RNS Number:9138W
Alpha Airports Group PLC
25 March 2004
ALPHA AIRPORTS GROUP PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY 2004
25 March 2004
Highlights
* Alpha's performance improved in the second half, after a difficult first
half, which was adversely affected by the Iraq war and SARS. Sales revenues
in the second half were up over 9% compared to the same period of 2002/03
giving a Group result for the year, with sales up over 5% at #440.9m (2002/
03: #419.3m).
* In the second half, adjusted pre-tax profits* from continuing operations
were up nearly 9% to #12.2m (2002/03: #11.2m) and for the full year were up
nearly 2% to #21.7m (2002/03: #21.3m), in line with expectations. Profit
before taxation reduced by 16% to #17.4m (2002/03: #20.7m), due to the swing
from profit to losses in exceptional items.
* Adjusted earnings per share* remained steady at 7.50p per share.
Earnings per share decreased 23% to 5.33p from 6.91p.
* Final dividend per share increased 7.7% to 2.8p (2002/03: 2.6p), giving
a full year dividend per share of 3.8p, up 5.6% from 2002/03 (3.6p).
* After significant investment in the business of #12.2m, Alpha still
retains a strong balance sheet, with net cash at 31 January 2004 of #1.9m,
against net debt in 2002/03 of #0.3m.
*Adjusted pre-tax profit and adjustedearnings per share are before goodwill
amortisation and exceptional items and are presented to assist readers to assess
underlying trading performance.
Commenting on the preliminary results, Kevin Abbott, Chief Executive said,
"Following a challenging first half, I am pleased with our progress in the
second half. Over the past five years, Alpha has transformed its business model
to adapt to a very different aviation market. We continue to concentrate on our
core business offerings and witha healthy balance sheet and strong management
team, we are well positioned to take the business forward."
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
Alpha's business is making travel special by building an exceptional
international world-class aviation services company. Alpha provides retailing
and catering services to airlines and airports. Alpha currently operates over
150 retailing and catering outlets at69 airports in 11 countries across the
globe. Alpha's customers are served by 6,000 fully qualified and passionate
colleagues.
Transformation
Over the past five years, Alpha has transformed its business:-
* From EU duty-free retailing to Alpha Airport Shopping
* From traditional flight catering to 93% catering logistics
* Developing Alpha In-flight Retail as the European market leader for
in-flight retailing of food, beverages and gifts for short-haul airlines.
These new business models provide enhanced benefits for our customers - greater
rents for our airport partners and better quality cheaper meals for our airline
partners and consumers.
Group Performance
After a difficult first half, negatively impacted by the Iraq War and SARS, when
sales improved only 1% and pre-tax profits (from continuing operations but
before goodwill amortisation and exceptionals) declined 7.8%, the Group's
performance improved in the second half, with sales up over 9% and pre-tax
profits (from continuing operations but before exceptionals and goodwill
amortisation) up nearly 9% compared to the same period last year. For the year
overall, sales were up over 5% to #440.9m (2002/03: #419.3m) and pre-tax profits
(from continuing operations but before goodwill amortisation and exceptionals)
up nearly 2%, in line with expectations. Profit before taxation for the full
year has decreased 16% to #17.4m; this is primarily a function of the
exceptional charge of #0.7m in 2003/04, compared to the profit on disposal of
businesses of #2.1m in 2002/03 and increased costs of insurance and pensions
which we have not been able to recover.
During the year we made significant capital investment (#12.2m) in many of our
airport shops and retail catering outlets, principally at Nottingham East
Midlands, Exeter, Dublin, Birmingham and London Heathrow airports. Despite this
enhanced level of investment we generated net cash during the year, resulting in
a small net cash position of #1.9m (2002/03: net debt of #0.3m) at the end of
January.
Following the improved performance in the second half, the Board has recommended
an increase in the final dividend of 7.7% to 2.8 pence per share giving a full
year dividend per share of 3.8 pence per share (2002/03: 3.6 pence per share).
