RNS Number: 4630B
Gatwick Funding Limited
20 March 2025

Issuer: Gatwick Funding Limited
Date: 20 March 2025

      Gatwick Funding Limited (the "Issuer")           
       a company incorporated in Jersey (registered number 107376)

Annual results publication - Ivy Holdco Limited

The Issuer's parent, Ivy Holdco Limited, today publishes its Annual Report and consolidated financial statements for the year ended 31 December 2024.

The Ivy Holdco Limited report and financial statements consolidate the results of Ivy Holdco Limited, the Issuer, Ivy Bidco Limited and Gatwick Airport Limited. These financial statements and a related investor presentation are available on the Gatwick Airport Limited website at www.gatwickairport.com/investor

Financial results for the year ending 31 December 2024

London Gatwick reports strong performance for 2024, as it prepares for further growth

·    Airport engaging in extended process for final decision on its Northern Runway plans, following the announcement that the Secretary of State is 'minded to approve' the project

·    More airlines flew from London Gatwick than ever before in 2024, with significant growth in long haul services across China, Africa, India, and the Middle East

·    London Gatwick demonstrates leadership on sustainability after issuing its largest ever financial bond, based on achieving carbon reduction targets

·    Work starts on a £140m extension to mid-airfield pier to support increased capacity

London Gatwick has today published its full financial results for 2024 (https://www.gatwickairport.com/company/about-us/investors.html), when it welcomed a total of 43.2m passengers, up 5.7% on the previous year. The successful year was driven by significant growth in the choice of airlines and destinations with 57 airlines serving the airport - more than ever before. 

2024 results included:

·    Revenue at £1,130.3m (up 11.3%), driven by growth in airline network and passenger numbers

·    Revenue includes aeronautical income at £599.4m (up 9.8%), retail income of £241.3m (up 16.2%) and car parking income of £147.8m (up 11.3%)

·    Profit for the period at £342.9m (up 8.9%), with EBITDA at £679.6m (up 10.0%)

Investing in sustainable growth

Following the recent announcement that the Secretary of State for Transport, Heidi Alexander, is minded-to approve the airport's Northern Runway plans, London Gatwick is engaging fully in the extended process toward a final decision. When approved, the privately financed £2.2 billion project will deliver 14,000 new jobs and £1 billion a year in economic benefits.

Construction is progressing on a £140m extension to Pier 6.  When complete in 2027, eight new aircraft gates will benefit over 500,000 passengers currently bussed to their aircraft each year. A £60m project to install Next Generation technology on its security lanes means that the airport is now fully compliant with new Government regulations. The new technology will enhance passenger and cabin baggage screening by allowing passengers to keep liquids and electrical items in their hand luggage.

Delivering outstanding choice and service

The UK's Civil Aviation Authority recently recognised London Gatwick's proposal to extend the current 'Commitments' regulatory framework until 31 March 2029, and considered that it represents the interests of consumers.  The proposal also demonstrates our strong collaboration with airlines, allowing them to plan and grow for the future.

London Gatwick served 53 long-haul routes in 2024 including new routes to Singapore, Beijing and Guangzhou in China, Baku (Azerbaijan), Ashgabat (Turkmenistan), and Tashkent (Uzbekistan). In total the airport served 19 destinations across Asia - including China, India, and the Middle East - 13 in North and South America, 16 on Central America and the Caribbean and five across Africa.  20 new retail outlets also opened in 2024.

With the support of our frontline colleagues, passengers received great service as the airport hit 99% of its service standard metrics across the year. This included over 95% of passengers passing through security in five minutes or less. 

Sustainability at the heart of the business

London Gatwick has published its 2024 Decade of Change Performance Summary report today - tracking the performance of 42 Key Performance Indicators across three themes: People and Communities, Net Zero and Local Environment. Highlights include cutting carbon emissions for London Gatwick's on-airport fleet by 90% after swapping diesel fuel in 300 vehicles to Hydrotreated Vegetable Oil.

The airport also issued its largest ever bond to the financial markets during the period. The EUR750m sustainability-linked bond is based on achieving two carbon reduction targets (see notes) and demonstrates London Gatwick's commitment to support the transition to a decarbonised aviation sector.

Stewart Wingate. Chief Executive, London Gatwick, said: "Thanks to the dedication of teams across the airport and investment in new facilities and services, our passengers received outstanding service throughout the year. We also offered a record-breaking choice of airlines and destinations, and this has driven our strong financial performance in 2024. 

"Today's results come off the back of the announcement that the Government is minded to approve our privately financed Northern Runway plans. We stand ready to deliver these plans and will continue to engage fully in the extended process toward a final decision and the realisation of 14,000 new jobs and a £1 billion injection into the economy each year. " 

NOTES

For more information on London Gatwick's sustainability-linked bond, see page 25 of the airport's 2024 annual results. (https://www.gatwickairport.com/company/about-us/investors.html).

About London Gatwick

With 43.2 million annual passengers, London Gatwick is the UK's second largest and one of Europe's top ten airports.  It is a vital piece of national infrastructure that drives both the national and regional economies by generating £5.5 billion GVA and supporting over 76,000 jobs (2023).  Almost 60 airlines fly from the airport to over 150 short-haul and more than 50 long-haul destinations.  With a declared capacity of 55 movements an hour, London Gatwick is the most efficient single runway airport in the world. 

The airport is located 28 miles south of the UK capital and is extremely well-connected, with more than a quarter of England's population (15 million people) - including all of London - less than one hour away by road or rail.  A five-year, £2 billion sustainable growth programme includes an ambitious plan to be a net zero airport by 2030.  The airport also plans to increase capacity by bringing the airport's existing Northern Runway into routine use, alongside its Main Runway. Vinci Airports owns a 50.01% stake in the airport, with Global Infrastructure Partners managing the remaining 49.99%. 

About VINCI Airports

The world's leading private airport operator, VINCI Airports operates more than 70 airports in 14 countries. Thanks to its expertise as a global integrator, VINCI Airports develops, finances, builds and manages airports by providing its investment capacity and its know-how in optimizing operational performance, modernizing infrastructure and managing their operations and environmental transition. VINCI Airports is the first airport operator to have committed to an international environmental strategy in 2016, to achieve the goal of net zero direct emissions across its entire network by 2050.

For more information:

www.vinci-airports.com

@VINCIAirports

https://www.linkedin.com/company/vinci-airports/

About Global Infrastructure Partners

Global Infrastructure Partners (GIP), a part of BlackRock, is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. 

GIP has approximately $170 billion in assets under management. GIP believes that its focus on real infrastructure assets, combined with its deep proprietary origination network and comprehensive operational expertise, enables it to be responsible stewards of investor capital and to create positive economic impact for communities.