RNS Number:6430A
Alpha Airports Group PLC
30 March 2006
30 March 2006 Unaudited
Alpha Airports Group Plc
Preliminary Results for Year Ended 31 January 2006
Alpha Airports Group Plc (Alpha) is one of the world's leading aviation support
services companies, providing retailing and catering services for airports and
airlines. Alpha's 6,900 staff service over 100 airlines worldwide and operate
from over 200 outlets at 77 airports in 15 countries.
Financial Highlights
2005/6 2004/5 % Change
Sales #550.9m #487.8m +12.9%
Profit before tax* #18.5m #17.4m +6.3%
Profit before tax #18.4m #13.1m +40.4%
Earnings per Share 5.74p 3.78p +51.8%
Proposed Final Dividend Per 3.2p 3.0p +6.6%
Share
*Stated before separately disclosable items and impairment charges, including
the post-tax results of associate and joint venture.
Operational Highlights
* Completion of "One Alpha" strategic review; UK and Ireland reorganisation
implemented
* #8m investment in IRIS (Integrated Retail Information Systems) now 50%
implemented
* Major investment and development programme in UK
* New store fixtures and #6m investment in airline service facilities at
Manchester and Birmingham
* Successful launch of Blue Sky Service innovative inflight meals
concept
* Strong international growth of sales and profits
Commenting on the Preliminary Results, Graham Frost, Chairman said:
"Trading at the start of the year is slightly ahead of the comparable period.
With an ongoing commitment to innovation, tighter operational focus and strong
finances in place, the Board believes the current year will see further
progress.
The UK aviation services market remains highly competitive but we are confident
that the new "One Alpha" strategy will improve UK profit margins and deliver our
Group target of 5% return on sales in the medium term."
Enquiries:
Alpha Airports Group Plc 020 8580 3200
Kevin Abbott, Chief Executive
Heather McRae, Finance Director
College Hill 020 7457 2020
Mark Garraway
Stephen Davie
www.alpha-group.com
Chairman's Statement
The year under review was a period of ongoing progress for the Group.
It was also a year of significant developments across the airline and airport
industries. The inexorable growth of low-cost carriers, despite the sharp rise
in oil prices, privatisation of airport assets around the world, bid activity
both in the UK and internationally for airport operators and industrial
relations strife were all headline news and are factors influencing our thinking
on the future shape of the business.
Against a backdrop of increasing competitive pressures in the UK, and following
a disappointing first half profit, the management team focused on building a
stronger performance in our core UK market through a programme of continued
innovation. In the latter part of the year, a programme of cost reduction was
introduced, the benefits of which are now being seen in an improving margin
performance.
It is, therefore, particularly pleasing to report that the overall performance
for the year benefited from a much improved second half in the UK, alongside
ongoing strong growth in our International business.
Over the last few months, the management team, led by the Chief Executive, Kevin
Abbott, has conducted a thorough review of the business and their conclusions
for the Group's future strategic direction - "One Alpha" - have been endorsed by
the Board. In his report, he sets out in detail the strategy to both transform
the size and scope of the business and to deliver enhanced profitability and
shareholder value.
A key element of the new strategy is the restructuring of the Group into two
distinct business units focusing on our UK and International businesses. Within
the UK, the business is being further restructured into two divisions, Alpha
Airline Services and Alpha Airport Services.
Whilst we will continue to explore further international development
opportunities, it is clear that management's main focus must remain on the UK
market which accounts for some 82% of Group revenues and which offers the
greatest scope for medium term profits growth.
Results
This is the first set of full year results that the Group is reporting under
International Financial Reporting Standards (IFRS). With the balance of earnings
weighted towards the second half, underlying pre-tax profit (before separately
disclosable items and impairment charges and after including the post-tax
results of joint venture and associate) increased 6.3% to #18.5m, on sales 13%
ahead of last year at #551m. With significantly lower net separately disclosable
items compared to the previous year, profit before tax increased 40% to #18.4m.
In the UK and Ireland, operating profit (before separately disclosable items and
impairment charges and after including the post-tax results of joint venture and
associate) declined 33%, from #13.1m to #8.8m, despite 9% ongoing sales growth.
Conversely, our International business generated a significant 98% increase in
operating profit from #6.3m to #12.5m on an excellent 34% sales growth partly
driven by acquisitions.
This was a year of significant investment for the Group:-
* #21m in capital expenditure, including our major IT and business
transformation project (IRIS); and
* #4m in acquisitions in Romania and Bulgaria; and
Despite this, with year end net debt of only #37m, the Group remains
conservatively financed. During the year we entered into a new #100m five year
multi-currency revolving banking facility which gives us substantial headroom to
leverage an expansion of the business.
It was announced earlier this year that the Group may have been a victim of a
fraud by a third party. Further investigation has indicated that the Group has
lost up to #2.5m in a fraud across a number of European countries. With our
internal investigation still ongoing, and having issued legal proceedings, we
are unfortunately unable to provide more detail at this time.
Pensions
As with many employers, we have had to review our pension provision going
forward. We have moved to a "career average" basis, against the present "final
salary" provision, so as to maintain an excellent ongoing pension benefit, but
at a cost which is affordable to both the employee and the employer. With an
employee contribution level of 8% of salary already in place, we knew that our
employees were unwilling to pay even more to protect their previous "final
salary" benefit.
Dividend
The Board has recommended a final dividend of 3.2p (2004/5: 3.0p), giving a full
year dividend per share of 4.2p (2004/5: 4.0p). Following approval, the dividend
would be payable on 22 June 2006 to shareholders on the register as at 2 June
2006.
Outlook
Trading at the start of the year is slightly ahead of the comparable period.
With an ongoing commitment to innovation, tighter operational focus and strong
finances in place, the Board believes the current year will see further
progress.
The UK aviation services market remains highly competitive but we are confident
that the new "One Alpha" strategy will improve UK profit margins and deliver our
Group target of 5% return on sales in the medium term.
Chief Executive's Report
Overview
A much stronger performance in the second half ensured a #18.5m profit before
tax (before separately disclosable items and impairment charges and after
including the post-tax results of joint venture and associate) for the year, 6%
ahead of last year's #17.4 million level on a comparable IFRS basis. In a highly
competitive environment, and after the disappointing first half result, this is
an acceptable performance.
We are particularly encouraged with our International business which continues
to grow from strength to strength. With strong Group finances in place, we will
continue to seek out further development opportunities.
