BAA Announces Results for the Six Months to September 30, 2001.Business Editors LONDON--(BUSINESS WIRE)--Oct. 29, 2001 BAA's chief executive, Mike Hodgkinson, said: "These results demonstrate the inherent strength of our business...Safety and security continue to be BAA's number one priority...Profits from continuing businesses for the first half year continued to grow...In the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. , while accurate forecasting is not possible, there will be an impact on passenger traffic and hence on our performance in the second half of the year...In the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , I believe the prospects for the aviation industry are good."
- Group operating profit from continuing businesses up 5.0% to
(pound)355 million (September 30, 2000: (pound)338 million).
In five months to August 31, 2001, up 8.4%.
- Normalized profit before tax up 1.5% to(pound)338 million
((pound)333 million). In five months to August 31, 2001, up
5.2%.
- Earnings per share before exceptionals, 21.8 pence, and
interim dividend, 6.1 pence, both unchanged.
- Passenger traffic up by 0.1%. To August 31, 2001 up 1.4%. In
the first 20 days of October 2001 passenger traffic down
12.0%, similar to the decline experienced in the last week of
September.
- UK airport retailing strong - net retail income up 7%
to(pound)261 million ((pound)245 million) and net retail
income per passenger up 7%.
BAA's financial results presentation will be broadcast live on
BAA's website - www.baa.com/results - at 9.30am (Greenwich Mean Time)
on Monday, October 29, 2001. An interview with Mike Hodgkinson, chief
executive, on BAA's interim results 2001/02 will follow after the live
broadcast.
SUMMARY OF RESULTS - PUBLISHED (POST FRS 17 AND FRS 19)
Post the change in
accounting policies 6 months to 6 months to Change
Sept. 30, 2001 Sept. 30, 2000 %
(restated)
Passenger traffic 69.6m 69.5m 0.1
Revenue* (pound)1,008m (pound)1,003m 0.5
EBITDA* (pound)472m (pound)444m 6.3
Group operating profit* (pound)355m (pound)338m 5.0
Normalized profit
before tax** (pound)338m (pound)333m 1.5
Profit before tax and
exceptionals (pound)334m (pound)329m 1.5
Earnings per share before
exceptionals 21.8p 21.8p -
Interim dividend 6.1p 6.1p -
Capital expenditure (pound)305m (pound)234m 30.3
* Continuing operations only and excludes the joint venture BAA
McArthurGlen and exceptionals.
** Excludes the joint venture BAA McArthurGlen and exceptionals.
With effect from the current financial year, BAA adopted the new
Financial Reporting Standards FRS 17 "Retirement Benefits" and FRS 19
"Deferred Tax" and the previous years are restated accordingly. There
is no impact at all on the Group's underlying performance. The table
above details the interim results after the change in accounting
policies. The table below details the proforma results prior to the
adoption of FRS 17 and FRS 19. Full details of the changes are
contained within this announcement, together with a detailed
reconciliation.
SUMMARY OF RESULTS - PROFORMA (PRE FRS 17 AND FRS 19)
Prior to change in
accounting policies 6 months to 6 months to Change
Sept. 30, 2001 Sept. 30, 2000 %
Revenue* (pound)1,008m (pound)1,003m 0.5
EBITDA* (pound)491m (pound)469m 4.7
Group operating profit* (pound)374m (pound)363m 3.0
Normalized profit
before tax** (pound)333m (pound)326m 2.1
Profit before tax and
exceptionals (pound)329m (pound)322m 2.2
Earnings per share before
exceptionals 23.1p 22.6p 2.2
Interim dividend 6.1p 6.1p -
Capital expenditure (pound)305m (pound)234m 30.3
* Continuing operations only and excludes the joint venture BAA
McArthurGlen and exceptionals.
** Excludes the joint venture BAA McArthurGlen and exceptionals.
All comments refer to six month results reported post the adoption of FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 17 and FRS 19, except where noted. BAA Baa See BBB. plc, the international airport group, today announced that for the six months to September September: see month. 30, 2001 normalized profit before tax increased by 1.5% to (pound)338 million (September 30, 2000: (pound)333 million restated). This was impacted by the events of September 11 and the losses of the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: business - World Duty Free Americas A·mer·i·cas , the See America. . For the five month period to August 31, 2001 normalized profit before tax increased by 5.2% to (pound)284 million ((pound)270 million restated), details are included in the supplementary information appendix appendix, small, worm-shaped blind tube, about 3 in. (7.6 cm) long and 1-4 in. to 1 in. (.64–2.54 cm) thick, projecting from the cecum (part of the large intestine) on the right side of the lower abdominal cavity. . Revenue for the six months from continuing businesses increased by 0.5% to (pound)1,008 million ((pound)1,003 million) on a passenger traffic increase of 0.1%. Group operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. from continuing businesses before exceptionals increased by 5.0% to (pound)355 million ((pound)338 million restated). Before the change in accounting policy resulting from the adoption of FRS 17, this increased by 3.0% to (pound)374 million ((pound)363 million). In the current year, the additional cost charged to the profit and loss under FRS 17 is lower than in the prior year. A reconciliation is provided in the supplementary information appendix. As announced on October October: see month. 11, BAA completed the sale of its World Duty Free Americas subsidiary, resulting in an exceptional loss of (pound)190 million, made up primarily of the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill associated with the original acquisition. World Duty Free Americas recorded an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of (pound)3 million ((pound)5 million profit) in the current period. Trading conditions in the US deteriorated as a result of both the general economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. and more recently the terrorist attacks on September 11. Earnings per share before exceptionals was unchanged at 21.8 pence pence n. Chiefly British A plural of penny. pence Noun a plural of penny USAGE: Since the decimalization of British currency and the introduction of the abbreviation p, . Prior to the changes in accounting policy, earnings per share before exceptionals grew by 2.2% to 23.1 pence (22.6 pence). Earnings per share after exceptional items was 4.5 pence (21.7 pence restated), reduced primarily by the loss of (pound)190 million recorded on the sale of the World Duty Free Americas business. CHIEF EXECUTIVE'S COMMENT BAA's chief executive, Mike Hodgkinson, said: "These results demonstrate the inherent strength of our business despite the negative impact on our main driver, passenger volumes, from the foot and mouth epidemic