Peel Airports Directors' Report & Financial Statements (2012)

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PEEL AIRPORTS LIMITED
DIRECTORS' REPORT & FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2012
COMPANY NUMBER 3385025
I I I I ~ I I I I W I
A1F05EUZ
A
15
10/08/2012 #
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COMPANIES HOUSE
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Contents
Directors, ProfessiOnal Advtsers and Regtstered Office
Report of the Dtrectors
Statement ofdtrectors' responstb1ht1es m respect of the Drectors' report and the financtal statements
Independent Audttor's Report
Group Profit and Loss Account
Group and Company Balance Sheets
Group Cash Flow Statement, Group Reconcthallon of Cash Flow to Movement m Net Debt
Group Statement of Total Recogntsed Gams and Losses and Reconcihatton of Movements m Group and Company
Shareholders' Funds
Notes to the Fmanctal Statements
Substdtary Undertakmgs
2
3
7
8
10
11
12
13
14
33
...
Directors, ProfessiOnal Advisers and Registered Office
Directors:
Secretary:
Registered Office
Registered Number:
Auditor:
Almt Rtkhy
George Casey
Glenn McCoy
Peter Hosker
Steven Underwood
Cohn Campbell
Jobn Duthte-Jackson
Cratg Rtchmond
Robert Hough
Elizabeth McDonald
Ltverpool John Lennon Atrport
Ltverpool
L24 lYD
3385025
KPMG LLP
Chartered Accountants & Statutory Audttor
Ltverpool
Umted Kmgdom
2
...
Report of the Dire<:tors for the year ended 31st March 2012
The Directors subm1t the1r annual report together w1th the aud1ted financtal statements of the Group for the year ended 31 March
2012
Results, review of business and future developments.
The Peel Airports Group ("the Group") compnses the Company and 1ts subs1d1anes The prmc1pal actiVIties of the Group dunng
the year were the ownership and operatiOn of three key regiOnal atrports, airport development and the provtsron of ancillary
avtatlon servtces
Followmg the sale of 1ts stake m February 2012 of Durham Tees Valley A1rport, the Group entered mto an agreement w1th the
new owners to provide key avtatiOn services
The Group contmues to mvest m 1ts assets at us two a1rports m the UK, Liverpool John Lennon Atrport and Robm Hood
Doncaster Sheffield A1rport, w1th total cap1tal expenditure for the year bemg 3 6m
Revenues were denved from atrcraft and passenger handling charges and mcome from Its commerctal activities, parttcularly retatl
and car parkmg as well as general avtat1on Overall passenger numbers for the contmumg busmess (LJLA and RHAS) for the
year mcreased to 6,061,677 from 5,901,065 w1th represented an mcrease of2 7% on the prev10us year
The Group focuses on prov1dmg a htgh quahty, cost effective servtce to low cost and charter a1rhnes servmg the needs of the local
commumttes The busmess ts focussed on tmprovmg the passenger expenence and Improvements m non-aero revenue ensunng
that there contiDues to be adequate capac1ty to meet the demand m growth and creatmg the platform for profitable returns for the
future Costs contiDued to be closely managed
Livervool John Lennon Airport fLJLAJ
For the financ1al year 11/12 overall passenger numbers grew to 5,216,088 compared to 5,012,348 m the prev1ous year,
representmg an mcrease of 4% year on year The atrport made an operatmg profit (before fixed asset tmpatrment losses) of 3 7m
(2011 2 5m), w1th eammgs before IDterest, tax, deprec1atton and amort1sat10n ("EBITDA") of 11 4m (2011 10 Jm)
Dunng the year the Group contmued to mvest m the mfrastructure at LJLA wtth work on several new retatl stores and food and
beverage outlets bemg completed, th1s IDcluded the development of a new lands1de Starbucks, a JD Sports reta1l umt, Cla1re's
Accessones and a complete refurbtshment of the Estuary restaurant to better serve customer needs In addttwn several other key
umts mcludmg the World Duty Free outlet were re-developed dunng the year and the passenger amvals hall was expanded to
better sutt the needs of passengers
Robin Hood Donca<ler Sheffleld Airport rDSAI
The financ1al year ended 31 March 2012 1s the seventh financ1al year ID wh1ch the a1rport has been operational Passenger traffic
saw a shght dechne from 888,717 to 845,589 passengers The a1rport made an operatiDg loss of 3 4m compared to 3 ?m ID the
prevtous year
The Company wtll contmue to closely manage tts costs and work wtth tts busmess partners to tmprove the operatiOnal effictency
of the atrport and to attract new bus mess The Dtrectors beheve that the opportuntty for better access to the atrport afforded by the
now approved F ARRS Lmk road proJect wtll asstst m attractmg new atrhnes to the atrport
Results and Financial Performance
The Group's results and financtal pos1tton are set out m the profit and loss account and balance sheets on pages 10 and 11
As shown m the profit and loss account turnover for the year totalled 46 2m compared to 42 3m ID the prev10us year There
was a Group operattng loss of I I I m compared to 2 8m m the prev1ous year
Net hab1httes IDCreased by 22 Om from 30 ?m at 31 March 2011 to 52 7m at 31 March 2012 Th1s decrease was
predonunantly as a result of the loss for the year
The net debt of the Group IDCreased from 196 ?m at 31 March 2011 to 215 2m at 31 March 2012, resultiDg mamly from new
external and shareholder fundiDg
No d1v1dend can be declared (2011 same)
3
PEEL NRPORTS LIMITED
Report of the Directors (Continued)
Princtpal Risks and Uncertainties
The nsks and uncertamt1es descnbed below are constdered to have the most stgmficant effect on the Group's busmess financral
results and prospective The hst ts not mtended to be exhaustive The Group cames out detailed nsk assessments to ensure that
nsks are assessed and to the extent possble mtttgated
The UK avratlon market contmues to show a reductiOn m mtemattonal traffic and a steep declme m the domestic market Thts
market trend ts a dtrect result of the current economtc chmate, Significant reductiOn m dtsposable mcome bemg ava1lable for
busmess travel and hohday spend
The cost of secunty prov1ston, ansmg from the need to protect our natiOnal atr borders, contmues to mcrease It should be
highlighted that the cost resultmg from havmg these more stnngent secunty measures mamtamed at our arrports cannot m all
cases be recovered from aut mes or passengers
Growmg regulatory costs and contmued taxatwn of the mdustry IS a dtsadvantage when competmg for bus mess wtth competitor
atrports m the rest of the EU
Other risks and uncertainties:
Contmued uncertamty m Eurozone over the future of the Euro and the economtc stabthty of certam member states
Contmued Impact of double taxation from January 2012 (combmed effect of the EU Emtsston Tradmg Scheme - (ETS)
and further mcrease m Atr Passenger Duty (APD) from I" Apnl 20 12)
Contmued recess ton, weak consumer confidence and slow recovery of the UK economy
Rtsmg av1at1on fuel cost and 1mpact on a1rlme costs, mcreasmg m fare levels
Growmg cost pressure on the mdustry (economtc regulation, atrport pohcmg and secunty costs)
More pronounced un-compettttveness ofUK avtatton market compared to European competitors
Industry consoltdatton w1ll affect competitiveness across the UK's reg1onal atrports
The Group contmues to take an act1ve part m Government consultatiOns on UK avtatton regulatory and avtatwn pohcy matters
thus ensunng the Group contmues to be well postttoned m the domestic and mtemattonal market whtlst at the same ttme
protectmg tts strategic mterest and ensunng contmued growth
Going Concern
After makmg enqmres and recetvmg confirmatiOn of contmued financtal support from the company's shareholders Vantage
Airport Group Limited and Peel Investments (PAH) Limited, the dtrectors have a reasonable expectation that the Company has
adequate resources to contmue m operational extstence for the foreseeable future and therefore they contmue to adopt the gomg
concern basts m prepanng the financtal statements Further detatlts gtven m note 1 to the accounts
Airport Economic Regulations
Liverpool Airport Limited ts subject to economic regulatiOns under the Airports Act 1986 which requtre the Airport to hold
permiSSion from the Ctvll A vtatton Authonty to levy atrport charges
4
Report of the Directors (Contmued)
Shareholders
The Shareholders as at 31" March 2012
Vantage Atrport Group (UK) Ltmtted
Peel Investments (PAH) Ltmtted
The Board of Directors
Number of ordinary shares
45,994,654
24,766,351
Except as stated, the dtrectors who held office dunng the financtal year and thereafter were
Steven Underwood
Amtt Rtkhy
George Casey
Nevtlle Wetr
Glenn McCoy
Col m Campbell
John Duthte-Jackson
Cratg Rtchmond
Robert Hough
Employees
(restgned 31 May 2012)
(appomted 20 Apnl2011)
(appomted 19 July 2012)
Percentage
65
35
The Group's employment strategy ts regularly revtewed and updated by the Board Thts strategy ts lmked to busmess needs and
has been destgned to dehver the growth and development for our people Our employment pohctes are destgned to provtde equal
opportumtles Irrespective of age, dtsab1hty, ethmctty, gender, gender reasstgnment, mantal status and civtl partnership,
nattonahty, pregnancy and matemtty, race, rehgwn and behef and sexual onentatiOn
The Group has positive workmg relatwnshtps wtth the trade umons, m particular the GMB and Umte Umons The Group works m
