UK. At the Annual General Meeting of Alpha Airports Group Plc being held today, Chairman and Chief Executive Peter Williams will announce a +4% year-on-year rise in first half sales for the period ended 31 July.
He will also reveal that a detailed review is being conducted of the Group’s business strategy and the financial performance of the operating units.
Alpha Airport Services, which operates retail stores and catering outlets at airports, increased sales by +5% year-on-year with improvements in Ireland, Sri Lanka and the UK and a new contract win in Italy [Rome Fiumicino Airport – Ed]. Profitability was similar to the same period in the previous year.
Alpha Airline Services, which provides catering logistics, inflight catering, bonded stores and management services to airlines, increased sales by +3% year-on-year, driven by improvements in Jordan and Australia and the full period impact of acquisitions in Romania and Bulgaria.
These gains were offset by lower sales in the UK following the loss of the ThomsonFly contract in 2005. But profitability has increased due to a reduced cost base in the UK as a consequence of restructuring the business and the non-recurrence of start-up costs incurred in 2005 associated with the American Airlines contract.
The interim results for the six months to 31 July 2006 will be announced on Thursday 28 September.
Williams will announce that the Group expects its full year performance to remain in line with current market forecasts, although warning that it is still too early to determine the future impact of the security issues which affected UK airports in August. “We do anticipate some weakness in our Sri Lanka retail business due to local security concerns,” he will comment.
Alpha Airline Services in the UK will continue to be affected by the loss of the ThomsonFly contract in 2005. However this is expected to be largely offset by improved performance from other areas of this operating unit.
Meanwhile the recruitment process for a new Chairman and a permanent Finance Director is “well underway”.
MORE STORIES ON ALPHA
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Alpha’s nightmare over as company accounts are approved and shares relisted – 06/07/06
Excel Airways takes on US$10 million provision over Alpha contract investigation – 30/06/06
The Moodie Report PLUS – New Chief Executive backs Alpha to recover and grow – 02/06/06