epidemic, outbreak of disease that affects a much greater number of people than is usual for the locality or that spreads to regions where it is ordinarily not present. , the US economic slowdown and the tragic events of September 11 in America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. . BAA has nevertheless grown its operating profit by 5.0%. In the five months to August 31, 2001, operating profit had grown by 8.4% on the back of a modest 1.4% passenger increase. "We will pay an unchanged interim dividend to our shareholders of 6.1 pence. This decision reflects the strong underlying position of the company even though the current year's performance will be affected as a result of the terrorist attacks. "Safety and security continue to be BAA's number one priority. In the current climate huge efforts are being made both to keep our business running and to implement even tighter security measures Noun 1. security measures - measures taken as a precaution against theft or espionage or sabotage etc.; "military security has been stepped up since the recent uprising" security . The implementation of additional security measures and other costs incurred as a result of the events of September 11 are likely to be in the region of (pound)10 million in the current financial year. "A good performance was seen in UK airport retailing, with net retail income up by 7% and net retail income per passenger up by 7% for the six months. It is too early to tell what the impact on retail income per passenger will be of the different operating patterns we are seeing post September 11, and it may be difficult to maintain the excellent performance of the first half year. "In line with our strategy of focusing on the core airports business we have concluded our exit from direct duty and tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. retailing activities in the US. World Duty Free Americas was sold in early October and will have no future financial impact on BAA. Outlook "It is still too soon to predict the future for aviation with any degree of certainty CERTAINTY, UNCERTAINTY, contracts. In matters of obligation, a thing is certain, when its essence, quality, and quantity, are described, distinctly set forth, Dig. 12, 1, 6. It is uncertain, when the description is not that of one individual object, but designates only the kind. Louis. . Passenger traffic levels continued to be 12.0% down in the first 20 days of October, similar to the decline experienced in the last week of September. However, although the aviation industry is currently experiencing significant disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. to passenger volumes, we are confident that, in the future, growth will return to those markets currently depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. . Passenger traffic has initially fallen less sharply in percentage terms than it did in the Gulf War but it is impossible to predict the length and profile of the dip dip, in agriculture, method of treating animals (chiefly livestock) infested with skin parasites such as mites, ticks, and warbles. The animal is dipped into or forced to swim through a tank filled with an insecticide solution. . "BAA's financial position is fundamentally strong and profits from continuing businesses for the first half year continued to grow. Whilst the company has a high proportion of fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). , we are actively seeking cost reductions in both the revenue and capital areas of the business. However, investment in our airports is essential if we are to meet the long-term demand for air travel and provide Britain Britain (brĭt`ən), alternate term for Great Britain, comprised of England, Scotland, and Wales. Often used synonymously with the United Kingdom, the name Britain is derived from Britannia, with quality airports. Some short-term capacity projects will be deferred, but it would not be in the interests of shareholders, the aviation industry, or the country to stop investing because of short-term disruption to traffic. We are currently reviewing the capital program to ensure we keep our options open, so that we can properly respond to the needs of the market and consequently I expect that this year's capital expenditure will be in the region of (pound)550 million. "In order for BAA to provide the facilities required to handle future growth, large amounts of capital expenditure will be required. The need for a regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. framework that encourages investment remains and we continue to be confident that the regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. will recognize this in his current regulatory review. The regulator will announce his initial views imminently im·mi·nent adj. About to occur; impending: in imminent danger. [Middle English iminent, from Old French imminent, from Latin , as the first step in a process that will not conclude until late 2002. "BAA is confident that the Government will shortly make its decision about planning permission planning permission Noun formal permission granted by a local authority for the construction, alteration, or change of use of a building planning permission n → licencia de obras for Terminal 5. The need for Terminal 5 is the same as when the company first submitted the planning application. In the long-term there will be a shortage of airport terminal capacity, and Terminal 5 is about quality as well as capacity. BAA wishes to get on site as soon as possible to build stands and taxiways to support the airport's existing operations. This work is urgent if BAA is to continue operating Heathrow as the world's busiest international airport. The first phase of Terminal 5 itself is still expected to open by the end of 2007. "In conclusion, in the short-term, while accurate forecasting is not possible, there will be an impact on passenger traffic and hence on our performance in the second half of the year. In the long-term, I believe the prospects for the aviation industry are good. There seems no reason to believe that, once confidence is restored, air travel will not return to growth. The key to our success will be to achieve the correct balance between short-term actions and the need to provide, in the long-term, infrastructure the country and our customers want. I am confident that we will continue to achieve this." OPERATING AND FINANCIAL REVIEW UK airports In the six months to September 30, 2001, passenger traffic was at a similar level to last year, 69.6 million (69.5 million) passengers. This was despite the impacts of the foot and mouth epidemic, the US economic slowdown and the terrorist attacks in the USA on September 11 which significantly disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. air travel. In the five months to August 31, 2001, passenger traffic grew by 1.4%, 58.3 million (57.5 million) passengers. The strongest demand in the period was in the domestic and mainland Mainland. 