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Though underlying operating profits were down from the previous year, Alpha Airports Group’s yearend report stated that the company is moving in the right direction following a management shake-up earlier in the year and a terrorist scare in the United Kingdom last fall. Alpha has two operations: its Airline Services, which includes concessions and airline catering and its Airport Services operations which includes duty free shops around the world. In it’s 2006/07 fiscal year, the Airport Services operation saw a 5.1 percent increase in revenue to £265.2 million (US$521.7 million) but a decrease in profits, down 33 percent to £5.1 million (US$10 million). The company’s Airline Services group recorded revenue of £296.3 million (US$582.7 million) with an operating profit up 33 percent to £14.4 million (US$28.3 million) bringing the total underlying operating profit for the company to $19.5 million (US$38.3 million), down from £21.3 million (US$42 million) the previous fiscal year. In the past year, the company has gone through a shakeup in management following contract irregularities for an airline customer and suffered from the terrorist scare in London. With a new management team in place, chief executive Peter Williams said the company would concentrate on its higher-margin operations outside of the United Kingdom and product innovation on the Airline Services division, which caters aircraft and develops food products for buy-on-board programs. “Given the events of the year, both internal and external, and the competitive environment in which the Group operates, I am generally pleased with the financial performance of the Group,” said Williams. In other news from the company, Alpha announced that it has been awarded a three-year contract to cater Etihad Airways out of Australia on flights from Sydney to Abu Dhabi. |