Flight Services
Over recent years in the UK, Alpha has focused on short-haul service development
with network airline clients at the faster-growing regional airports. Our
Innovate process improvement programme over the past five years has delivered a
34% reduction in catering errors, and a 48% improvement in productivity, as we
have transformed from a traditional flight catering business model to the 93%
catering logistics partner that we are today. Internationally over the past five
years, we have grown our airline service network into Eire, Belgium, Italy, the
Middle East, and doubled our network capability in Australia.
In 2003/04, our In-Flight Retail business, focused on food, beverage and gift
sales onboard short-haul airlines - especially low-cost - continued its growth,
with sales up over 15% on last year. Conversely, as expected our UK Flight
Services business, serving scheduled and charter airlines, experienced an 8%
reduction in sales, caused primarily by the withdrawal of free meals for
passengers onboard many of our charter airline customers. Those holiday
companies that have introduced a meal addition policy, where holidaymakers pay
extra for their in-flight meals, have experienced a 73% up-take by travellers.
Such meal-additional policies have not only reduced Alpha's sales revenues, but
also introduced uncertainty, complexity and thus indirect cost into our service
delivery programmes for our charter airline customers, thereby reducing Alpha's
profit.
During an unprecedented period of contract renewals and change by the major
airlines, Alpha in Europe has secured for the future, net contract wins that
equate to 0.5% of annual sales. We are delighted to have been appointed as
national service partners for both MyTravel Airways and Monarch Airlines. We are
disappointed to lose Thomas Cook across our UK network from April 2004, Air
Canada at London Heathrow from 1st September 2004 and Transavia in Amsterdam
from the end of March 2004 but we are delighted to have been able to attract
both Japan Airlines and Singapore Airlines to offset the business lost from
Transavia. Accordingly, our Amsterdam kitchen has been remodelled and upgraded
to meet the service needs of our expanded group of medium and long-haul
scheduled customers.
Internationally, our Jordan flight catering business recovered strongly and
quickly in the second half from the effects of the Iraq war. In Amsterdam, the
recovery from the combined effects of SARS and the Iraq War took longer.
In Australia, our investment programme to upgrade the flight kitchens acquired
from the Ansett administrator is now complete. We are now actively making
proposals to the many long-haul scheduled airlines with services to Australia.
We are delighted to have been appointed to manage the Qantas in-flight duty-free
programme, and to start catering Australian, the low-cost long-haul airline of
Qantas.
We are pleased with the trial launch of Alpha D'Lish, our Mercury Award winning
high quality pre-order meal service, with Virgin Express, in Brussels. We
anticipate a launch of Alpha D'Lish in the UK this year.
In line with our expectations, our total Flight Services business registered a
small (0.6%) reduction in sales and a 11.2% reduction in operating profit,
including profit from associates.
Retail
Having fully redesigned all our UK retail service offerings and invested heavily
in the people skills necessary to offer these to consumers to their full
potential, we are pleased to report significant sales and profit progress across
all our UK brands. The Alpha Airport Shopping "pink" shops generated a 15.5%
like-for-like sales advance compared with 2002/03. We are delighted to have been
awarded a seven year duty-free concession by Newcastle International Airport,
with construction underway to open expanded Alpha "pink" shops in May 2004. All
but two of our 15 stores have been rebranded "pink".
The new World News specialist stores generated a 9% like-for-like sales growth,
and our new Glorious Britain destination gift format generated spectacular
like-for-like 47% sales growth, predominantly at London Heathrow, earning the
Highly Commended Specialist Retailer of the Year award at the travel retail
industry's global conference.
Within Retail Catering, sales developed strongly throughout the year, after
major expenditure on new outlets and new brands developed for both Dublin and
Birmingham airports, where sales success has more than offset the loss of our
Newcastle International Airport outlets from the end of June 2003.
Our USA duty-free stores in Florida posted an impressive 17% sales advance in
the US$ on passenger figures 8% ahead of last year. Major expansion and
upgrading is planned in 2004 for both our Sanford and Orlando stores, ahead of
what is anticipated will be an excellent year for European tourists.
