TIDM38LZ
RNS Number : 0086V
Manchester Airport Grp Funding PLC
09 December 2021
Issuer: Manchester Airport Group Funding PLC
Date: 9 December 2021
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 2021.
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 2021.
The Interim Reports and consolidated financial statements for
MAHL and MAGIL are available on MAHL'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
Thursday 9 December 2021 at 10.00 am (UK time). The call will be
hosted by Jan Bramall, Chief Financial Officer, Ken O'Toole, Chief
Development Officer and Iain Ashworth, Corporate Finance
Director.
Dial-in details for the call are: UK local/standard
international: +44 (0)330 336 9127. Confirmation code: 6336910.
The presentation can be viewed online during the event by using
the link:
https://storm-virtual-uk.zoom.us/webinar/register/WN_6LYmOW_VTcSsrB_PGBXLRA
MAGIL results for the 6 months ended 30 September 2021
MAGIL's performance for the 6 months to 30 September 2021
continued to reflect the unprecedented period the aviation industry
has faced this year following the impact of COVID-19.
Passenger numbers for the 6 month period were 6.6 million, an
increase of 57.1% compared to the 4.2 million passengers in the
equivalent period of 2020 though this still equates to only 18% of
pre-COVID-19 levels. MAGIL's revenue has increased by 55.3% to
GBP159.0 million, which together with cost savings has resulted in
an Adjusted EBITDA of GBP25.6 million, an increase of GBP98.8
million year-on-year. MAGIL's Result from operations was a loss of
GBP75.5 million.
MAGIL's parent, MAHL, reported an Adjusted EBITDA of GBP25.1
million, and a loss from operations of GBP75.7 million.
MAGIL Total Business
Key Financials 6 months ended 6 months ended Change (%)
30 September 30 September
2021 (GBPm) 2020 (GBPm)
---------------------------- --------------- --------------- -----------
Revenue 159.0 102.4 55.3%
Adjusted EBITDA* 25.6 (73.0) n/a
Adjusted EBITDA*(excluding
impact of IFRS 16) 10.2 (87.5) n/a
Result from operations
(before significant
items) (78.9) (163.8) 51.8%
Result from operations (75.5) (171.8) 56.1%
Result before taxation (105.3) (208.3) 49.4%
---------------------------- --------------- --------------- -----------
Passengers 6 months ended 6 months ended Change (%)
30 September 30 September
2021 (m) 2020 (m)
----------------- --------------- --------------- -----------
Manchester 2.7 1.7 58.8%
London Stansted 3.5 2.2 59.0%
East Midlands 0.4 0.3 33.3%
----------------- --------------- --------------- -----------
Total 6.6 4.2 57.1%
----------------- --------------- --------------- -----------
* Adjusted EBITDA is earnings before interest, tax,
depreciation, amortisation, gains and losses on sales and valuation
of investment properties, and significant items
MAGIL's response to the pandemic has been measured, strong and
focussed on long-term recovery. All non-essential expenditure was
frozen and a major streamlining of the workforce across its
entirety was undertaken including management, back office functions
and operational staff to reflect the short term reduction in
operating activity. MAGIL has also taken decisive steps to
significantly reduce operating costs through the alignment of
infrastructure and resources to meet the revised traffic
demand.
Shareholders have been supportive through this period and
provided GBP300 million of new equity in 2020, which together with
GBP400 million raised through the sale of MAGIL's non-core property
portfolio contributed to a cash position of GBP431.3 million at 30
September 2021. In addition, banks and listed bondholders strongly
endorsed MAGIL's financial and strategic response by agreeing to
waive financial covenant tests, in June 2020, for the calculation
periods to September 2020 and March 2021 and an amendment to
September 2021. In June 2021 banks and bondholders agreed a further
12 month extension to these waivers and amendments, waiving
covenant tests until after March 2022.
From late summer 2021 MAGIL has seen passenger demand levels
gradually increase in line with the rollout of vaccine programmes
and the easing of restrictions: initially in July as the UK eased
quarantine restrictions for fully vaccinated passengers arriving
from the USA & EU; and most recently in October 2021 with the
replacement of the expensive PCR testing requirement and removal of
all countries from the UK's red travel list. Whilst passenger
levels over the 6 month period amounted to 18% of pre-Covid levels,
MAG's October 2021 trading reflected an uptick to 51% compared to
pre-pandemic activity, rising to 58% in November. This provides a
positive outlook for trading into the second half of the year and
the build up to Summer 2022.
The recent discovery of the Omicron variant in late November has
the potential to delay the recovery in international travel, given
the risk of governments maintaining more stringent travel
restrictions in response to scientific advice about the level of
threat associated with the new variant. Governments have
reintroduced a number of travel restrictions as a precautionary
measure, pending further evaluation of new variant. At the current
time, it is not possible to assess the impact of these restrictions
or additional restrictions that might be imposed in due course.
Other headlines
-- Significant investment has been completed in the last three
years and MAG's modern infrastructure will be an important
component of a strong recovery. Following the outbreak of COVID-19,
MAG has reduced and refocussed expenditure on its capital projects,
given the reduction in passenger demand. Phase 2 of MAG's main
capital project; MANTP, is now complete. The Terminal 2 extension
opened in July 2021. Manchester Airport's modern facilities will
continue to be the international gateway for the North, providing
passenger and airline facilities for the future, and supporting
commercial yields and operating efficiencies.
-- As at 30 September 2021, the Group's total listed bonds in
issue were GBP1,460 million. Together with the GBP500 million
revolving credit facility and a GBP90 million liquidity facility
(both maturing June 2023), along with retained cash resources,
these facilities provide the Group with a long-term stable funding
platform.
-- Following the impact of COVID-19 and in accordance with the
Amendment and Waiver Deed no dividends will be paid throughout the
covenant waiver period. Dividends paid by MAHL are funded via
Distributions from MAGIL.
-- MAG's financing strategy incorporates its strong investment
grade ratings with Fitch (BBB negative outlook) and Moody's (Baa1
negative outlook) and a long-term financing structure to support
growth. Maintaining this financial stability, even during the
pandemic and the Group's recent transformation activities, places
MAGIL in a strong position to maintain its operational capabilities
and benefit from the upturn in demand levels.
Note on MAGIL Results
A reconciliation between the financial results of MAGIL and MAHL
is 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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