TIDM38LZ
RNS Number : 5730V
Manchester Airport Grp Funding PLC
05 December 2023
Issuer: Manchester Airport Group Funding PLC
Date: 5 December 2023
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 2023.
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 2023.
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 5 December 2023 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 2023
MAGIL's financial performance for the six months ended 30
September 2023 saw a continuing recovery of activity levels, with
passenger numbers of 34.9m increasing by 14.4% compared to the six
months ended 30 September 2022, and reaching 96% of pre-Covid-19
levels.
MAGIL's revenue has increased by 25.0% to GBP705.3 million,
which has resulted in an Adjusted EBITDA of GBP345.8 million, an
increase of GBP85.9 million (33.1%). MAGIL delivered an operating
profit of GBP218.4 million for the half year ended 30 September
2023 (2022: GBP22.1 million). The prior period result was heavily
impacted by a one-off adjusted item charge of GBP119.7 million
following the extinguishment of the Group's deferred debt agreement
(DDA) for the exit from the Greater Manchester Pension Fund
("GMPF") pension scheme. All of MAG's defined benefit pension
schemes are now closed to future accrual.
MAGIL's parent, MAHL, reported an Adjusted EBITDA of GBP346.1
million, and a profit from operations of GBP218.2 million for the
half year ended 30 September 2023.
Key Financials 6 months ended 6 months ended Change (%)
30 September 30 September
2023 (GBPm) 2022 (GBPm)
---------------------------- --------------- --------------- -----------
Revenue 705.3 564.1 25.0%
Adjusted EBITDA* 345.8 259.9 33.1%
Adjusted EBITDA*(excluding
impact of IFRS 16) 326.7 243.6 34.1%
Operating profit
(before adjusted
items) 224.4 143.8 56.1%
Operating profit 218.4 22.1 888.2%
Profit/(Loss) before
taxation 202.2 (28.2) n/a
---------------------------- --------------- --------------- -----------
Passengers 6 months ended 6 months ended Change (%)
30 September 30 September
2023 (m) 2022 (m)
----------------- --------------- --------------- -----------
Manchester 16.4 14.1 14.7%
London Stansted 15.8 14.0 12.9%
East Midlands 2.7 2.2 22.7%
----------------- --------------- --------------- -----------
Total 34.9 30.5 14.4%
----------------- --------------- --------------- -----------
* Adjusted EBITDA is earnings before interest, tax,
depreciation, amortisation, gains and losses on sales and valuation
of investment properties, and adjusted items
Whilst passenger performance remained slightly below pre-Covid
levels (96%) for the six months to 30 September 2023, MAG was
pleased to report that its airports exceeded pre-pandemic volumes
in October 2023 (104%).
MAG's focus on providing customers with a strong product mix,
and our commitment to working with our airline partners to make
travel as affordable and accessible as possible, resulted in a
positive performance across all revenue streams despite the cost-of
living pressures faced by many customers.
Route networks continued to strengthen as airlines introduced
new routes and increased capacity across MAG's airports.
Other headlines
-- In November 2023, MAG received planning permission for an
extension to London Stansted's terminal, which will enhance the
passenger experience and capacity to continue to grow to its
permitted passenger cap of 43 million passengers per year.
-- Across all three airports, MAG is making the necessary
investments to introduce Future Security technology in line with
agreed Government timescales. This will remove the need for
passengers to take liquids, gels and large electrical items out of
their hand luggage, significantly improving their airport
experience.
-- In May 2023 MAGIL executed the first of two one-year
extension options on its GBP500 million revolving credit facility
and a GBP90 million liquidity facility, extending the maturity of
these facilities to May 2028. The revolving credit facility
remained undrawn at 30 September 2023.
-- In September 2023, MAG successfully secured future funding
requirements by issuing an 18-year, GBP360 million bond with a
coupon of 6.125%, providing funding to repay a GBP360 million bond
due to mature in April 2024.
-- MAGIL's GBP1,820 million of listed bonds, together with the
bank facilities described above and retained cash resources of
GBP498.0 million as at 30 September 2023, provide it with a
long-term stable funding platform. MAGIL's Total Net Debt
(financial covenant basis) was GBP1,325.0 million at 30 September
2023, which was GBP388.3 million lower than as at 31 March 2020, at
the beginning of the pandemic.
-- MAGIL's Leverage covenant for the 30 September 2023
Calculation Date was 2.9x. Interest Cover was 7.7x.
-- 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.
-- No dividend will be paid by MAHL in respect of the half year
ended 30 September 2023. Dividends paid by MAHL are funded via
Distributions from MAGIL.
-- In October 2023, MAG published its annual 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 report coincided with
the retention of MAG's five-star Global Real Estate Sustainability
Benchmark (GRESB) ESG rating.
o Under Zero Carbon Airports MAG detailed the landmark
partnership between Manchester Airport and HyNet, which aims to
make it the first UK airport with a direct supply of zero emission
hydrogen fuel by the mid-2030s.
o The Report set out how many people had benefitted from MAG's
commitment to Opportunity for All, which saw more than 6,500 young
people visit a MAG Connect Aerozone and more than 12,000 people
supported with skills and employment through MAG Connect Airport
Academies.
o In our commitment to hearing Local Voices, the Report provided
detail on new Youth Forums at each airport that enable younger
people to give their views on the sustainable development of MAG,
and as part of our long-standing commitment to supporting local
causes, MAG contributed nearly GBP1 million through our community
funds.
-- The latest Corporate and Social Responsibility report,
together with other investor material related to ESG, is available
on MAG's Responsible Business website (
magairports.com/responsible-business/csr-reports/ )
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
MAG Press Office press.office@magairports.com
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END
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