BAA Results for the Year to March 31, 2002; BAA Investing for the Future.Business Editors LONDON--(BUSINESS WIRE)--June 6, 2002 BAA Baa See BBB. plc - 121.9 million passengers (124.7 million), down 2.2% due to US economic slowdown, impact of foot and mouth epidemic and September 11, but recovery continuing. - Group operating profit down 1.4% to (pound)553 million ((pound)561 million restated). Normalized profit before tax down 6.4% to (pound)512 million ((pound)547 million restated). - Net retail income up 2% to (pound)479 million ((pound)470 million). Net retail income per passenger up 4% to (pound)3.95 ((pound)3.78). - Earnings per share before exceptionals 33.2 pence (36.6 pence restated), down 9.3%. - Confidence in medium to long-term traffic outlook demonstrated by increased capital expenditure, up 14.4% to (pound)618 million ((pound)540 million). - Final dividend up 5.2% to 12.2 pence (11.6 pence). Full year dividend up 3.4% to 18.3 pence (17.7 pence). BAA's financial results presentation will be broadcast live on BAA's website - www.baa.com/results - at 9.30am (British Summer Time British Summer Time Noun a time set one hour ahead of Greenwich Mean Time: used in Britain from the end of March to the end of October, providing an extra hour of daylight in the evening Abbrev: (BST) ) on Thursday Thursday: see week. June June: see month. 6, 2002. An interview with Mike Hodgkinson, chief executive, on BAA's results will be available on BAA's website from 7.30am (British Summer Time) on Thursday June 6, 2002.
SUMMARY OF RESULTS
2001/02 2000/01 Change
(restated) %
--------- ----------- -------
Passenger traffic 121.9m 124.7m (2.2)
Revenue(1) (pound)1,870m (pound)1,904m (1.8)
EBITDA(1) (pound)802m (pound)777m 3.2
Group operating profit(1) (pound)553m (pound)561m (1.4)
Normalized profit before tax(2) (pound)512m (pound)547m (6.4)
Profit before
tax and exceptionals (pound)505m (pound)547m (7.7)
Profit before tax (pound)318m (pound)548m (42.0)
Earnings per share
before exceptionals 33.2 p 36.6p (9.3)
Earnings per share 15.6 p 36.8p (57.6)
Dividend per share 18.3 p 17.7p 3.4
Capital expenditure (pound)618m (pound)540m 14.4
(1) Continuing operations only and excludes the joint ventures BAA
McArthurGlen and Westralia Airports Corporation, associates
and exceptionals.
(2) Excludes the joint ventures BAA McArthurGlen and Westralia
Airports Corporation, associates and exceptionals.
With effect from the current financial year, BAA adopted the new Financial Reporting Standards 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 "Retirement Benefits" and FRS 19 "Deferred Tax" and the previous year is restated accordingly. There is no direct impact on the Group's underlying performance. The table above details the year's results after the change in accounting policies. All comments refer to financial results reported post the adoption of FRS 17 and FRS 19, except where noted. BAA plc, the world's leading airport company, today announced 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 operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and before exceptionals of (pound)553 million (March 31, 2001: (pound)561 million restated), a decrease of 1.4% compared to a decrease in passenger numbers of 2.2%. This reflects the combined impact of the US 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. , 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. and the events of September September: see month. 11 offset in part by a lower current service pension charge. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become grew in the period by 3.2% to (pound)802 million ((pound)777 million restated). The robust retail performance continued throughout the year. Normalized profit before tax decreased by 6.4% to (pound)512 million ((pound)547 million restated), largely reflecting (pound)16 million lower finance income recorded under FRS 17. There was a net exceptional loss before tax of (pound)187 million ((pound)1 million exceptional profit) mainly due to the loss on disposal of World Duty Free Americas A·mer·i·cas , the See America. , as reported in October October: see month. 2001. Earnings per share before exceptionals decreased by 9.3% to 33.2 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, (36.6 pence restated). Earnings per share after exceptionals decreased to 15.6 pence (36.8 pence restated). The Board is recommending a 5.2% increase in the final dividend to 12.2 pence (11.6 pence), bringing the total dividend for the year to 18.3 pence (17.7 pence), up 3.4%. CHIEF EXECUTIVE'S COMMENT BAA's chief executive, Mike Hodgkinson, said: "In view of the challenging trading conditions since the tragic events of September 11, the company has done well to make a normalized profit before tax of (pound)512 million ((pound)547 million restated). The strategic review carried out in 2000 concluded that BAA should focus on its core airports business. The exit from direct 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: retailing in the US during the year furthered the implementation of this strategy. All parts of the business performed well despite the difficult conditions in the second half-year. Almost all of the (pound)1,870 million ((pound)1,904 million) of revenue came from the UK airports where retailing was particularly strong. Net retail income per passenger for the year was up by 4% to (pound)3.95 ((pound)3.78). "Despite 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. decline in passenger traffic, we remain confident that 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. growth in the demand for air travel will continue. In particular, we are forecasting growth in passenger traffic through Heathrow, Gatwick and Stansted Stansted could be