1 Island (1991 pop. 14,150), 178 sq mi (461 sq km), N Scotland. The largest of the Orkney Islands, it is also called Pomona. Kirkwall, the seat of the Orkney Islands council area, is on the island. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. markets with respective growth of 4.4% and 2.5%. In total, these two markets represented 66.7% of the UK airports' total passengers to September 30, 2001, or 46.4 million (45.1 million) travelers. In the five months to August 31, 2001, the North Atlantic market, which represented 15.6% of total passengers, declined by 5.8%, reflecting the general US economic slowdown and the impact of the foot and mouth epidemic. In the month of September 2001, North Atlantic passenger numbers fell by 25.9%, the direct result of September 11 terrorist attacks on the USA. In the six months operating profit was up 4% to (pound)326 million ((pound)313 million restated). Prior to the changes in accounting policy, UK airport operating profit was (pound)345 million ((pound)337 million). In the five months to August 31, 2001, prior to the changes in accounting policy, operating profit for the same period was up 5% to (pound)293 million ((pound)279 million). Airport charges revenue increased by 5% to (pound)365 million ((pound)348 million). In the five months to August 31, 2001, airport charges revenue increased by 6% to (pound)307 million ((pound)289 million). These increases primarily reflect the further recovery made in the current year to offset the abolition The destruction, annihilation, abrogation, or extinguishment of anything, but especially things of a permanent nature—such as institutions, usages, or customs, as in the abolition of Slavery. In U.S. of intra-EU duty-free du·ty-free adj. 1. Exempt from customs duties: duty-free merchandise. 2. Of, relating to, or being a region or establishment in which imported goods are exempt from customs duties: . UK airport retail UK airport retailing continued its strong growth with net retail income for the six months increasing by 7% to (pound)261 million ((pound)245 million) and net retail income per passenger rising by 7% to (pound)3.76 ((pound)3.53). The strong first half growth in income per passenger is unlikely to be maintained in the second half. The expected downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in traffic could have a disproportionately dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por adverse effect on income.World Duty Free Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). - UK airportsWorld Duty Free Europe achieved an overall revenue growth of 9% to (pound)183 million ((pound)168 million) and an operating profit improvement of 10% to (pound)11 million ((pound)10 million). Capital expenditure BAA continued to invest heavily in the core business with capital expenditure at the UK airports (excluding capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. ) up 30% to (pound)279 million ((pound)215 million). Some of the major projects included the reconfiguration of Heathrow's terminals 1 and 4, for both domestic and long-haul long haul n. 1. A long distance: It is a long haul from New York to Los Angeles. 2. A long period of time: Over the long haul the candidates performed well. traffic, and the terminal extension at Stansted Stansted could be
Total capital expenditure for the BAA Group (excluding capitalized interest) was up 30.3% to (pound)305 million ((pound)234 million). Rail - Heathrow Express Heathrow Express is a train service from Heathrow Airport to Paddington in central London operated by the Heathrow Express Operating Authority—a wholly owned subsidiary of BAA. Since it opened, the Heathrow Express has carried over 14 million people. In the first six months of this year it carried 2.5 million (2.4 million), an increase of 4.9%. Operating profit from Heathrow Express grew to (pound)5 million ((pound)3 million) on revenues of (pound)31 million ((pound)31 million). The improvement came from savings in marketing and general expenditures. No cutbacks have been made in maintenance and equipment costs. There is a correlation correlation In statistics, the degree of association between two random variables. The correlation between the graphs of two data sets is the degree to which they resemble each other. between Heathrow Airport's passenger numbers and those of Heathrow Express. The month of September saw Heathrow Express passengers decline 12.6%, almost in line with the 13.0% decline in Heathrow passengers. BAA Lynton
Coordinates: Lynton is a small village in Devon, England. BAA Lynton made an operating profit of (pound)10 million ((pound)14 million) on revenues of (pound)12 million ((pound)23 million), the decreases reflecting the reduced rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time as a result of the disposals of the last two years. An exceptional profit of (pound)6 million was made on disposals of two airport related properties. BAA McArthurGlen No disposals of designer outlet outlet /out·let/ (-let) a means or route of exit or egress. pelvic outlet the inferior opening of the pelvis. centers were made in this period. There was(pound)2 million ((pound)1 million) pre-interest trading profit Trading profit The profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates. trading profit at BAA McArthurGlen and interest costs were (pound)6 million ((pound)5 million). Cashflow, borrowings and interest charge The overall cash outflow (before use of liquid resources and financing) amounted to (pound)60 million ((pound)2 million outflow) principally reflecting increased capital expenditure, investment in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and an increase in trade debtors which is partly seasonal and partly a month end timing factor. The Group net interest charge reduced to (pound)38 million ((pound)42 million). The capitalized interest amount was (pound)17 million ((pound)19 million). In the current period, as a result of the adoption of FRS 17 "Retirement Benefits", other finance income of (pound)24 million ((pound)32 million) has been recorded which is a net interest credit equivalent to the expected return Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: on pension fund assets Fund assets The total value of a portfolio's securities, cash, and other holdings, minus any outstanding debts. minus the expected increase in the present value of the scheme liabilities. Taxation The tax charge, before the impact of exceptional items, of (pound)100 million ((pound)95 million restated) represents an effective tax rate of 30% (29% restated). The adoption of FRS 19 has resulted in an increased tax charge, compared with the position before FRS 19, for