Manchester Airport Grp Funding PLC Annual Results (7172K)

TIDM38LZ

RNS Number : 7172K

Manchester Airport Grp Funding PLC

12 July 2017

Issuer: Manchester Airport Group Funding PLC

Date: 12 July 2017

Manchester Airport Group Funding PLC

Company No. 8826541

Annual Results

The Issuer's parent, Manchester Airport Group Investments Limited ("MAGIL"), today publishes its Annual Report and financial statements for the year ended 31 March 2017.

MAGIL's parent, Manchester Airports Holdings Limited ("MAHL"), today also publishes its Annual Report and financial statements for the year ended 31 March 2017.

The Annual Reports and financial statements for MAHL and MAGIL are available on MAGIL's Investor Relations website at magairports.com/investor-relations.

Investor Presentation

A conference call to present the results to bondholders, bank lenders and credit analysts will be held on Wednesday 12 July 2017 at 10.30 am (UK time). The call will be hosted by Neil Thompson, Chief Financial Officer, and Andrew Cowan, CEO for London Stansted.

Dial-in details for the call are: UK local/standard international: +44 (0)330 336 9105. Participant PIN code: 1654164.

The presentation can be viewed online during the event by using the link: http://view-w.tv/755-1197-18536/en

MAGIL results for the 12 months ended 31 March 2017

MAGIL has delivered strong financial performance in the year ended 31 March 2017, meeting or exceeding its financial targets and continuing the growth delivered over the past few years. This is driven by increases in passengers, continued improvement in commercial performance and focussed expenditure to support both volume growth and improved customer service.

 
 Key Financials            12 months     12 months   Change (%) 
                            ended 31      ended 31 
                          March 2017    March 2016 
                              (GBPm)        (GBPm) 
----------------------  ------------  ------------  ----------- 
 Revenue                       838.4         778.8        +7.7% 
 Adjusted EBITDA*              347.6         319.7        +8.7% 
 Operating profit 
  (before significant 
  items)                       210.2         192.6        +9.1% 
----------------------  ------------  ------------  ----------- 
 
 
 Passengers           12 months     12 months   Change (%) 
                       ended 31      ended 31 
                     March 2017    March 2016 
                            (m)           (m) 
-----------------  ------------  ------------  ----------- 
 Manchester                26.2          23.5       +11.5% 
 London Stansted           24.3          23.2        +4.7% 
 East Midlands              4.7           4.5        +4.4% 
 Bournemouth                0.7           0.7            - 
 Total                     55.9          51.9        +7.7% 
-----------------  ------------  ------------  -----------

*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, gains and losses on sales and valuation of investment properties, and significant items

Highlights

-- Long-term commercial agreements with airlines have generated a significant increase in passengers (+7.7% to 55.9 million), driven by record numbers at Manchester Airport (+11.5% to 26.2m) and strong growth at London Stansted Airport (+4.7% to 24.3m).

-- Continued expansion of the route network with important extensions to short-haul and long-haul connectivity including the arrival of new flights to Boston, New Orleans, San Francisco, Singapore, Beijing, Stockholm, Frankfurt, Milan, Riyadh and Muscat.

-- The growth in passenger numbers combined with commercial yield improvements and cost discipline has translated into a strong set of financial results - Adjusted EBITDA up by GBP28 million (or 8.7%) from GBP320 million to GBP348 million.

-- Substantial investment in airport infrastructure, including; runway resurfacing works at East Midlands to support cargo and passenger operations; continued development of the Group's car park estate; improvements to the Group's IT capabilities; and initial planning costs for a new GBP130m arrivals terminal at London Stansted, which has secured planning approval, and which will enhance the overall passenger experience and provide the airport with the terminal infrastructure it needs in order to enable it to continue to grow.

-- Manchester Airport commenced work on its GBP1bn Transformation Programme; a scheme which will allow the airport to continue to grow and provide airlines and passengers with the latest technology to improve the airport experience. The modular programme updates and re-profiles existing long-term capital investment plans. Financing considerations are central to the refresh of the transformation master plan with the focus on component separability, and flexibility to match investment to market conditions. The programme financing reflects the Group's ongoing commitment to maintaining its strong investment-grade credit rating.

-- London Stansted remains well-placed to absorb future growth in London's aviation demand prior to any new runway being built at London Heathrow. London Stansted secured planning permission for a new dedicated arrivals terminal in April 2017.

-- In June 2016 MAGIL refinanced its GBP300 million Revolving Credit and GBP60 million Liquidity facilities, which were due to mature in February 2018, with a new five year GBP500 million RCF and a GBP60 million liquidity facility, maturing June 2021 (extended to June 2022 following exercise of a one year extension option), achieving significant savings in the process. MAGIL has now successfully refinanced all of the STN acquisition bank debt with this latest refinancing of its short-term facilities in combination with the issuance of two listed bonds in 2014.

-- Strong trading performance combined with a prudent financing policy underpins stable financial leverage (2.7x net debt to EBITDA) and enables MAGIL to continue to invest in the asset base and fund future growth.

-- A dividend of GBP77.2 million was paid by MAHL in July 2016 in respect of the full year ended 31 March 2016. An interim dividend of GBP47.0 million was paid in December 2016 and a final dividend of GBP93.9m will be paid in July 2017 making a total dividend of GBP140.9 million in respect of the full year ended 31 March 2017. Dividends paid by MAHL are funded via Distributions from MAGIL.

Note on MAGIL Results

A reconciliation between the financial results of MAGIL and MAHL is available in the appendix of the Investor Presentation which is available on MAGIL's Investor Relations website at magairports.com/investor-relations.

Enquiries:

   Investor Relations                                               investor.relations@magairports.com 
   MAG Press Office                                                press.office@magairports.com

This information is provided by RNS

The company news service from the London Stock Exchange

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