"The last financial year was without precedent A court decision that is cited as an example or analogy to resolve similar questions of law in later cases. The Anglo-American common-law tradition is built on the doctrine of Stare Decisis ("stand by decided . The aviation industry faced the toughest conditions for a decade. The industry is restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , with some airlines having gone out of business and others doing better than ever before. However, aviation remains fundamentally a long-term growth business. We continue to believe that investment in airport infrastructure is essential in view of the expected doubling of demand over the next twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. . We are prepared to make the necessary investment, and we have recently published an (pound)8.1 billion program (at current prices) for the period to 2012/13 which covers the southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: 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 in November November: see month. 2001. We are making good progress with detailed planning consents. This investment program is the key both to providing 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 and to growing the business. "BAA's capacity to invest for the future depends on the ability to set airport charges which permit a reasonable rate of return. The Civil Aviation Authority Civil Aviation Authority civil (Brit) n → Behörde f für Zivilluftfahrt (CAA Caa See CCC. ), our 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. , published initial proposals for the 2003-08 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. regime, which recognized the need to encourage investment. We have made a detailed response to these proposals as part of the consultation process. The next stage in the regulatory process is the current review by the Competition Commission. The Commission will report in autumn Autumn Autumnus personification; portrayed as mature and manly. [Rom. Myth.: LLEI, I: 322] Bacchus god of this season. [Rom. Myth.: Hall, 130] Carpo goddess of autumn and corn season. [Gk. Myth. this year and the CAA is expected to make its final decision before the end of 2002. "September 11 represented a major setback setback In architecture, a steplike recession in the profile of a high-rise building. Usually dictated by building codes to allow sunlight to reach streets and lower floors, the building must take another step back from the street for every specified added height interval. for the industry world-wide but BAA has risen to the challenge. We expect the first half of 2002/03 to be slow but we expect strong traffic growth in the second half of the year. Looking beyond 2002/03, and subject to the outcome of the regulatory review, the company is well placed to achieve steady growth by serving an increasing number of people well, and operating our airports responsibly, safely and securely." OPERATING AND FINANCIAL REVIEW UK airports In the year to March 31, 2002, BAA's UK airports handled 121.9 million (124.7 million) passengers, the decrease of 2.2% reflecting the US economic slowdown, the impact of the foot and mouth epidemic and the aftermath AFTERMATH. A right to have the last crop of grass or pasturage. 1 Chit. Pr. 181. of September 11. Despite this 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. and a higher depreciation charge, UK airport operating profit increased by 1% to (pound)518 million ((pound)513 million restated). This was achieved by a strong retail performance, increased airport charges income and a lower current service pension charge to operating costs operating costs npl → gastos mpl operacionales under FRS 17. The major impact of increased security and insurance costs will be felt in the 2002/03 financial year. North Atlantic traffic, representing 14% of BAA's passengers, was down 38.0% on the previous year immediately following September 11, but has recovered well to be down only 8.9% for the combined months of March and April. BAA's largest market, representing over 53% of passengers and 64 million travelers, is 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). which grew by 0.3%.
Domestic traffic, 18% of the total, grew by 1.2%.104.9 million (108.7 million) people traveled through the three London airports There are several airports that may be referred to as "London Airport": London, United Kingdom