both years and an effective tax rate this year equivalent to the corporation tax rate. The underlying tax rate, before the adoption of FRS 19 but post FRS 17 was 24.9% (24.7%). Balance sheet At September 30, 2001, the company had net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of (pound)4,664 million ((pound)4,675 million restated) supported by tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → of (pound)6,790 million ((pound)6,391 million). Included in the net assets figures is a pension fund surplus of (pound)227 million ((pound)499 million) as required to be recorded under FRS 17. Gearing was 34.6% (35.9% restated). BAA's international contracts include in the US: Pittsburgh Pittsburgh (pĭts`bərg), city (1990 pop. 369,879), seat of Allegheny co., SW Pa., at the confluence of the Allegheny and the Monongahela rivers, which there form the Ohio River; inc. 1816. , Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. , Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. Logan Logan, city (1990 pop. 32,762), seat of Cache co., N Utah, on the Logan River; inc. 1859. It is the center of an irrigated dairy and farm area, with huge cheese plants, other food-processing facilities, and diverse manufactures. ; in Australia: Melbourne Melbourne, city, Australia Melbourne, city (1991 pop. 2,761,995), capital of Victoria, SE Australia, on Port Phillip Bay at the mouth of the Yarra River. Melbourne, Australia's second largest city, is a rail and air hub and financial and commercial center. , Launceston Launceston (lôn`sĕstən, lŏn`–), city (1991 pop. 66,747), on Tasmania, SE Australia, where the North Esk and South Esk rivers join to form the Tamar estuary; founded 1806. , Perth Perth, city, Australia Perth, city (1991 pop. 1,018,702), capital of Western Australia, SW Australia, on the Swan River estuary. Fremantle is Perth's port. , Alice Springs Alice Springs, town (1991 pop. 20,448), Northern Territory, Australia. It lies in a pastoral area surrounded by desert near the center of the continent and is a stop on the Adelaide Darwin Railway. , Tennant Tennant may refer to:
Naples, Ital. Napoli, city (1991 pop. 1,067,365), capital of Campania and of Naples prov., S central Italy, on the Bay of Naples, an arm of the Tyrrhenian Sea. ; in the Middle East: Seeb SEEB South Eastern Electricity Board (UK) International and Salalah Salalah (صلالة in Arabic), is the capital and seat of the governor or Wali of the southern Omani province of Dhofar. The population of Salalah is 178,469 as of 2005[4]. in Oman Oman (ōmän`), officially Sultanate of Oman, independent sultanate (2005 est. pop. 3,002,000), c.82,000 sq mi (212,380 sq km), SE Arabian peninsula, on the Gulf of Oman and the Arabian Sea. It was formerly known as Muscat and Oman. ; in the Indian Ocean Indian Ocean, third largest ocean, c.28,350,000 sq mi (73,427,000 sq km), extending from S Asia to Antarctica and from E Africa to SE Australia; it is c.4,000 mi (6,400 km) wide at the equator. It constitutes about 20% of the world's total ocean area. : Mauritius Mauritius (môrĭsh`ēəs, –əs), officially Republic of Mauritius, republic (2005 est. pop. 1,231,000), 790 sq mi (2,046 sq km), in the SW Indian Ocean. It is part of the Mascarene Islands, c.500 mi (800 km) E of Madagascar. . BAA ordinary shares trade on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. ; prices may be accessed on Bloomberg Bloomberg A major global provider of 24-hour financial news and information including real-time and historic price data, financials data, trading news and analyst coverage, as well as general news and sports. under the symbol BAA LN, on the Reuter Reu·ter , Baron Paul Julius von 1816-1899. German-born British journalist who founded (1848) Reuter's, one of the first international news agencies. Equities 2000 Service under BAA.L and on Quotron under BAANU.EU. BAA ADRs, each equal to one ordinary share, appear on the pink sheets under BAAPY. Additional information is available on BAA's home page: http://www.baa.com.
(Tables to follow)
SUPPLEMENTARY INFORMATION
SUMMARY OF RESULTS - PROFORMA (POST FRS 17 AND FRS 19)
5 MONTHS TO AUGUST 31, 2001
Given the severe impact of the terrorist attacks in the USA on air
travel it is informative to review the performance of the underlying
business prior to September. Reference will be made to the results for
the period to August 31, 2001 where appropriate. These have been
prepared from management information.
Post the change in
accounting policies 5 months to 5 months to Change
Aug. 31, 2001 Aug. 31, 2000 %
Passenger traffic 58.3m 57.5m 1.4
Revenue* (pound)835m (pound)824m 1.3
EBITDA* (pound)395m (pound)363m 8.8
Group operating profit* (pound)298m (pound)275m 8.4
Normalized profit
before tax** (pound)284m (pound)270m 5.2
Profit before tax and
exceptionals (pound)281m (pound)266m 5.6
* Continuing operations only and excludes the joint venture BAA
McArthurGlen and exceptionals.
** Excludes the joint venture BAA McArthur Glen and exceptionals.
SUMMARY OF RESULTS - PROFORMA (PRE FRS 17 AND FRS 19)
5 MONTHS TO AUGUST 31, 2001
Prior to the change in 5 months to 5 months to Change
accounting policies Aug. 31, 2001 Aug. 31, 2000 %
Passenger traffic 58.3m 57.5m 1.4
Revenue* (pound)835m (pound)824m 1.3
EBITDA* (pound)411m (pound)384m 7.0
Group operating profit* (pound)314m (pound)296m 6.1
Normalized profit
before tax** (pound)280m (pound)264m 6.1
Profit before tax and
exceptionals (pound)277m (pound)260m 6.5
* Continuing operations only and excludes the joint venture BAA
McArthurGlen and exceptionals.
** Excludes the joint venture BAA McArthurGlen.
RECONCILIATION - PRE AND POST FRS 17 AND FRS 19 RESULTS
All financial results reported are post the adoption of FRS 17 and
FRS 19, except where noted. The table below provides a reconciliation
between the financial results before and after the changes in
accounting policies.
(pound)m 6 months to 6 months to
September 30, 2001 September 30, 2000
Pre Adj Post Pre Adj Post
Operating profit:
UK airports 345 (19) 326 337 (24) 313
Other businesses 28 - 28 32 (1) 31
Total Group operating
profit 373 (19) 354 369 (25) 344
Exceptional items (184) - (184) (1) - (1)
Profit before interest 189 (19) 170 368 (25) 343
Net interest payable
- Group (38) - (38) (42) - (42)
Other finance income - 24 24 - 32 32
Net interest payable
- joint ventures (6) - (6) (5) - (5)
Profit on ordinary
activities before
taxation 145 5 150 321 7 328
Tax on profit (80) (19) (99) (79) (16) (95)
Profit on ordinary
activities after
taxation 65 (14) 51 242 (9) 233
Equity minority interests (3) - (3) (3) - (3)
Profit for the period
attributable to
shareholders 62 (14) 48 239 (9) 230
Earnings per share
before exceptionals
(pence) 23.1p (1.3)p 21.8p 22.6p (0.8)p 21.8p
Normalized profit
before tax* 333 5 338 326 7 333
* Excludes the joint venture BAA McArthurGlen and exceptionals.
