BAA profits grow despite loss of duty free sales

Report by John Lavabre

BAA, the company responsible for running some of Britain’s largest airports, has reported an increase in net retail income of 14% in the six months to September 30.

Highlights of its interim results show:

* Passenger traffic has grown by 6.65;

* Net retail income up by 14% in the second quarter and up 1% for the half year;

* Profit before tax and exceptional charges up 5.2% to £322 million. Normalised profit before tax up 111.6% to £327 million;

* Earnings per share before exceptionals up 7.6% to 22.6 pence;

* Interim dividend up 7% to 6.1 pence;

* Investment in airport infrastructure up over 40% to £215 million.

BAA chief executive Mike Hodgkinson said: “These results clearly demonstrate a return to growth after an extremely challenging 15 months post the abolition of intra-EU duty free sales.”

BAA is responsible for Heathrow, Gatwick, Stansted, Southampton, Glasgow, Edinburgh and Aberdeen airport’s.