BAA (SP) Limited owns BAA’s three London airports of Heathrow, Gatwick and Stansted (the ‘Designated Airports’). Throughout this document, BAA (SP) Limited and its subsidiaries are referred to as the Group.
- Significant increase in revenue and Adjusted EBITDA despite challenging market conditions
- Adjusted EBITDA up 28.2%
- - strong cost control with underlying operating costs down 3.1%
- - resilient revenues driven by higher tariffs and strong retail performance
- The Group remains highly cash generative: cash generated from operations up by over 40%
- Cash and undrawn headroom combined with ongoing cash flow will enable repayment of all 2010 debt maturities with or without Gatwick sale
- Pre-tax loss reflects over £400 million of non-cash charges:
- - £255.2 million in exceptional items relating to an increased pension scheme deficit and accelerated depreciation of terminals to be replaced by the new Terminal 2 at Heathrow
- - £150.2 million of fair value losses on financial instruments
- Improved operational performance: better punctuality and airport service quality scores
- Outlook for 2009 remains consistent with previous guidance
| At or for six months ended 30 June | Unaudited 2009 | Unaudited pro forma 2008 (1) | Change % |
|---|---|---|---|
| figures in £m unless otherwise stated | |||
| Revenues | 1,154.5 | 1,023.5 | 12.8 |
| Adjusted EBITDA (2) | 469.9 | 366.6 | 28.2 |
| Cash generated from operations | 431.4 | 304.7 | 41.6 |
| Adjusted pre-tax loss (3) | (140.3) | (71.4) | (96.5) |
| Pre-tax loss | (545.7) | (135.3) | (303.3) |
| Net debt (4)(5) | 9,683.1 | 9,384.3 | (3.2) |
| Regulatory Asset Base (5) | 12,860.5 | 12,470.2 | 3.1 |
| Passengers (m) | 55.2 | 59.6 | (7.4) |
| Net retail income per passenger | £4.72 | £4.39 | 7.3 |
(1) Pro forma profit and loss account figures assume consolidation of Heathrow Express Operating Company Limited although it was not acquired by the Group until 7 August 2008
(2) Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation and exceptional items
(3) Adjusted pre-tax loss is before exceptional items and fair value adjustments
(4) Nominal value of net debt excluding intra-BAA group loans
(5) 2008 net debt and Regulatory Asset Base figures are as at 31 December 2008 rather than 30 June 2008
Colin Matthews, Chief Executive of BAA, said:
"BAA's underlying financial performance remains in line with our expectations. I am particularly pleased that Heathrow continues to show its resilience, but trading conditions for the industry remain difficult and we remain focused on improving service standards and delivering a more efficient operation."
Jose Leo, Chief Financial Officer of BAA, said:
"In addition to our solid operating performance, these results underline our continuing strongly cash generative business that provides a robust platform to address our ongoing investment and liquidity requirements. They also highlight the stability of the debt and gearing position of BAA's London airports and that we continue to operate comfortably within required financial ratios."
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