Alpha Airports Group - Final Results
March 30 2000 - 1:07AM
UK Regulatory
RNS Number:1663I
Alpha Airports Group PLC
30 March 2000
PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST JANUARY 2000
30 March 2000
HIGHLIGHTS
* Profit on ordinary activities before taxation increased to #19.3m
(1998/99* #15.7m)
* Earnings per share increased by 12% to 6.07 pence (1998/99* 5.41 pence)
* Total dividend, including recommended final dividend, increased by 6.7% to
3.2 pence per ordinary share (1998/99 3.00 pence)
* Group net cash #8.6m (1998/99 net debt #76.2m)
* Consolidated shareholders' funds #60.5m (1998/99* #3.3m deficit)
*As restated see Note 3
Commenting today Kevin Abbott, Chief Executive, said:
"The sale, for #100.3m, of our US ground handling business has transformed
ALPHA's ability to invest in our core Travel Retail and Flight Service
activities where significant growth opportunities exist. The recent
investment by Servair in ALPHA will enhance our international catering growth
prospects as we jointly expand choice for the world's airlines. Servair and
ALPHA share the view that together we can establish an extensive and high
quality catering network across Europe."
Enquiries:
ALPHA Airports Group Plc Tel: 020 7457 2345: (today)
Kevin Abbott, Chief Executive Tel: 020 8580 3200:(thereafter)
Stuart Siddall, Finance Director
Gavin Anderson & Company Tel: 020 7496 1431
Laura Hickman
Corporate website : www.alpha-group.com
PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST JANUARY 2000
Sales in ALPHA Inflight Retail grew strongly to #44.0m (1998/99 #39.0m) whilst
sales in our catering division, ALPHA Flight Services, were stable at #219.3m
(1998/99 #220.2m). Sales in ALPHA Travel Retail fell to #187.1m (1998/99
#260.6m) as expected following the expiry of a management contract at Gatwick
and the abolition of Duty and Tax Free allowances for intra EU travellers.
The Group's profit on ordinary activities before taxation increased by #3.6m
to #19.3m. Operating profits from our continuing businesses (before goodwill
amortisation and exceptional items) were #19.0m (1998/99 #22.6m). This
reduction was largely as a result of the expected abolition of Duty and Tax
Free allowances for travellers within the EU.
Earnings per ordinary share increased to 6.07 pence (1998/99* 5.41 pence).
Before goodwill amortisation and exceptional items the adjusted earnings per
share were, at 7.64 pence (1998/99 9.83 pence), in line with our expectations.
During the past twelve months the Group has been successful in managing the
impact of the abolition of Duty and Tax Free allowances for travellers within
the EU and the acquisition and integration of the British Airways kitchen at
Gatwick. In addition, we have secured a 10 year extension to our UK wide
catering contract with British Airways, renegotiated key UK contracts and
eliminated the Group's debt following the successful sale of our US ground
handling business.
All of our businesses have continued to focus on the establishment of best
practice. Significant progress was achieved in ALPHA Flight Services where
world class service standards were maintained and productivity improvements
evident.
In Paris Orly ALPHA Flight Services will, following the transfer of the major
international airlines to Paris Charles de Gaulle, reduce its cost base. The
restructuring will cost up to #1.0m and will be incurred in 2000/01.
In recognition of the progress achieved by the Group in the year the Board is
recommending a final dividend of 2.20 pence per ordinary share which together
with the interim dividend of 1.0 pence per ordinary share makes a total of
3.20 pence (1998/99 3.00 pence).
In view of the current level of the Company's share price the Directors intend
to utilise the authority granted at last year's Annual General Meeting to
allow the Company to purchase ordinary shares in the Company if suitable
opportunities arise.
STRATEGY
Following the sale, for #100.3m, of the US ground handling business in August
1999 ALPHA now has the resources to invest in the core flight services, travel
retail and inflight retail businesses. The Board's strategy review has
confirmed that there are a number of exciting opportunities available and
investment for growth and development will be our first priority. The Group's
strategy is to leverage all our unique skills, embrace new technologies and
harness the emerging opportunities of the dynamic travel marketplace.
ALPHA Flight Services offers high quality services to our airline customers.
In the UK we have a strong position and there are opportunities to grow the
business by continuing to offer high levels of service, pro-active product
development and increasing logistics management.