16.1 million (15.1 million) people traveled through the three Scottish airports, Glasgow Glasgow, city, Scotland Glasgow (glăs`gō, –kō, glăz`gō), city (1991 pop. 688,500) and council area, S central Scotland, on the river Clyde. , Edinburgh Edinburgh (ĕd`ĭnbərə), city (1991 pop. 433,200) and council area, royal burgh, capital of Scotland, on the Firth of Forth. Leith, part of the city since 1920, is Edinburgh's port. and Aberdeen Aberdeen, former county, Scotland Aberdeen, former county, Scotland: see Aberdeenshire. Aberdeen, city, Scotland Aberdeen, city (1991 pop. , an increase of 7.0%, also boosted by the low cost scheduled airlines. Glasgow and Edinburgh in particular served record numbers of passengers, 7.3 million (7.0 million), up 5.3%, and 6.3 million (5.6 million), up 11.6% respectively. UK airport charges revenue increased by 2% to (pound)636 million ((pound)622 million), despite the 2.2% reduction in overall traffic. This reflects the final increase in charges to compensate for 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 and yield concentration caused by the low load factors immediately post September 11. UK airport retail UK airport retailing performed well despite the decline in passenger numbers. Net retail income grew by 2% to (pound)479 million ((pound)470 million) and net retail income per passenger grew by 4% to (pound)3.95 ((pound)3.78). The key driver of this performance was our response to the changing passenger mix which delivered strong growth in car parking, duty and tax-free income tax-free income The income received but not subject to income taxes. For example, interest from most municipal bonds is free of federal income taxes and often from state and local income taxes as well. Compare tax-deferred income, tax-sheltered income. and catering, underpinned by the opening of new retail space at Gatwick North Terminal, Stansted and Heathrow Terminal 3. UK airport retailing held up well in the second half of the year. In the first six months to September 30, 2001, on the back of a 0.1% increase in passengers, net retail income was up 7% at (pound)261 million ((pound)245 million) and net retail income per passenger grew strongly, up by 7% to (pound)3.76 ((pound)3.53). The second half maintained growth on a per passenger basis despite reduced non-EU non-EU adj (citizen, passport) → no comunitario; (imports) → de fuera de la Unión Europea traffic and overall 5.3% lower passengers. Net retail income per passenger increased by 2% to (pound)4.19 ((pound)4.12) resulting in net retail income of (pound)218 million ((pound)225 million). World Duty Free Europe - UK airports World Duty Free Europe's UK airport revenues grew by 6% to(pound)341 million ((pound)322 million). Whilst gross margins were stable during the period, operating profit remained at (pound)18 million ((pound)18 million) due partly to increased depreciation charges. Capital expenditure Whilst immediately following September 11 some short-term capacity projects were deferred, we continued to invest for the long-term resulting in an increase of 16% in capital investment at the UK airports to (pound)560 million ((pound)484 million). Major projects during the year included, at Heathrow, the first stages of the redevelopment of the Terminal 3 lounge Lounge may refer to: In architecture:
waiting area, waiting room, lounge - a room (as in a hotel or airport) with seating where people can wait departure lounge n (at airport was opened in the North Terminal. In May, Stansted completed the final phase of the (pound)60 million extension of its terminal with the third satellite scheduled to open this summer. New aprons aprons outer garments made of lead rubber of a thickness of 0.25-0.5 mm lead equivalent which are worn to prevent x-irradiation of the operator. and taxiways have also been built at Stansted and work is ongoing with the Highways Agency to build slip roads from the M11 motorway
Total capital expenditure for the BAA group was up 14.4% to (pound)618 million ((pound)540 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. Heathrow Express passengers decreased by 2.9% to 4.8 million (5.0 million), a smaller decline than traffic at Heathrow as market share continues to increase. Revenues reduced to (pound)58 million ((pound)63 million) with lower income also from check-in desks and advertising. Operating profit reduced to (pound)7 million ((pound)10 million). BAA Lynton
Coordinates: Lynton is a small village in Devon, England. BAA Lynton made an operating profit of (pound)21 million ((pound)24 million), the decrease reflecting the reduced rents as a result of the ongoing implementation of the strategy to develop and sell, rather than own, assets around our UK airports. Revenues of (pound)35 million ((pound)36 million) included (pound)15 million ((pound)9 million) from the sale of trading stock. An exceptional profit of (pound)16 million ((pound)24 million) was recorded on the sale of properties, including World Business Center 3 at Heathrow. BAA McArthurGlen BAA McArthurGlen has ceased the development of new centers but continues to manage all of the centers it has developed. Our joint venture partner, McArthurGlen Europe, is continuing to undertake developments independently of BAA. In line with BAA's core strategy of focusing on its airports business, we intend to realize value from this investment, as and when this is achievable, through further disposals. BAA is in discussions with its joint venture partner with a view to dissolving dis·solve v. dis·solved, dis·solv·ing, dis·solves v.tr. 1. To cause to pass into solution: dissolve salt in water. 