In Asia, with exciting 20% passenger growth, driven mainly from the fast
developing Indian tourist segment, our sales in US$ grew over 20%. With the
US$80m expansion of the Bandaranaike International Airport in Sri Lanka
underway, we are delighted to have been recently awarded new, expanded arrivals
shops in better retailing locations under a new, extended contract. Major
investment is planned in these facilities and other development opportunities,
both in Sri Lanka and across the Indian Sub-Continent.
Overall, our airport retailing business grew 13.2%, with profit growing 29.4% as
highlighted in our pre-close statement. The weakness of the US$ held back the
second half sales and profits progress of our international retail business in
Sterling terms, and this effect is likely to continue in 2004/05.
Exceptionals
As previously announced in January 2004, having successfully restructured and
streamlined the Retail management structure some two years ago and introduced a
more open style of working with our customer and supplier partners, the Group
decided to implement a similar structure in our Flight Services business at the
end of the year. This unfortunately meant the redundancy of 90 roles in the UK
and Europe, costing some #2.9m. We wish all these colleagues every success in
their future careers, and thank them for their major contribution to Alpha's
past development.
These costs were offset by the release of an amount of #2.2m from the remaining
onerous contract provisions for our only loss-making duty-free retailing
contracts, with the Greater Orlando Airport Authority, USA and Newcastle
International Airport. The net result is an exceptional loss for the year of
#0.7m, against an exceptional profit of #2.1m earned last year, primarily from
the disposal of businesses.
People
Over the past five years, Alpha's senior management have undertaken a wide range
of employee initiatives as a key part of its strategic development, under our
"Alpha Will" programme to create a "great place to work" for all our colleagues.
At a time of unprecedented recruitment challenge at the UK airports, as a
consequence of the heightened security clearance policies that have been
introduced, Alpha is delighted to report that its overall staff turnover
declined 25% in2003/04, from 32% to 24%. Employee satisfaction also increased
significantly. Based on an independent survey by ORC, which has confidentially
monitored our employees' views on a wide range of issues over the past three
years, overall satisfaction improved 22%, from a result of 63% to 77% in 2003.
This level of satisfaction and confidence in Alpha is benchmarked by ORC against
other employers in the UK, and puts us in the upper quartile of UK quality
employers. This gives us the strong foundations needed to further develop and
grow our business.
Strategy
The Group's strategy is to continue to focus on retailing and catering for
airlines and airports. In Retail, with our recent successes across many UK
regional airports, we are focusing our efforts on maximising the performance and
extending the range of services offered to our existing UK airport partners, and
seeking European opportunities to extend our network. EU enlargement from May
onwards will have a negative impact on sales and profits within our UK Retail
business; however, the investments we have made, and continue to make in our
people to drive customer penetration in our stores is expected to offset most of
this impact. In Flight Services, we have identified an opportunity to further
develop our UK Innovate cost-saving model, by extending this into centralised
assembly and supply-chain simplification.
Internationally, we have strong regional bases in the Middle East, Indian
Sub-Continent and Australia. We are seeking expansion opportunities in all these
targeted markets across the full range of Alpha's retail and catering
capabilities.
Outlook
The new financial year has started well with sales ahead of last year by over
10%. With a clear focus on delivering strategic and operational progress, we
anticipate a year of growth and improved performance.
