REG - Manchester Airport - Half-year Financial Report

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02/12/2025 08:00

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RNS Number : 7076J  Manchester Airport Grp Funding PLC  02 December 2025

Issuer: Manchester Airport Group Funding PLC

Date: 2 December 2025

 

Manchester Airport Group Funding PLC

Company No. 8826541

 

Interim Results

 

The Issuer's parent, Manchester Airport Group Investments Limited ("MAGIL"),
today publishes its Interim Financial Report and consolidated financial
statements for the half year ended 30 September 2025.

MAGIL's parent, Manchester Airports Holdings Limited ("MAHL"), today
also publishes its Interim Financial Report and consolidated financial
statements for the half year ended 30 September 2025.

The Interim Reports and consolidated financial statements for MAHL and
MAGIL, together with the Investor Presentation, 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 Tuesday 2 December 2025 at 9.30
am (UK time). The call will be hosted by Ken O'Toole, Chief Executive Officer,
and Iain Ashworth, Corporate Finance Director.

MAGIL results for the 6 months ended 30 September 2025

MAG's airports welcomed a record number of passengers between April to
September 2025, with volumes up more than 700,000 year-on-year. This has been
achieved due to our focus on maximising the choice available to passengers in
all parts of the country - and by ensuring air travel is as affordable and
accessible as possible for all. Continued passenger growth has underpinned
MAG's strong financial performance in first half of the year.

Passenger numbers for the 6 months were 38.0 million, an increase of 1.9%
compared to the 37.3 million passengers in the previous year. That means
around one in five of all UK air travellers used a MAG airport during the
year, reflecting the reach of our combined catchment areas.

MAGIL's revenue has increased by 10.5% to £850.6 million, which has resulted
in an Adjusted EBITDA of £405.3 million, an increase of £27.4 million
(7.3%).  MAGIL delivered an operating profit of £248.8 million for the half
year ended 30 September 2025 (2024: £244.9 million).

 MAGIL Key Financials                           6 months ended 30 September 2025 (£m)   6 months ended 30 September 2024 (£m)   Change (%)
 Revenue                                        850.6                                   769.6                                   10.5%
 Adjusted EBITDA*                               405.3                                   377.9                                   7.3%
 Adjusted EBITDA*(excluding impact of IFRS 16)  381.8                                   356.8                                   7.0%
 Operating profit (before adjusted items)       267.3                                   254.8                                   4.9%
 Operating profit                               248.8                                   244.9                                   1.6%
 Profit/(loss) before taxation                  217.5                                   214.9                                   1.2%

 

 Passengers       6 months ended 30 September 2025 (m)  6 months ended 30 September 2024 (m)  Change (%)
 Manchester       18.5                                  17.8                                  3.9%
 London Stansted  16.8                                  16.7                                  0.6%
 East Midlands    2.7                                   2.8                                   (3.6)%
 Total            38.0                                  37.3                                  1.9%

 

 

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

 

MAGIL's parent, MAHL, reported an Adjusted EBITDA of £405.9 million, and a
profit from operations of £248.3 million for the 6 month period.

 

 

Highlights

 

·      Across what was the busiest summer period in its history,
Manchester Airport handled 18.5m passengers between April and September, a
3.9% increase on HY25. That came on the back of it breaking through the 31mppa
barrier for the first time in FY25.

 

·      A record breaking six months saw London Stansted serve 16.8m
passengers, an increase of 0.6% on the same period last year. The airport
serving London and the East of England maintains the UK's most extensive
network of European destinations.

 

·      Celebrating its 60th year of operation in April, East Midlands
Airport served 2.7m passengers across the first six months of the year, a
decrease of 3.6% compared to last year. As the UK's largest pure freight
operation, East Midlands Airport handled more than 201,000 tonnes of cargo
between April and September. This was a significant increase of 9.7% compared
to last year.