2. the joint venture and dividing the assets. As part of this process, an exceptional provision of (pound)15 million has been made principally against amounts advanced to the joint venture. If the discussions lead to an agreement, BAA's borrowings will increase accordingly until the disposal of the remaining centers is completed. Profits from BAA McArthurGlen, which are a combination of gains/losses on disposals, property write-downs and center management income, were (pound)3 million ((pound)10 million). Included in this, BAA's share of joint venture disposal profits less write-downs was zero ((pound)10 million). Interest costs were (pound)10 million ((pound)10 million). International airports BAA's international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. made an operating profit of (pound)4 million ((pound)8 million) reflecting the difficulties facing aviation businesses worldwide. Cashflow, borrowings and interest charge (pound)858 million ((pound)879 million) of cash was generated by operating activities, a decrease of 2%. This, together with the increased capital expenditure program, meant that the overall cash outflow (before use of liquid resources and financing) amounted to (pound)195 million compared to (pound)28 million inflows in the previous year which benefited from proceeds of (pound)141 million from the sale of properties. In anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of the large future capital program and taking advantage of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions, BAA has recently raised a substantial amount of debt. This included the issue of (pound)900 million 30-year bonds at an interest rate of 5.75 percent and, in April, a convertible bond of (pound)424 million, due in 2008, with a coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer of 2.94 percent at a conversion price of (pound)8.00. Net debt increased by (pound)75 million to (pound)1,651 million ((pound)1,576 million) and gearing increased to 34% (33% restated). Interest cover is 4.6 times (4.8 times restated). Reflecting the increased debt and the associated temporary carrying cost Noun 1. carrying cost - the opportunity cost of unproductive assets; the expense incurred by ownership carrying charge opportunity cost - cost in terms of foregoing alternatives mainly in the last quarter, the net interest charge, excluding joint ventures, associates and exceptionals, increased to (pound)87 million ((pound)85 million). 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)32 million ((pound)33 million). As a result of the adoption of FRS 17, other finance income of (pound)48 million ((pound)64 million restated) 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. less the expected increase in the present value of the scheme liabilities. The reduction of (pound)16 million largely reflects the reduction in the opening value of the pension fund assets. Taxation The tax charge, before the impact of exceptional items, was (pound)152 million ((pound)156 million restated) which 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 for the year to March 31, 2002 year equivalent to the corporation tax rate. This is an accounting change only and there is no impact on the amount of tax paid. Balance Sheet At March 31, 2002, the company had 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)6,975 million ((pound)6,636 million) and 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)4,807 million ((pound)4,826 million restated). Included in the net assets figure is a pension asset representing the surplus net of deferred tax of (pound)299 million ((pound)384 million 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 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. : 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. . 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.
SUPPLEMENTARY FINANCIAL INFORMATION
Segmental summary(1)
Revenue to Revenue to
March 31, March 31,
2002 2001
------------- -------------
Airports (pound)1,402m (pound)1,381m
World Duty Free
- continuing operations (pound)363m (pound)416m
- discontinued operations (pound)117m (pound)322m
----------- -----------
(pound)480m (pound)738m
BAA Lynton (pound)35m (pound)36m
Rail (Heathrow Express) (pound)58m (pound)63m
Other (pound)12m (pound)8m
TOTAL (pound)1,987m (pound)2,226m
Group Operating Group Operating
profit to profit to
March 31, 2002 March 31, 2001
-------------- ---------------
Airports (pound)522m (pound)521m
World Duty Free
- continuing operations (pound)17m (pound)12m
- discontinued operations ((pound)3m) (pound)7m
----------- ---------
(pound)14m (pound)19m
BAA Lynton (pound)21m (pound)24m
Rail (Heathrow Express) (pound)7m (pound)10m
Other ((pound)14m) ((pound)6m)
TOTAL (pound)550m (pound)568m
(1) Excludes the joint ventures BAA McArthurGlen and Westralia
Airports Corporation, associates and exceptionals.
Results by quarter
1st Change 2nd Change
quarter from quarter from
2000/01 2000/01
----------- ------- ---------- -------
Revenue(1) (pound)547m (2.5%) (pound)578m (6.3%)
Group operating profit(1) (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(1) (pound)152m 2.7% (pound)186m 0.5%
Earnings per share
before exceptionals 9.8p 2.1% 12.0 p (1.6%)
3rd Change 4th Change
quarter from quarter from
2000/01 2000/01
----------- ------- ---------- -------
Revenue(1)
Group operating profit(1) (pound)433m (22.5%) (pound)429m (12.3%)
Profit before (pound)112m (17.6%) (pound)86m (3.4%)
tax and exceptionals
Normalized (pound)102m (22.1%) (pound)69m (20.7%)
profit before tax(1) (pound)103m (20.8%) (pound)71m (15.5%)
Earnings per share
before exceptionals 6.8 p (23.6%) 4.6p (22.0%)
(1) Excludes the joint ventures BAA McArthurGlen and Westralia
Airports Corporation, associates and exceptionals.