We provide inflight cafe services on-board the leading low cost airlines which
operate out of the UK.This success has been born out of a combination of our
core catering, logistics and travel retail skills. Our service on-board
easyJet has been recognised with the International Flight Catering
Association's Gold Medal award for the best on-board service concept. There is
no doubt that low cost air travel will continue to grow rapidly and as the
proven innovator in on-board products we will remain at the forefront of these
developments.
Overseas the growth of our Flight Services business is likely to be
accelerated following the purchase from Harrods Ltd of a 26.69% interest in
the Group by Servair (the largest flight caterer in France, part owned by Air
France). Servair and ALPHA share the view that together we can establish an
extensive catering network across Europe and we are actively considering a
number of opportunities outside our own home markets.
ALPHA's Inflight Retail concessions business offers liquor, tobacco,
fragrances, timepieces and gifts on-board international airlines. After
significant investment this business has established itself as a credible
international operator and will grow, successfully, as more airlines are added
to the current portfolio.
In ALPHA Travel Retail, UK Duty and Tax Free trading - adjusted for seasonal
factors - has improved over the period immediately following 1st July 1999,
when Duty and Tax Free allowances for intra EU travellers were abolished. We
will continue to reposition our UK Duty and Tax Free shops in terms of
merchandise mix and presentation to reflect the specific profile of each
airport.
Internationally there are opportunities to grow the "Duty and Tax Free"
business into areas where travel retailing remains underdeveloped and ALPHA
can add substantial value.
We have developed a successful range of branded travel retail concepts
(ColorMania - beauty products, Zinq - timepieces, Glorious Britain - souvenirs
& gifts, World News - books, magazines, confectionery and much more, Kidz -
toys) which should generate sales in excess of #50m in 2000/01. The Group
foresees considerable scope to expand these brands into other travel related
sites and in some cases linking our retail brands with our cafe and restaurant
concepts.
OUTLOOK
In 2000/01 we expect our Travel Retail and Flight Services businesses to
report satisfactory performance although our UK Duty and Tax Free Retail
business will of course show the full year effect of the changes to Duty and
Tax free allowances in July 1999. We are confident that we will be able to
secure growth opportunities in both the UK and internationally.
ALPHA AIRPORTS GROUP PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST JANUARY 2000
Notes to Editors
* ALPHA Airports Group Plc is the UK's largest supplier of integrated
airport services, encompassing retailing and catering both at airports and
on-board airlines.
* Following the disposal of the US ground handling business in August 1999,
for #100.3m, operations are focussed on the following key areas:-
- ALPHA Travel Retail (formerly known as ALPHA Retail Services)
- ALPHA Flight Services (formerly known as ALPHA Catering Services)
- ALPHA Inflight Retail (formerly known as ALPHA Inflight Retailing)
* ALPHA Travel Retail has more than 80 shopping outlets at 24 locations,
principally in the UK but also in the USA, the Caribbean and the Indian
sub-continent. Apart from Duty Free and Tax Free outlets, ALPHA also has a
strong portfolio of exciting retail brands at airports including ColorMania
(cosmetics and accessories), Zinq (jewellery and watches), Sunglasses Studio
(branded sunglasses), World News (books, magazines, newspapers, CDs/audio),
Glorious Britain (tourist souvenirs) and Kidz (toys). ALPHA also provides
catering for passengers at airport terminals with 37 restaurants and bars at
seven airports in the UK.
* ALPHA Flight Services is the UK's largest independent airline caterer
providing airline catering for over 100 airlines from 32 flight kitchens at 27
airports across three continents. ALPHA has 23 kitchens in the UK and 9
overseas in the Netherlands, France, the US and Australia. ALPHA Flight
Services provides over 40 million meals a year.
* ALPHA Inflight Retail's concession business offers liquor, tobacco,
fragrances, timepieces and gifts on-board international airlines. Our bonds
provide logistics services to support on-board service programmes.
* On 28 January 2000, Compagnie d'Exploitation des Services Auxilaires
Aeriens (Servair) acquired a 26.69% stake in ALPHA Airports from Harrods Ltd.
Harrods Ltd no longer has a shareholding in ALPHA Airports. Servair, the
international flight catering subsidiary of Air France, has its core
activities in Paris and throughout France with an overseas presence and
existing partnerships in Spain, Africa, Macau and the United States.