Strategic Review
Against a background of a relatively stable outlook, we have conducted a
comprehensive review of our business.
Alpha is an internationally recognised, aviation support company. At a recent
world-wide industry event, Alpha was acclaimed the "2006 Airport Travel Retailer
of the year" as voted for by our global suppliers. In our airline services
business, we remain the only top three global player to generate both sales
growth and ongoing profitability over the past five years.
Across our business, the Group continues to generate high performances for our
airline and airport customer partners, and thus enjoys very strong contract
retention rates - 97% over the past five years, and we continue to gain new
customer partners. Today, Alpha's 6,900 staff service over 100 airlines
worldwide and operate from over 200 outlets at 77 airports in 15 countries.
Whilst truly a global business, Alpha Airports' UK and Ireland operations remain
the bedrock of the business, accounting for some 82% of Group revenues. In a
highly competitive environment, we are pleased with the rate of top-line growth
but this has not been reflected in our bottom line performance. In the year
under review, just 41% of operating profit (before separately disclosable items
and impairment charges and after including the post-tax results of joint venture
and associate) came from the UK and Ireland markets. This represents an
operating profit return on sales of only 2%. Conversely, our International
business, representing only 18% of the Group's sales, and 59% of the Group's
operating profit, generated an operating profit return on sales of 12%.
With competition set to intensify as European competitors seek to expand their
presence in the UK and Ireland, improving our domestic return on sales is an
absolute priority if we are to retain our market-leading positions in the UK and
Ireland.
We concluded our review in February 2006 and, following Board approval, are now
implementing our new "One Alpha" strategy.
"One Alpha"
"One Alpha" is a comprehensive, high-level strategy to deploy Alpha's resources
more effectively towards achieving long-term growth opportunities. In a growing
but highly competitive environment, margin pressure is, and will remain, the
norm. Our current margin performance is such that with just a 1% improvement in
UK and Ireland return on sales, profitability can be significantly improved. The
strategic review identified actions to be taken in the short-term that will
deliver benefits in the coming financial year as well as identifying longer-term
profit growth opportunities. In conducting the review, we took particular note
of the fragmented nature of the market and the likelihood of consolidation in
the future.
"One Alpha" includes two broad development plans:
- Plan For Profit which focuses on our existing UK and Ireland business
to ensure it is performing to its maximum potential; and
- Plan For Growth which will see the transformation of the size, nature
and scope of the business, both organically and by acquisition of new assets
To implement Plan For Profit there are three priorities:-
1. To reorganise the business to better reflect our customers' own
organisations. We uniquely supply both retail and catering services to airports
and airlines. We have recently implemented a major reorganisation of the UK
business into two distinct operating units: Alpha Airline Services (trading as
Alpha Flight Services) - to provide retailing and catering solutions for
airlines, and Alpha Airport Services (trading as Alpha Retail) - to provide
retailing and catering solutions for airports. This reorganisation will enable
us to reduce costs, leverage synergies between the airport and airline
businesses and improve our capacity to lead consolidation in the market.
2. We have identified significant economies of scale and competitive
advantage to be available through the establishment of an integrated "One Alpha"
UK and Ireland supply chain network. This will deliver enhanced buying power,
improve response times, align our logistical capability to our strategic goals,
and enable our customers and suppliers to work more effectively both with us,
and all together for mutual benefits.
3. We have developed a strong "Alpha culture" amongst our people. This has
delivered exceptional benefits to the business, but it can and must be developed
further. Through more focused incentivisation and reward, we will ensure that
our people are most effectively contributing to overall profit performance.
Plan For Growth is an ongoing programme and includes the development of our
International operations as well as a more expansive view of the role the Group
can play in the consolidation of the industry and in other related markets.
1. The Group has built a significant international presence and now has
the platform on which to be more selective in the opportunities it wants to
pursue. In future, we will focus on those geographies which allow us to best
utilise our core skills and capabilities.
Our success in Sri Lanka, where we have developed the best retailing performance
in South Asia, and the huge growth potential of the Indian market exemplify a
focus on fast emerging markets which are replicating the UK's model of providing
retailing and catering services for privatised airports and low-cost carriers.
In Australia, having built a network of quality flight kitchens, we are
delighted to have been appointed by Malaysian Airlines as their Australian
network partner from May 2006. This is a major step, but not the last, in our
Australian development plans. With the Malaysian Airlines contract, our
international flight kitchens will be operating at 30% capacity utilisation
giving us significant potential for future growth.
We are currently reviewing the criteria by which we will assess international
opportunities. International development will not be restricted to tendering for
airport and airline contracts, but will also include a greater emphasis on
acquisitions in both the airport and airlines services arena.
2. In building our current scale, we have developed a range of skills and
capabilities that would allow us to play a leading role in consolidation of the
industry.We have also identified transport related industries, such as rail,
where we believe our core retail and catering skills could be deployed. These
are early days and much work needs to be done in refining our thoughts in this
area.However, we are convinced that there are exciting opportunities to pursue
in the future.
Our People
Creating a great place to work for all our people remains the bedrock of Alpha's
continued success. We are absolutely committed to continuing to build a culture
of openness and trust. Only then can we deliver Alpha's goal of "People Making
Travel Special".
Our staff turnover - a key indicator of satisfaction - has continued to decline
from 21.9% to 21.6%. This is less than half the level of the UK retail and
catering industry.
We are delighted that our many Health and Safety initiatives continue to be
supported by all our colleagues. Our total accidents across the UK and Ireland
reduced by 10%, to a level which is 40% better than other equivalent UK and
Ireland retailing and catering employers.
We remain committed to the effective delivery of high-quality training for all
our staff. We are increasingly delivering this training via our fast developing
intranet. We were delighted to have been recognised with a Bronze Award for our
"Basic Security Awareness" e-learning training module at the recent Institute of
IT Training awards ceremony.
After the Sri Lanka tsunami disaster, Alpha's people - supported both by the
duty-free retail global industry and Alpha, in terms of matched employee giving
- raised over #0.2m, and have successfully built and rehoused 20 families in
Kalutara, Southern Sri Lanka.
Summary
We believe there are good opportunities for the future. "One Alpha", as well as
delivering improved performance in the short-term, should enable us to achieve
sustainable and growing profits in the longer-term. It will also provide us with
the best structure and operational flexibility to grow the business through a
combination of organic and acquisitive growth.
