BAA Interim Results for the Six Months to September 30, 1999.LONDON--(BUSINESS WIRE)--Nov. 1, 1999-- BAA Baa See BBB. plc, the UK-based airport company, today announced its interim results for the six months to September September: see month. 30, 1999: - STRONG UK AIRPORT TRAFFIC GROWTH, UP 5.1% - 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. BEFORE EXCEPTIONALS (pound)364M, UP 3.7% ((pound)351M) - PROFIT BEFORE TAX AND EXCEPTIONALS (pound)306M ((pound)307M) - UK AIRPORT RETAIL - Impact of EU duty free 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. greater than expected - Outlook remains challenging although trend shows modest improvement month by month - WORLD DUTY FREE AMERICAS A·mer·i·cas , the See America. - Performance continues below expectations resulting in (pound)147m impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill - STRONG PERFORMANCE FROM 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. - INTERIM DIVIDEND UP 7.5% TO 5.7P BAA plc results for the six months to September 30, 1999 In millions, except 6 months to 6 months to Increase/ per share data US$(b) 9/30/99 9/30/98 (decrease) UK passengers 65.2 65.2 62.0 5.1% Total revenue (including share of joint venture) 1,838 (pound)1,146 (pound)1,028 11.5% Total operating profit (including share of JV) before 584 (pound)364 (pound)351 3.7% exceptionals Profit before tax and before exceptionals 491 (pound)306 (pound)307 (0.3)% Profit before tax and after exceptionals 261 (pound)163 (pound)307 (46.9)% Earnings per share before exceptionals 33.7(cents) 21.0p 22.7p (7.5)% Earnings per share 12.2(cents) 7.6p 22.7p (66.5)% Interim dividend 9.1(cents) 5.7p 5.3p 7.5% Segmental segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. summary Revenue Operating Increase/ Profit/(loss) (decrease)in operating profit Total Airports (pound)699m (pound)321m (2.1 %) Rail (Heathrow Express) (pound)23m (pound)(1)m N.A. BAA share of BAA McArthurGlen (pound)32m (pound)19m N.A. BAA Lynton
Coordinates: Lynton is a small village in Devon, England. (pound)47m (pound)22m 29.4% World Duty Free (pound)342m (pound)(1)m(c) N.A. (c) before(pound)147m goodwill impairment charge Results for the second quarter of the year 1st 1st % Growth 2nd 2nd % Growth quarter quarter over quarter quarter over $m(b) (pound)m 1998/99 $m(b) (pound)m 1998/99 Total revenue 938 585 21 900 561 3 Total operating profit 292 182 14 292 182(a) (5) Profit before tax 244 152 8 247 154(a) (7) (a) before exceptionals (b) Dollar conversion provided for reader convenience only at the rate of (pound)1=$1.604. Financial Headlines See syndication format. BAA today announced profit before tax and exceptionals of (pound)306m for the six months to September 30, 1999 ((pound)307m). After exceptionals this was (pound)163m ((pound)307m) due primarily to the (pound)147m impairment of goodwill in World Duty Free Americas. Total operating profit before exceptionals increased by 3.7% to (pound)364m ((pound)351m). Earnings per share before exceptionals at 21.0p were down 7.5% on last year's 22.7p, following an increase in the effective tax rate to 25.75% (21.1%) and an increase in net interest payable to (pound)58m ((pound)44m). The interim dividend has been increased by 7.5% to 5.7p, reflecting the Board's confidence in the future of the business. Mike Hodgkinson, Chief Executive "Clearly I have taken over at a very challenging time. Despite difficulties with duty free, there are positive factors which put the problems in perspective. Passenger traffic growth was strong with a 5.1% increase on the same period last year, and has continued to be strong in October October: see month. . Income from UK airport charges grew above the levels of volume growth as yields increased. Overall, despite the impact of abolition of EU duty free, the UK airports' operating profits declined by only 2.5%. Property disposal profits boosted both BAA Lynton and BAA McArthurGlen. Heathrow Express generated an operating profit in the second quarter and is well placed to deliver an operating profit for the full year. "However we recognize that much requires to be done in our duty free business. UK airport retailing, including duty free, is now clearly operating from a lower base than previously, but over 80% of net retail income on the airports has been retained, with non duty free categories growing in excess of passenger volumes. The UK duty free situation seems to have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. and is showing modest signs of improvement. This is a direct result of management action and a gradual The Gradual (Latin: graduale, sometimes called the Grail) is a chant in the extraordinary