* ALPHA Airports' web site address is www.alpha-group.com
Group Profit and Loss Account
for the year ended 31 January 2000
2000 1999
Notes #m #m
Turnover
- Continuing 450.4 519.8
- Discontinued 64.7 121.1
--------- --------
Turnover 1 515.1 640.9
Cost of sales (334.5) (407.0)
---------- ----------
Gross profit 180.6 233.9
Administration
expenses before
goodwill
amortisation (156.9) (210.4)
Goodwill
amortisation (2.9) (1.5)
--------- --------
Total administration expenses (159.8) (211.9)
-------- ---------
Other operating
charges - (0.3)
--------- ---------
Operating profit
- Continuing 16.1 13.1
- Discontinued 4.7 8.6
-------- --------
4 20.8 21.7
-------- -------
Losses from interests in
associates - discontinued
operation - (0.4)
Profit on disposals of
discontinued operations 11 1.7 -
Profit on ordinary activities before interest 22.5 21.3
Interest receivable 0.5 0.6
Interest payable (3.7) (6.2)
-------- ---------
Profit on ordinary activities
before taxation 1 19.3 15.7
Taxation on profit on ordinary
activities 5 (8.2) (5.3)
-------- --------
Profit on ordinary activities
after taxation 11.1 10.4
Minority interest (equity) (0.6) (1.2)
-------- -------
Profit for the financial year 10.5 9.2
Equity dividends 6 (5.6) (5.1)
-------- --------
Retained profit for the
financial year 9 4.9 4.1
-------- --------
Earnings per share 7 6.07p 5.41p
Diluted earnings
per share 7 6.06p 5.41p
IIMR headline
earnings per share 7 7.70p 7.41p
Adjusted earnings
per share 7 7.64p 9.83p
* The amounts for the year ended 31 January 1999 have been restated as
described in Note 3
** The amounts for the year ended 31 January 1999 include exceptional items as
described in Note 4.
Statement of total recognised gains and losses
for the year ended 31 January 2000
2000 1999*
#m #m
Profit for the financial year 10.5 9.2
Currency translation differneces on
foreign currency net assets and
certain loans (2.3) (0.2)
-------- -------
Total recognised gains/(losses)
for the year 8.2 9.0
Prior year adjustment (Note 3) 0.3
--------
Total gains and losses recognised
since last Annual Report 8.5
---------
Balance Sheet
at 31 January 2000
Notes 2000 1999*
#m #m
Fixed assets
Intangible assets 15.8 4.7
Tangible assets 57.9 80.7
Investments - 0.1
---- ----
73.7 85.5
---- ----
Current assets
Stocks 20.6 23.5
Debtors 26.2 54.7
Cash at bank and
in hand 8 10.3 15.2
---- ----
57.1 93.4
---- ----
Creditors:
amounts falling
due within one year
Bank and other borrowings 8 (0.6) -
Other creditors (60.4) (85.2)
---- ----
(61.0) (85.2)
---- ----
Net current
(liabilities)/assets (3.9) 8.2
---- ----
Total assets less
current liabilities 69.8 93.7
----- -----
Creditors: amounts falling due after more
than one year
Bank and other
borrowings 8 - (89.5)
Other creditors (0.4) (1.1)
---- -------
(0.4) (90.6)
---- ----
Provisions for liabilities
and charges (8.6) (5.5)
---- ----
Total net assets/(liabilities) 1 60.8 (2.4)
---- ----
Capital and reserves
Called up share capital 17.5 17.2
Share premium account 42.2 41.1
Profit and loss account 0.8 (61.6)
------ ------
Shareholders'funds 9 60.5 (3.3)
Minority interest (equity) 0.3 0.9
------ ------
Total equity 60.8 (2.4)
---- ----
*The amounts at 31 January 1999 have been restated as described in Note 3.
Approved by the Board of Directors on 30 March 2000.
