BAA (SP) Limited, the owner of BAA’s two London airports of Heathrow and Stansted, today announces its results for the year ended 31 December 2010. Some financial information is also included in respect of its immediate parent company, BAA (SH) plc.
- Strong recovery in Heathrow traffic tempered by volcanic ash, strikes and snow
- Group passenger traffic of 84.3 million with underlying growth of up to 3.4% at Heathrow
- Revenue up 4.9% reflecting higher tariffs and exceptional retail performance
- Adjusted EBITDA up 9.2% enabling continued significant capital investment at Heathrow
- Reduced pre-tax loss due to lower exceptional items and fair value adjustments
- Subordinated debt refinancing completed and BAA's overall capital structure strengthened
- Strong increase in profitability and investment in improving facilities anticipated in 2011
At or for year ended 31 December (figures in £m unless otherwise stated) | 2010 | 2009 | Change (%) |
|---|---|---|---|
| Revenue (1) | 2,074.3 | 1,977.6 | 4.9 |
| Adjusted EBITDA (1) (2) | 966.9 | 885.2 | 9.2 |
| Cash generated from operations (1) | 918.5 | 802.3 | 14.5 |
| Adjusted pre-tax loss (3) | (206.2) | (156.5) | 31.8 |
| Pre-tax loss | (316.6) | (821.9) | (61.5) |
| BAA (SP) Limited consolidated debt (4) (5) | 9,921.2 | 8,579.0 | 15.6 |
| BAA (SH) plc consolidated net debt (5) | 10,401.1 | 10,143.4 | 2.5 |
| Regulatory Asset Base | 12,776.0 | 11,743.9 | 8.9 |
| Passengers (m) (6) | 84.3 | 85.9 | (1.8) |
| Net retail income per passenger (6) | £5.29 | £4.72 | 12.1 |
Notes
- Figures are for continuing operations only, i.e. excluding Gatwick airport
- Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation and exceptional items
- Adjusted pre-tax loss is before exceptional items, gain/loss on disposal of Gatwick airport, impairment of fixed assets and fair value adjustments
- BAA (SP) Limited’s increased net debt includes £1 billion of debt raised by the Group to repay debt at BAA (SH) plc
- Nominal value of net debt excluding intra-BAA group loans and restricted cash and including index-linked accretion
- Change in passengers and net retail income per passenger are calculated using unrounded data
Colin Matthews, Chief Executive Officer of BAA, said:
"We delivered a robust financial performance in 2010, despite the volcanic ash, strikes and snow that affected major airports across Europe and North America. Strong passenger growth at Heathrow in the second half of the year reflected the ongoing improvement in the global economic climate.
We continued to strengthen and diversify our funding position by raising £2 billion of new financing, underpinning our investment in upgrading Heathrow.
BAA is undertaking the UK’s biggest privately funded development with the airport’s new £2 billion Terminal 2 which will offer passengers a quicker and easier transfer experience by grouping the Star Alliance airlines together.
Significant progress has also been made in renovating older terminals and we are investing nearly £250 million in a new baggage tunnel between Terminal 3 and Terminal 5 to speed up passengers’ journeys.
In 2011, we expect to deliver a strong increase in profits and cash flow, enabling us to make further investments in improving facilities and further strengthening our financial position."
- Full release, including commentary and financial figures (438KB PDF)
- Download the presentation (1.2MB PDF)
