Scotsman.com Business - Airport operator BAA lands 2% annual profits growth

Scotsman.com Business - Airport operator BAA lands 2% annual profits growth: "Airport operator BAA lands 2% annual profits growth
SCOTT REID
BUSINESS EDITOR (sreid@edinburghnews.com)
BAA, the listed group which operates seven UK airports including Edinburgh, has seen its annual profits climb two per cent after passengers spent more money at its terminals.
The firm, which is trying to fend off an �8.75 billion takeover bid led by Spanish company Ferrovial, said it expected a good performance in the new financial year, with overall passenger numbers expected to rise by 3.5 per cent.
Today's results, covering the 12 months to the end of March, showed pre-tax profit before exceptional items rising to �620 million. The figure was slightly below City forecasts of �627m.
Edinburgh Airport grew its profits result by 6.9 per cent to �31m.
BAA said net retail income at its core UK airports operation grew 4.8 per cent to �616m, with income per passenger rising 2.9 per cent to �4.28.
Underlying revenues came in at �2.23bn, up from just under �2.1bn last time.
BAA chief executive Mike Clasper said: 'We have again converted passenger growth into stronger underlying operating profit, thanks to our ability to drive retail income, our diligence in controlling costs and rising tariffs at our three London airports.
'This achievement is despite difficult operating conditions - the London bombings in July, the Gate Gourmet dispute in August and the slowing economy in the UK.'
As well as its three Scottish operations - Edinburgh, Glasgow and Aberdeen - the group runs Heathrow, Gatwick and Stansted in London and Southampton Airport on England's south coast.
At the operating level, annual profits rose 8.1 per cent to �710m.
Looking ahead, Mr Clasper said he was confident of 'another g"