Group Profit and Loss Account
for the year ended 31 January 2004
Before Exceptional
Exceptional Items
Items (Note 2) Total Total
2004 2004 2004 2003
Notes #m #m #m #m
--------- -------- ------- -------
Turnover 1 440.9 - 440.9 419.3
Cost of sales (280.7) (0.8) (281.5) (267.1)
--------- -------- ------- -------
Gross profit 160.2 (0.8) 159.4 152.2
Administration expenses (140.9) 0.1 (140.8) (132.3)
--------- -------- ------- -------
EBITDA 2 32.4 (0.7) 31.7 33.1
Depreciation on tangible assets (9.9) - (9.9) (10.3)
Amortisation of goodwill (3.2) - (3.2) (2.9)
--------- -------- ------- -------
Operating profit 2 19.3 (0.7) 18.6 19.9
--------- -------- ------- -------
Operating profit
- Continuing 19.3 (0.7) 18.6 19.6
- Discontinued - - - 0.3
--------- -------- ------- -------
19.3 (0.7) 18.6 19.9
--------- -------- ------- -------
Share of operating profit of associates (including 0.1 - 0.1 0.2
goodwill charges of #0.4m (2002/03: #0.1m))
Profit on disposal of discontinued operations - - - 2.1
--------- -------- ------- -------
Profit on ordinary activities before
interest 2 19.4 (0.7) 18.7 22.2
Interest receivable and similar income 0.1 - 0.1 0.4
Interest payable and similar charges (1.4) - (1.4) (1.9)
--------- -------- ------- -------
Profit on ordinary activities before
taxation 1 18.1 (0.7) 17.4 20.7
Taxation on profit on ordinary activities 3 (7.3) 0.6 (6.7) (7.2)
--------- -------- ------- -------
Profit on ordinary activities after
taxation 10.8 (0.1) 10.7 13.5
Minority interest (equity) (1.6) - (1.6) (1.7)
--------- -------- ------- -------
Profit for the financial year 9.2 (0.1) 9.1 11.8
Equity dividends 4 (6.5) - (6.5) (6.2)
--------- -------- ------- -------
Retained profit for the financial year 7 2.7 (0.1) 2.6 5.6
--------- -------- ------- -------
Earnings per share 5 5.33p 6.91p
Diluted earnings per share 5 5.28p 6.87p
--------- -------- ------- -------
Statement of total recognised gains and losses
for the year ended 31 January 2004
2004 2003
#m #m
------- -------
Profit for the financial year 9.1 11.8
Currency translation differences on foreign currency
net assets and certain loans 0.2 (0.5)
Total recognised gains and losses for the year 9.3 11.3
------- -------
All turnover is derived from continuing operations. Cost of sales, gross profit
and administrative expenses in respect of discontinued operations for the year
ended 31 January 2003 were credits of #0.2m, #0.2m and #0.1m respectively.
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 2004
Group Company
---------------- --------------
2004 2003 2004 2003
Notes #m #m #m #m
--------- --------- -------- --------
Fixed assets
Intangible assets 11.3 13.0 - -
Tangible assets 56.0 53.5- -
Investments 3.9 3.7 201.2 201.4
--------- --------- -------- --------
71.2 70.2 201.2 201.4
--------- --------- -------- --------
Current assets
Stocks 22.5 20.2 - -
Debtors 28.2 25.7 47.6 42.0
Cash at bank and in hand 6 8.6 6.4 - 0.3
--------- --------- -------- --------
59.3 52.3 47.6 42.3
--------- --------- -------- --------
Creditors: amounts falling due within one
year
Bank and other borrowings 6 (6.7) (6.7) (20.3) (6.0)
Other creditors (62.5) (57.5) (12.8) (20.4)
--------- --------- -------- --------
(69.2) (64.2) (33.1) (26.4)
--------- --------- -------- --------
Net current (liabilities)/assets (9.9) (11.9) 14.5 15.9
--------- --------- -------- --------
Total assets less current liabilities 61. 3 58.3 215.7 217.3
--------- --------- -------- --------
Provisions for liabilities and
charges (5.9) (7.5) - -
--------- --------- -------- --------
Total net assets 55.4 50.8 215.7 217.3
--------- --------- -------- --------
Capital and reserves
Called up share capital 17.2 17.1 17.2 17.1
Share premium account 42.6 42.5 42.6 42.5
Capital redemption reserve 0.4 0.4 0.4 0.4
Other reserves - - 152.3 152.3
Profit and loss account (6.1) (10.1) 3.2 5.0
--------- --------- -------- --------
Shareholders' funds 7 54.1 49.9 215.7 217.3
Minority interests (equity) 1.3 0.9 - -
--------- --------- -------- --------
Total equity 55.4 50.8 215.7 217.3
--------- --------- -------- --------
Approved by the Board of Directors on 25 March 2004
Kevin Abbott, Chief Executive Heather McRae, Finance Director
Group Cash Flow Statement