Operational Review
Our unique proposition to our airline and airport customers is that we are both
retailers and caterers thus aligning fully with our customers' own management
organisations to deliver a rich and enjoyable customer experience, either
through the airport or on the aircraft.
UK and Ireland
Airlines
2005/6 began with the highly successful start-up of catering services to
American Airlines at Heathrow and Gatwick. However, the very difficult
employment market at Heathrow meant that after start-up, when staff from other
Alpha units returned to their bases, we struggled to recruit the specialist
skills required, and had to rely on excessive and expensive overtime from our
Heathrow staff. We thank our Heathrow staff for their tremendous efforts and
support during this period, but we incurred short-term excess labour costs of
nearly #1.5m during this period. By late summer, we had achieved the required
full employment target at Heathrow.
We are delighted to have been reappointed for a further five year term as
retailers and caterers for the newly formed and fast growing Excel Airways/Air
Atlanta airlines group, and similarly retained the BA CitiExpress contract as
they make the transition to BA Connect, with an Alpha-designed retail onboard
service. Sadly, we lost the ThomsonFly catering contract from Spring 2006 after
30 years' service at Manchester and Birmingham. This is a major loss to the
Group, and with additional regional airport capacity being invested by LSG
Skychefs and its partners, it implies increased competition going forward in our
core regional airport network. Alpha has again reviewed its organisational
structures, and developed a clear plan to deliver ongoing improvements to our
commercial offers at a reduced delivery cost. This plan necessitated significant
restructuring, with 143 roles made redundant at a cost of #2.1m in 2005/6.
Investment in our business is key to our future strategy. We have invested #6m
into our Manchester operations, closing two old facilities at the end of their
leases, and creating a new world-class bonded warehouse facility, and an
expansion and upgrade of our 10 year old flight kitchen. These upgraded
facilities will help to provide the lower cost base and flexibility that is
essential to underwrite future profitability. Similarly, at Birmingham, we have
upgraded and extended our flight kitchen, and converted the previous charter
flight kitchen into our Blue Sky Service central assembly unit. In Dublin, with
the ongoing growth of our low-cost and charter airline customer base, we have
moved to bigger, better premises.
Our recently launched Blue Sky Service has been a tremendous success, generating
at least 10% enhanced traveller satisfaction onboard. The lower cost benefits of
this service have been appreciated by our launch customer MyTravel Airways, and
taken up thereafter by Excel Airways and Flyjet, with more customers committed
for the 2006 season. Similarly, the quality of our frozen entrees from our
dedicated Manchester facility have been increasingly recognised over the past
three years, with annual growth of both customers and service, leading to a
record year in 2005 with over 11 million meals served.
For easyJet, we have helped to deliver ongoing growth in retail sales and
profits per passenger, and we have opened new European bases in Basle and more
recently in Milan Malpensa. With trials of highly innovative hot and fresh food
offers underway, we are confident of further growth in the retail spends and
traveller satisfaction onboard our low-cost and charter airline partners.
Whilst much progress was made with many customers, the year ended with profit
below 2004/5's level, due primarily to the #1.5m excess wage costs associated
with the launch of services to American Airlines.
Airports
Overall, our sales growth of 8% matched the excellent ongoing 8% growth of
passengers through the UK and Ireland regional airports. However, profits
declined significantly due to a combination of enhanced bonus rents payable and
#1m revenue investment cost in new IT systems, IRIS, across our UK Retail
estate. This IT investment of circa #8m will lead to a transformation in our
supply chain management capabilities, and enhanced supplier sales/order sharing,
with a target of increased sales from enhanced stock availability of
bestsellers.We are halfway through the implementation programme, with a target
of store completion by early May and full supply chain / warehouse completion by
June.
We have invested significantly in new designs and fixtures across the pink Alpha
Airport Shopping tax and duty free stores. The showcase for this is our new #2m
store in Birmingham International T1, which opened in January 2006, as the
foundation of our new seven year contract. The store design built on the success
of recent developments introduced into our Manchester T2 and Newcastle stores -
a brightly coloured white spirits wall, a black gloss and dark wood whisky and
cognac wall, a tasting bar, and upgraded handbags and sunglasses fixtures. In
Manchester T2 alone, the new fixtures - designed to drive consumer interest,
hence penetration and sales - has generated 48% plus increases in sales of malt
whisky, with deluxe whiskies up 30% and vodka up 21%. Every site in which Alpha
has installed new fixtures has provided double digit sales growth, proving that
contemporary design is commercially worthwhile.
Further developments throughout 2005/6 included a new specialities area in
Manchester T1, a new Sunglass Studio in Liverpool John Lennon, new Bijoux Terner
accessories sub-stores in Liverpool John Lennon Airport and Newcastle
International Airport, our first ever Arrivals store in Manchester T1, and the
opening of a wide range of Alpha retail and catering offers at the new Doncaster
Robin Hood Airport.
Increased congestion at peak times at many of our airport locations means the
conversion of passengers into shoppers remains a challenge. In our UK duty-free
stores, transaction spend of shoppers increased 5% but we suffered a 7% decline
in shopper penetration. Improving upon the 'penetration' challenge remains the
key priority for Alpha and our airport partners. Alpha is committed to store
expansion and upgrades, based on proven developments, and our airport partners
are working with us to enhance the customer experience to generate further
dwell-time opportunities in the key post-security airside environment.
Our World News landside stores are under pressure due to this drive to move
passengers airside promptly. To drive landside penetration and spend, we
successfully introduced a hard-hitting promotion, 'Low Flying Prices ', combined
with 'exclusive' landside only offers. Innovation continues to be the most
important component of our World News brand development, with new concepts such
as the introduction of 'World News TV' an in-store media network, plus
additional revenue streams generated via SMS text messaging.
Glorious Britain's success at its core London Heathrow base continued, with 13%
overall sales growth. Glorious Britain was again named 'Souvenir Retailer of the
Year' and furthermore, was acclaimed as the 'Greatest of the Greats' at the
annual UK Gift Retailing awards ceremony. Glorious Britain further developed its
gift consultancy services for St George's Chapel, Windsor and launched a
transactional website to enable our regular customers to buy additional gifts
from anywhere in the world. We also developed two 'Scottish Presence' stores at
Prestwick Airport, offering an extensive range of Scottish themed gifts and
souvenirs.
