REG - Manchester Airport - Annual Financial Report

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07/07/2022 08:15

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RNS Number : 5731R  Manchester Airport Grp Funding PLC  07 July 2022

Issuer: Manchester Airport Group Funding PLC

Date: 7 July 2022

 

 

Manchester Airport Group Funding PLC

Company No. 8826541

 

Annual Results

 

The Issuer's parent, Manchester Airport Group Investments Limited ("MAGIL"),
today publishes its Annual Financial Report and consolidated financial
statements for the year ended 31 March 2022.

MAGIL's parent, Manchester Airports Holdings Limited ("MAHL"), today
also publishes its Annual Financial Report and consolidated financial
statements for the year ended 31 March 2022.

The Annual Reports and consolidated financial statements for MAHL and MAGIL,
together with the Investor Presentation, Investor Report and Compliance
Certificate for MAGIL, are available on Manchester Airports Group's Investor
Relations website at magairports.com/investor-relations.

Investor Presentation

A conference call to present the results to bondholders, bank lenders, rating
agencies and credit analysts will be held on Thursday 7 July 2022 at 10.00 am
(UK time). The call will be hosted by Jan Bramall, Chief Financial Officer,
Ken O'Toole, Deputy Chief Executive Officer and Iain Ashworth, Corporate
Finance Director.

 

MAGIL results for the 12 months ended 31 March 2022

MAGIL's performance for the 12 months to 31 March 2022 continued to be
severely impacted by changing international travel restrictions in response to
the Coronavirus pandemic.

Passenger numbers for the 12 month period were 20.5 million, an increase of
225.4% compared to the 6.3 million passengers in the equivalent period of
2021. This still equates to only 33% of pre-pandemic levels. MAGIL's revenue
has increased by 161.7% to £461.2 million, which together with cost savings
has resulted in an Adjusted EBITDA of £125.1 million, an increase of £273.2
million year-on-year.  MAGIL's Result from operations was a loss of £130.0
million for the 12 months ended 31 March 2022 (2021: loss of £359.5 million).

MAGIL's parent, MAHL, reported an Adjusted EBITDA of £125.6 million, and a
loss from operations of £130.3 million.

 

 Key Financials                                  12 months ended 31 March 2022 (£m)   12 months ended 31 March 2021 (£m)   Change (%)
 Revenue                                         461.2                                176.2                                161.7%
 Adjusted EBITDA*                                125.1                                (148.1)                              n/a
 Adjusted EBITDA*(excluding impact of IFRS 16)   94.3                                 (178.1)                              n/a
 Result from operations (before adjusted items)  (112.9)                              (321.6)                              64.9%
 Result from operations                          (130.0)                              (359.5)                              63.8%
 Result before taxation                          (185.9)                              (418.4)                              55.6%

 

 Passengers       12 months ended 31 March 2022 (m)  12 months ended 31 March 2021 (m)  Change (%)
 Manchester       9.1                                2.8                                225.0%
 London Stansted  10.3                               3.1                                232.3%
 East Midlands    1.1                                0.4                                175.0%
 Total            20.5                               6.3                                225.4%

 

 

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

 

Throughout the year to 31 March 2022 the effects of the Coronavirus pandemic
on the aviation industry have fluctuated and Manchester Airports Group ("MAG")
has balanced its ability to manage costs and liquidity against maintaining its
infrastructure to enable future growth.

The end of UK Government restrictions on international travel in March 2022
drove a significant return of passenger demand. By the end of the financial
year, MAG's airports were seeing 70% of pre-pandemic traffic levels. The
sustained increase in passenger numbers has continued into the new financial
year with passengers rising to 82% of pre-pandemic levels by the end of May.

Like all airports across the UK, MAG and its airline partners have experienced
challenges to build back staffing levels quickly enough to meet this returning
demand, causing some periods of disruption at our airports. Working closely
with local partners and Airport Academies at each airport, MAG has launched a
large-scale recruitment campaign and has welcomed hundreds of new colleagues
into the operation and we expect to have the resources we need in place ahead
of the busy summer season.

MAG continued to exercise strong cash management throughout the year to 31
March 2022 to maintain liquidity despite the residual impacts of the pandemic
and ensure the long-term viability of the business. Cash management
discipline, £300 million of new shareholder equity injected in 2020, and
£400 million raised through the sale of MAGIL's non-core property portfolio
contributed to a cash position at MAGIL of £451.4 million at 31 March 2022.

Other headlines

 

·      Significant investment has been completed in the last three years
and MAG's modern infrastructure will be an important component of a strong
recovery. Following the outbreak of COVID-19, MAG reduced and refocussed
expenditure on its capital projects, given the reduction in passenger
demand.  Phase 2 of MAG's main capital project; the Manchester Airport
Transformation Programme ("MANTP"), is now complete. The Terminal 2 extension
opened in July 2021 and has been well received by airlines and passengers.
Manchester Airport's modern facilities will continue to be the international
gateway for the North, providing passenger and airline facilities for the
future, and supporting commercial yields and operating efficiencies. With the
increase in demand observed since the release of international travel
restrictions in the UK, MAGIL has begun a process to remobilise its previously
paused investment plans which may recommence later this year if the strong
rebound continues through the Summer.

 

·      As at 31 March 2022, MAGIL had a £500 million revolving credit
facility and a £90 million liquidity facility, maturing June 2023. On 27 May
2022 MAGIL completed a refinancing of these facilities, through an amendment
and restatement process. The total facility sizes and lenders remained
unchanged. The new facilities mature in May 2027 with options to extend by up
to two years, subject to lenders' agreement. Together with £1,460 million of
listed bonds and retained cash resources, these facilities provide the Group
with a long-term stable funding platform. MAGIL's Net Debt (excluding IFRS 16)
as at 31 March 2022 was £1,689.3 million, which was £219.5 million lower
than as at 31 March 2020, at the beginning of the pandemic.

 

·      Following the impact of COVID-19 and in accordance with the
Amendment and Waiver Deed no dividends have been paid throughout the covenant
waiver period. Dividends paid by MAHL are funded via Distributions from MAGIL.

 

·      MAG's financing strategy incorporates its strong investment grade
ratings with Fitch (BBB negative outlook) and Moody's (Baa1 negative outlook)
and a long-term financing structure to support growth. Maintaining this
financial stability, even during the pandemic and the Group's recent
transformation activities, places MAGIL in a strong position to maintain its
operational capabilities and benefit from the upturn in demand levels.

 

Note on MAGIL Results

 

Reconciliations between the financial results of MAGIL and MAHL and MAGIL's
Adjusted EBITDA (excluding impact of IFRS 16) are available in the appendix of
the Investor Presentation, which is available on MAHL's Investor Relations
website at magairports.com/investor-relations.

 

Enquiries:

 

Investor
Relations
investor.relations@magairports.com (mailto:investor.relations@magairports.com)

 

MAG Press Office
 
press.office@magairports.com (mailto:press.office@magairports.com)
 

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