Highlights
Fifth consecutive year of strong growth in EBITDA (+12.0% to £317.7m) driven by record passenger numbers (+7.0% to 51.9m) and new route development.
MAG has experienced its most successful year ever. London Stansted Airport added more passengers year-on-year (2.3m) than any other airport in the UK, placing it among the fastest growing major airports in Europe. Manchester Airport further developed its role as the global gateway for the North, serving a record 23.5m passengers.
Stansted is now handling 5.7m more passengers per year than when MAG acquired the airport in early 2013, an increase of 32.6%. The airport still has spare runway capacity and is well-placed to meet future growth in London's aviation demand, prior to any new runway being built.
MAG now has over 100 airlines flying more than 1000 aircraft into its airports each day, including a host of exciting new destinations across the globe. A new direct link between Manchester Airport and Beijing is the latest example of the airport being the only one outside London to offer services to key long-haul destinations.
New routes announced or started this year include from Manchester to San Francisco, Boston, Phuket, Mauritius, and from London Stansted to Orlando, Cancun and Las Vegas. Stansted also saw flights with British Airways to a range of European destinations announced for the first time.
This year has seen the Group investing heavily in preparing for the future; at Stansted Airport, the £80m terminal improvement programme and £11m redevelopment of Satellite One were completed. Planning permission was also granted for the £1bn Manchester Airport Transformation Programme.
An increase in commercial income has been driven by more passengers upgrading their airport experience and taking advantage of MAG’s award-winning Escape Lounges, Premium ‘Meet and Greet’ valet parking offers and fast track security clearance.
Creation of a new ‘MAG on-line’ division, headed by former MD of Stansted, Andrew Harrison, to focus on improving customer service and airport efficiency, and deliver a range of innovative e-commerce products that will advance MAG’s offer to passengers.
Cargo income has grown strongly, up 7.0% year-on-year at £22.7m, benefitting from the continued growth in internet shopping and new route launches. Cargo volumes across the group are up 4.8% year on year.
MAG USA has had a productive first year of operation and been successful in winning contracts for three ‘Escape Lounges’; the lounge at Minneapolis St-Paul is already open and Oakland Airport lounge will open this summer. The third, at Bradley Airport in Hartford, Connecticut, will open in the autumn.
MAG Property has agreed a number of significant deals across our airports as occupiers seek to take advantage of the benefits that come from locating close to global connectivity, including; the unveiling of the £130m Airport City Manchester China Cluster Scheme; Amazon agreeing to occupy a 654,000sq ft fulfilment centre at Airport City Global Logistics; and construction beginning on a new high quality Hilton hotel at Stansted Airport.
In 2015, MAG’s airports across the UK, at Manchester, London Stansted, East Midlands and Bournemouth, contributed £5.6 billion in economic activity to UK PLC. This means that for every £1 the Group earned in revenue, economic activity worth another £7.20 was generated in the wider economy as a result of the activities at our airports.
The Group announces a final dividend of £77.2m, taking the total dividends in respect of the full year ended March 2016, to £115.8m, a 24.5% year-on-year increase.
Charlie Cornish, Chief Executive of MAG, said: “This has been the fifth consecutive year of growth for the Group and we have continued to outperform our challenging financial targets and seen record numbers of passengers using our airports.
“We have also made significant progress with our long term investment programme, made an important contribution to the economies in which we operate and generated increased returns for our shareholders.
“Our airports have been able to outperform their competitors over the last year largely because they still have the capacity to grow. In the coming years, as this country continues to see an increase in air travel, Government must ensure that aviation policy makes best use of capacity at airports where it already exists, such as London Stansted and Manchester.
“MAG’s business strategy has a long-term focus with resilient foundations. This will stand us in good stead to respond to any adverse consequences that may be felt by the UK economy following the country’s decision to the leave the EU. Our strategy to drive top-line growth, improve efficiency and broaden our mix of business will continue and in the coming year we will ensure that we remain focused on delivering further profitable growth.
“As the country enters a new era, we will be working closely with the rest of our industry to ensure that once we leave the EU the UK remains a member of the European single aviation market. At no point have the excellent international air links that this country’s airports provide been more vital to the nation’s future prosperity and economic growth."
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