form of the Roman Catholic Mass, sung after the reading or singing of the Epistle and before the Alleluia, or, during penitential seasons, before the Tract. improvement in passenger understanding of the price advantage which is still available to them. "World Duty Free Americas is reporting a (pound)1m 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. and is continuing to underperform Underperform An analyst recommendation that means a stock is expected to do slightly worse than the market return. Also known as market underperform, moderate sell, or weak hold. the levels anticipated. Consequently it has been decided to reduce the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of goodwill by (pound)147m. Despite these setbacks I am determined that the profitability of the World Duty Free business will be improved. I have decided that no part of the World Duty Free group will enter into any material risk bearing contracts until I am satisfied that it is making sustainable and profitable progress. "In this climate BAA has nonetheless been able to announce today profit before tax and exceptionals at broadly the same level as last year. I believe that this says much about the underlying strength of the business. "In addition to addressing the issues facing the retail businesses, we will be undertaking a review of all activities in order to ensure that BAA is taking full advantage of opportunities to maximize shareholder value." RESULTS FOR THE SIX MONTHS TO SEPTEMBER 30, 1999 1. OPERATING PROFIT BY AIRPORT 2. UK AIRPORT RETAILING 3. AIRPORT AND OTHER TRAFFIC CHARGES 4. WORLD DUTY FREE 5. HEATHROW EXPRESS 6. BAA McARTHUR McArthur may refer to: Places:
Y2K - Year 2000 ) 1. OPERATING PROFIT BY AIRPORT (including airports outside the UK) Airport operating profit decreased by 2.1% to (pound)321m ((pound)328m). This reflected the 5.1% growth in UK passenger traffic, the impact of abolition of EU duty free, the mitigating mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. increase in airport charges and also higher than expected cost efficiencies including those achieved from improved productivity. 2. UK AIRPORT RETAILING (including World Duty Free Europe's UK airports' operating profit) Abolition of EU duty free is currently forecast to produce a deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. for UK airport retailing profit of the order of (pound)25m over and above our original expectations. The full extent of the impact of the ending of 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: was not predicted accurately by BAA, nor by the industry in general. There is customer confusion with regard to what may be purchased and the level of price advantage which is still available. The worse than expected impacts of abolition were in areas where there should have been little reduction in sales as the price advantage to passengers had not changed. In particular sales of perfume perfume, aroma produced by the essential oils of plants and by synthetic aromatics. The burning of incense that accompanied the religious rites of ancient China, Palestine, and Egypt led gradually to the personal use of perfume. were significantly affected even though the prices were at levels broadly the same as prior to abolition. There is evidence to indicate that customer understanding of the new regime is increasing and that perceptions of value are beginning to improve, particularly as passengers travel through the airports for the second or third time after abolition. Extensive management action programs have been and continue to be implemented - actions which vary considerably depending on the passenger profile in each terminal. These include layout changes, advertising, personal advice to individual shoppers, product promotions (such as 40% off perfume with price guarantees), simpler more direct marketing messages, the introduction of arrivals shopping and arrivals pick up areas for EU passengers. Six Months to September 30, 1999 In the six months to September 30, 1999, UK airport net retail income decreased by 7% to (pound)242m. Second Quarter - Three Months to September 30, 1999 Following the abolition of EU duty free, the UK airport net retail income trend steadily improved being down on last year respectively (20%), (16%) and (13%) in each of the three months of the second quarter. Although the hardest hit lines as expected were liquor liquor /li·quor/ (lik´er) (li´kwor) pl. liquors, liquo´res [L.] 1. a liquid, especially an aqueous solution containing a medicinal substance. 