Birmingham Airport flying high as profits rise
BIRMINGHAM Airport made a post-tax profit increase of almost £3m despite a slight fall in income from its aeronautical operations, latest accounts have shown.
Documents registered with Companies House show that for the year ended March 31, 2013, Birmingham Airport Ltd made a post-tax profit of £10.3m (2012: £7.47m), an increase of £2.8m. The performance benefited from increased contributions from its concessions and property assets.
The results will be a further boost to the airport on the day it prepares to welcome the reintroduction of direct flights to India.
The results show a dividend of 18.40p per share (2012: 11.36p), amounting to £6.87m (2012: £4.24m) was paid during the year, with an interim dividend of 10.04p (2012: nil), amounting to £3.75m (2012: nil).
Turnover grew to £107.4m (2012: 103.8m) and this was split between aeronautical income (from airlines) of 47.2m (2012: 47.6m) and concessions, property income and recharges of £60.2m (2012: £56.3m).
The directors – which include airport chief executive Paul Kehoe and Birmingham City Council leader Sir Albert Bore – have recommended a final dividend payment of 13.95p per share, equating to £5.2m.
As with many large organisations, the airport continues to be hamstrung by its massive pension liabilities.
In the results statement, it said: “We continue to make progress in addressing the group’s pension liabilities.”
On March 28, 2013 the company agreed an asset-backed funding arrangement with the trustees of the pension scheme to help address the pension funding deficit. In connection with the arrangement property worth £33.3m was leased and subsequently leased back to a limited partnership established by the group.
“On (same date) the company made a special contribution to the pension scheme of £25.3m and on the same date the pension scheme used this contribution to acquire an interest in the partnership for its fair value of £25.3m,” it said.
The move entitles the pension scheme to receive a £2m income per annum, increasing by 4% per annum for the next 15 years. Distribution payments will be made quarterly.