2005/6 was a year of major progress for our airport catering offers. In response
to customer demand at Dublin we have expanded our offers and extended into
airside catering. New developments include food courts for Nottingham East
Midlands and the newly opened Doncaster Robin Hood Airport, a Bar 08 at
Eurotunnel, and upgraded offers at Inverness. Our focus on enhanced consumer
satisfaction is reflected by an independent consumer survey which identified an
improvement in customer service over the year, and a 98% product satisfaction
rating at the year end.
Of great future potential is our World News Cafe brand, which combines the
convenience of our "ctn" (confectionery, tobacco and news) and books offer with
a quality, but simple, catering service. From our first unit in Jersey, World
News Cafe now extends across the UK and Internationally. In 2005/6 we invested
in units at Birmingham (UK), Amman (Jordan), Sofia (Bulgaria) and Bucharest
(Romania). The flexibility and scalability of this offer makes it perfect for
small scale units in remote satellite areas and gate rooms, as well as for full
scale offers.
International
Our International retailing and catering businesses continued to prosper and
grow, generating record sales and profits. By region, performances were as
follows:-
Asia
Despite the tsunami's negative impact on European tourist numbers, sales and
profits in Sri Lanka were maintained at the previous year's level. We benefited
from moving into expanded and better located stores in both arrivals and
departures (as the key opportunity in our extended contract), generating
increases in penetration levels. Alpha continued its impressive growth in wine
sales to the country's expanding hotel, bar and consumer markets (via
supermarkets) with sales up 32%. Our Maldives business was significantly down,
reflecting a 36% decline in departing passengers. Conversely, the business we
manage in Cochin (India) continued its impressive growth, with sales up 50% on a
15% growth in passengers. We are firmly focused on - and highly qualified for -
the exciting development opportunities available in Indian duty free, as airport
privatisation develops and the low-cost airline market continues its exponential
growth.
Middle East
Alpha enjoyed another successful year's performance in Amman, Jordan. The year's
major development was the move into airport catering, with the successful
establishment of four new World News Cafes at Queen Alia International Airport,
Amman.
Australia
After 2004/5's major contract developments and resultant start-up losses, 2005/6
was a year of consolidation. The business is now cash positive and generates
only small operating losses. We continue to seek out new international airline
customers, and we are delighted to have recently been appointed by Malaysian
Airlines, to service them at five airports across Australia. This customer
builds on our halal cuisine capabilities. Our global inflight retailing contract
with Qantas has performed significantly better after last year's start-up
losses.
United States of America
After last year's 'pink' upgrade to our Orlando Sanford duty free store, we
enjoyed a 11% increase in passenger spends. We are currently making a U$2m
investment to upgrade our Greater Orlando Aviation Authority, Orlando
International duty free stores to the latest Alpha 'pink' design, and anticipate
similar sales improvements during our new five year contract extension.
Mainland Europe
Our European business was expanded with recent acquisitions made in Turkey,
Romania and Bulgaria. In its first full year with Alpha, our Turkish operation
performed well, with expansion of our upgraded inflight retailing offers to two
new charter airlines. In Romania, we implemented significant changes in
management after the acquisition, and swiftly applied Alpha policies. This led
to increased sales, reduced costs and thus enhanced profit. We won a new World
News Cafe concession, further extending our range of catering offers at Henri
Coanda International Airport, Bucharest. In Bulgaria, we again implemented
significant management restructuring, promoting local professionals to senior
roles. Furthermore, with a more proactive relationship with the Sofia Airport
Authority, we have been awarded concessions for a World News Cafe and a Deli
Sandwich Bar in the soon to be opened international terminal.
In Italy, our Servair AirChef airline and airport catering joint venture
continued its impressive growth and development, with ten new airline customers
now joining our new Rome Fiumicino flight kitchen, and first-time entry into the
airline cabin cleaning market in Milan. We are particularly pleased to welcome
Continental Airlines in Rome, won as part of a successful pan-European offer by
Alpha, Servair and Servair AirChef. Alpha opened its first airport retail
outlets in both Rome Fiumicino and Rome Ciampino airports. Our six new
speciality shops were 'highly commended' in the industry's media evaluation of
the best global watches and jewellery offers.
In Belgium, our associate operation with Virgin Express continued to progress,
delivering high quality, inflight retailing success.
In Holland, our Amsterdam flight kitchen proved the benefits of the significant
restructuring undertaken in 2004 and 2005 by delivering high quality services at
substantially reduced costs, thus converting significant recent losses into a
break even performance. We are targeting further sales and profit progress in
2006/7.
In Sweden, our airport catering operations at the fast growing Swedish airport,
Stockholm Skavsta, based on continued growth of low-cost passengers, enjoyed an
77% sales growth and generated a worthwhile first full year profit contribution.
Across Europe, Alpha's unique offer of retailing and catering services to
airlines and airports continues to present exciting development opportunities,
both in terms of the growth opportunities available at our existing airport
locations and in terms of further European expansion opportunities.
Financial Review
This is the first set of annual results that the Group is reporting under
International Financial Reporting Standards ("IFRS") which as previously
indicated have no material impact upon the underlying cashflows or trading
activity of the Group.
The impact of this change on previously reported results under UK GAAP was to
increase profit before tax by #1.4m to #13.1m for the year ended 31 January
2005.
Results
Group sales at #550.9m were 12.9% ahead of last year (#487.8m). In the UK and
Ireland sales increased 9% to #449.7m driven by a strong passenger growth of 8%
across our UK regional airports. Internationally, the business benefited from
the full year effect of our acquisition in late 2004 in Turkey, the acquisition
in Romania and new retail shops opened at the two airports in Rome.
International sales expanded 34% to #101.2m.
Profit before tax (before separately disclosable items and impairment charges
and after including the post-tax results of joint venture and associate)
increased #1.1m (6.3%) to #18.5m. In the UK and Ireland, despite the increase in
sales, operating profit (before separately disclosable items and impairment
charges and after including the post-tax results of joint venture and associate)
declined to #8.8m from #13.1m in the previous year due primarily to start up
costs in Airline Services combined with business investment costs and higher
concession rents within Airport Services.
Internationally we had the opposite experience with operating profit (before
separately disclosable items and impairment charges and after including the
post-tax results of joint venture and associate) growth of over 98% to #12.5m.
The turnaround of underperforming businesses in Australia and Amsterdam from
2004 and the international expansion during the year contributed to this
excellent performance.
