"TBI to let Bolivia airports and US airport services business go"

Friday, June 11, 2004

TBI to let Bolivia airports go Jun 11 2004
By Rhodri Evans
United Kingdom - The Western Mail

  
TBI is planning to sell off its airports in Bolivia and its US airport
services business, its chief executive said yesterday.

Speaking as the airports group posted full-year results, which it
described as " satisfactory", TBI chief executive Keith Brooks said the
group, chaired by Cardiff businessman Stan Thomas, was planning to
divest itself of all its airports in the South American country along
with its US aviation services business.

In the 12 months to March 31 TBI achieved turnover of £186.2m, up from
£177.6m in the same period a year earlier as passenger numbers continued
to grow.

Despite the increase in turnover, TBI saw its profits slip to £6.2m,
down from £11.2m last year.

Chairman Stan Thomas described the results as "satisfactory".

"I am pleased with this year's achievements as I believe they signal the
beginning of a turnaround in the fortunes of the aviation industry in
general and TBI in particular," he said.

"That said, the ongoing threat of geo-political risk or the impact which
a serious rise in oil prices could have on the industry cannot be
underestimated. Indeed, at the beginning of this financial year, the
industry and TBI felt the impact from the Iraq war and the Sars

virus. But, for TBI, I believe that the change in our customer base
following the events of the 11th September 2001 and the associated
structural changes in the industry is now complete and, consequently,
year-on-year comparisons have a greater validity."

Mr Brooks said a number of unusual items had affected the balance sheet
for the year.

In Sweden the company made a loss as it embarked on a major expansion of
its Skavsta airport and it paid £1m extra to the local council over its
airport in Luton.

The bottom line was also affected by a write-down in the value of the
company's US airport services arm. That business was acquired as part of
the takeover of AGI in 1999 and Mr Brooks said the write-down was in
preparation for a sale of both that business and TBI' s airports in
Bolivia, which were also acquired in the AGI deal

"We took the bull by the horns earlier this year and wrote-down the
value of the asset," he said. "That was clearly with an eye on its
ultimate sale. Having done all these things and having restructured the
business we are intent on selling that asset.

"That is the same as with the airports in South America. We have had
them for some time and in terms of City sentiment they are not regarded
highly - Bolivia is not the easiest place to do business. We will be
intent on selling those in this financial year."

Mr Brooks said the company intended to use the money raised from these
disposals to fund its core airports business.

In the UK TBI owns Luton, Belfast and Cardiff airports. It has seen
passenger numbers rise 15% overall in the past

year, driven by a 31% growth in low-cost traffic during the 12-month
period.

Mr Brooks described Cardiff International Airport as a "solid business"
and said that the group was particularly pleased at the results of the
Government's White Paper on Aviation which affirmed Cardiff as the
principal airport in Wales. He was hopeful that the proposed Rhoose rail
station will benefit the business.

"I think it has got the potential to do well," said Mr Brooks. "We have
been encouraged by the white paper and the Welsh Assembly Government
talking about the railway station. We are hoping it will be named
Cardiff International Airport - Rhoose."

TBI proposes to pay a dividend of 1.6p a share.


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