partnershtp wtth the trade umons to successfully resolve any confltct and works together to try and achaeve corporate obJeCtives
and goals
The Group delivers a robust, wtde rangmg trammg program, by utthsmg a network of m-house subject matter experts All
employees, whether part-time or full-time, temporary or permanent, are treated fatrly and equally We select employees for
employment, promotiOn, trammg or other matters affectmg thetr employment on the basiS of aptttude and abihty A key at m of the
busmess ts to promote w1thm and the Group's successiOn plans have been developed to asstst wtth mternal progresston All
employees are ass1sted and encouraged to develop to thetr full potential so that the1r combmed talents and resources of the team
are fully utihsed to maxtmtse the effictency of the orgamsatton
The Group 1s constantly lookmg for ways to ensure that employees are able to parttctpate and engage m the busmess
ConsultatiOn takes place wtth employees or thetr representatives at all levels, wtth the atm of ensunng thetr v1ews are taken fully
mto account when makmg strategic dectswns The Group has focussed on tmprovmg commumcattons wtth all employees,
busmess bnefing are cascaded through the ongmatton to commumcate key busmess and operational tssues and mclude regular
video bnefings provided by semor management whtch are accesstble to all employees
Environment and the Community
The Group has always been consctous that tt has a duty to balance the potenttal envtronmental Impacts of operatmg the auports
with the soctal and economtc benefits an atrport bnngs to the regwn It serves The Group contmues to work hard to mmnruse the
environmental tmpact of Its operatiOn at a local and global level, workmg to reduce the tmpact of not se on the local environment
and our carbon emtsstons on the wtder envtronment Full constderatton 1s gtven to envtronmental 1ssues part1cularly when
developmg new proJects, refurbtshmg extstmg properties and on poss1ble acquiSitions Destgn consultants are encouraged to
promote good environmental performance with constderatton gtven to environmental nsk, energy consumption, the use of
envtronmentally fnendly matenals and the avoidance of matenals hazardous to health
The Group has an obligatiOn under the Carbon Reduction Commitment (CRC) to record and report the overall C02 emtsstons
from the atrports operatiOns ln the financtal year 20! l/!2 the total CRC ehgtble C02 emtsstons for PAL was 13,220 tonnes of
whtch LAL and DSAL ts 9,049 and 4,! 71 tonnes respectively
5
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Report of the Directors (Contmued)
Charitable and political donations
Dunng the year the Group collected 18,303 through Com Co lntemattonal PLC (CCI) whtch went mamly to local and chtldren's
chanttes m Ltverpool and South Yorkshtre The Group works closely wtth a number of schools and colleges covenng puptls and
students rangmg from mfants to Umverstty undergraduates, dtscussmg the role of the atrport hnked to the vanous cumculums
The Airport also operates a successful and growmg number of orgamsed a1rport tours, hostmg educational vtstts and a vanety of
commumty groups from across the regwn and beyond
The chosen chanttes dunng thts penod were Zoe's Place, Clatterbndge Cancer Trust, Alder Hay lmagme Appeal and Clatre
House at LPL, and Bluebell Wood Chtldren's Hosptce, Macmtllan, Sheffield Chtldren's Hospttal and the Yorkshire Atr
Ambulance were the chosen chanttes at DSA
Creditor Payment Pohcy and Practice
It ts the Company's pohcy that payments to supphers are made m accordance wtth terms and condtttOns agreed between the
Company and tts supphers, provtded that all tradmg terms and condtttons have been met
The Dtrectors of the Company, who held office durmg the year, or thereafter, had no mterest m the shares of the Group compames
at any ttme dunng the year Each person who 1s a dtrector at the date of approval of th1s report confirms that
(a) so far as they are aware, there 1s no relevant aud1t mformatton ofwh1ch the Company's audttor are unaware, and
(b) they have taken all the steps that they ought to have taken as a dtrector to make themselves aware of any relevant audtt
mformatton and to establish that the Company's audttor ts aware of that mformahon
Thts confirmation ts gtven and should be mterpreted m accordance wtth the provtstons of s418 of the Compames Act 2006
Pursuant to SectiOn 487 of the Compames Act 2006, the audttors wtll be deemed to be reappomted and KPMG LLP wtll therefore
contmue m office
~ ~ 1 2 - I A '
Ehzabeth McDonald
Secretary
For and on behalf of the Board of Directors
[date)
6
Registered office
Ltverpool John Lennon Atrport
Ltverpool
L24 lYD
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE DIRECTORS' REPORT AND THE
FINANCIAL STATEMENTS
The dtrectors are responstble for prepanng the Annual Report and the financtal statements m accordance Wtth apphcable law and
regulatiOns
Company law requtres the dtrectors to prepare financtal statements for each financtal year Under that law they have elected to
prepare the group and parent company financtal statements m accordance wtth UK Accountmg Standards and apphcable law (UK
Generally Accepted Accountmg Practice)
Under company law the dtrectors must not approve the financ.al statements unless they are satisfied that they gtve a true and fatr
vtew of the state of affatrs of the group and parent company and of thetr profit or loss for that penod In prepanng each of the
group and parent company tinanctal statements, the dtrectors are reqmred to
select SUitable accountmg pohctes and then apply them conststently,
make Judgements and estimates that are reasonable and prudent,
state whether applicable UK Accountmg Standards have been followed, subject to any matenal departures dtsclosed
and explamed m the financtal statements,
prepare the financtal statements on the gomg concern basts unless tt IS mappropnate to presume that the group and the
parent company w1ll contmue m busmess
The directors are responsible for keepmg adequate accountmg records that are suffictent to show and explmn the parent company's
transactiOns and disclose with reasonable accuracy at any ttme the financial position of the parent company and enable them to
ensure that tts financtal statements comply wtth the Compames Act 2006 They have general responstbthty for takmg such steps
as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other 1rregulanttes
7
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PEEL AIRPORTS LIMITED
We have audited the financial statements of Peel Airports Limited for the yedr ended 31st March 2012 set out on page I 0 to 33
The financial reportmg framework that has been applied m their preparation "applicable law and UK Accounting Standards (UK
Generally Accepted Accountmg Prdctice)
This report IS made solely to the company's members, as a body, m accordance with Chapter 3 of Part 16 of the Compdme Act
2006 Our audit work has been undertaken so that we might state to the company's members those matters we are to state
to them m an audator's report and for no other purpose To the fullest extent permmed by law, we do not a< .. cept or
responsab1hty to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for
the opmtons we have formed
Respective responsibilities of directors and auditor
As explamed more fully 10 the Dtrcdors' Respon.,abihtaes Statement .;;et out on page 7, the directors arc responsible for the
preparation of the financtal statements and for bemg satisfied that they g1vc a true and fau v1cw Our '"to audit, and
express an oJ1mton on, the m accordam,c w1th apphc.tble law and lnternauonal on Aud1tmg (UK
and Ireland) Those standards require us to comply with the Auditing Practices Board's (APB') EthiCdl Stdndards for Auditors
Scope of the audit of the financial statements
A descnptton ot the scope of an .tudJt of financial stdtementli IS provided on the APB's webslte at
www frc org uk/apb/scope/pnvatc cfm
Opinion on financial statements
In our opmwn the financial statementli
gi vc a true and fair view of the state of the group's and of the parent company's affairs "' dt 11 t March 20 12 and of the group's
lo" for the year then ended,
have been properly prepared m accordance with UK Generally Accepted A"countmg Pr.tct1ce, and
have been prepared In accordance with the reqUirements of the Compame Act 2006
Opinion on other matter prescribed by the Companies Act 2006
In our opmwn the mformation given m the Directors' Report for the finanCidl year for which the financial statements arc prepared
IS consistent with the financial statements
8
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PEEL AIRPORTS
LIMITED (contznued)
Matters on which we are required to report by exception
We have nothmg to report m respect of the followmg matters where the Compames Act 2006 requtres us to report to you tf, m our
optmon
adequate accountmg records have not been kept by the parent company, or returns adequate for our audtt have not been
recetved from branches not vtsited by us, or
the parent company financtal statements are not m agreement wtth the accountmg records and returns, or
certam dtsclosures of dtrectors' remuneration specified by law are not made, or
we have not recetved all the m formatiOn and explanatiOns we reqUire for our audtt
r Y f ( o ~ .