for the year ended 31 January 2004
2004 2003
Notes #m #m
------ ------- -------
Net cash inflow from operating activities 8.1 30.1 23.5
Dividends received from associates 0.2 0.1
Returns on investments and servicing of finance
Interest received 0.1 0.4
Interest paid (1.5) (1.9)
Dividends paid to minority shareholders in subsidiary
undertakings (1.1) (1.6)
------- -------
Net cash outflow from returns on investments and
servicing of finance (2.5) (3.1)
------- -------
Taxation (6.5) (6.7)
------- -------
Capital expenditure and financial investment
Purchase of tangible fixed assets (12.2) (6.8)
Purchase of own shares - (0.5)
------- -------
Net cash outflow for capital expenditure and financial
investment (12.2) (7.3)
------- -------
Acquisitions and disposals
Disposal of businesses - 1.3
Purchase of associates 9 (0.7) -
------- -------
Net cash (outflow)/inflow for acquisitions and
disposals (0.7) 1.3
------- -------
Equity dividends paid (6.2) (6.1)
------- -------
Net cash inflow before financing 2.2 1.7
------- -------
Financing
Decrease in unsecured loans less than 1 year (3.0) (17.1)
Issue of shares 0.2 0.3
------- -------
Net cash outflow from financing (2.8) (16.8)
------- -------
Decrease in cash 8.2 (0.6) (15.1)
------- -------
Notes to the Financial Information
1. Segmental analysis
Turnover Profit before Net assets/
taxation (liabilities)
----------------------------------------------------------
2004 2003 2004 2003 2004 2003
#m #m #m #m #m #m
------ ------- ------- ------- ------ ------
(a) Business sector analysis
Flight Services
- continuing operations * 244.0 245.4 13.7 15.7 36.8 38.3
- discontinued operations - - - 0.3 - (0.5)
- share of operating profit of associates
(including goodwill amortisation) - - 0.1 0.2 - -
- goodwill amortisation - - (1.4) (1.1) - -
- exceptional items
(continuing operations) - - (2.9) - - -
- profit on disposal of
discontinued operations - - - 1.9 - -
------- ------- ------- ------- ------ ------
244.0 245.4 9.5 17.0 36.8 37.8
------- ------- ------- ------- ------ ------
Retail
- continuing operations * 196.9 173.9 8.8 6.8 16.7 13.3
- goodwill amortisation - - (1.8) (1.8) - -
- exceptional items
(continuing operations) - - 2.2 - - -
------- ------- ------- ------- ------ ------
196.9 173.9 9.2 5.0 16.7 13.3
------- ------- ------- ------- ------ ------
440.9 419.3 18.7 22.0 53.5 51.1
------- ------- ------- ------- ------ ------
Corporate
- profit on disposal of
discontinued operations - - - 0.2 - -
------- ------- ------- ------- ------ ------
440.9 419.3 18.7 22.2 53.5 51.1
Net interest payable - - (1.3) (1.5) - -
Net cash/(borrowings) - - - 1.9 (0.3)
------- ------- ------- ------- ------ ------
Turnover, profit on
ordinary activities
before taxation and net assets 440.9 419.3 17.4 20.7 55.4 50.8
------- ------- ------- ------- ------ ------
(b) Geographical analysis
United Kingdom
- continuing operations * 367.8 355.5 14.2 13.3 25.5 30.4
- exceptional items
(continuing operations) - - (0.3) - - -
------- ------- ------- ------- ------ ------
367.8 355.5 13.9 13.3 25.5 30.4
------- ------- ------- ------- ------ ------
Rest of the World
- continuing operations * 73.1 63.8 8.3 9.2 28.0 21.2
- discontinued operations - - - 0.3 - (0.5)
- goodwill amortisation - - (3.2) (2.9) - -
- share of operating profit of associates
(including goodwill amortisation) - - 0.1 0.2 - -
- exceptional items
(continuing operations) - - (0.4) - - -
- profit on disposal of discontinued operations - - - 1.9 - -
------- ------- ------- ------- ------ ------
73.1 63.8 4.8 8.7 28.0 20.7
------- ------- ------- ------- ------ ------
440.9 419.3 18.7 22.0 53.5 51.1
Corporate
- profit on disposal of discontinued operations - - - 0. 2 - -
------- ------- ------- ------- ------ ------
440.9 419.3 18.7 22.2 53.5 51.1
Net interest - - (1.3) (1.5) - -
Net cash/(borrowings) - - - - 1.9 (0.3)
------- ------- ------- ------- ------ ------
Turnover, profit on
ordinary activities
before taxation and net
assets 440.9 419. 3 17.4 20.7 55.4 50.8
------- ------- ------- ------- ------ ------
* 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. Exceptional items
The results for the year ended 31 January 2004 include net exceptional items of
#0.7m charged against operating profit.
