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Airport generates £100m dividend

Greater Manchester councils share £20m: airport keeps £80m

Published on October 7th 2010.


Airport generates £100m dividend

Manchester Airport Plc generated a £100m dividend in 2010.The whopping payout – which is more than double the amount of last year - is revealed in the firm’s latest set of accounts, covering the year to March 31, 2010.

The dividend increased from £47.3m in 2009 despite turnover and profits remaining largely the same in 2010. The firm recorded a turnover of £282m (2009: £286m) and pre-tax profits of £46m, the same as the previous year.

Of that £100m, its parent company, Manchester Airport Group Plc, will get £20m, shared between the 10 Greater Manchester Councils that own it. Manchester City Council has a 55 per cent share, which equates to £11m. The other nine borough councils will get £1m each.

The airport itself will keep £80m to reinvest in the business.

In the notes to the accounts, the directors said the group was ‘well placed’ to manage the business successfully through a number of long-term contracts and ‘considerable financial resources.’ The group is due to renegotiate its banking facilities in July 2011, and the directors said that nothing had been drawn to their attention ‘to suggest a renewal would not be forthcoming on acceptable terms.’

The turnover is broken down into aviation (£131m); retail concessions (£59m); car parking (£34m); property (£29m) and ‘other’ (£28m).

The airport employed 2,040 staff (2009: 2,145), which carried a wage bill of £50.5m (2009: £52.8m). The airport owes £195m to creditors before March 31, 2011 and £181m after that period. I is owed £152m by debtors.

The company finished the year with net assets of £808m, down slightly from £899m the previous year.

The accounts also mention a contingent liability ‘in the respect of claims that have been made to the lands tribunal...from individual property owners in respect of alleged loss of property value arising from the development and use of new and extended airport runways.’

This refers to an on-going battle between the airport and more than 330 home-owners in Knutsford and Mobberley, who are being represented by law firm Hugh James. The claimants argued their house prices had been affected by the construction of runway 2. The airport reached a settlement in July.

The three regional airports owned or controlled by Manchester Airports Group also filed accounts today. East Midlands Airport and Bournemouth International Airport both recorded profit in 2010, but Humberside Airport lost money.

Here are the financial highlights:

Bournemouth International Airport Ltd
Turnover £15.7m (2009: £16.1m)

£4.8m – aviation
£2m – car parking
£2.5m – retail
£6.3m – property

Pre-tax profit £3m (2009: £1.8m)
Net assets £62m (2009: £60.8m)
Staff 116 (2009: 118)
Wage bill £4.6m (2009: £4.7m)

East Midlands International Airport Ltd
Turnover £49.5m (2009: £58.2m)

£23.8m – aviation
£9.2m – car parking
£5.1m – retail
£9m – property
£2.1m - other

Pre-tax profit £6m (2009: £9.2m)
Net assets £221.7m (2009: £213m)
Staff 253 (2009: 272)
Wage bill £11.4m (2009: £11.5m)
Highest paid director £307,000

Humberside International Airport Ltd
Turnover £8.3m (2009: £12.7m)

£2.7m – aviation
£1m – car parking
£927,000 – retail
£380,000 – property
£3.2 - other

Pre-tax loss £1.8m (2009: £1m)
Net liabilities £5.7m (2009: £3m)
Net debt £20m
Staff 142 (2009: 149)
Wage bill £3.9m (2009: £4.2m)

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7 comments so far, continue the conversation, write a comment.

Eddy RheadOctober 6th 2010.

£34m from parking?!?!?!?! Jesus wept! The cynic in my cant help thinking the charge to pick up wasnt really for "Health and Safety and security" reasons. Also £28m for 'other'? I know they charge you a pound for 'security' plastic bags and a vending machine in the gents once took my pound and didnt give me any breath freshener in return but it seems a bit vague for 28 Big Ones!

AnonymousOctober 6th 2010.

All that green propaganda and bossiness from the councils and they run airports for profit!

A clear case of 'Do as I say, not as I do'.

EARL OF DIDSBURYOctober 6th 2010.

And indeed "green propaganda" is exactly what it is , well done Manchester airport , stuff the eco fascists !,

ChesneyOctober 7th 2010.

Great news for the city to have this sort of fantastic business owned by us

HyperopianOctober 7th 2010.

Just like our smooth and well organised Commonwealth Games, Manchester kicks ass once again. We put BAA run airports to shame.

Jane BaxterOctober 8th 2010.

Manchester Airport is great! I am really glad to hear it is making a good profit. I think anybody who has travelled from either Liverpool or Heathrow airports will realise how good Manchester is. Can't wait to get on the big big Emirates super plane next week!

Ali McGNovember 1st 2010.

I love Manchester Airport. I've yet to have a crap experience there. And the money you pay for the little plastic bags goes to charity. I've now got several in my bag waiting for my next trip!

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