Accounting Policy Change - FRS 19 "Deferred Tax" In the current period BAA has adopted the new Financial Reporting Standard FRS 19 "Deferred Tax" which requires full provision for timing differences to be made in the accounts for deferred tax. Since BAA is a capital intensive company it has had historically an effective tax rate below the standard rate, principally due to high capital allowances, thereby reducing taxable profits to a greater extent than depreciation reduced accounting profits. Under the old standard (SSAP SSAP Source Service Access Point SSAP Statistical Signal and Array Processing SSAP Session Service Access Point SSAP sequential structure alignment program (for protein structure comparison) SSAP Simple Spectral Access Protocol 15), provision for deferred tax was only required if it was expected that this relationship would reverse in the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. Given BAA's ongoing large capital program it was expected that high capital allowances would continue to be generated, in excess of depreciation, and therefore, under the old accounting standard, there was no requirement to provide for deferred tax on capital allowances. Under FRS 19, BAA is required to make full provision for deferred tax in respect of timing differences, recognizing in total the potential future tax impact of past transactions and ignoring the likely future high capital allowances that will be generated by the forecast capital program. The change to full provision will reduce earnings by increasing the profit and loss account tax charge, and reduce net asset values by increasing provisions. This in turn will affect accepted profitability and financing measures such as P/E ratios P/E ratio Current stock price divided by trailing annual earnings per share or expected annual earnings per share. Assume XYZ Co. sells for $25.50 per share and has earned $2.55 per share this year; $25.50 = 10 times $2.55. XYZ stock sells for ten times earnings. , earnings ratios and gearing ratios Gearing Ratio A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. . There will be no impact on cashflows. BAA's interim accounts have been prepared to reflect deferred tax on a full provisioning basis. No discounting has been applied. As a result, in the first half BAA's effective tax rate is increased by 5.1% to 30% and the pre-exceptional tax charge is (pound)100 million, of which (pound)18 million relates to deferred tax. The amount of the deferred tax liability provided for in the balance sheet is (pound)418 million of which (pound)403 million is the cumulative prior period effect of this change of accounting policy and has been charged to reserves. The deferred tax is not expected to crystallize crys·tal·lize also crys·tal·ize v. crys·tal·lized also crys·tal·ized, crys·tal·liz·ing also crys·tal·iz·ing, crys·tal·liz·es also crys·tal·iz·es v.tr. 1. in the foreseeable future. The table below summarizes the impact of the adoption of FRS 19 on the Group's financial results (after the adoption of FRS 17) in the current period: For period ending Post adoption of FRS 19 Pre adoption of FRS 19 September 30, 2001 "Deferred Tax" "Deferred Tax" P&L impact: Effective tax rate 30.0% 24.9% Pre-exceptional tax charge ((pound)100m) ((pound)83m) B/S impact: Full deferred tax (liability)/asset ((pound)418m) - Gearing (post FRS 17) 34.6% 31.8% Accounting Policy Change - FRS 17 "Retirement Benefits" In line with best practice BAA has adopted early the new Financial Reporting Standard FRS 17 "Retirement Benefits" which replaces SSAP 24 "Accounting for Pension Costs". BAA's principal UK pension fund is a defined benefit scheme which is self administered. Under the previous accounting policy, the surplus in the pension scheme (as defined at the time of the last actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin valuation in September 1999) was amortized over the average remaining service lives of relevant employees and effectively served to reduce the charge to the profit and loss account for pension costs. On this basis the pension scheme surplus would be eliminated by 2014. The profit and loss charge comprised a regular pension cost net of spreading of surplus and a notional no·tion·al adj. 1. Of, containing, or being a notion; mental or imaginary. 2. Speculative or theoretical. 3. interest credit. The pension fund surplus was not included on the Group's balance sheet. The only balance sheet item was a provision representing the cumulative difference between pension charges included in the profit and loss account and actual payments made to the scheme. Under FRS 17 the accounting treatment for company pension funds has changed significantly. The full service cost of pension provision relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the period, together with the cost of any benefits relating to past service is charged to operating profit. Two new items are included in the profit and loss account under "other finance income - Group": - a charge equal to the expected increase in the present value of the scheme liabilities because the benefits are closer to settlement; and netted against this - a credit equivalent to the Group's long-term expected return on assets based on the market value of the scheme assets at the start of the period. The difference between the market value of the assets of the scheme and the present value of accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. pension liabilities Pension liabilities Future liabilities resulting from pension commitments made by a corporation. Accounting for pension liabilities varies widely by country. is shown as a new asset on the balance sheet net of deferred tax. Any difference between the expected return on assets and that actually achieved is recognized in the statement of recognized gains Recognized Gain The amount of gain reported for income tax purposes. Notes: You can defer recognizing some gains until the following year(s). See also: Capital Gain, Capital Loss, Deferred Income Tax, Drought Sale, Exempt Income, Exemption, Gain, Recognized Loss and losses along with differences which arise from experience or assumption changes. This in turn will affect accepted profitability and financing measures such as P/E ratios, earnings ratios and gearing ratios. The table below details the impact of the adoption of FRS 17 on the Group's financial results in the current period:
For period ending Post adoption of FRS 17 Pre adoption of FRS 17
September 30, 2001 "Retirement Benefits" "Retirement Benefits"
P&L impact:
Operating costs
Group pension cost:
- regular pension cost ((pound)23m) ((pound)22m)
- spreading of surplus - (pound)6m
- notional interest
earned on surplus - (pound)12m
Total charge to
operating profit ((pound)23m) ((pound)4m)
Interest and other
finance income:
- --expected return on
pension scheme (pound)58m -
assets
- --interest on pension
scheme liabilities ((pound)34m) -
Other finance income (pound)24m -
Total impact on
Profit before tax (pound)1m ((pound)4m)
B/S impact:
Pension provision - ((pound)12m)
Pension fund asset (pound)227m -
Accounting Policy Changes - Combined Impacts of adoption of
FRS 17 "Retirement Benefits" and FRS 19 "Deferred Tax"
For period ending Post adoption of FRS 17 Pre adoption of FRS 17
September 30, 2001 "Retirement Benefits" and "Retirement Benefits"
FRS 19 "Deferred Tax" and FRS 19 "Deferred Tax"
P&L impact:
Profit before tax
and exceptionals (pound)334m (pound)329m
Effective tax rate (%) 30.0% 24.7%
Tax charge before
exceptionals ((pound)100m) ((pound)81m)
Minority interests ((pound)3m) ((pound)3m)
Profit for the
year attributable
to shareholders before
exceptionals (pound)231m (pound)245m
Earnings per share before
exceptionals (pence) 21.8p 23.1p
B/S impact:
Pension provision - ((pound)12m)
Pension fund asset (pound)227m -
Full deferred tax
(liability)/asset ((pound)418m) (pound)3m
Net asset impact ((pound)191m) ((pound)9m)
Net assets (pound)4,664m (pound)4,846m
Net debt ((pound)1,614m) ((pound)1,614m)
Gearing 34.6% 33.3%
Segmental summary
Revenue* to Revenue* to Operating Operating
Sept. 30, Sept. 30, profit* to profit* to
2001 2000 Sept 30, Sept 30,
2001 2000
Airports (pound)767m (pound)734m (pound)331m (pound)319m
World Duty Free (pound)311m (pound)385m (pound)8m (pound)9m
BAA Lynton (pound)12m (pound)23m (pound)10m (pound)14m
Rail
(Heathrow
Express) (pound)31m (pound)31m (pound)5m (pound)3m
Other (pound)4m (pound)5m ((pound)2m) ((pound)2m)
TOTAL (pound)1,125m (pound)1,178m (pound)352m (pound)343m
* Excludes the joint venture BAA McArthurGlen and exceptionals.