Separately Disclosable Items
We have incurred a net charge of #0.1m in relation to items which individually
require a note of explanation.
Following the announcement of the loss of the ThomsonFly contract last November
we swiftly carried out a restructuring of the UK and Ireland Airline Services
business and made 143 positions redundant at a cost of #2.1m.
The Group has suffered a loss in relation to a suspected fraud carried out by a
third party advisor to the Group. We continue to investigate this but from the
information we have collated to date, the size of the loss is at the upper end
of our initial expectations and a provision of #2.5m has been recorded in the
results.
The planned changes to the Group Pension Scheme have resulted in a reduction of
#4.5m in the deficit. This represents a reduction in past service benefits and
is credited to the Group income statement.
Net interest and finance charge
Net interest payable of #2.8m has increased 40% in the year from #2.0m
reflecting a higher level of net debt throughout the year following our
extensive capital investment programme and overseas acquisitions. The Group
negotiated a new #100m five year multi-currency revolving banking facility
during the year providing the benefit of lower interest rates from July 2005.
Taxation
Tax charge for the year was #4.6m representing a tax rate of 25.8% (2004/5: 30%)
when compared against profit before tax (before separately disclosable items and
impairment charges). This reduction reflects the increase in profits from
international locations (Jordan, Romania and Turkey) where the taxation rate is
significantly lower than the UK. The tax charge has also benefited from the use
of tax losses which had not been previously recognised and the recovery of a
prior year tax charge in the UK as the computations for a number of earlier
years have now been finalised.
Cashflow
Net debt at 31 January 2006 increased by #16.6m to #37.1m (2004/5: #20.5m). The
last two years have been periods of significant investment in the business with
capital expenditure well in excess of depreciation levels.
Net cash from operating activities at #17.2m is #9.4m ahead of last year and was
improved by an increase in profit (after adjusting for non-cash items) and a #6m
benefit from lower working capital absorption compared with the previous year.
After paying dividends of #9.0m including minority interests, the remaining cash
was approximately #8m.Capital expenditure of #21.3m and an acquisition (#3.9m)
thus contributed to the significant (#16.6m) increase in debt.
Shareholders' Funds
There has been a slight decrease in shareholders' funds during the year to
#39.3m (2004/5: #40.0m) the main movement being an increase in the deficit on
retained earnings. The profit for the year transferred to reserves of #10m was
utilised by the 2004/5 final dividend and the 2005/6 interim of #7m in total.
The net increase in the pension deficit of #4.4m was greater than the
post-dividend retained earnings resulting in a reduction in shareholders' funds.
Capital Investment
During the year, we have invested significantly in our business with capital
expenditure of #21.3m. Within Airline Services at Manchester we are in the
process of consolidating two large facilities into one and incurred expenditure
of #1.9m during the year with a similar amount expected to be incurred in 2006/
7. We also invested in 14 new hi-lift vehicles to service our new American
Airlines contract at Heathrow and Excel at Gatwick (#1.4m). Within the Airport
Services business, we have continued to invest in our new IT system (IRIS) and
have heavily invested in new retail units and upgraded outlets, for example,
#1.8m in new outlets at the new Doncaster Robin Hood Airport in 2005. We have
upgraded stores at Manchester T2 (#0.5m) and invested in new shops at Birmingham
(#2m) with further investment to come. Internationally, our capital mainly
comprised hi-lift vehicles in Jordan and Australia where we have recently taken
delivery of new hi-lifts which will service the A380s, together with new
shop-fittings in the USA and Sri Lanka.
Acquisitions
In April 2005, we acquired 64.2% of a flight and retail catering business based
at Henri Coanda International Airport, Bucharest for consideration of #3.9m. The
goodwill on acquisition of this business is #3.5m. The business has traded
successfully since its acquisition.
Pensions
Following the results of our triennial valuation of the Alpha Airports Group
Pension and Life Assurance Plan which was conducted as at 6 April 2005, the
Group and the Trustees have agreed that the final salary scheme will be changed
to a career average scheme with effect from 6 April 2006. These changes have
been made to help address the deficit on the Group Pension Scheme. The Group
will increase its ongoing contributions by 1% to 11.3% and will pay an amount of
#3.8m in 2006 and #3.0m per annum thereafter to fund the past service deficit.
This will give an annual cash cost of approximately #6m in 2006.
Under IAS19, the net pension fund deficit has increased to #21.3m compared with
#19.7m at 31 January 2005. The movement in the deficit reflects an increase in
the scheme liabilities of 21% to #98.5m. The liabilities have increased due to
changes in longevity and a reduction in the discount rate, offset by a reduction
of #4.5m to reflect the changes to a career average pension. The increase in
liabilities has been offset by an increase of 28% in the assets to #68.0m.
Accounting Policies
We have reviewed the accounting policies as set out in the financial statements
and continue to consider them the most appropriate to our business activities.