 

·      MAG's global footprint continues to increase through CAVU. In the
first half of the year, CAVU's Marketplace Division expanded, with Propel
Commerce scaling across airports in the US, EMEA, and APAC and Propel Connect
scaling through several new partnerships including with Expedia, Collinson and
Dragon Pass. Inventory grew with new global parking providers and improved
commissions at existing sites with new product categories added to the
marketplace including lounges and fast track. The Experiences Division
expanded its lounge network, with openings in Puerto Rico, Tulsa, Edinburgh,
Bristol, and Brisbane. Technology milestones included an increase in Propel
search volumes from 10 million to 75 million per month.

 

·      Against a backdrop of government support for sustainable aviation
expansion, MAG continued to invest strongly in our airports during the year,
with plans to invest around £2.5 billion over the next five years, which
would cement our position as the UK's largest private funder of transport
infrastructure schemes outside of London.

 

o  The 10-year transformation of Manchester Airport is nearing completion,
with a series of construction milestones reached in the first half. The
opening of new check-in facilities and an extension to Terminal 2's
award-winning departure lounge, gives passengers exceptional choice. Nearly
80% of all Manchester Airport passengers now use its new, state-of-the-art
terminal. Overall, the scheme unlocks the potential of Manchester's existing
runways, enabling capacity for 45-50 million passengers per annum. In
September, work also began on the multimillion-pound project to redevelop
Terminal 3, which will expand the departure hall space with additional
seating, alongside new retail and food and drink options.

 

o  In July, London Stansted Airport celebrated opening its new domestic
arrivals building. This marks the first milestone for the £1.1bn investment
that looks to increase the airport's capacity and transform the passenger
experience.

 

o  In May, East Midlands Airport unveiled its vision to unlock its full cargo
potential, CargoMAX, with developments that have the potential to meet an
estimated 54% growth in demand for express air freight and create more than
20,000 jobs in the East Midlands. A study by York Aviation concluded that this
cargo growth will support up to £1.8bn in additional Gross Value Added (GVA)
for the region by 2030, and up to £3.4 billion additional GVA by 2043.

 

·      As at 30 September 2025, MAGIL had a £500 million revolving
credit facility and a £135 million liquidity facility, maturing May 2029. The
revolving credit facility and liquidity facility were undrawn at 30 September
2025. In November 2025 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 November 2030 with
options to extend by up to two years, subject to lenders' agreement.

 

·      MAGIL's £1,760 million and €500 million of listed bonds,
together with the bank facilities described above and retained cash resources
of £237.3 million as at 30 September 2025, provide it with a long-term stable
funding platform. Together with the undrawn revolving credit facility MAGIL
had in excess of £0.7 billion of liquidity at the period end.

 

·      MAGIL's Leverage covenant for the 30 September 2025 Calculation
Date was 3.5x. Interest Cover was 6.2x.

 

·      MAG's financing strategy incorporates its strong investment grade
ratings with Fitch (BBB+ stable outlook) and Moody's (Baa1 stable outlook) and
a long-term financing structure to support growth.

 

·      In May 2025 the Group published its new Sustainability Strategy,
coming at a pivotal time for aviation as our industry embraces low-emission
technologies and works towards global decarbonisation targets. Since 2007,
MAG's operational emissions (scope 1 and 2) have reduced by 90% and we have
developed a clear roadmap to achieve net zero carbon operations by 2038. MAG
continues to play a leading role advancing

aviation sustainability, collaborating with partners and governments to ensure
the sector's growth is compatible with our responsibility to decarbonise the
economy. In October 2025 the Group issued a report to look back on its
achievements over the last five years of its previous Sustainability Strategy
- Working Together for a Brighter Future.

 

·      MAG's latest annual Corporate and Social Responsibility (CSR)
report and Sustainability Strategy is available on MAG's Responsible Business
website (magairports.com/responsible-business/csr-reports/
(https://www.magairports.com/responsible-business/csr-reports/) and
www.magairports.com/work-with-us/our-sustainability-plans/)

 

·      MAG's commitment to implementing effective sustainability
practices continues to be independently recognised. This year, the Group
retained its five-star GRESB Environmental, Social and Governance (ESG)
rating, and achieved a gold standard EcoVadis award which placed MAG in the
top 5% of the more than 130,000 companies assessed globally.

 

 

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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