2. and tobacco, we significantly underestimated the impact on perfumes Famous perfumes classified by year of creation Year Name Company Perfumer 1709 Eau de Cologne Johann Maria Farina Johann Maria Farina (1685-1766) 1798 Eau Vivifiante Parfum Lubin Pierre François Lubin 1872 Hammam Bouquet and gifts, net retail income from which was down on forecast by 35% and 12% respectively. Tax free specialist shops for the second quarter held up better, being down by 10% on last year. During the second quarter, compared with the same period last year, bookshops and specialist shops landside land·side n. The flat side of a plow opposite the furrow. landside Noun the part of an airport farthest from the aircraft Noun 1. were up 14% to (pound)12m and bureau de change up 15% to (pound)11m. 3. AIRPORT AND OTHER TRAFFIC CHARGES UK airport charges These increased by 6.5% to (pound)316m, reflecting a passenger volume increase of 5.1% and increased yield per passenger. Other UK traffic charges These increased by 25.5% to (pound)17m reflecting increased charges from new facilities not operational throughout the same period last year. 4. WORLD DUTY FREE Six Months to September 30, 1999 The combined World Duty Free businesses recorded a (pound)1m operating loss. 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 Airports
World Duty Free Europe's UK airports' business generated a profit before interest and tax of (pound)5m. In addition to the challenge of EU duty free abolition from July July: see month. 1,World Duty Free Europe took over the remainder of the contracts previously managed by Nuance nu·ance n. 1. A subtle or slight degree of difference, as in meaning, feeling, or tone; a gradation. 2. Expression or appreciation of subtle shades of meaning, feeling, or tone: and Alpha Airports at Heathrow and Gatwick. World Duty Free Europe - Eurotunnel Eurotunnel plc (in the UK) and Eurotunnel SA (in France) make up the Eurotunnel Group, founded in August 1986, which manages and operates the Channel Tunnel between the UK and France. WDFE took over the contract from the previous operators on July 1 and during the initial three month period incurred an operating loss of (pound)4m. The challenge of taking over this new contract has been greater than expected, as a result of the confusion following abolition and passenger numbers being lower than forecast. The principal adverse effects have been lower than expected perfume sales and higher than expected start up costs. Subject to performance during the important Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). season the contract is currently forecast to produce an operating loss of around (pound)8m in the full financial year. World Duty Free Americas Overall World Duty Free Americas' operating profit (before amortization of (pound)9m of goodwill) was (pound)8m ((pound)10m). The airports shops of World Duty Free Americas were negatively affected by major refurbishments of large US airports (including those at, 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. , JFK and La Guardia La Guar·di·a , Fiorello Henry Known as "the Little Flower." 1882-1947. American politician who was a U.S. representative from New York (1917-1921 and 1923-1933) and mayor of New York City (1934-1945). ). The Northern Border business continues to suffer from the reduced numbers of border crossings. The Southern Border performed better with perfume sales up on last year. Overall these businesses together with the Export division increased sales from (pound)109m to (pound)113m, with operating profit up from (pound)7m to (pound)8m. The inflight business deteriorated further as airlines continued to reduce the number of Pacific routes and as the sales mix sales mix See product mix. moved away from higher margin products. Inflight broke even at an operating profit level, having made a (pound)3m profit for the same period last year. World Duty Free Americas - Goodwill Impairment As we announced in early October, the trading of World Duty Free Americas has been disappointing in the last six months and in particular in the inflight business. This business has been adversely affected by both low levels of passengers flying to and from Asia and the effects of the cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of EU duty free. In addition, the growth prospects for the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of airport duty free business are not now as strong and competitor pressure on contract renewals is greater. As a result we consider that the future benefits of this business are likely to be longer term and carry a higher risk factor. For these reasons we have carried out an impairment review as at September 30, 1999. Accordingly we have written down goodwill by (pound)147m in respect of the inflight