Kevin Abbott, Chief Executive Stuart Siddall, Finance Director
Group Cash Flow Statement
for the year ended 31 January 2000
Notes 2000 1999
#m #m
Net cash inflow
from operating activities 10(1) 37.9 40.8
Returns on investments and
servicing of finance
Interest received 0.5 0.6
Interest paid (4.9) (5.7)
Interest element of finance
lease rental payments (0.1) (0.1)
Dividends paid to minority
shareholders in subsidiary undertakings (0.5) (0.5)
---- ----
Net cash outflow from returns on investments
and servicing of finance (5.0) (5.7)
Taxation (8.2) (10.7)
---- ----
Capital expenditure
Purchase of tangible fixed assets (12.8) (14.9)
Sale of tangible fixed assets 1.5 0.1
----- ------
Net cash outflow for capital
expenditure (11.3) (14.8)
----- -----
Acquisitions and disposals
Purchase of subsidiary undertakings - (8.1)
Purchase of business 12 (14.6) -
Disposals of businesses 11 90.3 -
----- -----
Net cash inflow/(outflow)
for acquisitions and disposals 75.7 (8.1)
----- ----
Equity dividends paid (2.3) (6.2)
----- ----
Net cash inflow/(outflow)
before financing 86.8 (4.7)
---- ----
Financing
New long-term loan - 89.5
Repayment of long-
term loan (90.0) (69.0)
Capital element of
finance lease payments (0.8) (0.7)
Net cash (outflow)/inflow
from financing (90.8) 19.8
---- ----
(Decrease)/increase in cash 10(2) (4.0) 15.1
---- ----
Of the 1998/99 final equity dividend of #2.0m and the 1999/00 interim equity
dividend of #1.7m, total scrip dividend taken up was #1.4m and therefore #2.3m
was paid as a cash dividend. (1998/99: Of the 1997/98 final equity dividend
of #5.9m and the 1998/99 interim equity dividend of #3.1m, total scrip
dividend take up was #2.8m and therefore #6.2m was paid as a cash dividend).
Notes to the Financial Information
1. Segmental Analysis
Turnover Profit/(loss) Net
before interest assets/(liabilities)
2000 1999 2000 1999* 2000 1999*
#m #m #m #m #m #m
a) Business sector
analysis
ALPHA Flight
Services
- continuing
operations 219.3 220.2 12.6 13.1 39.4 34.3
- discontinued
operation - - - (0.4) - -
- goodwill
amortisation - - (1.1) - - -
- exceptional
items
(continuing
operations) - - - 0.4 - (0.4)
- exceptional
items
(discontinued - - - 0.2 - -
operations)
- loss on
disposal of
discontinued
operation - - (0.2) - - -
------- ------- ------- ------- ------- -------
219.3 220.2 11.3 13.3 39.4 33.9
------- ------- ------- ------- ------- -------
ALPHA Travel
Retail
- continuing
operations 187.1 260.6 6.2 10.1 15.5 13.6
- goodwill
amortisation - - (1.8) (1.5) - -
- exceptional
items
(continuing
operations) - - - (6.1) (3.3) (3.8)
------- ------- ------- ------- ------- --------
187.1 260.6 4.4 2.5 12.2 9.8
------- ------- ------- ------- ------- -------
ALPHA Inflight
Retail
- continuing
operations 44.0 39.0 0.2 (0.6) 3.2 4.5
- exceptional
items
(continuing
operations) - - - (0.2) - -
------- ------- ------- ------- ------- -------
44.0 39.0 0.2 (0.8) 3.2 4.5
------- ------- ------- ------- ------- -------
ALPHA Ground
Services
- discontinued
operations 64.7 121.1 4.7 8.4 - 25.8
- profit on
disposal of
discontinued
operation - - 1.9 - - -
------- ------- ------- ------- ------- -------
64.7 121.1 6.6 8.4 - 25.8
------ ------ ----- ------ ------ ------
515.1 640.9 22.5 23.4 54.8 74.0
Corporate
exceptional - - - (2.1) (2.6) (0.2)
items ------- ------ ------ ------ ----- -------
515.1 640.9 22.5 21.3 52.2 73.8
Net interest - - (3.2) (5.6) - -
Net
cash/(borrowings) - - - - 8.6 (76.2)
---- ---- ---- ---- ---- ----
Turnover, profit
on ordinary
activities before
taxation and net
assets/
(liabilities) 515.1 640.9 19.3 15.7 60.8 (2.4)
* The amounts for the year ended 31 January 1999 have been restated as
described in Note 3.
Passenger Catering previously included within ALPHA Flight Services has been
reclassified in ALPHA Travel Retail to reflect the new operational
structure. The prior year figures have been restated to show the segments on
a comparable basis.