Results by quarter
1st quarter Change from 2nd quarter Change from
2000/01 2000/01
Revenue * (pound)547m (2.5%)(pound)578m (6.3%)
Operating
profit* (pound)161m 4.5% (pound)191m 1.1%
Profit before
tax and
exceptionals (pound)150m 2.7% (pound)184m 0.5%
Normalized profit
before tax* (pound)152m 2.7% (pound)186m 0.5%
Earnings per
share before
exceptionals 9.8 pence 2.1% 12.0 pence (1.6%)
* Excludes the joint venture BAA McArthurGlen and exceptionals.
BAA plc
EMBARGOED UNTIL 0700 HOURS OCTOBER 29, 2001
BAA plc RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2001
Consolidated profit and loss account for
the six months ended September 30, 2001
Year ended Sept. 30, Sept. 30,
March 31, 2001 2001 2000
(pound)M (pound)M (pound)M
(restated) (unaudited) (restated)
1,939 Continuing operations 1,008 1,003
322 Discontinued operations 117 175
2,261 Revenue - group and share of
joint ventures 1,125 1,178
(35) Less share of joint venture
revenue - continuing operations - -
2,226 Group revenue 1,125 1,178
(1,659) Operating costs (773) (835)
(8) Operating costs - exceptional item - -
556 Continuing operations 355 338
(10) Discontinued operations (3) (3)
13 Less utilization of prior year provision - 8
559 Group operating profit 352 343
10 Share of operating profit in joint
ventures - continuing 2 1
1 operations - -
Share of operating profit in
associates - continuing operations
570 354 344
(7) Loss on operations to be
discontinued - exceptional item - -
(6) Loss on disposal of discontinued
operations - exceptional item (190) -
6 Less utilization of prior year
provision - exceptional item - -
Profit on sale of fixed assets in
continuing operations -
24 exceptional item 6 -
Loss on sale of fixed assets in
discontinued operations -
exceptional item
(3) - (1)
584 Profit on ordinary activities
before interest 170 343
(85) Net interest payable - group (38) (42)
(5) Exceptional interest charge - group - -
(10) Net interest payable - joint ventures (6) (5)
(1) Net interest payable - associates - -
64 Other finance income - group 24 32
547 Profit on ordinary activities
before taxation 150 328
(156) Tax on profit on ordinary activities (100) (95)
1 Tax on exceptional items 1 -
392 Profit on ordinary activities
after taxation 51 233
(4) Equity minority interests (3) (3)
388 Profit for the period attributable
to shareholders 48 230
(187) Equity dividends (65) (64)
Retained (loss)/profit for the group
and its share of joint
201 ventures and associates (17) 166
36.8p Earnings per share 4.5p 21.7p
36.6p Earnings per share before exceptionals 21.8p 21.8p
36.1p Diluted earnings per share 4.5p 21.1p
Statement of total recognized gains and losses
for the six months ended September 30, 2001
Year ended Sept. 30, Sept. 30,
March 31, 2001 2000
2001 (pound)M (pound)M
(pound)M
(restated) (unaudited) (restated)
388 Profit for the period attributable
to shareholders* 48 230
158 Unrealized surplus on revaluation of
investment properties - -
Share of associate's unrealized surplus
on revaluation of
1 investment properties - -
(232) Loss on pension asset (226) (61)
70 Deferred tax associated with loss
on pension asset 68 18
Currency translation differences on
foreign currency net
(7) investments (1) -
378 Total recognized gains and losses
relating to the period (111) 187
Prior period adjustment
- Adoption of FRS 17 392
Prior period adjustment
- Adoption of FRS 19 (403)
Total recognized gains and losses
recognized since the last
annual report (122)
* Including joint ventures and associates loss of(pound)4m
(September 30, 2000: loss of(pound)4m; March 31, 2001:
profit of(pound)1m).
