Big profits drop at Manchester Airports Group
14.07.09
Manchester Airports Group reported a big drop in profits in the year to the end of March, as passenger numbers fell during the recession. The group - the UK's second largest airports operator in the UK with Manchester, East Midlands, Humberside and Bournemouth airports in its portfolio - said operating profits during the 12 months to March 31 fell by almost 19 percent, from £96.5m to £78.4m.
Pre-tax earnings slumped from £87.8m to £54.2m before exceptional items, whilst revenue fell 6.2 percent, from £395.7m to £371.3m. However, revenue was only down by 0.8 percent on continuing operations following the closure of baggage handling business Ringway Handling during the year.
Continued increases in retail and car park income last year were offset by the slump in passenger numbers. The group, which carried 27.3m passengers - 6 percent down on the previous 12 months and the lowest figure since 2005 - took two huge exceptional write offs on its balance sheet, which left it with an after-tax loss of £100.9m.
The value of its properties fell £42.4m, or 12.5 percent, while an exceptional tax charge of £106.2m related to a repayment of government allowances on industrial buildings, a change which has affected all airport and infrastructure businesses. The company continued to invest in 'improving the passenger experience across its four airports,’ spending £78m to improve its terminals and security areas.
Group employee numbers fell from 3,059 to 2,685, largely due to the Ringway Handling closure. Manchester Airport lost 340 staff. A dividend of £20m will be split between the 10 Greater Manchester local authorities which own MAG, although the figure is down from £26m a year earlier.
Group chief executive Geoff Muirhead said the underlying business remained sound although he forecast another difficult year, with a further drop in revenues and profits expected along with 100 job losses to cut costs.
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