Consolidated Profit and Loss account for the year ended March 31, 2002
March 31,
2002
---------------------------------
Before
Exceptional Exceptional
Items Items Total
(pound)M (pound)M (pound)M
--------- ---------- --------
Continuing operations 1,887 - 1,887
Discontinued operations 117 - 117
Revenue - group and
share of joint ventures 2,004 - 2,004
Less share of joint venture revenue
- continuing operations (14) - (14)
- acquisitions (3) - (3)
Group revenue 1,987 - 1,987
Operating costs (1,437) - (1,437)
Continuing operations 553 - 553
Discontinued operations (3) - (3)
Less utilization
of prior year provision - - -
Group operating profit 550 - 550
Share of operating
profit in joint ventures
- continuing operations 3 (15) (12)
- acquisitions 2 - 2
5 (15) (10)
Share of operating
profit in associates
- continuing operations 1 - 1
------ ------ ------
556 (15) 541
Loss on operations to be discontinued - - -
Loss on disposal
of discontinued operations - (190) (190)
Less utilization
of prior year provision - - -
Add release of prior year provision - 2 2
Profit on the sale of fixed
assets in continuing operations - 16 16
Loss on the sale of fixed
assets in discontinued operations - - -
Profit on ordinary
activities before interest 556 (187) 369
Income from other
fixed asset investments 1 - 1
Net interest payable - group (87) - (87)
Net interest payable - joint ventures (12) - (12)
Net interest payable - associates (1) - (1)
Other finance income - group 48 - 48
Profit on ordinary
activities before taxation 505 (187) 318
Tax on profit on ordinary activities (152) 1 (151)
Profit on ordinary
activities after taxation 353 (186) 167
Equity minority interests (2) - (2)
Profit for the year
attributable to shareholders 351 (186) 165
Equity dividends (194) - (194)
Retained (loss)/profit for
the group and its share of
joint ventures and associates 157 (186) (29)
Earnings per share 33.2p (17.6)p 15.6p
Diluted earnings per share 15.5p
March 31,
2001 restated
----------------------------------
Before
Exceptional Exceptional
Items Items Total
(pound)M (pound)M (pound)M
--------- ---------- ---------
Continuing operations 1,939 - 1,939
Discontinued operations 322 - 322
Revenue - group and
share of joint ventures 2,261 - 2,261
Less share of joint venture revenue
- continuing operations (35) - (35)
- acquisitions - - -
Group revenue 2,226 - 2,226
Operating costs (1,658) (8) (1,666)
Continuing operations 561 (4) 557
Discontinued operations (6) (4) (10)
Less utilization
of prior year provision 13 - 13
Group operating profit 568 (8) 560
Share of operating
profit in joint ventures
- continuing operations 10 - 10
- acquisitions - - -
------ ------ ------
10 - 10
Share of operating
profit in associates
- continuing operations 1 - 1
------ ------ ------
579 (8) 571
Loss on operations to be discontinued - (7) (7)
Loss on disposal
of discontinued operations - (6) (6)
Less utilization
of prior year provision - 6 6
Add release of prior year provision - - -
Profit on the sale of fixed
assets in continuing operations - 24 24
Loss on the sale of fixed
assets in discontinued operations - (3) (3)
Profit on ordinary
activities before interest 579 6 585
Income from other
fixed asset investments - - -
Net interest payable - group (85) (5) (90)
Net interest payable - joint ventures (10) - (10)
Net interest payable - associates (1) - (1)
Other finance income - group 64 - 64
Profit on ordinary
activities before taxation 547 1 548
Tax on profit on ordinary activities (156) 1 (155)
Profit on ordinary
activities after taxation 391 2 393
Equity minority interests (4) - (4)
Profit for the year
attributable to shareholders 387 2 389
Equity dividends (187) - (187)
Retained (loss)/profit for
the group and its share of
joint ventures and associates 200 2 202
Earnings per share 36.6p 0.2p 36.8p
Diluted earnings per share 36.1p
Statement of total recognized gains and losses for the year ended
March 31, 2002
March 31,
March 31, 2001
2002 restated
(pound)M (pound)M
----------- ----------
Profit for the financial
year attributable to shareholders(1) 165 389
Unrealized surplus on
revaluation of investment properties 74 158
Share of associate's unrealized surplus
on revaluation of investment properties - 1
Currency translation differences
on foreign currency net investments 2 (7)
Loss on pension asset (124) (231)
Deferred tax associated
with loss on pension asset 37 69
----- -----
Total recognized gains
and losses relating to the year 154 379
----- -----
Prior year adjustment
- adoption of FRS 17 388
- adoption of FRS 19 (401)
-----
Total recognized gains and losses
recognized since the last annual report 141
-----
(1) Including joint ventures and associates loss of(pound)22
million (2001: profit of(pound)1 million).