Group Income Statement (unaudited)
for the year ended 31 January 2006
2006 2005
Before Separately Before Separately
Separately Disclosable Separately Disclosable
Disclosable Items Disclosable Items
Items (Note Total Items (Note Total
3) 3)
Notes #m #m #m #m #m #m
Continuing and acquired
operations
Revenue 2 550.9 - 550.9 487.8 - 487.8
Cost of sales (360.1) 0.3 (359.8) (315.6) (2.0) (317.6)
Gross profit 190.8 0.3 191.1 172.2 (2.0) 170.2
Administrative expenses (170.2) (0.4) (170.6) (153.5) (2.0) (155.5)
Operating profit 2 20.6 (0.1) 20.5 18.7 (4.0) 14.7
Interest payable and (3.2) - (3.2) (2.0) - (2.0)
similar charges
Interest receivable 0.4 - 0.4 - - -
Share of post-tax 0.7 - 0.7 0.4 - 0.4
profits of associated
undertaking and joint
venture
Profit before tax 18.5 (0.1) 18.4 17.1 (4.0) 13.1
Taxation charge on (4.6) - (4.6) (5.1) 0.8 (4.3)
ordinary activities
Profit for the year 13.9 (0.1) 13.8 12.0 (3.2) 8.8
Attributable to:
Equity shareholders 10.0 6.5
Minority interest 3.8 2.3
Profit for the year 13.8 8.8
Earnings per share from continuing and
acquired operations (Note 5)
- Basic 5.74p 3.78p
- Diluted 5.66p 3.73p
Group Statement of Recognised Income and
Expense (unaudited)
Year Year
ended ended
31 Jan 31 Jan
2006 2005
#m #m
Profit for the year 13.8 8.8
Currency translation differences on 0.3 (0.9)
foreign currency net assets
Actuarial losses on defined (6.3) (3.2)
benefit pension schemes
Deferred tax on pension 1.9 0.9
scheme
Net losses not (4.1) (3.2)
recognized in income
statement
Total recognised income 9.7 5.6
Attributable to:
Equity shareholders 5.9 3.3
Minority interests 3.8 2.3
9.7 5.6
Group Balance Sheet (unaudited)
at 31 January 2006
2006 2005
Notes #m #m
Assets
Non-current assets
Goodwill 16.4 12.9
Intangible assets 7.3 2.6
Property, plant and equipment 62.1 56.8
Investments accounted for using equity method 6.9 6.5
Other receivables 2.6 2.1
Deferred taxation 8.5 9.2
103.8 90.1
Current assets
Inventories 35.9 32.1
Trade and other receivables 45.0 36.6
Cash and cash equivalents 6 16.0 10.8
Deferred taxation 2.1 -
99.0 79.5
Liabilities
Current liabilities
Financial liabilities - bank and other borrowings 6 (52.8) (30.6)
Trade and other payables (68.2) (61.4)
Current tax liabilities (1.3) (3.1)
Provisions for liabilities and charges (3.2) (1.5)
(125.5) (96.6)
Net current liabilities (26.5) (17.1)
Non-current liabilities
Bank and other borrowings 6 (0.3) (0.7)
Other non-current liabilities (0.6) (0.5)
Deferred taxation (1.9) (0.9)
Retirement benefit obligations (30.4) (28.2)
Provisions for liabilities and charges (0.4) (0.3)
(33.6) (30.6)
Net assets 43.7 42.4
Shareholders' equity
Ordinary shares 7 17.4 17.4
Share premium 7 43.9 43.7
Capital redemption reserve 7 0.4 0.4
Other reserves 7 (0.6) (0.9)
Retained earnings 7 (21.8) (20.6)
Total shareholders' equity 39.3 40.0
Minority interests 7 4.4 2.4
Total equity 43.7 42.4
Group Cash Flow Statement (unaudited)
For the year ended 31 January 2006
2006 2005
Notes #m #m
Cash flows from operating activities
Cash generated from operations 8 23.8 14.1
Interest received 0.4 -
Interest paid (2.7) (1.6)
Tax paid (4.3) (4.7)
Net cash from operating activities 17.2 7.8
Cash flows from investing activities
Acquisition of businesses 9 (3.9) (7.1)
Cash acquired on purchase of business 0.3 0.4
Part disposal of subsidiary - 1.7
Disposal of associate - 0.5
Proceeds from sale of property, plant and - 0.1
equipment
Expenditure on intangible assets (software) (5.2) (1.4)
Purchase of property, plant and equipment (16.1) (14.8)
Dividends received from associate 0.2 0.2
Dividends received from joint venture 0.1 0.1
Net cash used in investing activities (24.6) (20.3)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 0.2 1.3
Repayment of finance leases (0.5) (0.7)
Repayment of long term #60m facility (39.9) -
Loans from #100m facility 39.9 -
Increase in loans 26.4 21.1
Net (decrease)/increase in bank overdrafts (4.1) 2.3
Dividends paid to shareholders (7.0) (6.6)
Dividends paid to minority interests (2.0) (2.2)
Net cash used in financing activities 13.0 15.2
Effects of exchange rate changes (0.4) (0.5)
Net increase in cash and cash equivalents 5.2 2.2
Cash and cash equivalents at 1 February 10.8 8.6
Total cash and cash equivalents at 31 January 16.0 10.8
Notes to the Financial Information
1 Basis of preparation
This financial information has been prepared in accordance with International
Financial Reporting Standards('IFRS') adopted for use in the EU and the
interpretations issued by the International Accounting Standards Board.
The comparative figures for the year ended 31 January 2005 are not the Company's
statutory accounts for The financial year. Those accounts, which were prepared
under UK GAAP, have been reported on by the Company's auditors and delivered to
the Registrar of Companies. The report of the auditors was unqualified, did not
include references to any matters to which the auditors drew attention by way of
emphasis without qualifying their reports and did not contain statements under
Section 237 (2) or (3) of the Companies Act 1985.
The figures for the year ended 31 January 2005 are derived from the accounts for
that financial year, as restated to comply with IFRS requirements. A full
reconciliation of these adjustments was published in The Interim report 2005/06
and will be provided again in the Annual Report and Accounts to be Published In
April 2006.
2 Segment reporting
The Group considers that in the future its activities will be more aligned to
geographical segments than to business segments. As this is a reversal of
assumptions used in previous years, both segment analyses are presented as
primary segments this year, but in future geographical segment will be disclosed
as the primary segment and business segment will be disclosed as the secondary
segment.
2 (a) Geographical segments
UK and Ireland International Unallocated Group
2006 2005 2006 2005 2006 2005 2006 2005
#m #m #m #m #m #m #m #m
(1) Profit for the year
Continuing and acquired
operations
Revenue 449.7 412.4 101.2 75.4 - - 550.9 487.8
Profit before separately 8.8 13.1 11.8 5.6 - - 20.6 18.7
disclosable items
Separately disclosable items - 0.3 (0.9) - (1.4) - - 0.3 (2.3)
cost of sales
Separately disclosable items - (0.4) - - (2.4) - - (0.4) (2.4)
admin expenses
Profit on part disposal of - - - 0.3 - - - 0.3
subsidiary undertaking
Profit on disposal of - - - 0.4 - - - 0.4
associate
Operating profit 8.7 12.2 11.8 2.5 - - 20.5 14.7
Interest payable and similar - - - - (3.2) (2.0) (3.2) (2.0)
charges
Interest receivable - - - - 0.4 - 0.4 -
Income from interests in associated
undertaking
and joint venture - - 0.7 0.4 - - 0.7 0.4
Profit before tax 8.7 12.2 12.5 2.9 (2.8) (2.0) 18.4 13.1
Taxation charge on ordinary - - - - (4.6) (4.3) (4.6) (4.3)
activities
Profit for the year 8.7 12.2 12.5 2.9 (7.4) (6.3) 13.8 8.8
There are no material sales between the geographical segments. Interest
(payable)/receivable has not been allocated recognising the centre's role and
responsibility in allocating financial resources.
