Shannon Group 2017 annual report shows 22% growth in pre-tax profit
Shannon Group delivers third consecutive year of growth
2017 annual report shows 22% growth in pre-tax profit
Indicators for 2018 positive, including Q1 growth at Shannon Airport of 5%
Shannon Group plc – the parent company of Shannon Airport, Shannon Commercial Properties and Shannon Heritage – last year recorded its third consecutive year of growth since its establishment in 2014.
The group performance reflected strongly in all metrics as it recorded a 23% increase in EBITDA (€9.3million), turnover growth of 7.4% and pre-tax profit increasing by 22% to €8.9million.
The company achieved this while more than doubling its capital investment programme in 2017 to over €34million, through a range of projects that will enhance the region’s attractiveness for Foreign Direct Investment.
Said CEO Matthew Thomas, “Last year was another positive one for Shannon Group. The company delivered a solid performance, with pre-tax profit up by 22%. Our recently published Economic Impact Assessment showed that Shannon is a major economic engine, supporting over 46,500 jobs across the region, which is a huge contribution to our economy. We are pleased with our progress to date, but we are now looking to accelerate our investment plans, to have an even greater impact in the years ahead, and for the Shannon Group to drive economic prosperity on the island of Ireland.
“Shannon Group is a catalyst for economic activity in the broader region and central to this will be growing services and passenger numbers at Shannon Airport which, in turn, impacts economic development across our catchment. To that end, our first quarter of 2018 has been strong, with passenger growth of 5% achieved. We are particularly pleased to see growth across our UK services of 3%, a notable achievement given the uncertainty surrounding Brexit.”
Said Chairman Rose Hynes: “We have now put three years of growth back to back following the establishment of the group in 2014. That is a very positive indicator for the region. We remain committed to continuing that trend going forward, with our prospects very much enhanced by a strong investment programme, most notably across Shannon Airport and Shannon Commercial properties. Both these entities play a key role in the region’s capacity to win FDI and indigenous growth and our investment programme underpins that, as evidenced by recent announcements by Jaguar Land Rover and Edwards Lifesciences.
“From an external perspective we welcome government’s recognition, through Project Ireland 2040 and the National Development Plan, of the role that Shannon Airport plays as a key tourism and business gateway for the region and look forward to the roll-out of the plan and its commitment to delivering regional economic development.”
Among the key outputs of the individual Shannon Group business Units in 2017 were:
- Achieved a marginal increase in passengers in 2017, with its 1.75million passengers delivering a fifth consecutive year of growth since the airport gained independence.
- Overall, Shannon Airport has achieved 25% passenger growth since 2013, becoming the second fastest growing airport in the country during that period
- Welcomed new Norwegian International Services to Stewart International Airport, New York and to Green Airport, Providence, Rhode Island.
- Secured 20% growth on transatlantic services for 2018, including the launch of a new Air Canada Toronto service, expansion of Norwegian and American Airlines services to New York, Boston and Philadelphia. In doing so, the airport will deliver for 2018 Shannon’s largest number of transatlantic destinations in over 17 years
- On the European front, new services were announced in 2017 for Barcelona-Reus with Ryanair, while the airline will also launch new Liverpool and Bristol services as well as expand its existing Manchester frequencies
- The Group’s investment programme saw significant enhancement to the airport’s Duty Free Shop, restaurant, departure gates and executive and transit lounges, as well as a complete resurfacing of the airport runway, the longest airport runway in Ireland. The airport also recreated Thomond Park’s Munster Tunnel at its Departures area in support of its sponsorship of the iconic rugby side
- Also opened Europe’s first airport sensory room, with others now following suit across the continent
Shannon Commercial Properties
- Maintained an ambitious capital investment that will see €40million invested in delivering over 500,000 sq ft of upgraded or new office, manufacturing and warehousing facilities by the end of 2018
- Welcomed new tenants to the Shannon Free Zone, including Jaguar Land Rover and Edwards Lifesciences
- Current projects include a 56,000 sq ft Grade A office block; construction of a 33,000 sq ft advanced manufacturing unit; development of 100,000 sq ft office, engineering and warehouse facilities
IASC (International Aviation Services Centre)
- Saw the development of the aerospace industry identified as one of the top priorities for the Action Plan for Jobs in the Mid-West
- IASC cluster saw further growth, now at over 60 companies, from 35 in 2013
- Launched the Gateway Hub incubation facility, the Mid-West’s latest service office and co-working offering
- Launched the ‘Propeller Shannon’ accelerator programme for fledgling aerospace businesses
- Welcomed over 887,300 visitors to its day and night time attractions, which include Bunratty Castle & Folk Park in Co. Clare and King John’s Castle in Limerick.
- It also has interest in the Cliffs of Moher, Adare Heritage Centre, as well as managing Malahide Castle and Gardens and the GPO Witness History visitor centre
Continued planning to develop and grow its portfolio
The 2017 Shannon Group plc Annual Report is available to view under ‘Publications’ on the home page of our group website at www.shannongroup.ie