By Justin Lee (Singapore)
Manchester Airport Group (MAG) is the second largest airport operator in the United Kingdom . It owns and operates three airports – Manchester, London Stansted, East Midlands.
Source: MAG Investor Presentation for Half Year ended 30 Sept 2020
MAG is privately managed on behalf of its shareholders consisting of IFM (35.5%), Manchester City Council (35.5%) and the other nine Greater Manchester Councils (29%).
Due to the disruption in air travel caused by the outbreak of the global COVID-19 pandemic, MAG saw an 88.5% decline in passenger traffic across its three airports for the half year ended 30 September 2020 to 4.2 million.
Passenger throughput at Manchester, Stansted and East Midlands Airports fell by 90.2%, 86.2% and 90.3% to reach 1.7 million, 2.2 million and 0.3 million respectively for the half year ended 30 September 2020.
Source: MAG Investor Presentation for Half Year ended 30 Sept 2020
MAG saw a 82.5% reduction in revenue to GBP 93.8m in the same period while its EBITDA position showed a reduction of GBP 352.6m to a loss of GBP 81.9m over the half year ended 30 September 2020.
It managed to maintain a strong liquidity position as of 30 September 2020. With current assets at GBP 838.2m and current liabilities for the period at GBP 269m, its current ratio was at a strong 3.11.
Actions taken to improve MAG’s liquidity position during the half year ended 30 September 2020 included:
– Securing waivers on the results of the Group’s loan covenants for 30 September 2020 and 31 March 2021;
– Obtaining additional funding of GBP 300m from MAG’ s shareholders in the form of loans and a GBP 37.4m equity, and injection
– Obtaining over GBP 350m of proceeds through the sale of its non-core property portfolio and partial sale of the Group’s joint venture which more than offset investments in infrastructure and the US acquisition.