HP Jones (Senior Statutory Auditor)
for and on behalf of KPMG L.L.P, Statutory Auditor
Chartered Accountants
8 Pnnces Parade
Ltverpool
L3 IQH
9

Group Profit and Loss Account jar the year ended 31st March 2012
Note 2012 2011
Dis- Dts-
Continuing continued Total ContlDUing contmued Total
000 000 000 000 000 000
Turnover 2 41,704 4,513 46,217 36,564 5,692 42,256
Cost of sales (20,699) (3,920) (24,619) (20,517) (4,759) (25,276)
Gross profit 21,005 593 21,598 16,047 933 16,980
Ftxed asset 1mpamnent /1 (1,383) (1,383) (360) (360)
lmpamnent loss on mcrease of stake m
substdtary 14 (8,867) (8,867)
Other adm1mstrattve expenses (21,466) (950) (22,416) (17,164) (2,290) ( 19,454)
Total administratJve expenses (31,716) (950) (32,666) (17,524) (2,290) (19,814)
Group operating loss (10,711) (357) (11,068) (1,477) (1,357) (2,834)
Share of operatmg profit m assoctate 13 14 2
(Loss) I profit on dtsposal of substdtanes 14 (342) 73
Loss on dtsposal of fixed assets 3 (454)
Loss on ordmary achvthes before 3 (11,396) (3,213)
interest and taxation
Other mterest recetvable and Slmtlar
mcome 4 25 18
Interest payable and similar charges 5 (17,834) (14,342)
Other finance mcome 6 196 382
Loss on ordinary activities before
taxatiOn (29,009) (17,155)
Tax on loss on ordmary activities 7 84 (5,802)
Loss on ordmary activities after taxation (28,925) (22,957)
Manonty Interests 22 550 412
Loss for the financial year 21 (28,375) (22,545)
Movements m reserves are shown m note 21
Dtscontmued operations relate to the dtsposal of a substdrary undertakmg m the current year as dtsclosed m note 14
The accompanymg notes form an mtegral part of these financaal statements
10
Balance Sheets as at 31st March 2012
Holding Holding
Group Group Company Company
2012 2011 2012 2011
Note '000 '000 '000 '000
Fixed assets
lntangoble assets
Goodwoll 10 1,029 I ,141
Tangoble assets
Investment properties 11 19,232 20,615
Other fixed assets 12 172,481 179,113
Investments 13 288 274 34,891 34,891
193,030 201,143 34,891 34,891
Current assets
Stocks 15 136 155
Debtors 16 6,795 8,407 56,580 56,573
Cash at bank and on hand 6,316 4,519 1,427 100
13,247 13,081 58,007 56,673
Creditors (amounts fa1hng due wothon one year) 17 (15,654) (51,493) (481) (187)
Net current (llabtllties)/assets (2,407) (38,412) 57,526 56,486
Total assets less current llabihties 190,623 162,731 92,417 91,377
Creditors (amounts fallmg due after more than one year) 18 (243,361) ( 193,586) (109,252) (92,879)
Net liabilities excluding penston habthty (52,738) (30,855) (16,835) ( 1,502)
Pension habthty 23 174
Net llabthtles including pension liability (52,738) (30,681) (16,835) (I ,502)
Capttal and reserves
Called-up share capttal 20 70,761 70,761 70,761 70,761
RevaluatiOn reserve 21 1,136 1,293
Profit and loss account 21 (124,635) (94,418) (87,596) (72,263)
(52,738) (22,364) (16,835) (1,502)
Equtty m1nonty Interests 22 (8,317)
Equtty (52,738) (30,681) (16,835) (I ,502)
y the board of d ectors on
, . ~
Jv\"1
?al...._
Company Registration No 3385025
The accompanymg notes form an mtegral part of these financral statements
11
Group Cash Flow Statement for the year ended 31st March 2012
Cash mflow from operatmg activities
Returns on m vestments and serv1cmg of finance
Capttal expenditure and financtal mvestment
Cash outflow before management of liquid resources and financing
Fmancmg
D1sposa1s
(Decrease) /Increase in cash in the year
Note
24(a)
24(b)
24(c)
24(d)
24(e)
31st March 2012
'000
3,211
(7,503)
(3,554)
(7,846)
6,948
(305)
(1,203)
Group Reconciliation of Cash Flow to Movement in Net Debt
for the year ended 31st March 2012
Note 31st March 2012
'000
Movement m cash m the year 24(!) 1,797
Movement m overdrafts 24(!) (3,000)
Net movement m debt due wtthm one year 24(!) 35,116
Net movement m debt due after more than one year 24(!) (52,413)
Change in net debt in the year ( 18,500)
Net debt at 31st March 2011/3lst March 2010 (196,731)
Net debt at 31st March 2012/3lst March 2011 24(!) (215,231)
The accompanymg notes form an mtegral part of these financml statements
12
31st March 2011
'000
5,247
(7,559)
(10,709)
(13,021)
17,157
( 115)
4,021
31st March 2011
'000
2,500
1,521
189,187
(163,717)
29,491
(226,222)
(196,731)
Group Statement of Total Recognised Gains and Losses
Note
Loss for the financtal year
Other recogmsed gains and losses
Reahsed dunng the year on dtsposal of substdtary undertakmg
Capttal contnbutton (watver of mtercompany loan with Peel
Investments (PAH) Ltmtted)
Actuanal (loss) I gam relatmg to the pens10n fund 23
Total recognised net gains and losses for the financial year
31st March 2012
'000
(28,375)
(1,999)
(1,999)
(30,374)
Reconciliation of Movements in Group Shareholders' Funds
Loss for the financtal year
Other recogmsed gams and losses for the financtal year
Net (decrease) I increase in shareholders' funds
Shareholders' deficit at 1st Aprtl2011/lst April 2010
Shareholders' deficit at 31st March 2012/31st March 2011
31st March 2012
'000
(28,375)
(I ,999)
(30,374)
(22,364)
(52,738)
Reconc1hatwn of Movements in Company Shareholders' Funds
(Loss)/profit for the financ1al year
Other recogntsed gams and losses for the financtal year
Net (decrease)/increase in shareholders' funds
Shareholders' deficit at I April201111 Apri12010
Shareholders' deficit at 31st March 2012/31st March 2011
The accompanymg notes form an mtegral part of these financ1al statements
13
--------------
31st March 2012
'000
(15,333)
(15,333)
(1,502)
(16,835)
31st March 2011
'000
(22,545)
(lOS)
51,510
416
51,821
29,276
31st March 2011
'000
(22,545)
51,821
29,276
(51,640)
(22,364)
31st March 2011
'000
5,175
51,510
56,685
(58,187)
( 1,502)
Notes to the Financial Statements
l. Accounting Policies
The prmctpal accountmg pohctes are summansed below The pohctes have been apphed conststently throughout the year and the
precedmg year
Basts of preparahon
The financtal statements have been prepared on the gomg concern basts under the htstoncal cost conventton as mod1fied to
mclude the revaluatiOn of fixed asset mvestment properttes and m accordance with applicable Umted Kmgdom law and
accountmg standards.
