REG - Manchester Airport - Half-year Report

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10/12/2024 08:00

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RNS Number : 3891P  Manchester Airport Grp Funding PLC  10 December 2024

Issuer: Manchester Airport Group Funding PLC

Date: 10 December 2024

 

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 2024.

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 2024.

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 10 December 2024 at 10.00
am (UK time). The call will be hosted by Jan Bramall, Chief Financial Officer,
Ken O'Toole, Chief Executive Officer and Iain Ashworth, Corporate Finance
Director.

MAGIL results for the 6 months ended 30 September 2024

Across the Group, MAG handled more passengers between April and September than
ever before in its history. Both Manchester and London Stansted Airports
recorded the busiest individual days and months since they began operations,
and that growth is reflected in a strong financial performance in the first
half of the year.

With MAG's airports busier than ever before, it is particularly pleasing also
to be reflecting on a strong operational performance and high levels of
customer satisfaction throughout the summer.

Passenger numbers for the 6 months to 30 September 2024 were 37.3 million, an
increase of 6.9% compared to the 34.9 million passengers in the same period
last year. MAGIL's revenue has increased by 8.9% to £768.4 million, which has
resulted in an Adjusted EBITDA of £377.9 million for the period, an increase
of £32.1 million (9.3%).  MAGIL delivered an operating profit of £244.9
million for the half year ended 30 September 2024 (2023 H1: £218.4 million).

 MAGIL Key Financials                           6 months ended 30 September 2024 (£m)   6 months ended 30 September 2023 (£m)   Change (%)
 Revenue                                        768.4                                   705.3                                   8.9%
 Adjusted EBITDA*                               377.9                                   345.8                                   9.3%
 Adjusted EBITDA*(excluding impact of IFRS 16)  356.8                                   326.7                                   9.2%
 Operating profit (before adjusted items)       254.8                                   224.4                                   13.5%
 Operating profit                               244.9                                   218.4                                   12.1%
 Profit/(loss) before taxation                  214.9                                   202.2                                   6.3%

 

 Passengers       6 months ended 30 September 2024 (m)  6 months ended 30 September 2023 (m)  Change (%)
 Manchester       17.8                                  16.4                                  8.5%
 London Stansted  16.7                                  15.8                                  5.7%
 East Midlands    2.8                                   2.7                                   3.7%
 Total            37.3                                  34.9                                  6.9%

 

 

*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 £378.1 million for the
six months to 30 September 2024, and an operating profit of £244.5
million.

 

 

 

Highlights

 

·      In the first half of FY25, Manchester Airport handled 17.8
million passengers, up 8.5% on the same period in FY24. Over the period, the
airport reached a milestone of serving 30 million passengers for the first
time in its history, in the 12 months to September 2024. Work on the airport's
transformation of Terminal 2, due for completion in 2025, continued, with the
announcement of a series of new on-site retail partners.

 

·      London Stansted Airport has seen record-breaking numbers of
passengers pass through its terminal across the first six months of FY25,
serving 16.7 million passengers, a figure up 5.7% on the same period last
year. In September 2024, the airport announced its £1.1 billion investment
programme, that will include an extension to the existing terminal building,
to increase passenger capacity and enhance service levels, alongside the
construction of a 14.3MW on-site solar farm. London Stansted was awarded best
airport at the UK National Transport Awards 2024.

 

·      In the first half of FY25, East Midlands Airport handled 2.8
million passengers, up 3.7% on the same period last year. Airlines based at
East Midlands increased both their capacity and fleet sizes, with additional
routes to popular destinations across Europe. As the UK's largest pure freight
operation, East Midlands handled more than 183,366 tonnes of cargo over the
period.

 

·      CAVU has reported a strong period of financial trading for the
first six months of this year and now operates in 32 countries across 286
airports, offering 3,205 products. The division is preparing to open several
new international Escape Lounges, including Brisbane Airport in Australia,
Northwest Arkansas National Airport, Kansas City International Airport in the
US, and Luis Muñoz Marín International Airport in Puerto Rico. In total it
now operates 24 lounges globally.

 

·      Across all airports, growth was delivered while maintaining high
levels of passenger satisfaction. 99% of passengers passed through security in
15 mins or less at Manchester and London Stansted Airports with East Midlands
Airport processing 100% of its passengers in that same time.

 

·      MAG continues to invest heavily and responsibly in its airports
to support their growth and improve passenger experience, with plans to invest
more than £2 billion across its three airports over the next five years.

 

o  The Manchester Airport Transformation Programme (MAN-TP) continued to
progress across this period, with the installation of Terminal 2's new
state-of-the-art baggage system, and the completion of a new link bridge,
which will connect the terminal with the new Pier 2, which is currently under
construction. Work is set to be completed in 2025, with more than 30 of the
airport's airlines now operating from the new facilities. Manchester is also
undertaking a multi million pound investment in Terminal 3 to improve
facilities and enhance the airport experience for passengers.

 

o  With airport capacity constrained in London, and with London Stansted's
unique combination of choice, value and ease proving popular with the
modern-day traveller, MAG is advancing those plans in the months ahead,
starting with a £1.1 billion programme of investment. We were proud to reveal
further details of those plans in the Government's recent International
Investment Summit.

 

o  In October 2024, MAG's CAVU division acquired 100% of the equity capital
of Parkos Holding B.V., a comparison and booking platform for airport parking,
based in the Netherlands, operating with more than 1,000 providers in 15
countries across Europe. The initial upfront consideration paid was €44.0
million, additionally there are contingent payments to key management of the
acquiree, that are dependent upon post-acquisition performance and continued
employment.

 

o  Any growth plan for aviation must be founded on measures to ensure the
sector achieves its decarbonisation goals. In September 2024, we were pleased
to retain our five-star GRESB ESG rating, this year scoring 99/100 for MAG's
approach to sustainable operations.

 

 

·      In May 2024 MAGIL executed the second of two one-year extension
options on its £500 million revolving credit facility and a £90 million
liquidity facility, extending the maturity of these facilities to May 2029.
The revolving credit facility was undrawn at 30 September 2024.

 

·      In April 2024 MAG issued a £300 million bond, maturing in 2042,
with a coupon of 5.75% providing funding for the Group's investment activities
in FY25. Earlier in the month MAG repaid a £360 million bond as per the
scheduled maturity.

 

·      MAGIL's £1,760 million of listed bonds, together with the bank
facilities described above and retained cash resources of £232.5 million as
at 30 September 2024, 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 2024 Calculation
Date was 3.1x. Interest Cover was 6.8x.

 

·      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 November 2024, MAG published its annual Corporate and Social
Responsibility (CSR) report which detailed MAG's achievements over the last 12
months in delivering its CSR Strategy against three themes: Zero Carbon
Airports, Opportunity for All, and Local Voices. The latest report, together
with other investor material related to ESG, is available on MAG's Responsible
Business website
(https://www.magairports.com/work-with-us/our-sustainability-plans/)
(https://www.magairports.com/work-with-us/our-sustainability-plans/)

 

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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