TheMoodieReport.com

TheMoodieReport.com: "Alpha Airports Group profits fall sharply amid ?weakening? UK retail environment ? 29/09/05
Source: ?The Moodie Report
By Martin Moodie
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UK. Alpha Airports Group today announced a sharp fall in pre-tax profits for the six months ended 31 July to ?6.2 million, compared with ?10.7 million for the same period in 2004. Revenues rose from ?239.2 million to ?268.9 million.

Chief Executive Kevin Abbott told The Moodie Report that the results had to be considered in the context of big start-up costs in the Flight Services division and heavy investment in the UK retail business. 'But we're still looking for +10% sales and profits growth this year,' he said. 'We're going to have a strong second half recovery, and we will pull it back for the full year.

'We're looking for growth but it needs to be sustainable growth. We are looking forward and we're investing to grow our business.' In particular the company is introducing SAP Retail systems across its UK retail business. This will allow centralised information gathering whereas currently individual shops are separately managed, Abbott said. 'It gives us the opportunity to better manage stock levels and promotion plans, and be more flexible with our retail price levels ? overall we'll do business faster and with smarter information.'

In a statement issued earlier Abbott said: 'Even though these results are broadly in line with our own expectations, we are disappointed to report a profits decline.

'We are pleased with the underlying progress made on many of last year's Flight Services initiatives, and we remain committed both to ongoing active development of our existing strongly positioned businesses and to further acquisitions.

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