Going Concern
The financial statements have been prepared on the gomg concern basts whtch the Duectors beheve to be appropnate for the
followmg reasons The Dtrectors have recetved confirmation that shareholders Vantage Atrport Group Ltm1ted and Peel
Investments (PAH) Llmtted, wtll contmue to provide the necessary level of support to enable It to contmue to operate for at least
12 months from the date of these financtal statements Takmg thts mto account the Dtrectors have a reasonable expectation that
the group and parent company has adequate resources to contmue m operatiOnal extstence for the foreseeable future by meeting tts
habthttes as they fall due for payment As With any company placmg reliance on other group entitles for financial support, the
Dtrectors acknowledge that there can be no certamty that thts support wtll conlmue although, at the date of approval of these
ftnanctal statements, they have no reason to beheve that tt wtll not do so
Based on thts undertakmg the dtrectors beheve that 1t remams appropnate to prepare the flnanctal statements on a gmng concern
basis The financtal statements do not mclude any adjustments that would result from the basis of preparation bemg mappropnate
Basts of consolidation
The Group financial statements consolidate the financial statements of the Company and 1ts subs1d1ary undertakmgs made up to
31 March each year
All substdtanes are consolidated under acqutsltton accountmg prmctples Results of subs1dial)' undertakmgs acqmred or dtsposed
of dunng the year are mcluded from the date of acqutsitton or to the date of d1sposal to the extent of group ownershtp
Intra-group turnover and profits are ehmmated on consolidatiOn
As pernutted by Seclton 408 of the Compames Act 2006, a separate profit and loss account for the holdmg company ts not
presented (2012 loss of 15,333,000 (201/ profit of 5,175,000))
Acqutstttons and Dlsposals
Goodwill ansmg on the acqmsttton of subsidiary undertakmgs, representmg any excess of the fa1r value of the cons1deratton gtven
over the fair value of the tdenttfiable assets and habthtles acqmred, ts capttahsed as an mtangible asset and wntten off to the profit
and loss account on a stratght hoe basis over Its useful economic hfe, up to a maxtmum of twenty years Prov1ston ts made for any
tmpaarment
14
Notes to the Fmancial Statements (contmued)
I. Accounting Policies (contmued)
Investment Properties
Investment properttes are rncluded m the balance sheet at thetr open market value and, m accordance with Statement of Standard
Accountmg Practice No 19, are not deprectated or amortised unless they relate to properties wtth an unexptred hfe of20 years or
less Thts departure from the reqmrements of the statutory accountmg pohctes IS necessary for the financtal statements to gtve a
true and fatr vtew m accordance wtth applicable Umted Kmgdom accountmg standards Deprectatwn ts only one of many factors
reflected m the valuatiOn and the amount whtch mtght otherw1se have been shown cannot be separately tdentlfied or quantified
Surpluses or deficits ansmg from revaluatwn are transferred to the unreahsed revaluatiOn reserve, except that a defictt wh1ch ts
expected to be permanent and wh1ch 1s m excess of any prev1ously recogmsed surplus over cost relatmg to the same property, or
the reversal of such a deficit, ts charged (or credtted) to the profit and loss account Realised revaluation surpluses representmg
the dtfference between htstoncal cost and the asset's carrymg value are reclassified by way of a transfer to profit and loss account
reserve m the year m wh1ch the property d1sposal occurs
Properttes m the course of development or practically completed but not substantially let are mcluded m the balance sheet at cost
subject to provaswns tf the dtrectors constder tt prudent havmg regard to the prevathng market cond1ttons Cost mcludes mterest
and dtrectly attnbutable overheads wh1lst the property ts m the course of development
Reclasstficattons between mvestment properttes, other fixed assets and stocks are made at the lower of net book value and net
realisable value
Investment property sales are accounted for on the basts of uncond1t10nal exchange
Other F1xed Assets
Other fixed assets are stated at cost less deprectatton Deprectatwn ts provtded at rates calculated to wnte off the cost, less
estimated restdual value of each asset over tts expected useful hfe, as follows
Land
Freehold Bu1ldmgs
Runway, Car Park & Runway L1ghtmg
F1xed Plant
F1xtures F1ttmgs & Tools & EqUipment
Motor Veh1cles
Assets In the Course of Construction
No deprec1atton
LO to 50 years
5 to L 00 years
7 to 50 years
5 to LO years
5 to 20 years
No depreciation
Properttes m the course of development or practically completed but not substantially let are mcluded m the balance sheet at cost
subject to provtstons tf the Dtrectors constder tt prudent havmg regard to the prevathng market condtttons Cost mcludes mterest
and attnbutable overheads wh1lst the property 1s m the course of development
The carrymg amounts of the Company's assets are rev1ewed for trnpatrment when events or changes tn circumstances tndtcate that
the carrymg amount of the fixed asset may not be recoverable If any such mdtcatwn extsts, the asset's recoverable amount 1s
estimated
An tmpatrment loss ts recogmsed whenever the carrymg amount of an asset or tts mcome-generatmg umt exceeds tts recoverable
amount Impairment losses are recogmsed m the profit and loss account unless tt anses on a prevwusly revalued fixed asset
The recoverable amount of fixed assets 1s the greater of the1r net realisable value and value m use In assessmg value m use, the
expected future cash flows are dtscounted to thetr present value usmg a pre-tax dtscount rate that reflects current market
assessments of the rate of return expected on an equa\ly nsky mvestment For an asset that does not generate largely mdependent
mcome streams, the recoverable amount ts determmed for the mcome-generatmg umt to wh1ch the asset belongs
15

Notes to the Financial Statements (contmued)
l. Accounting Policies (contmued)
Fixed Asset Investments
F1xed asset mvestments m substdtary undertakmgs are stated at cost less provision for tmpatrment Cost represents the aggregate
cash constderahon, costs mcurred and etther the fatr or the nommal value of shares Issued
Stocks
Stocks are stated at the lower of cost, mcludmg attnbutable overheads and cap1tahsed mterest, to the Group or estmmted net
realisable value
Taxation
Corporation tax payable IS provtded on taxable profits at the current rate
Deferred tax ts recogmsed m respect of all tlmmg differences that have ongmated but not reversed at the balance sheet date where
transactions or events that result m an obhgatton to pay more tax m the future or a nght to pay less tax m the future have occurred
at the balance sheet date Timmg differences are differences between the Group's taxable profits and Its results as stated m the
financ1al statements that anse from the mclus1on of gams and losses m tax assessments m penods d1fferent from those m wh1ch
they are recogntsed m the financial statements
A net deferred tax asset 1s regarded as recoverable and therefore recogmsed only when. on the bas1s of all ava1lable evidence, 1t
can be regarded as more hkely than not that there w1ll be su1table taxable profits from wh1ch the future reversal of the underlymg
ttmmg differences can be deducted
Deferred tax 1s not recogmsed when fixed assets are revalued unless by the balance sheet date there 1s a bmdmg agreement to sell
the revalued assets and the gam or loss expected to anse on sale has been recogmsed m the financial statements Deferred tax 1s
measured on a non-discounted basts
Related Party Disclosures
The company has taken advantage of the exemptiOn m paragraph 3(c) of Fmanc1al Reportmg Standard No 8 "Related Party
Transactwns" and has not d1sclosed deta1ls of transactions w1th fellow wholly owned undertakmgs w1thm the Peel Airports