and airport divisions leaving remaining goodwill of (pound)159m. 5. HEATHROW EXPRESS Heathrow Express performed well during the period and experienced significant passenger growth of around 40% on last year. The operating loss for the six months was (pound)1m. In the context of the recent temporary closure of Paddington Paddington, London, England: see Westminster, City of. it should be noted that BAA has comprehensive business interruption insurance Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril . The impact of the fare increase in mid-September n. 1. the middle part of September. Noun 1. mid-September - the middle part of September period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue was minimal on passenger numbers which continued to average around fourteen thousand per day. 6. BAA McARTHUR GLEN In addition to BAA's (pound)3m share of the 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 from outlet malls An outlet mall (or outlet centre) is a type of shopping mall, in which manufacturers sell their products directly to the public through their own branded stores. Clothing, sporting goods, electrical products, cosmetics, and toys are among the types of items sold at outlet , BAA also received (pound)16m of profit from the disposal of interests at Swindon Swindon, city (1991 pop. 127,348), Wiltshire, S central England. Swindon was a small village until 1841, when the Great Western RR opened its locomotive and car works there. , Bridgend Coordinates: Bridgend (Welsh: Pen-y-bont ar Ogwr) is a town in the traditional county of Glamorgan and the main town in the County Borough of Bridgend in South Wales. It is roughly midway between Cardiff and Swansea. and Ashford Ash·ford , Evelyn Born 1957. American athlete. A sprinter on five Olympic track teams, she won nine Olympic medals, including a gold medal in the 100-meter dash and three gold medals in the four-by-100-meter relay. . This compares with a total of (pound)3m for the same period last year. 7. CAPITAL EXPENDITURE Total capital expenditure 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. was (pound)182m ((pound)262m). (pound)11m of capital expenditure was incurred on Terminal 5 during this period, bringing the cumulative Terminal 5 total to (pound)204m. 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. for the six months was (pound)14m ((pound)27m). 8. TAXATION The effective rate of taxation on profits before exceptional items was 25.75% (21.1%). This has increased as a result of lower levels of capital allowances and of capitalized interest. World Duty Free Americas losses after interest have also been higher than expected and are not relievable re·lieve tr.v. re·lieved, re·liev·ing, re·lieves 1. To cause a lessening or alleviation of: relieved all his symptoms; relieved the tension. 2. against other profits. 9. YEAR 2000 COMPLIANCE (Y2K) By the end of September 1999, BAA systems were over 99% compliant
Imminent peril, for example, is danger that is certain, immediate, and impending, such as the type an individual might be in as a result of a serious illness or accident. completion. BAA has incurred (pound)47m to September 30, 1999 on the Year 2000 program, including (pound)35 million incurred in the prior years. It is estimated that a further (pound)4 million will be spent with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. half of the total expenditure being capitalized. The main uncertainties remaining relate to BAA's reliance on the operation of the general national infrastructure and the continuity of all major operations within air transport. Whilst the year 2000 continues to represent some degree of risk, our intent remains to operate a safe and secure business without significant disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. . On October 28 the BAA Board determined that BAA is operationally ready 1. A unit, ship, or weapon system capable of performing the missions or functions for which organized or designed. Incorporates both equipment readiness and personnel readiness. 2. Personnel available and qualified to perform assigned missions or functions. for the millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. . The Board is satisfied that, to the best of its knowledge, BAA is able to operate over the millennium period and that group wide continuity plans exist. The Board is satisfied that the state of readiness See: defense readiness condition; weapons readiness state. of all business partners and suppliers has been assessed and that BAA has contingency plans A plan involving suitable backups, immediate actions and longer term measures for responding to computer emergencies such as attacks or accidental disasters. Contingency plans are part of business resumption planning. in place to deal with the potential impacts on business. 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.co.uk. (Tables to follow) -0-