Reconciliation of movements in shareholders' funds for the year ended
March 31, 2002
March 31, March 31,
2002 2001
restated
(pound)M (pound)M
--------- ---------
Profit for the financial
year attributable to shareholders 165 389
Equity dividends (194) (187)
Retained (loss)/profit for the financial year (29) 202
Other net recognized gains
and losses relating to the year (11) (10)
New share capital subscribed 21 100
Repurchase of own shares - (141)
Net (reduction in)/addition to shareholders' funds (19) 151
Opening shareholders' funds
(originally(pound)4,839 million before deducting
net prior period adjustment of(pound)13 million) 4,826 4,675
Closing shareholders' funds 4,807 4,826
Consolidated balance sheet as at March 31, 2002
March 31, March 31,
2002 2001
restated
(pound)M (pound)M
-------- --------
Fixed assets
Intangible assets 10 175
Tangible assets 6,975 6,636
Investments in joint ventures:
Share of gross assets 51 -
Share of gross liabilities (39) -
Loans 39 12
------ ------
51 12
Investments in associates 6 6
Other investments 80 54
------ ------
7,122 6,883
Current assets
Stocks 34 91
Debtors 183 198
Short-term investments 840 265
Cash at bank and in hand 99 120
------ ------
1,156 674
Creditors: amounts falling due within one year (701) (881)
Net current assets/(liabilities) 455 (207)
------ ------
Total assets less current liabilities 7,577 6,676
Creditors: amounts falling
due after more than one year
Other creditors (2,256) (1,473)
Convertible debt (311) (310)
------ ------
(2,567) (1,783)
Provisions for liabilities and charges
Investments in joint ventures:
Share of gross assets 180 211
Share of gross liabilities (224) (231)
------ ------
(44) (20)
Other provisions (442) (410)
------ ------
(486) (430)
------ ------
Equity minority interests (6) (12)
Net assets excluding pension asset and
pension and other post retirement liabilities 4,518 4,451
Pension asset 299 384
Pension and other post retirement liabilities (10) (9)
Net assets including pension as set and
pension and other post retirement liabilities 4,807 4,826
------ ------
Share capital 1,066 1,061
Reserves 3,741 3,765
Equity shareholders' funds 4,807 4,826
Net asset value per share (pound)4.51 (pound)4.55
Consolidated cash flow statement for the year ended March 31, 2002
March 31, March 31,
2002 2001
restated
(pound)M (pound)M
-------- --------
Operating activities:
Operating profit 550 560
Depreciation 250 222
Amortization 7 11
Fixed assets written off 6 8
(Increase)/decrease in stocks (1) 45
(Increase)/decrease in debtors (4) 1
Increase in creditors 6 2
Decrease in provisions (2) (27)
Decrease in net pension assets 46 57
------ -----
Net cash inflow from operating activities 858 879
Dividends received from
joint ventures and associates 18 10
Returns on investments and servicing of finance:
Interest paid (118) (159)
Interest received 30 35
Dividends received from
other fixed asset investments 1 -
Dividends paid to minority interests (3) (3)
------ -----
(90) (127)
Tax paid (135) (125)
Capital expenditure and financial investment:
Additions to operational assets (628) (527)
Additions to investment properties (3) (9)
Sale of operational assets 1 22
Sale of investment properties 48 119
Additions to long-term investments (55) (25)
Sale of current asset investments 2 -
------ -----
(635) (420)
Acquisitions and disposals:
Deferred consideration paid in respect of a
subsidiary undertaking acquired in a prior year (1) (12)
Deferred consideration received in
respect of the sale of a 5% interest in
a subsidiary undertaking in a prior year - 1
Acquisition of joint ventures (21) -
Disposal of subsidiary undertakings 11 -
Net cash disposed of with subsidiary undertakings (12) -
------ -----
(23) (11)
Equity dividends paid (188) (178)
Cash (outflow)/inflow before
use of liquid resources and financing (195) 28
Management of liquid resources:
Cash (placed on)/returned from deposit (532) 122
Purchase of commercial paper (46) (20)
------ -----
(578) 102
Financing:
Issue of shares 21 18
Repurchase of own shares - (141)
Net increase in debt 731 3
752 (120)
------ -----
(Decrease)/increase in cash in the year (21) 10
Reconciliation of net cash flow to movement in net debt
March 31, March 31,
2002 2001
(pound)M (pound)M
--------- ---------
(Decrease)/increase in cash in the year (21) 10
Cash inflow from increase in debt (731) (3)
Cash outflow/(inflow) from use of liquid resources 578 (102)
Foreign exchange translation differences 5 (38)
Disposal of operations 80 -
Other non-cash movements 14 81
------ ------
Increase in net debt in the year (75) (52)
Opening net debt (1,576) (1,524)
Closing net debt (1,651) (1,576)
Exceptional items
March 31, March 31,
2002 2001
Operating items (pound)M (pound)M
---------- ---------
Loss on termination
of World Duty Free contracts - (8)
Provision made against advances made
to joint venture and in respect
of guarantee of joint venture bank debt (15) -
------ -----
(15) (8)
Non-operating items
Loss on sale of operational assets - (1)
Profit on sale of investment properties 16 22
Loss on sale of World Duty Free Americas, Inc. (190) -
Release of World Duty Free inflight
division provision for costs of closure 2 -
World Duty Free's export
division to be discontinued
- goodwill impairment charge - (7)
------ -----
(172) 14
------ -----
(187) 6
Interest
Costs associated
with exchange of convertible bond - (5)
------ -----
- (5)
Exceptional items before taxation (187) 1
Taxation thereon
- loss on sale of World Duty Free Americas, Inc. 1 -
- interest - 1
Exceptional items after taxation (186) 2
In October 2001, World Duty Free plc disposed of World Duty Free
Americas, Inc. for consideration of (pound)4 million. The loss of
(pound)190 million is stated after charging goodwill of (pound)155
million.
