http://www.ft.com/cms/s/0/6449de90-1f8d-11df-8975-00144feab49a.html
BAA losses hit £822m on Gatwick sale
By Philip Stafford
Published: February 22 2010 08:59 | Last updated: February 22 2010 12:20
BAA, the largest operator of airports in the UK, said on Monday its pre-tax losses had widened last year due in part to a loss of £277.3m from the sale of Gatwick.
London’s second-largest airport was sold just before the end of the financial year for £1.5bn to Global Infrastructure Partners, an infrastructure fund backed by Credit Suisse and General Electric. Competition authorities had ordered a sale to meet concerns about BAA’s market dominance.
The loss on the sale helped push pre-tax losses at BAA, which is owned by a consortium led by Spanish group Ferrovial, from £324.2m to £821.9m. The group also took an exceptional charge of £217.8m relating to increased pension scheme deficits, but this was lower than the third quarter when it booked a charge of £261m.
Total revenue for the year to December at the group’s London airports, including Gatwick, rose from £2.3bn to £2.4bn. Figures for the group excluded BAA’s other airports around the country at Glasgow, Edinburgh, Aberdeen and Southampton.
Stripping out the effects of disposals and fair value adjustments, BAA saw pre-tax losses narrow from £189.6m to £156.5m, while revenues rose 8.3 per cent to £1.98bn.
The group endured a tough year as the weak global economy meant fewer passengers passed through its airports. Total passenger traffic, excluding Gatwick, fell 3.8 per cent to 85.9m while numbers at its main hub of Heathrow were down 1.5 per cent.
Passenger numbers at Heathrow, which accounted for 88 per cent of total numbers, were boosted at the end of the year by greater European traffic as well as more long-haul flights to Asia and Africa.
Passenger traffic to India and the Middle East both rose by 10 per cent, offsetting a 5.5 per cent decline on domestic flights, the group said. Fewer holiday charter flights meant Stansted, London’s third-largest airport, saw passenger traffic fall 10.7 per cent to 20m.
Net debt fell 9 per cent to £8.6bn after a £500m equity injection in November from its main shareholders, including Ferrovial, GIC Special Investments (the private equity arm of the Government of Singapore Investment Corporation) and the state pension fund of Quebec.
Colin Matthews, chief executive, said the group had made substantial progress in 2009 with a better showing on punctuality of flights and in customer service. “Our operational performance is improving and we will invest more than £1bn this year to upgrade our airports,” he said.
The group added that turnover from continuing operations rose 8.3 per cent after aeronautical income – charges derived from tariffs for aircraft landing slots – rose 11.5 per cent. Gross retail income rose 4.8 per cent.
BAA said the exceptional non-cash charge for the year for its pension was £217.8m, up from a charge of £13.9m a year ago, to reflect a lower discount rate and a higher forecast inflation curve. BAA will make an annual £70m cash payment to the scheme until the end of 2011, when its next triennial pension scheme review is due.
BAA losses hit £822m on Gatwick sale
By Philip Stafford
Published: February 22 2010 08:59 | Last updated: February 22 2010 12:20
BAA, the largest operator of airports in the UK, said on Monday its pre-tax losses had widened last year due in part to a loss of £277.3m from the sale of Gatwick.
London’s second-largest airport was sold just before the end of the financial year for £1.5bn to Global Infrastructure Partners, an infrastructure fund backed by Credit Suisse and General Electric. Competition authorities had ordered a sale to meet concerns about BAA’s market dominance.
The loss on the sale helped push pre-tax losses at BAA, which is owned by a consortium led by Spanish group Ferrovial, from £324.2m to £821.9m. The group also took an exceptional charge of £217.8m relating to increased pension scheme deficits, but this was lower than the third quarter when it booked a charge of £261m.
Total revenue for the year to December at the group’s London airports, including Gatwick, rose from £2.3bn to £2.4bn. Figures for the group excluded BAA’s other airports around the country at Glasgow, Edinburgh, Aberdeen and Southampton.
Stripping out the effects of disposals and fair value adjustments, BAA saw pre-tax losses narrow from £189.6m to £156.5m, while revenues rose 8.3 per cent to £1.98bn.
The group endured a tough year as the weak global economy meant fewer passengers passed through its airports. Total passenger traffic, excluding Gatwick, fell 3.8 per cent to 85.9m while numbers at its main hub of Heathrow were down 1.5 per cent.
Passenger numbers at Heathrow, which accounted for 88 per cent of total numbers, were boosted at the end of the year by greater European traffic as well as more long-haul flights to Asia and Africa.
Passenger traffic to India and the Middle East both rose by 10 per cent, offsetting a 5.5 per cent decline on domestic flights, the group said. Fewer holiday charter flights meant Stansted, London’s third-largest airport, saw passenger traffic fall 10.7 per cent to 20m.
Net debt fell 9 per cent to £8.6bn after a £500m equity injection in November from its main shareholders, including Ferrovial, GIC Special Investments (the private equity arm of the Government of Singapore Investment Corporation) and the state pension fund of Quebec.
Colin Matthews, chief executive, said the group had made substantial progress in 2009 with a better showing on punctuality of flights and in customer service. “Our operational performance is improving and we will invest more than £1bn this year to upgrade our airports,” he said.
The group added that turnover from continuing operations rose 8.3 per cent after aeronautical income – charges derived from tariffs for aircraft landing slots – rose 11.5 per cent. Gross retail income rose 4.8 per cent.
BAA said the exceptional non-cash charge for the year for its pension was £217.8m, up from a charge of £13.9m a year ago, to reflect a lower discount rate and a higher forecast inflation curve. BAA will make an annual £70m cash payment to the scheme until the end of 2011, when its next triennial pension scheme review is due.
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