Half year results publication

Gatwick Funding Limited

30 August 2023

 

RNS Number: 7825K
Gatwick Funding Limited
30 August 2023

Issuer: Gatwick Funding Limited
Date: 30 August 2023

Gatwick Funding Limited (the "Issuer")
a company incorporated in Jersey (registered number 107376)

Half year results publication - Gatwick Airport

The Issuer's parent, Ivy Holdco Limited, today published its report and unaudited condensed interim consolidated financial statements for the six months ended 30 June 2023.

The Ivy Holdco Limited report and unaudited condensed interim financial statements consolidate the results of Ivy Holdco Limited, the Issuer, Ivy Bidco Limited and Gatwick Airport Limited. These financial statements and a related investor presentation are available on the Gatwick Airport Limited website at www.gatwickairport.com/investor.

London Gatwick delivers strong start to 2023 results with strengthened destination network

·    Strong financial performance in first half of 2023

·    Nearly 50 airlines fly from the airport to over 200 destinations, including 50 long-haul routes

·    Working with airport partners to improve on time performance.

·    Six-year investment plan sets out improvements to develop infrastructure and facilities

·    Northern Runway plan submitted and accepted by the Planning inspectorate for examination

Despite a challenging operational environment, strong demand for travel continued in the first half of 2023 at London Gatwick.

Supported by hard work from frontline colleagues, revenue increased in the first half of 2023, compared to 2022, and the business achieved an improved EBITDA and increased net profit, the airport said today when publishing its interim financial results.

2023 interim results include:

·    18.5 million passengers travelled through the airport in the first six months of 2023, up 41% compared to the same period in 2022. However, traffic was heavily impacted by COVID-19 travel restrictions, particularly in Q1 2022.

·    £423.3 million revenue, up 45% compared to 2022. Includes £212.7 million aeronautical income and £210.6 million from non-aeronautical sources, such as retail and parking

·    Operating costs (excluding depreciation, amortisation and exceptional costs) were £187.6 million for the period, up 31% on 2022

·    EBITDA at £235.7m, up 59% on 2022, with net profit for the period at £79.1 million, up 56%

Challenging operational environment in Europe

While air traffic movements at London Gatwick remain below pre-pandemic levels at 86% for the period, a greater number of air traffic control restrictions than normal, across large parts of Europe affected on time performance. Restrictions are put in place to manage and smooth out the flow of congested air traffic.

London Gatwick is working with airlines and ground handlers to ensure aircraft are ready to go for the first wave of departures early in the morning and throughout the rest of the day. The airport also took proactive action to prevent ground handling industrial action this summer, ensuring flights could continue as normal.

A further 200 security officers were recruited ahead of the busy summer period, which helped the airport get 98% of passengers through security in less than five minutes. The airport also hit 99.6% of all measured service level requirements during the period.

Future sustainable growth

London Gatwick has published a six-year Capital Investment Programme setting out significant improvements to develop and enhance airport infrastructure and facilities, while also meeting the airport's sustainability goals. The programme has been consulted on and agreed with airlines, and includes:

·    Investing over £250 million to meet the commitment to become a net zero airport by 2030 (for Scope 1 and 2 emissions), including replacing over 100 gas boilers

·    A £120 million-plus extension to the existing Pier 6 in the North Terminal to provide eight new pier-served aircraft stands

·    A £70 million programme to rehabilitate airport taxiways, with airfield resilience improved further with a new Rapid Exit Taxiway, reducing runway occupancy and aircraft taxi times

·    A new £44.2 million, 3,250 space new multi storey car park in the North Terminal, due to open in Autumn 2024

·    A £10-million pound plus redevelopment of the North Terminal departure lounge due to complete in 2024

London Gatwick's planning application (known as a Development Consent Order (DCO)) to bring its existing Northern Runway into routine use was also accepted for detailed examination by the Planning Inspectorate on 3 August and will now be scrutinised in detail by a panel of independent inspectors. A successful application would bring both resilience and additional capacity, while also generating around 14,000 new jobs and £1 billion for the region's economy every year.

Stewart Wingate, Chief Executive Officer, London Gatwick, said: "We worked closely with our partners to make sure the airport was well resourced ahead of the summer. This and the hard work of our frontline colleagues helped us provide passengers with a good level of service, despite a challenging operational environment across much of Europe.

"We will continue working closely with our airport partners to improve punctuality, supported by projects in our new Capital Investment Programme to build airport resilience and long-term sustainable growth. In this respect, I'm pleased that our planning application to bring our existing Northern Runway into routine use has moved forward to the examination stage.

"It's also promising to see the airport's recovery continue, as we once again provide passengers with more choice. Forty-nine airlines now fly from the airport to over 200 destinations, including 50 long haul routes."

NOTES

1.            Recent additions to London Gatwick's long-haul network include Norse services to San Francisco, Washington DC, Boston and Los Angeles, Air India services to Goa, Ahmedabad, Amritsar and Kochi (Cochin), Air China flights to Beijing and Saudia services to Jeddah.

2.            A CAA consultation recently closed on London Gatwick's proposal to extend the airport's existing 'Contract and Commitments' framework. The proposal will provide airlines with certainty so they can better plan, invest and grow, while also securing great service, choice and competitive pricing for passengers.

3.            The major redevelopment of London Gatwick's train station will complete in coming months, and will improve accessibility, reduce overcrowding and help 50% of passengers get to and from the airport by rail by 2030.

4.            The airport also launched a refreshed brand and vision in the first half of the year, strengthening its focus on simplifying the passenger journey.

About Gatwick Airport

Gatwick is the UK's second largest airport and is a vital piece of national infrastructure that helps drive both the regional and national economy. More than 40 airlines fly from the airport to over 150 short-haul and more than 45 long-haul destinations. The airport is focused on rebuilding and growing sustainably in the long term. It has ambitious plans to be a net zero airport by 2030 and increase capacity by bringing its Northern runway into routine use.  Vinci Airports owns a 50.01% stake in the airport, with Global Infrastructure Partners managing the remaining 49.99% interest.

About VINCI Airports

The world's leading private airport operator, VINCI Airports operates 72 airports in 13 countries. Thanks to its expertise as a global integrator, VINCI Airports develops, finances, builds and manages airports by providing its investment capacity and its know-how in optimizing operational performance, modernizing infrastructure and managing their operations and environmental transition. VINCI Airports is the first airport operator to have committed to an international environmental strategy in 2016, to achieve the goal of net zero emissions across its entire network by 2050.

For more information:

www.vinci-airports.com

@VINCIAirports

https://www.linkedin.com/company/vinci-airports/

About Global Infrastructure Partners

Global Infrastructure Partners (GIP) is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. With decarbonization central to our investment thesis, we are well positioned to support the global energy transition. Headquartered in New York, GIP has offices in Brisbane, Dallas, Delhi, Hong Kong, London, Melbourne, Mumbai, Singapore, Stamford and Sydney.

GIP has approximately $100 billion in assets under management. Our portfolio companies have combined annual revenues of approximately $80 billion and employ over 100,000 people. We believe that our focus on real infrastructure assets, combined with our deep proprietary origination network and comprehensive operational expertise, enables us to be responsible stewards of our investors' capital and to create positive economic impact for communities. For more information, visit www.global-infra.com.

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