Segmental information for the year ended March 31, 2002
Revenue
March 31, March 31,
2002 2001
(pound)M (pound)M
---------- ---------
Airports
Heathrow 760 759
Gatwick 286 290
Stansted 132 113
------ -----
Total UK regulated airports 1,178 1,162
------ -----
Glasgow 67 65
Edinburgh 56 50
Aberdeen 27 26
Southampton 14 14
------ -----
Total UK non-regulated airports 164 155
Total international airports 60 64
------ -----
Total airports 1,402 1,381
------ -----
World Duty Free
Continuing operations 363 416
Discontinued operations 117 322
------ -----
Total World Duty Free 480 738
------ -----
BAA Lynton 35 36
Rail 58 63
Other operations 12 8
Group 1,987 2,226
Share of joint ventures 17 35
Group and share of joint ventures 2,004 2,261
Analyzed between:
United Kingdom - continuing operations 1,792 1,789
United Kingdom - discontinued operations - 4
Europe - continuing operations 39 94
North America - continuing operations 28 34
North America - discontinued operations 117 318
Other - continuing operations 28 22
------ -----
2,004 2,261
------ -----
Segmental information for the year ended March 31, 2002
Operating profit - pre-exceptional
March 31, March 31,
2002 2001
restated
(pound)M (pound)M
--------- --------
Airports
Heathrow 320 323
Gatwick 103 116
Stansted 37 24
------ -----
Total UK regulated airports 460 463
------ -----
Glasgow 25 23
Edinburgh 20 15
Aberdeen 10 9
Southampton 3 3
------ -----
Total UK non-regulated airports 58 50
------ -----
Total international airports 4 8
------ -----
Total airports 522 521
------ -----
World Duty Free
Continuing operations 17 12
Discontinued operations (3) 7
------ -----
Total World Duty Free 14 19
BAA Lynton 21 24
Rail 7 10
Other operations (14) (6)
Group 550 568
Share of joint ventures and associates 6 11
Group and share of joint ventures and associates 556 579
Analyzed between:
United Kingdom - continuing operations 558 568
United Kingdom - discontinued operations - -
Europe - continuing operations (2) 2
North America - continuing operations 1 2
North America - discontinued operations (3) 7
Other - continuing operations 2 -
------ -----
556 579
------ -----
Segmental information for the year ended March 31, 2002
Operating exceptional items
March 31, March 31,
2002 2001
(pound)M (pound)M
----------- --------
Airports
Heathrow - -
Gatwick - -
Stansted - -
------ -----
Total UK regulated airports - -
Glasgow - -
Edinburgh - -
Aberdeen - -
Southampton - -
------ -----
Total UK non-regulated airports - -
------ -----
Total international airports - -
------ -----
Total airports - -
------ -----
World Duty Free
Continuing operations - (4)
Discontinued operations - (4)
------ -----
Total World Duty Free - (8)
------ -----
BAA Lynton - -
Rail - -
Other operations - -
Group - (8)
Share of joint ventures and associates (15) -
Group and share of joint ventures and associates (15) (8)
Analyzed between:
United Kingdom - continuing operations (15) (3)
United Kingdom - discontinued operations - -
Europe - continuing operations - -
North America - continuing operations - -
North America - discontinued operations - (4)
Other - continuing operations - (1)
------ -----
(15) (8)
------ -----
Segmental information for the year ended March 31, 2002
Operating profit - post-exceptional
March 31, March 31,
2002 2001
restated
(pound)M (pound)M
--------------- ----------------
Airports
Heathrow 320 323
Gatwick 103 116
Stansted 37 24
--------------- ----------------
Total UK regulated airports 460 463
Glasgow 25 23
Edinburgh 20 15
Aberdeen 10 9
Southampton 3 3
--------------- ----------------
Total UK non-regulated airports 58 50
--------------- ----------------
Total international airports 4 8
--------------- ----------------
Total airports 522 521
--------------- ----------------
World Duty Free
Continuing operations 17 8
Discontinued operations (3) 3
--------------- ----------------
Total World Duty Free 14 11
--------------- ----------------
BAA Lynton 21 24
--------------- ----------------
Rail 7 10
--------------- ----------------
Other operations (14) (6)
--------------- ----------------
Group 550 560
--------------- ----------------
Share of joint ventures
and associates (9) 11
--------------- ----------------
Group and share of joint
ventures and associates 541 571
--------------- ----------------
Analyzed between:
United Kingdom -
continuing operations 543 565
United Kingdom -
discontinued operations - -
Europe - continuing operations (2) 2
North America -
continuing operations 1 2
North America -
discontinued operations (3) 3
Other - continuing operations 2 (1)
--------------- ----------------
541 571
--------------- ----------------
Segmental information for the year ended March 31, 2002
Net assets
March 31, March 31,
2002 2001
restated
(pound)M (pound)M
--------------- ----------------
Airports
Heathrow 2,796 2,547
Gatwick 1,059 1,036
Stansted 950 796
--------------- ----------------
Total UK regulated airports 4,805 4,379
--------------- ----------------
Glasgow 199 192
Edinburgh 159 155
Aberdeen 67 66
Southampton 53 51