2 Segment reporting
2 (b) Business segments
Airline Services Airport Services Unallocated Group
2006 2005 2006 2005 2006 2005 2006 2005
#m #m #m #m #m #m #m #m
(1) Profit for the year
Continuing and acquired
operations
Revenue 298.5 268.5 252.4 219.3 - - 550.9 487.8
Profit before separately 10.1 7.1 10.5 11.6 - - 20.6 18.7
disclosable items
Separately disclosable 0.1 (2.3) 0.2 - - - 0.3 (2.3)
items - cost of sales
Separately disclosable (1.0) (3.9) 0.6 1.5 - - (0.4) (2.4)
items - admin expenses
Profit on part disposal of - 0.3 - - - - - 0.3
subsidiary undertaking
Profit on disposal of - 0.4 - - - - - 0.4
associate
Operating profit 9.2 1.6 11.3 13.1 - - 20.5 14.7
Interest payable and - - - - (3.2) (2.0) (3.2) (2.0)
similar charges
Interest receivable - - - - 0.4 - 0.4 -
Income from interests in
associated undertaking
and joint venture 0.7 0.4 - - - - 0.7 0.4
Profit before tax 9.9 2.0 11.3 13.1 (2.8) (2.0) 18.4 13.1
Taxation charge on ordinary - - - - (4.6) (4.3) (4.6) (4.3)
activities
Profit for the year 9.9 2.0 11.3 13.1 (7.4) (6.3) 13.8 8.8
There are no material sales between the business segments. Interest
(payable)/receivable has not been allocated recognising the centre's role and
responsibility in allocating financial resources.
3 Separately disclosable items
2005/06
Profit before tax for the year ended 31 January 2006 includes net separately
disclosable items of #0.1m representing an expense of #4.6m and a credit of #4.5m
recognised within operating profit. The #4.6m charge comprises redundancy payments
in respect of UK Flight operations (#1.8m) and UK Retail operations (#0.3m) and a
charge of #2.5m in respect of the Group's cost of suspected fraudulent activity
carried out by a third party service provider which is still being investigated by
the Group's management.
Following the results of an actuarial valuation on 6 April 2005, the Alpha
Airports Group Pension and Life Assurance Plan will change from a final salary
pension scheme to a career average based pension provision with effect from 6
April 2006. The effect of this change is to reduce the deficit by #4.5m and this
change in past service cost is reflected through the Group income statement. Due
to the size and nature of this change in past service cost, the amount is shown as
a separately disclosable item.
2004/05
Profit before tax for the year ended 31 January 2005 includes net separately
disclosable items of #4.0m charged against operating profit, comprising redundancy
payments in respect of UK Flight operations (#0.9m) and the Netherlands Flight
operations (#1.4m), an impairment charge in respect of freehold property fixed
assets in the Netherlands (#3.9m), partly offset by the release of #1.5m from the
remaining onerous contract provision in Orlando, USA where trading performance has
been better than forecast and profits on disposals and part-disposals of
investments of #0.7m.
4 Equity Dividends
2006 2005
#m #m
Final paid in respect of year ending 31 Jan 2005: 3.0p
(2003/04: 2.8p) per 10p share 5.2 4.8
Interim paid in respect of year ending 31 Jan 2006: 1.0p
(2004/05: 1.0p) per 10p share 1.8 1.8
7.0 6.6
In addition, the Directors are proposing a final dividend in respect of the
financial year ending 31 January 2006 of 3.2p per 10p share which will absorb an
estimated #5.6m of shareholders' funds. It will be paid on 22 June 2006 to
shareholders who are on the register of members on 2 June 2006.
5 Earnings per share
(a) Basic and diluted earnings per share in respect of continuing and acquired
operations
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares.
Reconciliations of the earnings and weighted average number of shares used in
the calculations are as follows:
Weighted average Earnings per
Profit for the year number of shares share
2006 2005 2006 2005 2006 2005
#m #m millions millions Pence Pence
Basic EPS 10.0 6.5 174.3 172.4 5.74 3.78
Effect to reflect dilutive - - 2.3 2.1 (0.08) (0.05)
ordinary shares under options
10.0 6.5 176.6 174.5 5.66 3.73
(b) Underlying earnings per share
Underlying profit for the financial year and underlying earnings per share have
been calculated to exclude the effect of goodwill impairment and separately
disclosable items in order that the effects of these items on reported earnings
can be fully appreciated.