1. Segmental Analysis (continued)
Turnover Profit/(loss) Net
before interest assets/(liabilities)
2000 1999 2000 1999* 2000 1999*
#m #m #m #m #m #m
b)
Geographical analysis
United Kingdom
- continuing
operations 373.3 448.0 13.5 17.1 42.3 32.4
- goodwill
amortisation - - (1.1) - - -
- exceptional
items
(continuing
operations) - - - 0.2 - (0.4)
------ ------ ----- ------ ------- -----
373.3 448.0 12.4 17.3 42.3 32.0
------- ------ ------ ------- ------ -------
USA
- continuing
operations 15.1 15.9 0.4 (0.7) 2.7 29.4
- discontinued
operations 64.4 120.5 4.9 8.5 - -
- exceptional
items (continuing
operations) - - - (5.9) (3.3) -
- exceptional
items
(discontinued - - - 0.2 - (3.8)
operations)
- profit on
disposal of
discontinued
operation - - 2.2 - - -
------- ------ ----- ------ ------ -------
79.5 136.4 7.5 2.1 (0.6) 25.6
------- ------ ------ ------- ------ -------
Rest of the World
- continuing
operations 62.0 55.9 5.1 6.2 13.1 16.4
- discontinued
operations 0.3 0.6 (0.2) (0.5) - -
- goodwill
amortisation - - (1.8) (1.5) - -
- exceptional
items - - - (0.2) - -
(discontinued
operations)
- loss on
disposal of
discontinued - - (0.5) - - -
operation ------ ------ ----- ------ ------ -----
62.3 56.5 2.6 4.0 13.1 16.4
------- ------ ------- ------- ------ -------
515.1 640.9 22.5 23.4 54.8 74.0
Corporate
exceptional - - - (2.1) (2.6) (0.2)
items
---- ---- ---- ---- ---- ----
515.1 640.9 22.5 21.3 52.2 73.8
Net interest - - (3.2) (5.6) - -
Net
cash/(borrowings) - - - - 8.6 (76.2)
---- ---- ---- ---- ---- ----
Turnover, profit on
ordinary activities
before taxation
and net assets/
(liabilities) 515.1 640.9 19.3 15.7 60.8 (2.4)
----- ---- ---- ---- ---- ----
* The amounts for the year ended 31 January 1999 have been restated as
described in Note 3.
Turnover is disclosed by origin. There is no material difference in turnover
by destination.
Net interest payable has not been allocated recognising the centre's role and
responsibility in allocating financial resources.
2. Accounting Policies
The accounting policies are the same as those set out in the financial
statements of the Group for the year ended 31 January 1999, except for the
adoption of FRS12 "Provisions, contingent liabilities and contingent assets"
which is effective for the first time this year and has necessitated a prior
year adjustment as described in Note 3.
3. Prior year adjustment
The application of FRS12 requires a prior year adjustment in respect of a
provision created in 1997/98. Accordingly the exceptional release in 1998/99
of #0.8m and the balance brought forward of #0.5m at 31 January 1999 have been
eliminated. There are corresponding prior year adjustments in deferred tax.
The change in accounting policy has had no impact on the profit and loss
account of the current year.
4. Operating Profit
Operating profit is analysed between continuing operations, discontinued
operations and exceptional items as follows:
Cont- Dis- Cont- Dis-
inuing cont'd inuing cont'd Exc.
Ops Ops Total Ops Ops Items Total
2000 2000 2000 1999 1999 1999* 1999*
#m #m #m #m #m #m #m
Turnover 450.4 64.7 515.1 519.8 121.1 - 640.9
Cost of
sales (290.1) (44.4) (334.5) (324.0) (83.0) - (407.0)
------- ------- ------- ------- ------- ------- -------
Gross
Profit 160.3 20.3 180.6 195.8 38.1 - 233.9
Admin-
istration
expenses (141.3) (15.6) (156.9) (173.2) (29.4) (7.8) (210.4)
Goodwill
amortisation (2.9) - (2.9) (1.5) - - (1.5)
Other
operating
charges - - - - (0.3) - (0.3)
------- ------- ------- ------- ------- ------- -------
Operating
profit/(loss) 16.1 4.7 20.8 21.1 8.4 (7.8) 21.7
------- ------- ------- ------- ------- ------- -------
* The amounts for the year ended 31 January 1999 have been restated as
described in Note 3.