Limited group of compames
Turnover
Airport mcome represents the amounts receivable by the Group m respect of fac1httes and servtces provtded dunng each year, and
ts recogrused as the facthttes and servtces are provtded
Property rental mcome and the appropnate allocation of rental premtums are accounted for on an accruals basts
Turnover excludes sales related taxes
Interest
Interest duectly attnbutable to both mvestment properties m the course of development and other fixed assets 1s mcluded m the
cost thereof Interest ts capttahsed on a s1mple mterest basts wtthout allowmg for any tax rehef thereon
Leased Assets
Assets acqu1red under finance leases are capttahsed at a value equtvalent to the cost mcurred by the lessor and depreciated over
the1r expected useful economic hves Fmance charges thereon are charged to the profit and loss account m the penod m which
they accrue The capital element of the future lease payments 1s reflected w1thm creditors
Expenditure on operatmg leases 1s charged d1rectly to the profit and loss account
16
-----------------------------

1. Accounting Policies (contmued)
Pension Costs
The cost of the Group's money purchase pens10n arrangements are charged to the profit and loss account on the basts of
contnbutiOns payable m respect of the accountmg penod
The Group also operates defined benefit schemes, which reqUire contnbut10ns to be made to separately admm1stered funds The
scheme IS a multi-employer scheme and has been accounted for under the full requirements of FRS 17 "Retirement Benefits" as
the Group ts able to tdenttfy tts share of the underlymg assets and habthttes m the scheme on a conststent and reasonable basts
Under FRS 17, defined benefit scheme assets are measured ustng market values Penston scheme hablttes are measured usmg
the proJected umt method and discounted at the current rate of return on a high quality corporate bond of equivalent term and
currency to the liability Any mcrease m the present value of liabilities of the Group's defined benefit pensiOn schemes expected
to artse from employee servtce m the penod ts charged agamst operatmg profit The expected return on the schemes assets and
the mcrease dunng the penod m the present value of the schemes hab1httes ansmg from the passage of tune are mcluded m other
finance mcome Actuanal gams and losses are recogmsed m the Statement of Total Recogmsed Gams and Losses The Group
recogmses an asset m respect of any surplus, bemg the excess of the value of the assets m the schemes over the present value of
the schemes hab1ht1es, only to the extent that 1t IS able to recover the surplus, e1ther through reduced contnbuuons m the future or
from refunds from the schemes
The defined benefit scheme was operated m a subs1dmry undertakmg wh1ch was disposed of dunng the year, and as such there 1s
no penswn asset or hab1hty m respect of the scheme at the year end
Government Grants
Government grants recetved m respect of capital expenditure are cred1ted to a deferred mcome account and released to the profit
and loss account over the useful economic hfe of the asset to wh1ch they relate
2. Turnover
The total turnover of the company for the year has been denved from Its pnnc1pal actiVIty wholly undertaken m the Umted
Kmgdom
3. Notes to the profit and loss account
Loss on ordmary acttvtttes before mterest and taxatiOn IS stated after
chargmg/( cred1tmg)
Depreciation on other fixed assets - owned assets
Depreciation on other fixed assets - leased assets
Impairment losses on revaluatton/wnte down of mvestment propertaes
Impairment losses- other fixed assets
Amortisation of goodwill
Loss on sale of other fixed assets
Hue of plant and machmery under operatmg leases
Amort1sat10n of government grants
Adjustment to past service cost on pensiOn (note 23)
Aud1tors' remuneratiOn
Audit of these financml statements
Audit of financtal statements of subsidiaries pursuant to legtslatlon
Other serv1ces related to taxatwn
Other serv1ces
17
31 March 2012
'000
4,995
340
1,383
112
152
(1,527)
8
58
106
7
31 March 2011
'000
4,756
314
360
112
454
164
(1,475)
(I ,993)
8
42
35
13
4. Other Interest Receivable and Similar Income
Interest recetvable and stmtlar mcome
On bank and other deposits
5. Interest Payable and Similar Charges
Interest payable and stmtlar charges
On bank loans and overdrafts
On loan from group compames
Fmance lease and other mterest
6. Other finance income
Other finance mcome
Expected return on pensiOn scheme assets
Interest on pensiOn scheme habtlttLes
7. Tax on Loss on Ordinary Activities
Analys1s of charge m the perwd
UK corporatiOn tax
Adjustments m respect of pnor years
Total current tax credtt
Deferred tax
Ongmataon and reversal ofttmmg differences (note 19)
Deferred tax m respect of penston
Total deferred tax
Total tax (cred1t) I charge on loss on ordmary aciiVIIIes
Factors affectmg the tax charge for the year
31 March 2012
'000
25
31 March 2012
'000
7,820
9,874
140
17 834
31 March 2012
'000
1,003
(807)
196
31 March 2012
'000
(84)
(84)
(533)
(567)
1,100
(84)
31 March 2011
'000
18
31 March 2011
'000
7,058
7,140
144
14 342
31 March 2011
'000
1,490
(1,108)
382
31 March 2011
'000
5,111
691
5,802
5,802
The current tax charge for the penod IS h1gher (20I I h1gher) than the standard rate of corporatiOn tax m the UK (26%. 20I I
28%) The differences are explamed below
18
Notes to the Fmanc1al Statements (contmued)
7. Tax on Loss on Ordinary Activities (contmued)
Current tax reconcliwtwn
Loss on ordmary acttvtttes before taxat1on
Current tax at 26% (2011 28%)
Effects of
Capttal allowances m excess of deprectahon
Other ttmmg dtfferences
Net disallowable expenditure
Movement m tax losses
Total current tax
Factors that may affect future current and total tax charges
31 March 2012
'000
(29,009)
(7,542)
(1,115)
(289)
6,436
2,510
(84)
(84)
31 March 2011
'000
(17,155)
(4,803)
(1,420)
(34)
256
6,001
The 2012 Budget on 21 March 2012 announced that the UK corporatton tax rate would reduce to 22% by 2014 A reduction m
the rate from 26% to 25% (effective from I Apnl2012) was substantively enacted on 5 July 2011, and a further reductiOn to 24%
(effecllve from I Apnl2012) was substantively enacted on 26 March 2012 It has not yet been possible to quantify the full
anticipated effect of the announced further 2% rate reductton, although thts wtll further reduce the company's future current tax
charge as the relevant legtslatton ts substanttvely enacted
The Group has available tradmg losses earned forward at 31st March 2012 of35,133,000 (2011 30.872.000)
The Chancellor has also proposed changes to further reduce the mam rate of UK corporatton tax by I% per annum to 22% by I
Apnl2014 These reductions have not been substant1vely enacted the changes are not reflected m the above figures
8. Staff Costs
31 March 2012 31 March 2011
'000 '000
Staff costs (mcludmg directors)
Wages and salanes 13,178 14,235
Socral secunty costs 1,304 1,448
Pension fund service cost (note 23) 248 298
Other ~ e n s w n costs (note 23) 742 741
15,472 !6, 722
The average monthly number of persons employed by the Group durmg the penod, mclustve of executive dtrectors, was as
follows
Atrport operational and mamtenance
Admtntstratwn
19
31 March 2012
Number
333
70
403
31 March 2011
Number
366
64
430
9. Directors' Remuneration
The dtrectors recetved total remuneration from the Group of 259,654 dunng the year (2011 229,521) and N1l pens1on
contnbutwns were made by the Group on behalf of the d1rectors (20// 6,090) The h1ghest pa1d rece1ved total
remuneratiOn from the group of 259,654 dunng the year (2011 229,521) and penswn contnbutwns were made by the Group of
N1l (2011 6,090) No other d1rectors were remunerated for serv1ces to the group
10. Goodwill
Cost:
At l Apnl20ll and 31 March 2012
Amortisation:
At l Apnl20ll
Amortised m the year
At l Apnl2012
Net Book Value:
At 31 March 2012