Reconciliation of movements in shareholders' funds for
the six months ended September 31, 2001
Year ended Sept. 30, Sept. 30,
March 31, 2001 2000
2001 (pound)M (pound)M
(pound)M
(restated) (unaudited) (restated)
388 Profit for the financial period
attributable to shareholders 48 230
(187) Equity dividends (65) (64)
201 Retained (loss)/profit for the
financial period (17) 166
(10) Other net recognized gains and losses
relating to the period (159) (43)
100 New share capital subscribed 12 3
(141) Repurchase of own shares - (129)
150 Net (reductions in)/additions to
shareholders' funds (164) (3)
Opening shareholders' funds
(originally(pound)4,839m before
deducting
4,678 prior period adjustment of(pound)11m) 4,828 4,678
4,828 Closing shareholders' funds 4,664 4,675
Consolidated balance sheet as at September 30, 2001
March 31, Sept. 30, Sept. 30,
2001 2001 2000
(pound)M (pound)M (pound)M
(restated) (unaudited) (restated)
Fixed assets
175 Intangible assets 11 179
6,636 Tangible assets 6,790 6,391
Investments in joint ventures:
12 Loans 15 4
60 Other investments 105 40
6,883 6,921 6,614
Current assets
91 Stocks 93 104
198 Debtors 269 241
265 Short-term investments 138 314
120 Cash at bank and in hand 114 55
674 614 714
(884) Creditors: amounts falling due
within one year (935) (856)
(210) Net current liabilities (321) (142)
6,673 Total assets less current liabilities 6,600 6,472
Creditors: amounts falling due after
more than one year
(1,473) Other creditors (1,385) (1,471)
(310) Convertible debt (311) (390)
(1,783) (1,696) (1,861)
Provisions for liabilities and
charges Investments
in joint ventures:
211 Share of gross assets 199 185
(231) Share of gross liabilities (223) (192)
(20) (24) (7)
(414) Other provisions (432) (417)
(434) (456) (424)
(12) Equity minority interests (11) (11)
4,444 Net assets excluding pension asset 4,437 4,176
384 Pension asset 227 499
4,828 Net assets including pension asset 4,664 4,675
1,061 Share capital 1,063 1,045
3,767 Reserves 3,601 3,630
4,828 Equity shareholders' funds 4,664 4,675
(pound)
4.55 Net asset value per share (pound)4.39 (pound)4.47
Consolidated cash flow statement for
the six months ended September 30, 2001
Year ended Sept. 30, Sept. 30,
March 31, 2001 2000
2001 (pound)M (pound)M
(pound)M
(restated) (unaudited) (restated)
Operating activities:
559 Operating profit 352 343
222 Depreciation 119 109
11 Amortization 6 6
8 Fixed assets written off - -
45 (Increase)/decrease in stocks (17) 29
1 (Increase)/decrease in debtors (82) (50)
2 Increase in creditors 18 5
(25) Increase/(decrease) in provisions 1 (11)
56 Decrease in pension assets 23 29
879 Net cash inflow from operating activities 420 460
10 Dividends received from joint ventures 7 -
Returns on investments and
servicing of finance:
(159) Interest paid (28) (74)
35 Interest received 13 18
(3) Dividends paid to minority interests (3) -
(127) (18) (56)
Taxation
(119) UK corporation tax paid (43) (29)
(6) Overseas tax paid (3) (5)
(125) Net cash outflow from taxation (46) (34)
Capital expenditure and financial
investment:
(527) Additions to operational assets (294) (256)
(9) Additions to investment properties (12) (3)
22 Sale of operational assets - -
119 Sale of investment properties 20 -
(25) (Additions to)/reductions in long-
term investments (40) 12
(420) (326) (247)
Acquisitions and disposals:
- Sale of operations 26 -
Deferred consideration paid in
respect of a subsidiary
(12) undertaking acquired in a prior year - (12)
Deferred consideration received in
respect of the sale of a 5%
1 interest in a subsidiary undertaking
in a prior year - 1
(11) 26 (11)
(178) Equity dividends paid (123) (114)
Cash (outflow)/inflow before use of
liquid resources and
28 financing (60) (2)
Management of liquid resources:
122 Cash (placed on)/returned from deposit (27) 17
(20) Sale/(purchase) of commercial paper 152 41
102 125 58
Financing:
18 Issue of shares 12 3
(141) Repurchase of own shares - (129)
3 Net (decrease)/increase in debt (83) 15
(120) (71) (111)
10 (Decrease)/increase in cash in the period (6) (55)
Reconciliation of net cash flow to movement in net debt
Year ended Sept. 30, Sept. 30,
March 31, 2001 2000
2001 (pound)M (pound)M
(pound)M
(restated) (unaudited) (restated)
10 (Decrease)/increase in cash in the period (6) (55)
(3) Cash outflow/(inflow) from decrease/
(increase) in net debt 83 (15)
(102) Cash inflow from use of liquid resources (125) (58)
(38) Foreign exchange translation differences 10 (24)
81 Other non-cash movements - -
(52) Increase in net debt (38) (152)
(1,524) Opening net debt (1,576) (1,524)
(1,576) Closing net debt (1,614) (1,676)
NOTES 1. Basis of preparation This statement has been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the accounting policies used in the 2000/01 annual report with the exception of the changes as set out below. The Group has applied three new accounting standards, FRS 17, FRS 18 and FRS 19 during the period. The adoption of FRS 17 and FRS 19 has required a change to the accounting treatment of pensions and deferred tax, and the prior period results have been restated accordingly. Deferred tax balances are not discounted. The adoption of FRS 18 "Accounting Policies" has not had a significant impact on the Group's results or financial position. The effect on the results for the period ended September 30, 2001 and 2000 of the changes in accounting policies following the implementation of FRS 17 and FRS 19 is set out in the table headed "Reconciliation - pre and post FRS 17 and FRS 19 results". The information shown for the year ended March 31, 2001 does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985 and has been extracted, after restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. for FRS 17 and FRS 19, from the full financial statements for the year ended March 31, 2001 which have been filed with the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . The auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together have reported on those accounts; their report was unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. The interim financial statement is unaudited but has been formally reviewed by the auditors. The interim financial statement was approved by the directors on October 26, 2001.