The exceptional items for the year ended 31 January 1999, included #5.9m in
respect of the duty free retail operation in Orlando and #2.1m for other
corporate exceptional items.
5. Taxation
2000 1999*
#m #m
United Kingdom
corporation tax at
30.2% (1998/99 -31%) 5.9 4.5
Less: Double tax relief (1.8) (1.9)
Prior year adjustments (0.1) 0.1
Overseas taxation 2.7 3.9
Movement in deferred tax 1.5 (1.3)
----- ----
8.2 5.3
----- ----
Taxation as a percentage of
profit before taxation 42% 34%
Taxation as a percentage of
profit before taxation,
exceptional items and
goodwill amortisation 33% 28%
*The amounts for the year ended 31 January 1999 have been restated as
described in Note. 3. The movement in deferred tax in 1999/00 arises from the
disposal of DynAir. The charge for taxation in 1998/99 included a benefit of
#1.6m in respect of exceptional items relating to that year.
6. Equity Dividends
2000 1999
#m #m
Interim dividend of
1.0p per ordinary
share( 1998/99 - 1.84p) 1.7 3.1
Proposed final dividend of
2.2p per ordinary share
(1998/99 -1.16p) 3.9 2.0
------ ------
Total dividend of
3.2p per ordinary
share ( 1998/99 - 3.00p) 5.6 5.1
------ ------
Under a scrip dividend scheme, #0.6m of the 1998/99 final dividend and #0.8m
of the 1999/00 interim dividend were paid by way of shares. Following the
changes in tax legislation the Board will not be offering ordinary
shareholders the choice of taking shares instead of the final cash dividend.
7. Earnings per share
Profit/(loss) for the year Earnings per share
2000 1999* 2000 1999*
#m #m Pence Pence
Profit for the
financial year
and earnings per share 10.5 9.2 6.07 5.41
Adjustment for profit
on disposal of
discontinued operations (1.7) - (0.98) -
Adjustment for impairment
in fixed assets - 1.6 - 0.94
Adjustment for
loss on sale of fixed assets 0.1 0.3 0.06 0.18
Adjustment for
goodwill amortisation 2.9 1.5 1.68 0.88
Taxation relating
to these items 1.5 - 0.87 -
----- ----- ----- ------
Adjusted profit
and IIMR headline
earnings per share 13.3 12.6 7.70 7.41
Adjustment for
exceptional items - 6.2 - 3.65
Adjustment for
loss on sale of fixed
assets (0.1) (0.3) (0.06) (0.18)
Taxation relating
to these items - (1.8) - (1.05)
----- ------ ------- -------
Adjusted profit
and adjusted
earnings per share 13.2 16.7 7.64 9.83
----- ----- ------ ------
* The amounts for the year ended 31 January 1999 have been restated as
described in Note 3.
The weighted average number of shares in issue during the year was 172,889,466
(1998/99:169,924,375). Earnings per share are calculated by dividing the
profit for the financial year by the weighted average number of shares in
issue during the year. An additional measure of earnings per share has been
recommended by the Institute of Investment Management and Research (IIMR).
The IIMR headline earnings require the adjustment of earnings to eliminate
certain items, adjusted for any tax effect. Finally, the IIMR headline
earnings per share is adjusted to arrive at an adjusted earnings per share by
eliminating the effect of exceptional items and the loss on sale of fixed
assets, adjusted for any tax effect.
Diluted earnings per share of 6.06p (1998/99:5.41p) has been calculated by
reference to the profit for the financial year of #10.5m ( 1998/99: #9.2m) and
the weighted average number of shares in issue during the year of 172,889,466
(1998/99:169,924,375), as adjusted for potentially dilutive ordinary shares of
281,535 (1998/99:58,407).