At the end of the year the Group decided to implement a new management structure
in Flight Services to introduce a more streamlined and customer focussed
organisation. This resulted in the loss of 90 positions in the UK and Europe
with a related redundancy cost of #2.9m. These costs were partly offset by the
release of an amount of #2.2m from the two onerous contract provisions. At
Newcastle the Group exited a loss making contract during the year and no further
provision is required. In Orlando, USA trading performance is better than
forecast when the provision was established and consequently the provision has
been reduced to the directors' current best estimate of losses up until expiry
of the contract in July 2005.
In the year ended 31 January 2003 the profit on disposal of discontinued
operations of #2.1m comprised a profit of #1.1m arising on the disposal of the
Group's associate investment in In-Flight 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.
3.Taxation
2004 2003
#m #m
-------- --------
Current tax
United Kingdom
Corporation tax at 30% (2002/03: 30%) 6.0 5.9
Double tax relief (2.0) (1.1)
Tax on exceptional items (0.4) 0.1
-------- --------
3.6 4.9
Overseas
Corporation taxes 3.0 2.6
Share of taxation of associates 0.3 0.3
Tax on exceptional items (0.5) -
Prior year adjustments (0.2) 0.3
-------- --------
Total current tax 6.2 8.1
-------- --------
Deferred tax
United Kingdom
Origination and reversal of timing differences 0.2 (0.7)
Tax on exceptional items 0.3 -
-------- --------
0.5 (0.7)
Overseas
Origination and reversal of timing differences - (0.2)
-------- --------
Total deferredtax 0.5 (0.9)
-------- --------
Total tax on profit on ordinary activities6.7 7.2
-------- --------
Taxation as a percentage of profit before
taxation 38% 35%
Taxation as a percentage of profit before
taxation before exceptional items 40% 38%
Taxation as a percentage of profit before
taxation, exceptional items and goodwill
amortisation 33% 33%
-------- --------
4. Equity dividends
2004 2003
#m #m
------------ -----------
Interim dividend paid of 1.0p per ordinary share (2002/03: 1.0p) 1.7 1.7
Proposed final dividend of 2.8p per ordinary share (2002/03: 2.6p) 4.8 4.5
------------ -----------
Total dividend of 3.8p per ordinary share (2002/03: 3.6p) 6.5 6.2
------------ -----------
5. Earnings per share
Profit for the year Earnings per share
----------------- ---------------
2004 2003 2004 2003
#m #m Pence Pence
---------- --------- --------- ---------
Profit for the financial year and earnings per 9.1 11.8 5.33 6.91
share
Adjustment for profit on
disposal of discontinued
operations - (2.1) - (1.23)
Adjustment for goodwill amortisation and 3.6 3.0 2.11 1.76
impairment
Adjustment for exceptional items 0.7 - 0.41 -
Taxation relating to exceptional
items (0.6) 0.1 (0.35) 0.06
---------- --------- --------- ---------
Adjusted profit and adjusted earnings per share 12.8 12.8 7.50 7.50
---------- --------- --------- ---------
The weighted average number of shares in issue during the year was 170,733,330
(2002/03: 170,722,782). Earnings per share is calculated by dividing the profit
for the financial year by the weighted average number of shares in issue during
the year. Adjusted earnings per share is calculated by eliminating the effect of
goodwill amortisation and exceptional items, adjusted for any tax effect.