At 31 March 2011
11. Investment Properties
Cost or Valuation:
At l Apnl20ll
lmpamnent
At 31 March 2012
Professional Valuation:
31 March 2012
Cost:
H1stoncal cost
At 31 March 2012
Valuations
Freehold
'000
6,340
(158)
6,182
6 182
5,047
Group
'000
2,250
1,109
112
1,221
1,029
l 141
Group
Long
leasehold Total
'000 '000
14,275 20,615
(1,225) (l ,383)
13,050 19,232
13 050 19 232
15,000 20,047
The Long leasehold property 1s a 125 year lease w1thm Liverpool A1rport Hotel Lmuted, wh1ch was valued on an open market
ex1stmg use bas1s at 31 March 20 ll by A1tch1son Raffety At 31 March 2012 the property was valued by Peel Airports L1m1ted
Group's RlCS qualified staff, resultmg m an 1mpa1rment of1,225,000
Professwnal valuatwns were earned out on all other mvestment propertieS at 31 March 2009 by Kmg Sturge, lnternatwnal
Property Consultants and Surveyors, on the bas1s of open market value Th1s was subsequently valued by Peel Airports L1m1ted
Group's RI CS qualified staff, resultmg m an 1mpa1rment of 158,000
In both mstances, thts ts constdered to be a permanent change to the market value of the mvestment property and therefore has
been charged to the profit and loss account m accordance w1th SSAP 19
ln the opm1on of the D1rectors, havmg consulted the Peel Airports Llmtted Group's RlCS qualified staff, the current open market
value of such land and mvestment properties IS not matenally d1fferent from theu value mcorporated m the financaal statements
On an h1stoncal cost bas1s these would have been mcluded at an ongmal cost of 20,047,000 (2011 20,047,000)
20
12. Other Fixed Assets
Land and Asset m Runways,
buildings course of lightmgs &
freehold constructJon car parks
'000 '000 '000
Cost:
At I Apnl2011 182,864 11,516 114,490
Add!tiODS 1,486 639 136
Disposal of subsidiary (25,875) (75) (21,952)
Transfers 8,228 (12,080) 584
At 31 March 2012 166,703 93,258
Depreciation:
At I Apnl2011 85,749 75 58,183
Charge for the financial year 2,129 1,239
Disposal of subs1d1ary (21,713) (75) (21,421)
At 31 March 2012 66,165 38,001
Net Book Value:
At 31 March 2012 100,538 55,257
At 31 March 2011 97,115 11,441 56,307
At 31 March 2012, freehold land wh1ch IS not subJect to depreciatiOn amounts to 15,297,000 (2011
All other fixed assets at 31 March 2011 are held at depreciated h1stoncal cost to the Group
Land and bu1ldmgs mclude mterest m aggregate amountmg to 5,189,000 (2011 5,/89,000)
Assets Held Under Fmance Leases
Other assets
Total
'000 '000
65,425 374,295
1,293 3,554
(9,468) (57,370)
3,268
60,518 320,479
51,175 195,182
1,967 5,335
(9,310) (52,519)
43,832 147,998
16,686 172,481
14,250 179,113
17.660,000)
The net book value at 31 March 2012 of assets held under finance leases amounted to 2,946,000 (2011 3,338,000) and
depreciation provided thereon durmg the penod totalled 340,000 (2011 288,000)
21
13. Fixed Asset Investments
Cost:
At begmnmg of year
Addttwns
Dtsposals (Note 14)
At end of year
Provisions:
At begmnmg of year
Released on dtsposal (Note 14)
At end of year
Net book value:
At 31 March 2012
At 31 March 2011
Capitalisation of mter-company loan
Investment Investment
in subsidiary m associate
undertakings
'000 '000
71,924
24,285
(32,590)
63,619
37,305
(8,305)
29,000
34,619
34,619
272
272
272
272
Company
Total
'000
72,196
24,285
(32,590)
63,891
37,305
(8,305)
29,000
34,891
34,891
On 10 February 2012, 34,216,420 shares of 0 01 each m Durham Tees Valley Atrport Ltmtted were tssued The constderatton
for these shares was the release of the subStdtary Company's obhgatton to repay 24,285,000 of loans payable to Peel Atrports
Ltmtted
Dtsposals of substdtary undertakings
On 10 February 2012, the subStdtary company, Durham Tees Valley Atrport Ltmtted was diSposed of to a Peel group company,
Peellnvestments (PAH) Ltmtted The sales pnce was agreed at 1 Thts resulted m a loss on diSposal of 2,225,000 m the Peel
Atrport Ltmtted Companys' profit and loss account, bemg the total cost of mvestment (net ofprovtstons) of Durham Tees Valley
Atrport Ltmtted at the date of dtsposal Detatls of the loss on dtsposal recorded m the consohdated accounts are m note 14
Subsidiary Undertakings and Joint Assoctates
Detatis of mvestments of the Group m tts pnnctpai substdtary undertakmgs are gtven on page 33
Investment in assoctate
At 1 Apni 201 I
Share of results for the year
At 31 March 2012
22
Group
Total
'000
274
14
288
14. Loss on disposal of subsidiary
On 10 February 2012, mtercompany loans between Peel Airports Limited and Durham Tees Valley Airport Limited were
converted to share capital ThiS mcreased Peel Airports Limited's holdmg m the subsidiary company from 75 0% to 89 3% This
transaction Improved the net asset position of DTV A by 24 8m The Improvement was wholly funded by PAL, therefore a loss
on mcrease of stake holdmg of 8,867,000 was recogmsed m the Group profit and loss account
The ordmary share capital of Durham Tees Valley Airport Limited, was disposed of on 10 February 2012, resultmg m a loss on
disposal m the Group of 342,000 and m the Company of 2,225,000 The operatiOns of the busmess have been classified m the
profit and loss account as a d1scontmued operation
Net assets disposed of
F 1xed assets
Stocks
Debtors
Cash
Creditors
ConsideratiOn received (1)
Disposal costs
Loss on dtsposal
2012
'000
4,848
61
1,064
305
(6,254)
24
(-)
318
342
The Durham Tees Valley Airport Lmuted busmess disposed of dunng the year contnbuted an outflow of 2,100,000 (2011
1,977,000 mflow) to the Group's net operatmg cash flows, received 150 (20JJ 17,825) m respect of net returns on
mvestments and semcmg of finance, paid Nil (2011 Nil) m respect of taxatiOn and utilised 289,000 (2010 1,172,000) for
capital expenditure
15. Stocks
Consumables
23
2012
'000
136
Grou
2011
'000
155
,
16. Debtors
Groue Holding ComJ!an;y
2012 2011 2012 2011
'000 '000 '000 '000
Trade debtors 4,239 3,208 100 7
Amounts owed by fellow group undertakmgs 61 36 257
Amounts owed by subs1d1ary undertakmgs 56,377 56,309
Other debtors 275 167 24
and accrued mcome 2,220 4,996 79
6,795 8,407 56,580 56,573
Subsequent to the year end, there has been a rev1s1on to the terms on amounts owed by substdmry undertakmgs Th1s has resulted
m 50,000,000 of amounts owed by subs1d1ary undertakmgs not falhng due until 31st December 2017
17. Creditors (amounts falhng due wtthm one year)
Groul! Holding ComJ!an;y
2012 2011 2012 2011
'000 '000 '000 '000
Bank loans and overdrafts 3,000
Secured bank loans and overdrafts 35,000
Obhgat1ons under finance leases and htre purchase contracts 314 430
Debt fallmg due w1thm one year 3,314 35,430
Trade creditors 3,214 4,448 155 112
Amounts owed to fellow group undertakmgs 278 411 258
Other taxes and soctal secunty 425 598
Other credttors 137 564
Accruals and deferred mcome 6,778 8,567 68 75
Grants 1,508 1,475
15,654 51,493 481 187
The group uses denvatlves to manage tts exposure to mterest rate movements on lts bank borrowmgs
As at 31 March 2012 there were mterest rate swaps open w1th a fa1r value hab1hty of 9,140,473 (20ll 5,197,985) Th1s fa1r
value has not been recogn1sed m the financ1al statements as the group has not adopted FRS 26 "Fmanc1al Instruments
Recogmt10n and Measurement"
Deta1ls of secunty on the above borrowmgs are d1sclosed m note 18
24
18. Creditors (amounts falhng due after more than one year)
Bank loans and overdrafts
Obligations under finance leases and h1re purchase contracts
Shareholder loan notes
Debt falhng due after more than one year
Accruals and deferred mcome
Grants
Deta1ls of secunty on the above borrowmgs are disclosed below
Analysis of Group Net Debt
Cred1tors (amounts fallmg due w1thm one year)
Credttors (amounts falhng due after more than one year)
Gross debt
Cash at bank and m hand
Groul! net debt
Repayment of Gross Debt
Finance leases:
W1thm 1 year
1-2 years
2-5 years
Over 5 years
Other debt:
On demand
2-5 years
After five years - Secured bank loan and shareholder loan notes
Gross debt
Groul!