2. Segmental information
Revenue
Year ended Sept. 30, Sept. 30,
March 31, 2001 2000
2001 (pound)M (pound)M
(pound)M (unaudited)
Airports
759 Heathrow 402 391
290 Gatwick 170 164
113 Stansted 73 61
1,162 Total UK regulated airports 645 616
65 Glasgow 39 38
50 Edinburgh 29 26
26 Aberdeen 14 13
14 Southampton 8 7
155 Total UK non-regulated airports 90 84
64 Total international airports 32 34
1,381 Total airports 767 734
World Duty Free
416 Continuing operations 194 210
322 Discontinued operations 117 175
738 Total World Duty Free 311 385
36 BAA Lynton 12 23
63 Rail 31 31
8 Other operations 4 5
2,226 Group 1,125 1,178
35 Share of joint ventures - -
2,261 Group and share of joint ventures 1,125 1,178
Analyzed between:
1,789 United Kingdom - continuing operations 964 931
4 United Kingdom - discontinued operations - 3
94 Europe - continuing operations 20 44
34 North America - continuing operations 14 17
318 North America - discontinued operations 117 172
22 Other - continuing operations 10 11
2,261 1,125 1,178
2. Segmental information (continued)
Operating profit
Year ended Sept. 30, Sept. 30,
March 31, 2001 2000
2001 (pound)M (pound)M
(pound)M
(restated) (unaudited) (restated)
Airports
322 Heathrow 182 182
115 Gatwick 81 80
25 Stansted 26 17
462 Total UK regulated airports 289 279
23 Glasgow 18 17
15 Edinburgh 12 10
9 Aberdeen 5 5
2 Southampton 2 2
49 Total UK non-regulated airports 37 34
8 Total international airports 5 6
519 Total airports 331 319
World Duty Free
12 Continuing operations 11 4
7 Discontinued operations (3) 5
19 Total World Duty Free 8 9
24 BAA Lynton 10 14
10 Rail 5 3
(5) Other operations (2) (2)
567 Group - before exceptional items 352 343
(8) Exceptional items - -
559 Group - post exceptional items 352 343
11 Share of joint ventures and associates 2 1
570 Group and share of joint ventures
and associates 354 344
Analyzed between:
565 United Kingdom - continuing operations 352 336
- United Kingdom - discontinued operations - -
2 Europe - continuing operations 4 (1)
2 North America - continuing operations 1 3
3 North America - discontinued operations (3) 5
(2) Other - continuing operations - 1
570 354 344
3. Net interest payable The interest charge is shown net of interest capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. in respect of the Group of (pound)17m (September 30, 2000:(pound)19m; March 31, 2001:(pound)33m). Other finance income of (pound)24m (September 30, 2000 restated: (pound)32m; March 31, 2001 restated: (pound)64m) has been included as a result of adopting FRS 17. This represents the interest charge on accrued pension liabilities offset by a credit equivalent to the Group's long term expected return on assets based on the market value of the scheme assets at the start of the period. 4. Tax on profit on ordinary activities The taxation charge for the six months ended September 30, 2001 has been based on the estimated effective rate for the full year before exceptionals of 30%. Following the adoption of FRS 17 and FRS 19 the prior period results have been restated. On a similar pre-exceptional profit basis the taxation charge for the restated six months ended September 30, 2000 was based on a revised estimated Revised estimate The third estimate of GDP released about three months after the measurement period. effective rate for the full year of 29% and the taxation charge for the restated year ended March 31, 2001 was based on a revised estimated effective rate of 29%. There is a tax credit of (pound)1m (September 30, 2000: (pound)nil; March 31, 2001: (pound)1m) attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to exceptional items in the period. 5. Equity dividends The directors have declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. an interim dividend of 6.1p (September 30, 2000: 6.1p) per share payable on January January: see month. 15, 2002 to shareholders on the register on November November: see month. 9, 2001.
6. Earnings per share
Year ended Sept. 30, Sept. 30,
March 31, 2001 2000
2001 (pound)M (pound)M
(pound)M
(restated) (unaudited) (restated)
386 Net profit for the financial period
before exceptional items 231 231
2 Exceptional items (183) (1)
388 Profit attributable to shareholders 48 230
16 Interest on convertible bonds - 7
404 Diluted profit 48 237
1,053m Average number of shares in issue 1,058m 1,060m
4m Share options 6m 3m
31m Conversion of 4.875% bonds due 2004 - 30m
31m Conversion of 5.75% bonds due 2006 - 34m
1,119m Diluted average number of shares
in issue 1,064m 1,127m
36.6p Earnings per share before exceptional
items 21.8 p 21.8 p
0.2p (Loss)/earnings per share on
exceptional items (17.3)p (0.1)p
36.8p Earnings per share 4.5p 21.7p
36.1p Diluted earnings per share 4.5p 21.1p
Earnings per share figures before exceptional items have been
disclosed to show the impact of the exceptional items on the
underlying results of the business.
The convertible bonds have been excluded in calculating diluted
earnings per share for the six months ended September 30, 2001 because
they did not have a diluting effect in this period.
7. Intangible fixed assets: goodwill
2001
(pound)M
Cost:
Balance April 1, 2001 414
Foreign exchange translation differences (15)
Balance September 30, 2001 399
Amortization:
Balance April 1, 2001 (239)
Foreign exchange translation differences 9
Charge for the period (6)
Impairment charge included within loss on
disposal of discontinued operations (152)
Balance September 30, 2001 (388)
Net book value September 30, 2001 11
Net book value March 31, 2001 175
Net book value September 30, 2000 179
8. Tangible fixed assets
The Group's investment properties are included at March 31, 2001
valuations as adjusted for additions and disposals since that date.
Airport fixed assets in the course of construction include
(pound)322m in respect of Terminal 5 at Heathrow Airport for which a
planning application has been submitted (September 30, 2000:
(pound)242m; March 31, 2001: (pound)264m). If consent is not
forthcoming, costs relating to this project will be charged to the
profit and loss account in the year in which a decision not to proceed
is taken.
9. Creditors: amounts falling due after more than one year
Year ended Sept. 30, Sept. 30,
March 31, 2001 2000
2001 (pound)M (pound)M
(pound)M (unaudited)
Borrowings:
30 Secured 30 30
1,406 Unsecured 1,316 1,401
1,436 1,346 1,431
Other unsecured creditors:
25 Deferred income 24 27
12 Other creditors 15 13
1,473 1,385 1,471
Convertible debt:
310 BAA plc 4.875%(pound)314 million
convertible bonds due 2004 311 198
- BAA plc 5.75%(pound)195 million
convertible bonds due 2006 - 192
310 311 390
The secured borrowings are secured on certain properties.
The company's (pound)314 million 4.875% convertible bonds are
convertible at the option of the holder into fully paid (pound)1
ordinary shares of BAA plc at a price of 672p per share at any time up
to September 22, 2004. The company has the right to redeem the bonds
under certain circumstances, which currently have not been met, and
unless previously redeemed or converted, the bonds will be redeemed at
par on September 29, 2004.
10. Notes to the cash flow statement
Analysis of
net debt April 1, Cash flow Exchange Other non Sept. Sept.
2001 (pound)M movements cash 30, 30,
(pound)M (pound)M movements 2001 2000
(pound)M (pound)M
Cash at bank
and in hand 120 (6) - - 114 55
Short-term
investments 262 (125) - - 137 306
Borrowings due
within one
year (212) 79 3 (78) (208) (216)
Borrowings due
after more
than one
year (1,746) 4 7 78 (1,657)(1,821)
(1,576) (48) 10 - (1,614)(1,676)
PUBLICATION OF HALF YEAR RESULTS
The results for the six months ended September 30, 2001 will be
published in the Financial Times on October 30, 2001. The full
announcement will be available on BAA's website, www.baa.com.
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