Diluted earnings per share of 5.28p (2002/03: 6.87p) is calculated by reference
to the profitfor the financial year of #9.1m (2002/03: #11.8m) and the weighted
average number of shares in issue during the year of 170,733,330 (2002/03:
170,722,782), as adjusted for potentially dilutive ordinary shares of 1,510,307
(2002/03: 1,029,935).
6.Net cash/(borrowings)
2004 2003
#m #m
----------- ------------
6.1 Bank and other borrowings
Unsecured loans (3.0) (6.0)
Bank overdrafts (3.7) (0.7)
----------- ------------
Total bank and other borrowings due within one year (6.7) (6.7)
----------- ------------
6.2 Net cash/(borrowings)
Total bank and other borrowings (6.7) (6.7)
Cash at bank and in hand 8.6 6.4
----------- ------------
Net cash/(borrowings) 1.9 (0.3)
----------- ------------
7. Reconciliation of movements in shareholders' funds
2004 2003
#m #m
----------- ------------
Profit for the financial year 9.1 11.8
Dividends (6.5) (6.2)
----------- ------------
Retained profit for the financial year 2.6 5.6
Currency translation differences on foreign currency net
assets and certain loans 0.2 (0.5)
Issue of shares 0.2 0.3
Goodwill charged to the profit and loss account previously written off 1.2 1.2
directly to reserves ----------- ------------
Net increase to shareholders' funds 4.2 6.6
Openingshareholders' funds 49.9 43.3
----------- ------------
Closing shareholders' funds 54.1 49.9
----------- ------------
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 (2002/03: #1.2m)
has been added back into shareholders' funds.
8. Notes to the cash flow statement
8.1 Reconciliation of operating profit to net cash inflow from operating
activities
2004 2003
#m #m
----------- ------------
Operating profit 18.6 19.9
Depreciation 9.9 10.3
Goodwill amortisation 3.2 2.9
Long term incentive plan amortisation charge 0.2 0.1
(Increase) in stocks (2.7) (1.8)
(Increase) in debtors (2.6) (2.0)
Increase/(decrease) in creditors 3.5 (5.9)
----------- ------------
Net cash inflow from operating activities 30.1 23.5
----------- ------------
8.2 Reconciliation of net cash flow to movement innet cash/(debt)
2004 2003
#m #m
----------- ------------
Increase/(decrease) in cash in the period 2.4 (14.4)
Increase in overdrafts in the period (3.0) (0.7)
Decrease in debt and lease financing 3.0 17.1
----------- ------------
Change in net cash/(debt) from cash flows 2.4 2.0
Currency translation (0.2) (1.0)
----------- ------------
Movements in net cash/(debt) in period 2.2 1.0
Net debt at 1 February (0.3) (1.3)
----------- ------------
Net cash/(debt) at 31 January 1.9 (0.3)
----------- ------------
8.3 Analysis of net cash/(debt)
1 February Cash Exchange 31 January
2003 flows movement 2004
#m #m #m #m
----------- ---------- --------- ---------
Cash at bank and in hand 6.4 2.4 (0.2) 8.6
Overdrafts (0.7) (3.0) - (3.7)
----------- ---------- --------- ---------
5.7 (0.6) (0.2) 4.9
Debt due within 1 year (6.0) 3.0 - (3.0)
----------- ---------- --------- ---------
Total (0.3) 2.4 (0.2) 1.9
----------- ---------- --------- ---------
9. Purchase of associates
During the year the Group purchased a 20% shareholding in Calibre Airline
Services Limited (an information technology company) for #0.6m and also made a
capital contribution to Servair Airchef srl, an associate, of #0.1m.
10. Preliminary announcement
The preliminary results for the year ended 31 January 2004 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 2003 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 2004 will
be finalised on the basis of the financial information presented by the
Directors in the preliminary announcement.
11. Dividend
The record date for the final dividend is 16 April 2004 and payment date is 9
June 2004.
12. Issue of annual report and accounts
The Annual Report 2003/04 will be posted to shareholders by 30 April 2004.
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.
13. 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 3 June 2004 at
11am.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SESFALSLSEID
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