BAA plc RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999
Consolidated profit and loss account for the
six months ended September 30, 1999
Sept. 30, Sept. 30, Year ended
1999 1998 March 31,
(unaudited) (unaudited) 1999
Before
exceptional Exceptional
items items Total Total
(pound)M (pound)M (pound)M $M(b) (pound)M (pound)M
Revenue - group
and share of
joint ventures 1,146 - 1,146 1,838 1,028 2,013
Less share of joint
venture revenue (32) - (32) (51) - (54)
Group revenue
- continuing
operations 1,114 - 1,114 (1,787) 1,028 1,959
Operating costs(a) (769) (147) (916)(1,469) (680) (1,383)
Group operating profit -
continuing operations 345 (147) 198 318 348 576
Share of operating
profit in
joint ventures 19 - 19 30 3 29
364 (147) 217 348 351 605
Profit on sale of investment
properties in continuing
operations - 4 4 6 - 9
Profit on ordinary
activities
before interest 364 (143) 221 354 351 614
Net interest
payable - group (55) - (55) (88) (42) (92)
Net interest
payable - joint
ventures (3) - (3) (5) (2) (6)
Profit on ordinary
activities
before taxation 306 (143) 163 261 307 516
Tax on profit on ordinary
activities (79) - (79) (126) (65) (115)
Profit on ordinary
activities
after taxation 227 (143) 84 135 242 401
Equity minority
interests (3) - (3) (5) (2) (3)
Profit for the period
attributable to
shareholders 224 (143) 81 130 240 398
Equity dividends (61 - (61) (98) (56) (159)
Retained profit
for the group
and its share
of joint ventures 163 (143) 20 32 184 239
Earnings per share 21.0p (13.4p) 7.6p 12.2(cent)22.7p 37.6p
Earnings per share before
exceptionals 21.0p 33.7(cent)22.7p 36.7p
Diluted earnings per share 7.6p 12.2(cent) 21.9p 36.4p
(a) Operating costs for the six months ended September 30, 1999 include
an exceptional goodwill impairment charge of (pound)147 million.
(b) Dollar conversion provided for reader convenience only at the rate
of (pound)1=$1.604. Statement of total recognized gains and losses for
the six months ended September 30, 1999
Year ended
Sept. 30, Sept. 30, March 31,
1999 1998 1999
$M(b) (pound)M (pound)M (pound)M
(unaudited)
Profit for the period
attributable to shareholders(a) 130 81 240 398
Unrealized revaluation surplus - - - 217
Total recognized gains and
losses relating to the 130 81 240 615
period
(a) Including joint ventures of (pound)9 million
(September 30, 1998:(pound)nil; March 31, 1999: (pound)13 million).
(b) Dollar conversion provided for reader convenience only at the rate
of (pound)1=$1.604.
Reconciliation of movements in shareholders' funds for the six months
ended September 30, 1999
Year ended
Sept. 30 Sept. 30, March 31,
1999 1998 1999
(pound)M (pound)M (pound)M
(unaudited)
Profit for the period attributable to 81 240 398
shareholders
Equity dividends (61) (56) (159)
Retained profit for the period 20 184 239
Other recognized gains
and losses relating to - - 217
the period
Scrip dividend adjustment 8 6 20
New share capital subscribed 2 7 19
Net addition to shareholders' funds 30 197 495
Opening shareholders' funds 4,234 3,739 3,739
Closing shareholders' funds 4,264 3,936 4,234
Consolidated balance sheet as at September 30, 1999
Sept. 30, Sept. 30, Sept. 30, March 31,
1999 1999 1998 1999
$M(a) (pound)M (pound)M (pound)M
(unaudited)
Fixed assets
Intangible assets 286 174 329 337
Tangible assets 10,105 6,133 5,758 6,059
Investments in
joint ventures:
Share of gross assets 295 179 117 161
Share of gross
liabilities (306) (186) (100) (156)
Loans 49 30 62 24
38 23 79 29
Investments 51 31 29 32
10,480 6,361 6,195 6,457
Current assets
Stocks 201 122 102 123
Debtors 408 248 257 209
Short-term investments 488 296 144 180
Cash at bank and in hand 109 66 66 42
1,206 732 569 554
Creditors: amounts falling
due within one (1,501) (911) (802) (790)
year
Net current liabilities (295) (179) (233) (236)
Total assets less
current liabilities 10,185 6,182 5,962 6,221
Creditors: amounts
falling due
after more than one year
Other creditors (2,405) (1,460) (1,576) (1,529)
Convertible debt (738) (448) (442) (452)
(3,143) (1,908) (2,018) (1,981)
Provisions for
liabilities and charges - - (1) -
Equity minority interests (17) (10) (7) (6)
Net assets 7,025 4,264 3,936 4,234
Share capital 1,755 1,065 1,058 1,064
Reserves 5,270 3,199 2,878 3,170
Equity shareholders' funds 7,025 4,264 3,936 4,234
Net asset value per share $6.59 (pound)4.00(pound)3.72(pound)3.98
(a) Dollar conversion provided for reader convenience only at the rate
of (pound)1=$1.6476.