--------------- ----------------
Total UK non-regulated airports 478 464
--------------- ----------------
Total international airports 26 20
--------------- ----------------
Total airports 5,309 4,863
--------------- ----------------
World Duty Free
Continuing operations 12 36
Discontinued operations - 289
--------------- ----------------
Total World Duty Free 12 325
--------------- ----------------
BAA Lynton 311 287
--------------- ----------------
Rail 559 574
--------------- ----------------
Other operations(1) (35) (20)
--------------- ----------------
Group 6,156 6,029
--------------- ----------------
Share of joint ventures
and associates 13 (2)
--------------- ----------------
Group and share of joint
ventures and associates 6,169 6,027
--------------- ----------------
Analyzed between:
United Kingdom -
continuing operations 6,087 5,671
United Kingdom -
discontinued operations - -
Europe - continuing operations 9 16
North America -
continuing operations 5 5
North America -
discontinued operations - 289
Other - continuing operations 68 46
--------------- ----------------
6,169 6,027
--------------- ----------------
Net debt (1,651) (1,576)
Pension asset and pension and
other post retirement liabilities 289 375
--------------- ----------------
Net assets 4,807 4,826
--------------- ----------------
(1) Includes consolidation adjustments
Discontinued operations represent World Duty Free's export
division and World Duty Free Americas, Inc. whose operations were sold
during the year and World Duty Free's inflight division whose
operations were terminated in the prior year.
NOTES
1. This statement has been prepared in accordance with the
accounting policies used in the 2000/01 annual report with the
exception of the changes described in note 2.
2. The Group has applied three new accounting standards, FRS 17,
FRS 18 and FRS 19 during the year. The adoption of FRS 17 and
FRS 19 has required a change to the accounting treatment of
pensions and deferred tax, and the prior year results have
been restated accordingly. The adoption of FRS 18 "Accounting
Policies" has not had a significant impact on the Group's
results or financial position.
3. The above financial information does not constitute the
statutory accounts within the meaning of Section 240 of the
Companies Act 1985 for the years ended March 31, 2002 or 2001,
but it is derived from those accounts after restatement of the
results for the year ended March 31, 2001 for FRS 17 and FRS
19. Statutory accounts for 2001 have been delivered to the
Registrar of Companies, and those for 2002 will be delivered
shortly. The auditors have reported on those accounts; their
reports were unqualified and did not contain statements under
section 237(2) or (3) of the Companies Act 1985. Shareholders
who prefer to receive the accounts in shorter form will
receive a copy of the Annual Review which contains a Summary
Financial Statement.
4. The interest charge is shown net of interest capitalized in
respect of the Group of(pound)32m (2001:(pound)33m).
5. The effective rate of tax on profit before exceptional items
in the year was 30%. On a similar pre-exceptional profit basis
the taxation charge for the restated year ended March 31, 2001
was based on an effective rate of 29%. There is a tax credit
of (pound)1m attributable to exceptional items recognized in
the period.
6. Subject to approval at the Annual General Meeting, the
recommended final dividend of 12.2p per ordinary share will be
paid on August 15, 2002 to shareholders on the register on
June 14, 2002. This will bring the total dividend for the year
to 18.3p per share, an increase of 3%.
7. The Group's capital expenditure, including capitalized
interest, in the year amounted to (pound)650m (2001:
(pound)573m). Airport fixed assets in the course of
construction include (pound)377m in respect of Terminal 5 at
Heathrow Airport for which planning consent in principle has
now been given, subject to a number of conditions. If for any
reason these conditions are not met or the outcome of the
current regulatory review is unsatisfactory, and as a result
the project does not proceed, 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.
8. The financial statements of the Group have been prepared under
the historical cost convention modified by the inclusion of
investment properties at open market valuation. Certain of the
Group's investment properties have been valued on this basis
by Drivers Jonas, Chartered Surveyors, at (pound)1,267m. The
Group's remaining investment properties are shown at a
Directors' valuation of (pound)1,330m which has been reviewed
by Drivers Jonas.
9. Net borrowings amount to(pound)1,651m (2001:(pound)1,576m).
ANNUAL GENERAL MEETING
The 2002 Annual General Meeting of BAA plc will be held in The
Queen Elizabeth II Conference Center, Broad Sanctuary, Westminster,
London SW1 on July 19, 2002 at 11:15 hours.
By order of the Board of BAA plc
Rachel Rowson
Company Secretary
June 5, 2002
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