2012 2011
'000 '000
107,623 71,220
1,358 1,721
109,252 92,879
218,233 165,820
357 322
24,771 27,444
243,361 193,586
Holding Coml!an):
2012 2011
'000 '000
109,252 92,879
109,252 92,879
Grou
2012 2011
'000 '000
3,314 35,430
218,233 165,820
221,547 201,250
(6,316) (4,519)
215,231 196,731
Grou
2012 2011
'000 '000
314 430
556 330
802 979
412
1,672 2,151
35,000
35,000
35,000 35,000
184,875 164,099
219,875 199,099
221,547 201,250
The L1verpool A1rport L1m1ted bank loan of 72,623,000 (2011 71,220,000) 1s secured by a debenture glVlng a fixed charge over
all land and other fixed assets and a floatmg charge over all other assets of the company The loan bears mterest at LIBOR plus
applicable margm Interest on 55 7m of the bank loan has been fixed under an Interest rate swap contract at a rate of 3 005% The
swap agreement 1s m place unt1121 March 2015 The unut1hsed element of the 86,000,000 bank loan fac1hty as at 31 March
2012 IS 4,352,075 (2011 14, 779,646) The bank loans are stated net of tssue costs of 2,223,000 (2011 2,655,000) and a debt
serv1ce reserve account of 2,289,000 (2011 2,237,000) The 1ssue costs are bemg spread m accordance w1th FRS 4 over the
term of the finance to wh1ch they relate
25
.,
18. Creditors (amounts fallmg due after more than one year) (contmued)
The secured bank loan of 35,000,000 IS secured by debentures giVIng a first legal charge over freehold land and mvestment
properttes, other fixed assets and a floatmg charge over all other assets The mterest on the bank loan has been fixed under an
mterest rate swap contract at a rate of 4 895% plus an applicable margm over the hfe of the loan The loan IS due for repayment no
later than November 2016 There IS a bank guarantee m place With Barclays Bank Plc, which IS renewable annually
On the bas1s that the guarantee ts m force at the balance sheet date and that tt IS forecast to be m place for at least the next twelve
months the loan ts classtfied as a credttor due m greater than one year
Shareholder loan notes are subordmated redeemable loan notes which have been Issued to the shareholders of Peel Airports
Limited The loan notes are repayable m 2020 and bear mterest at I 0% per annum Any redemptiOn of the loan notes shall be
made pro rata to the holdmgs of the note holders
Obhgattons under finance leases and htre purchase contracts are secured on the assets to whtch they relate
19. Deferred Tax
Deferred taxation m the financtal statements ts provtded/unprovtded as follows
2012 2012 2011 2011
Provided Unprovided Provided UnproVIded
'000 '000 '000 '000
Accelerated capttal allowances 223 (523) 223 (1,736)
Short term t1mmg differences (223) (4,248) (223) (5,109)
Losses (8,432) (9,874)
13,203 16,719
In accordance with FRS 19 no asset has been recognised for the potential deferred tax asset of13,203,000 (2011 16,719,000)
m subs1d1ary compames ansmg from tax losses and other tlmtng d1fferences as the losses are not expected to be utthsed m the
foreseeable future
20. Called-up Share Capital
Allotted, Called-up and Fully Paid
Equity Share Capital
70,761,005 ordmary shares of I each
26
Group and
Company
2012
'000
70,761
Group and
Company
2011
'000
70,761
21. Reserves
At I Apnl2011
Realised dunng the year on dtsposal of mvestment properttes
Retamed loss for the year
Actuanal loss relatmg to the pensiOn fund
31 March2012
At I Apnl2011
Retamed loss for the financtal year
At31 March2012
22. Minority Interests
At I Apnl2011
ProportiOn of loss on ordmary acttvtttes after taxation
Reahsed dunng the year on dtsposal of mmonty mterest
At31 March2012
23. Pension Fund
Defined Contrrbution Pension Scheme
Group
Profit
Revaluation and loss
reserve account
'000 '000
1,293 (94,418)
(157) !57
(28,375)
(1,999)
I ,136 (124,635)
Holding Company
Profit
and loss
account
'000
(72,263)
(15,333)
(87,596)
Group
'000
(8,317)
(550)
8,867
The group operates a defined contnbutwn pensiOn scheme The penston cost charge for the penod represents contnbutlon
payable by the Group to the scheme and amounted to 479,000 (2011 404,000)
Contnbuttons amountmg to 64,232 (2011 63.290) were payable to the scheme and are tncluded m credttors
27

23. Pension Fund (contmued)
Defined Benefit Scheme
Durham Tees Valley Airport Limited IS admitted to a local government pension fund which IS a defined benefits pensiOn fund
based on final pensiOnable pay and which IS closed to new entrants of that subSidiary undertakmg The assets of the schemes are
held separately from those of the Group Durham Tees Valley Airport Limited was disposed of on 10 February 2012 The latest
actuanal valuatiOn as at 31 March 20 I 0 has been adjusted to reflect the positiOn at 31st December 2011, by a qualified
mdependent actuary (m accordance with FRS 17), pnor to the disposal of the subsidiary
2012 2011 2010
The major assumptions used by the actuary were: % % %
Rate of mcrease m salanes 4 50 5 00 4 35
Rate of mcrease m penston payment 2 20 2 70 3 60
Dtscount rate 4 70 5 50 5 50
RPI mcrease
3 00 3 50 3 60
CPI mcrease
2 20 2 70 N/A
Mortality assumptions:
Investtgatwns have been earned out wtthm the past three years mto the mortahty expenence of the Group's defined benefit
schemes These mvesttgatwns concluded that the current mortality assumptions mclude suffictent allowance for future
tmprovements m mortality rates The assumed hfe expectatiOns on rettrement at age 65 are
2012
years
Retlrmg today
Males 19 0
Females 23 I
Retmng m 20 years
Males 210
Females 25 0
Amounts recogmsed m the profit and loss account m respect of these defined benefit schemes are as follows
2012
'000
Current servtce cost
Interest cost
Expected rerum on scheme assets
Past servce cost
248
807
(1,003)
52
Valuation at
2011
years
18 9
23 0
20 9
24 9
20il
'000
298
1,108
(I ,490)
(1,933)
(2,017)
In July 2010, the government announced tts mtentwn that future revaluation pensiOn mcrease orders would be measured by the
Consumer Pnces Index, rather than the Retatl Pnces Index and the trustees announced a change m benefit to reflect thts The
Impact of this change has been reflected m the actuanal assumptiOns apphed at 31 March 2011 and a gam of 1,933,000 was
recogmsed as a result
Actuarial gams and losses have been reported m the statement of total recogmsed gams and losses
The actual return on scheme assets was 360,000 (20/ I /,610.000) The cumulative amount of actuanal gams and losses
recognised m the STRGL smce adoption of FRSI7 IS 1,080,000 net loss (20JJ 9/9,000 net gam)
28
h
'
The amount mcluded m the balance sheet ansmg from the Group's obhgattons m respect of 1ts defined benefit retirement benefit
schemes ts as follows
Present value of defined benefit obhgahons
Fatr value of scheme assets
Defictt m scheme
Related deferred tax asset
(Ltab1hty) I asset recogmsed m the balance sheet
Movements m the present value of defined benefit obligations were as follows
At I Apnl
Servtce cost
Interest cost
Contnbut10ns from scheme members
Actuanal loss I (gam)
Benefits pa1d
Past servtce cost
D1sposal of subs1d1ary
At 31 March
29
2012
'000
2012
'000
19,819
248
807
82
1,902
(736)
(8)
(22,114)
20ll
'000
(19,819)
20,054
235
(61)
174
20ll
'000
22,383
298
1,108
109
(597)
(1,538)
(1,933)
(I!)