Reconciliations of the underlying profit for the financial year and underlying
earnings per share are as follows:
Profit for the Earnings per
year share
2006 2005 2006 2005
#m #m Pence Pence
Basic EPS 10.0 6.5 5.74 3.78
Adjustments for:
- separately disclosable items 0.1 4.0 0.06 2.33
(Note 3)
- taxation relating to these - (0.8) - (0.46)
items
- add back goodwill impairment - 0.3 - 0.17
Underlying EPS 10.1 10.0 5.80 5.82
6 Net debt
2006 2005
#m #m
Cash at bank and in hand 16.0 10.8
Bank loans due within one year (50.5) (24.1)
- unsecured
Bank overdrafts due within one (1.9) (6.0)
year - unsecured
Finance lease obligations (0.4) (0.5)
within one year
Finance lease obligations over (0.3) (0.7)
one year
(37.1) (20.5)
7 Shareholders' funds and statement of changes in shareholders' equity
Capital
Share Share redemption Other Retained Minority Total
capital premium reserve reserves earnings Total Interests equity
#m #m #m #m #m #m #m #m
At 1 February 2004 17.2 42.6 0.4 - (18.7) 41.5 1.3 42.8
Share options
- proceeds from share 0.2 1.1 - - - 1.3 - 1.3
options
- value of employee - - - - 0.2 0.2 - 0.2
services
Exchange adjustments - - - (0.9) - (0.9) - (0.9)
Profit for the year - - - - 6.5 6.5 2.3 8.8
Actuarial losses on - - - - (3.2) (3.2) - (3.2)
defined benefit pension
scheme
Deferred tax on pension - - - - 0.9 0.9 - 0.9
scheme
Credit in respect of - - - - 0.2 0.2 - 0.2
long term incentive
plan
Minority interest share - - - - - - 1.1 1.1
of acquisition
Minority interests - - - - - 0.1 0.1 (0.1) -
adjustment on part
disposal of subsidiary
Dividends - - - - (6.6) (6.6) (2.2) (8.8)
At 31 January 2005 17.4 43.7 0.4 (0.9) (20.6) 40.0 2.4 42.4
Share options
- proceeds from share - 0.2 - - - 0.2 - 0.2
options
- value of employee - - - - 0.2 0.2 - 0.2
services
Exchange adjustments - - - 0.3 - 0.3 - 0.3
Profit for the year - - - - 10.0 10.0 3.8 13.8
Actuarial losses on - - - - (6.3) (6.3) - (6.3)
defined benefit pension
scheme
Deferred tax on pension - - - - 1.9 1.9 - 1.9
scheme
Minority interest share - - - - - - 0.2 0.2
of acquisition
Dividends - - - - (7.0) (7.0) (2.0) (9.0)
At 31 January 2006 17.4 43.9 0.4 (0.6) (21.8) 39.3 4.4 43.7
8 Net cash from operating activities
2006 2005
#m #m
Profit before tax 18.4 13.1
Share of post-tax profit of joint (0.4) (0.1)
venture
Share of post-tax profit of associated (0.3) (0.3)
undertaking
Interest payable and similar 3.2 2.0
charges
Interest receivable (0.4) -
Depreciation and amortization 11.9 10.6
Increase/(decrease) in separately disclosable 1.7 (3.4)
provisions
(Decrease)/increase in retirement benefit provisions (4.5) 0.4
Profit on part disposal of subsidiary undertaking - - (0.3)
continuing operations
Profit on disposal of associate - (0.4)
Share options - 0.1
Fixed asset impairment - 3.9
Goodwill impairment - 0.3
Long term incentive plan - 0.2
amortisation charge
Changes in working capital (excluding effects of acquisitions
and disposals of subsidiaries)
Increase in inventories (3.2) (7.3)
Increase in trade and other (9.0) (10.3)
receivables
Increase in creditors 6.3 5.6
Decrease in provisions 0.1 -
Cash generated from operations 23.8 14.1
9. Acquisition of businesses
9.1 Romania
Acquisition of 64.18% of Abela Rocas SA
On 12 April 2005, the Group acquired 64.18% of the share capital of Abela Rocas
SA, a small flight and retail catering business in Romania.
The goodwill arising on the acquisition was #3.5m as follows:
Book Fair Value Provisional
Value adjustments fair
value
#m #m #m
Investment in associate 0.1 (0.1) -
Tangible fixed assets 0.3 - 0.3
Inventories 0.2 - 0.2
Trade receivables 0.6 - 0.6
Creditors (0.6) - (0.6)
Cash at bank and in hand 0.2 0.1 0.3
Taxation - (0.2) (0.2)
Total net assets at acquisition 0.8 (0.2) 0.6
-
Minority Interests (0.2)
Total net assets acquired 0.4
Goodwill 3.5
Consideration 3.9
Consideration satisfied by:
Cash (including costs of acquisition) 3.9
The book value of the assets and liabilities has been taken from the management
accounts of Abela Rocas SA at 12 April 2005 at actual exchange rates on that
date. The fair value adjustments contain some provisional amounts, as indicated
below, which will be finalized within twelve months of the acquisition date.
The provisional fair value adjustments principally comprise #0.1m for the write
off of a small investment in an associated company, the results for which had
never been consolidated into the results of Abela Rocas SA, an exchange
adjustment in respect of cash balances and a provision for dividend taxes in
respect of 2004 and 2005.
The profit after tax of Abela Rocas SA was #0.2m for the period from 1 January
2005 to 12 April 2005 and #1.0m for the year ending 31 December 2004.
9.2 Bulgaria
Acquisition of 100% of Abela Airport Services EOOD
On 28 April 2005, the Group acquired 100% of the share capital of Abela Airport
Services EOOD, a small flight and retail catering business based in Bulgaria,
for a consideration of Euro1 and costs of #15,000. The only assets acquired were
fixed assets of #0.3m against which a full impairment was booked on acquisition.
As a result there was no goodwill generated on this acquisition.
The losses after tax of Abela Airport Services EOOD were #0.1m for the period
from 1 January 2005 to 28 April 2005 and #0.3m for the year ending 31 December
2004.
10 Adjusted figures
The Group uses adjusted figures as key underlying performance measures. Adjusted
figures exclude non-trading items such as the impairment of intangible fixed
assets and goodwill, rationalization, restructuring costs and other separately
disclosable items, together with any related tax effects.
2006 2005
#m #m
Operating profit 20.5 14.7
Adjustments:
Share of profit from associate/joint venture 0.7 0.4
Goodwill - 0.3
impairment
Separately disclosable items (Note 3) 0.1 4.0
Adjusted operating 21.3 19.4
profit
Profit before tax 18.4 13.1
Adjustments:
Goodwill - 0.3
impairment
Separately disclosable items (Note 3) 0.1 4.0
Adjusted profit 18.5 17.4
before tax
Profit attributable to equity shareholders 10.0 6.5
Adjustments:
Goodwill - 0.3
impairment
Separately disclosable items (Note 3) 0.1 4.0
Taxation on these - (0.8)
items
Adjusted 10.1 10.0
attributable
profit
11. Preliminary announcement
The preliminary results for the year ended 31 January 2006 are unaudited. As
stated in Note 1, this financial information has been prepared in accordance
with International Financial Reporting Standards ('IFRS') adopted for use in the
EU and the interpretations issued by the International Accounting Standards
Board.
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 Group accounts for the year ended 31 January 2006 will be finalised on the
basis of the financial information presented by the Directors in the preliminary
announcement.
12. Issue of annual reports and accounts
The Annual Report 2005/06 will be posted to shareholders by 24 April 2006.
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.
13. Annual General Meeting
The Annual General Meeting of Alpha Airports Group Plc will be held at the
Conference Centre, Park Inn, Bath Road, Heathrow on 25 May 2006 at 11am.
This preliminary announcement contains certain forward looking statements. These
statements are subject to risks and uncertainties because they relate to events
that may or will occur in the future and could cause actual results to differ
materially from those expressed. Many of these risks and uncertainties relate to
factors that are beyond Alpha's ability to control or estimate precisely, such
as future market and economic conditions, the actions of competitors,
operational problems and the actions of government regulators. Alpha undertakes
no obligation to update forward-looking statements.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
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