Airports operator BAA today said it was optimistic it would get thego-aheadto build the proposed Terminal 5 at Heathrow as income from its retail sector climbed.
Revenue from its retail business which accounts for 44% of BAA’stotal income,jumped by 9% to £606m although the strength of sterlingcontributed to aslower rate of growth in the second half. Duty free liquor and tobacco grew by 11% and 16% to £55m and£41m respectively with tax free perfume showing strong growth.
Announcing pre-tax profits of £407m in the year to the end ofMarch,compared with £418m previously, chief executive Sir John Egansaid: “Thepublic inquiry into the proposed Terminal 5 continued slowly.”
But Sir John stressed: “We remain optimistic that the outcome will bepositive.”
Another high point of the year was Stansted airports delivery of itsfirstfull year of operating profit, Stansted continues to be our fastestgrowingairport.” Shareholders will see their total dividend payout climb from11.25pto 12.4p on earnings per share of 28.4p against 30.4p.
Group pre-tax profits were hit by a £40m one-off cost relatingto thewrite-off of capitalised interest relating to the Terminal 5 project.
The company in the year enjoyed a 4.6% rise in passenger numbers to98mwhich helped group income climb by 9.6% to £1.4bn.
PA News 10/06/97
