.0 2.6
Translation differences (1.0) (0.5)
Movements in net debt in period 1.0 2.1
Net debt at 1 February (1.3) (3.4)
Net debt at 31 January (0.3) (1.3)
8.3 Analysis of net debt 1 February Cash Exchange 31 January
2002 flows movement 2003
#m #m #m #m
Cash at bank and in hand 21.8 (14.4) (1.0) 6.4
Overdrafts - (0.7) - (0.7)
21.8 (15.1) (1.0) 5.7
Debt due within 1 year (23.1) 17.1 - (6.0)
(23.1) 17.1 - (6.0)
Total (1.3) 2.0 (1.0) (0.3)
Notes to the Financial Information
Continued
9. Interest in own shares
At the Annual General Meeting on 30 May 2002, a Long-Term Incentive
Plan for the Chief Executive was approved. During July 2002 715,000
shares were purchased by a trust company in the open market using funds
provided by the Group at a total cost of #0.5m.
10. Disposal of businesses
Net cash inflows arising on the disposal of businesses
comprised :
#m
Cash consideration for disposal of Inflight Sales Group 0.8
(Asia) Limited (Note 2)
Deferred consideration relating to the disposal of ALPHA 0.8
In-Flight Retail Canada (Note 2)
Payment in respect of environmental exposures provided for (0.3)
upon the disposal of DynAir (Note 2)
1.3
11. Pensions
The Group continues to account for pensions in accordance with SSAP 24,
but will make the additional disclosures required under the
transitional arrangements described in FRS 17 in the Annual Report.
The Group's actuaries, Hewitt Bacon & Woodrow, have completed the
latest actuarial valuation, as at 6 April 2002, and as a result the
pension charge for the year ended 31 January 2003 in respect of the UK
pension fund on a SSAP24 basis is #2.7m (2001/02 : #2.6m).
In respect of FRS 17, the market value of the assets at 31 January 2003
was #34.5m and the net present value of the schemes' liabilities was
#59.1m. If the Group had accounted for pensions under FRS 17, the
charge for the year would have been the same as the SSAP 24 charge and
net assets at the end of the year would have been #17.3m lower.
12. Preliminary Announcement
The preliminary results for the year ended 31 January 2003 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 2002 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 2003 will be
finalised on the basis of the financial information presented by the
Directors in the preliminary announcement.
13. Dividend
The record date for the final dividend is 11 April 2003 and payment
date is 4 June 2003.
14. Issue of Annual Reports and Accounts
The Annual Report 2002/03 will be posted to shareholders by 29 April
2003. 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.
15. Annual General Meeting
The Annual General Meeting of ALPHA Airports Group Plc will be held at
the Conference Centre, Le Meridien Hotel, Bath Road, Heathrow on 29 May
2003 at 11am.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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