Consolidated cash flow statement for the
six months ended September 30, 1999
Sept. 30, Sept. 30, Sept. 30,March 31,
1999 1999 1998 1999
$M(a) (pound)M (pound)M (pound)M
(unaudited)
Operating activities:
Operating profit 318 198 348 576
Depreciation 154 96 78 165
Amortization 14 9 9 18
Goodwill impairment charge 236 147 - -
Increase in stocks (2) (1) (10) (15)
(Increase)/decrease in debtors (50) (31) (10) 34
Increase/(decrease) in creditors 47 29 4 (4)
Net cash inflow from
operating activities 717 447 419 774
Dividends received from
joint ventures 35 22 - 20
Returns on investments and
servicing of finance:
Interest paid (139) (87) (67) (157)
Interest received 38 24 8 23
(101) (63) (59) (134)
Tax paid (18) (11) (12) (145)
Capital expenditure and
financial investment:
Additions to operational
assets (302) (188) (240) (473)
Additions to investment
properties (13) (8) (47) (9)
Sale of investment properties 43 27 - 46
(Additions to)/reductions
in long-term
investments (6) (4) 3 37
Loan made to joint venture
partner (11) (7) - (9)
(289) (180) (284) (408)
Equity dividends paid (152) (95) (86) (125)
Cash inflow/(outflow)
before use of liquid
resources and financing 192 120 (22) (18)
Management of liquid resources (186) (116) (95) (131)
Financing 32 20 143 151
Increase in cash in the period 38 24 26 2
(a) Dollar conversion provided for reader convenience only at the rate
of (pound)1=$1.604.
Reconciliation of net cash flow to movement in net debt
Sept. 30, Sept.30,March 31,
1999 1998 1999
(pound)M (pound)M (pound)M
(unaudited)
Increase in cash in the period 24 26 2
Cash inflow from increase in debt (18) (136) (128)
Cash outflow from use of liquid resources
116 95 131
Foreign exchange translation differences
10 7 (18)
Decrease/ (increase) in net
debt in the period
132 (8) (13)
Opening net debt (1,844) (1,831) (1,831)
Closing net debt (1,712) (1,839) (1,844)
Segmental information
Revenue
Sept. 30, Sept. 30, March 31,
1999 1998 1999
(pound)M (pound)M (pound)M
(unaudited)
Airports
Heathrow 368 355 689
Gatwick 177 203 356
Stansted 46 36 64
Total UK regulated airports 591 594 1,109
Glasgow 35 33 57
Edinburgh 23 22 41
Aberdeen 13 14 26
Southampton 7 6 11
Total UK non-regulated airports 78 75 135
Total international airports 30 26 48
Total airports 699 695 1,292
World Duty Free 342 299 589
BAA Lynton 47 21 45
Rail 23 11 28
Other operations 3 2 5
Group 1,114 1,028 1,959
Share of joint ventures 32 - 54
Group and share of joint ventures
1,146 1,028 2,013
Analyzed between:
United Kingdom 947 841 1,645
North America 174 170 339
Other 25 17 29
1,146 1,028 2,013
Segmental information
Operating profit
Sept.30, Sept. 30, March 31,
1999 1998 1999
(pound)M (pound)M (pound)M
(unaudited)
Airports
Heathrow 186 185 341
Gatwick 81 89 132
Stansted 15 14 18
Total UK regulated airports 282 288 491
Glasgow 19 19 25
Edinburgh 9 9 15
Aberdeen 5 6 11
Southampton 1 2 2
Total UK non-regulated airports 34 36 53
Total international airports 5 4 6
Total airports 321 328 550
World Duty Free (1) 7 (1)
BAA Lynton 22 17 37
Rail (1) (2) (2)
Other operations 4 (2) (8)
Group - before exceptional items 345 348 576
Exceptional items (147) - -
Group - post exceptional items 198 348 576
Share of joint ventures 19 3 29
Group and share of joint ventures
217 351 605
Analyzed between:
United Kingdom 362 344 610
North America (148) 3 (7)
Other 3 4 2
217 351 605
NOTES 1. This interim financial 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 Annual Report 1998/99. 2. The Group's investment properties are included at March 31, 1999 valuations as adjusted for additions and disposals since that date. 3. The Group has applied one new accounting standard, 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. 15, during the period which has not had a significant impact on the Group's results for the period. 4. The information shown for the year ended March 31, 1999 does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985 and has been extracted from the full financial statements for the year ended March 31, 1999 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 report of 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 on these financial statements was unqualified and did not contain a statement under section 237 of the Companies Act 1985. 