8. Net cash/(borrowings)
2000 1999
#m #m
8.1 Bank and other borrowings
Unsecured loans - (89.5)
Bank overdrafts (0.6) -
------ -------
Total bank and
other borrowings (0.6) (89.5)
------ -------
8.2 Repayment analysis
Repayable otherwise
than by instalments:
-within one year or on demand (0.6) -
-between two and five years - (89.5)
------ -------
(0.6) (89.5)
------ ------
8.3 Net cash/ (borrowings)
Total bank and
other borrowings (0.6) (89.5)
----- -------
Finance lease obligations:
-due within one year (0.7) (0.8)
-due between one and two years (0.3) (0.6)
-due between two and five years (0.1) (0.5)
------ ------
(1.1) (1.9)
------ ------
Cash at bank and in hand 10.3 15.2
------ ------
Net cash/(borrowings) 8.6 (76.2)
==== ====
8.4 Currency analysis
Bank and other borrowings
are payable in the
following currencies:
-Sterling - (58.8)
-United States Dollar - (30.7)
-French Franc (0.2) -
-Barbados Dollar (0.4) -
------ ------
(0.6) (89.5)
------ ------
Cash at Bank and in hand is
analysed in the following
currencies:
-Sterling 5.8 5.8
-United States Dollar 2.7 7.4
-Netherlands Guilder 1.1 1.0
-Others 0.7 1.0
------ ------
10.3 15.2
------ ------
9. Reconciliation of movements in shareholders' funds
2000 1999*
#m #m
Profit for the financial year 10.5 9.2
Dividends (5.6) (5.1)
-------- --------
Retained profit for the
financial year 4.9 4.1
Issue of additional share
capital to shareholders 1.4 2.8
Currency translation
differences on
foreign currency net assets and
certain loans (2.3) (0.2)
Goodwill reinstated on disposal
of businesses 58.6 -
Goodwill charged to the profit
and loss account previously written
off directly to reserves 1.2 1.2
Adjustment to goodwill
relating to an acquisition in a prior year - 0.5
------- ------
Net increase to shareholders' funds 63.8 8.4
Opening shareholders' funds
As previously reported (3.6) (12.6)
Prior year adjustment (Note 3) 0.3 0.9
As restated (3.3) (11.7)
------- ------
Closing shareholders' funds as 60.5 (3.3)
at 31 January 2000 ==== =====
* The amounts for the year ended 31 January 1999 have been restated as
described in Note 3.
An exchange loss of #0.5m (1998/99:nil) on relevant foreign currency loans is
taken to reserves and offset against the exchange profit arising on the
translation of the net investments in overseas subsidiary undertakings.
Goodwill of #10.3m which arose on the acquisition of the original shareholding
of Orient Lanka Limited in 1996 was written off to reserves. With effect from
1 February 1998 this is being amortised through the profit and loss account
over 8.5 years (the remaining life of the licence). Accordingly the charge in
the profit and loss account of #1.2m (1998/99:#1.2m) has been added back in to
the shareholders' funds.
10. Notes to the cash flow statement
10.1 Reconciliation of operating profit to net cash inflow from operating
activities
Continuing Discontinued Total Total
2000 2000 2000 1999*
#m #m #m #m
Operating profit 16.1 4.7 20.8 21.7
(Profit)/loss on sale
of fixed assets (0.1) 0.2 0.1 0.3
Depreciation
(excluding exceptiona items) 9.7 1.9 11.6 12.9
Accelerated
depreciation (exceptional item) - - - 1.6
Goodwill amortisation 2.9 - 2.9 1.5
Decrease/(increase) in stocks 2.5 (0.2) 2.3 4.8
Decrease/(increase)
in debtors 7.2 (0.4) 6.8 (1.9)
(Decrease)/increase
in creditors (9.1) 2.5 (6.6) (0.1)
------ ------ ------- ------
Net cash inflow from
operating activities 29.2 8.7 37.9 40.8
------ ------- ------- ------
* The amounts for the year ended 31 January 1999 have been restated as
described in Note 3.