19,819
Movements m the fatr value of scheme assets were as follows
At I Apnl
Expected return on scheme assets
Actuanal (loss) I gam
Contnbutlons from the sponsormg compames
Contnbutrons from scheme members
Benefits patd
Dtsposal of substdtary
At 31 March
2012 2011
'000 '000
20,054
1,003
(799)
263
82
(744)
(19,859)
19,439
1,490
152
413
109
(1,549)
20,054
The analysts of the scheme assets and the expected rate of return at the balance sheet date were as follows
Equtty Instruments
Index-hnked gtlts
Corporate bonds
Property
Cash
The five-year htstory of expenence adjustments IS as follows
2012
'000
Present value of defined benefit obhgatwns
Fatr value of scheme assets
Surp1us/(Defictt) m the scheme
Expenence adJustments on scheme habJlittes
Amount
Expenence adJustments on scheme assets
Amount
30
2011
'000
(19,819)
20,054
235
767
152
2010
'000
(22,383)
19,439
(2,944)
4,354
Fatr value of assets
2012
%
2009
'000
(15,627)
14,028
(I ,599)
698
(3,884)
2011
%
8400
600
2 00
400
400
10000
2008
'000
(17,081)
16,995
(86)
(587)
(1,712)
~ ,
.
PEEL NRPORTS LIMITED
24. Notes to the Group Cash Flow Statement
(a) Cash flow from operating activities
Group operatmg loss
Non-cash adJustments
- non-cash movements on pensiOn
- deprectatlon and amounts wntten offtangtble fixed assets
- other non-cash movements m fixed assets
grant release
- amorttsatton of goodwtll
- goodwtlltmpamnent- mcrease m stake
Movement m stocks
Movement m debtors
Movement m credttors
(b) Returns on investments and servicing of finance
Interest recetved
Interest patd
Fmance lease mterest patd
(c) Capital expenditure and financial investment
Payments to acqutre tangtble fixed assets
Recetpts from sales of tangtble fixed assets
(d) Fmancing
New loans
Grants ( repatd) I recetved
Repayment of finance lease credttor
(e) Dtsposals
Cash dtsposed of w1th substdtanes
(I) Analysis of Movement m Group Net Debt
Cash at bank (accesstble wtthm 24 hours)
Overdrafts
Debt due wtthm one year (excludmg overdrafts)
Debt due after more than one year
Net debt
31
31 March 2012
'000
(11,068)
(15)
6,718
(1,337)
(1,527)
112
8,867
(42)
548
955
3,211
25
(7,388)
(140)
(7,503)
(3,554)
(3,554)
7,471
(44)
(479)
6,948
(305)
1 April Cash
2011 flow
'000 '000
4,519 1,797
(3,000)
(35,430) 116
(165,820) (7,107)
(196,731) (8,194)
31 March 2011
'000
(2,834)
(2,048)
5,430
837
(1,475)
112
288
2,990
1,947
5,247
18
(7,433)
(144)
(7,559)
(10,776)
67
(10,709)
16,564
987
(394)
17,157
(liS)
Other 31 March
non cash 2012
changes '000
'000
6,316
(3,000)
35,000 (314)
(45,306) (218,233)
( 10,306) (215,231)
'I

25. Financial commitments
2012 2011
'000 '000
Operatmg leases whtch exptre
Wtthm one year 83 109
Between one and two years 82 38
Between two and five years 5
165 152
26. Contingent Liabilities
At 31 March 2012, there ts a contmgent habthty m respect of the Durham Tees Valley Atrport Ltmtted defined benefit pensiOn
scheme of Ntl (201 1 338,000)
27. Related Parties
Dunng the year the company entered mto the followmg transactions wtth fellow substdmry compames of the group The
transactions were pnced on an arm's length basts
Durham Tees Valley Atrport Ltmtted
Vantage Atrport Group (Cyprus) Ltmtted
Vantage Atrport Group Ltmtted
Peel Investments (PAH) Ltmtted
Peel Adverttsmg Ltmtted
Peel Electnctty Servtces Ltmtted
Peel Utilities Servtces Ltmtted
Peel Letsure Operations No l Ltmtted
Peel Management Ltmtted
Peel Conunumcattons Ltmtted
RHADS Hotels Ltmtted
Peel Holdmgs (Land & Properttes) Ltmtted
Peel Land & Property Investments Ltmtted
Peel Land & Property Ports No3 Ltmtted
Peel Water Servtces Ltm1ted
Peel Investments (North) Ltmtted
32
Sales of
Goods/
Services
'000
130
285
50
11
221
(Purchase) of
Goods/
Services
'000
(1,376)
(6,390)
(3,456)
(28)
(446)
(98)
(3)
(49)
(45)
(2)
(6)
(4)
(2)
(25)
Balances
Recetvable/
(payable)
'000
112
(229)
(10,588)
(5,713)
(105)
(63)
15
(184)
( 15)
(I)
(3)
17
(5)
(30)
f
28. Ultimate Holding Company
The largest group of compames, of whiCh the company ts a member, whtch produces consolidated accounts ts Vantage Atrport
Group Ltmtted (formerly YVR Atrports Servtees Ltmtted) (regtstered number 0819480), a company mcorporated m Canada,
whose regtstered office ts 2900- 550 Burrard Street, Vancouver, BC V6C OA3
The smallest group of compames, of whtch the company ts a member, that produces consolidated accounts, ts Peel Atrports
Ltmited, a company mcorporated m England Its Group accounts are available from the Company Secretary, Ltverpool Atrport,
Ltverpool, L24 l YD
Subsidtary Undertakings
The pnnctpal tradmg subSidtary undertakmgs as at 31 March 2012, all of whtch were wholly owned unless otherwtse stated were
as follows
Incorporated
England & Wales
England & Wales
England & Wales
Company
Ltverpool Atrport Ltmtted*
Doncaster Sheffield Atrport Ltmtted*
Ltverpool Atrport Hotel Ltmtted**
l 00% owned by Peel Atrports Ltmtted
l 00% owned by Ltverpool Atrport Ltmtted
Principal activities
Operator of a regtonal atrport
Operator of a regtonal atrport and property
mvestment
Property mvestment
A fullltst of substdtary undertakmgs wtll accompany the next Annual Return to be filed wtth the Regtstrar of Compames
33

Peel Airports Directors' Report & Financial Statements (2012)

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