5. The interim financial statement is unaudited but has been formally reviewed by the auditors and their report to the company is reproduced below. 6. Operating costs operating costs npl → gastos mpl operacionales for the six months ended September 30, 1999 include an exceptional goodwill impairment charge of (pound)147m following a review of the goodwill arising on the acquisition of World Duty Free Americas, Inc (formerly Duty Free International, Inc). 7. The interest charge is shown net of interest capitalized of (pound)14m (September 30, 1998: (pound)27m; March 31, 1999: (pound)46m). 8. The taxation charge for the six months ended September 30, 1999 on profits before exceptional items has been based on the estimated effective rate on profits before exceptional items for the full year of 25.75%. There is no tax charge attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to exceptional items recognized in the period. The taxation charge for the six months ended September 30, 1998 was based on an estimated effective rate for the full year of 21.1% and the effective rate for the year ended March 31, 1999 was 22.25%. 9. 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 → include (pound)204m representing expenditure to date on Terminal 5 (September 30, 1998: (pound)173m; March 31, 1999: (pound)192m). 10. Liabilities include net borrowings of (pound)1,712m (September 30, 1998: (pound)1,839m; March 31, 1999: (pound)1,844m). INTERIM DIVIDEND 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 5.7p (1998/99: 5.3p) per share payable on January January: see month. 21, 2000 to shareholders on the register on November November: see month. 12, 1999. A scrip dividend scrip dividend An unusual type of dividend involving the distribution of promissory notes that call for some type of payment at a future date. Scrip dividends generally signal that a firm is short of cash. Compare liability dividend. alternative is offered in respect of the whole of this dividend. PUBLICATION OF HALF YEAR RESULTS The results for the six months ended September 30, 1999 will be published in the Financial Times on November 2, 1999. A copy of the results will also be sent to shareholders who have requested them. By order of the Board of BAA plc Rachel Rachel, in the Bible Rachel (rā`chəl), in the Bible, wife of Jacob and mother of Joseph and Benjamin. She is one of the four Jewish matriarchs. An alternate form is Rahel. Rowson Company Secretary October 29, 1999 INDEPENDENT REVIEW REPORT TO BAA PLC Introduction We have been instructed by the company to review the financial information set out above and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The Listing Rules of the London Stock Exchange require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). . Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board. A review consists principally of making inquiries of group management and applying analytical procedures Analytical Procedures is one of financial audit skill which help an auditor understand the client's business and changes in the business, to identify potential risk areas and to plan other audit procedures. to the financial information and underlying financial data and based thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that , assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification See verify. verification - The process of determining whether or not the products of a given phase in the life-cycle fulfil a set of established requirements. of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusions On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended September 30, 1999. Deloitte & Touche Chartered Accountants char·tered accountant n. Chiefly British Abbr. CA A member of one of the institutes of accountants granted a royal charter. October 29,1999 |
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