10.2 Reconciliation of net cash flow to movement in net cash
2000 1999
#m #m
(Decrease)/increase in cash in period (4.0) 15.1
Decrease/ (increase)in debt and lease financing 90.8 (19.8)
---- ------
Change in net cash from cash flows 86.8 (4.7)
Translation differences (2.0) (0.2)
----- ------
Movements in net cash in period 84.8 (4.9)
Net debt at 1 February 1999 (76.2) (71.3)
----- ------
Net cash/(debt) at 31 January 2000 8.6 (76.2)
----- ------
10.3 Analysis of net cash
1 February 31 January
1999 Cash Exchange 2000
Flows Movement
#m #m #m #m
Cash at bank and in hand 15.2 (3.4) (1.5) 10.3
Overdrafts - (0.6) - (0.6)
------ ------ ------ --------
15.2 (4.0) (1.5) 9.7
------- ------- ------- --------
Debt due after 1 year (89.5) 90.0 (0.5) -
Finance leases (1.9) 0.8 - (1.1)
------- ------ ------ -------
(91.4) 90.8 (0.5) (1.1)
-------- ------ ------ ------
Total (76.2) 86.8 (2.0) 8.6
===== ===== ==== ====
11. Disposals of businesses
On 3 August 1999 the Group completed the sale of DynAir, its ground handling
business in the USA, generating a net profit taxation on disposal of #1.9m as
follows:
#m
Net assets disposed of:
Tangible fixed assets 23.9
Investments 0.1
Stocks 0.8
Debtors 20.5
Cash at bank and in hand 7.6
Creditors (18.2)
Provisions (1.5)
Deferred Tax 2.4
Minority Interest (0.7)
-----
34.9
Goodwill previously eliminated against 58.0
reserves
Costs of disposal 5.5
Profit on sale before taxation 1.9
-------
100.3
====
Satisfied by:
Cash consideration 100.3
====
The profit attributable to the Group includes profits of #4.7m earned by
DynAir up to its date of disposal on 3 August 1999.
#m
Net cash inflows arising on the sale of
DynAir comprised:
Cash consideration 100.3
Costs of disposal (2.8)
Cash at bank and in hand of business sold (7.6)
-----
89.9
===
DynAir contributed #8.7m to the Group's net operating cash flows, paid #0.1m
in respect of net returns on investments and servicing of finance, paid #0.8m
in respect of taxation and utilised #2.2m for capital expenditure.
In addition, during the year the Group disposed of its interest in Allied
Caterers Limited (Trinidad) for #0.1m, generating a loss on disposal of #0.5m
(including goodwill written off of #0.6m which had been previously eliminated
against reserves).
Also, the Group received #0.3m from the recovery of debtors previously written
off on the sale of a business in the USA in 1996.
12. Purchase of business
In June 1999 the Group acquired a catering facility at Gatwick as part of a
ten year supply agreement with British Airways. The cash consideration was
#14.0m which, together with acquisition costs, increased to #14.6m. The group
acquired fixed assets with a book value of #3.1m. These assets have
subsequently been revalued by the directors and the fair value reduced to
#1.8m. Accordingly goodwill arising on the acquisition has increased to
#12.8m which has been capitalised and included within intangibles. The
goodwill arising is being amortised over the duration of the contract. The
facility was previously run on a management contract basis and has been
integrated into the ALPHA flight services business. As a results it is not
practicable to disclose its results separately.
13. Post balance sheet event
Since the year end the group has exercised an option to purchase the remaining
15% minority interest in ALPHA Flight Services Pty. Limited (formerly Connat
Flight Services Pty. Limited) for #1.9m. This subsidiary is now wholly owned
by the Group.
14. Preliminary Announcement
The financial information set out above does not constitute the Group's
audited statutory accounts within the meaning of section 240 of the Companies
Act 1985. The financial information for the year ended 31 January 1999 has
been extracted from the statutory accounts for that year which have been
delivered to the registrar of Companies; the report of the auditors on those
accounts was unqualified and did not contain a statement under section 237 (2)
or (3) of the Companies Act 1985. The Group accounts for the year ended 31
January 2000 will be finalised on the basis of the financial information
presented by the Directors in the preliminary announcement.
15. Dividend
The record date for the final dividend is 14 April 2000 and payment date is 19
June 2000.
16. Issue of the Annual Report and Accounts
The 2000 Annual Report and Accounts will be posted to shareholders by 27 April
2000. Copies may be obtained after this date from the Company Secretary, ALPHA
Airports Group Plc, Europa House, 804 Bath Road, Cranford, Middlesex, TW5 9US.
Telephone No. 020 8580 3200.
17. Annual General Meeting
The 2000 Annual General Meeting of ALPHA Airports Group Plc will be held in
the Hilton London Heathrow Airport Hotel, Terminal 4, Heathrow Airport,
Hounslow, Middlesex, TW6 3AF on 15 June 2000, at 11am.
END
FR SEEEEUSSSEID
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