4.4

							                                                      APPENDIX 4.4
                                        (referred to in paragraphs 4.17 and 4.18)


                                          HAL: financial performance

                                                                                                            £ million

                                                                                               2000/01
                                           1996/97     1997/98     1998/99      1999/00       restated*     2001/02

Revenue                                      793.8       786.0       810.0        834.2         893.6         903.7
Operating costs                             –456.5      –546.0      –487.0       –509.7        –544.4        –579.2
Operating profit                             337.3       240.0       323.0        324.5         349.2         324.5
Exceptional item                                 -           -           -            -             -           7.6
Interest (net)                               –45.8       –12.6       –48.7        –75.2        –103.0         –96.0
Pre-tax profit                               291.5       227.4       274.3        249.3         246.2         236.1
Taxation                                     –67.2       –52.8       –51.5        –58.9         –56.7         –65.5
Post-tax profit                              224.3       174.6       222.8        190.4         189.5         170.6
Dividends                                        -           -      –459.2            -        –426.7             -
Retained profit/loss                         224.3       174.6      –236.4        190.4        –237.2         170.6

Fixed assets:
Investment properties                         928.1       936.7    1,020.4       1,087.3       1,173.7      1,187.7
Land held for development                      46.2        47.4       70.9          69.4          51.7         47.5
Owner-occupied properties                      13.9        14.8       14.8          18.2          17.7         15.2
Airfields                                      80.5        85.9       91.7          95.0         102.6        145.9
Terminal complexes                            626.5       709.3      941.5         987.0         993.0      1,021.3
Rail assets                                       -           -      545.9         557.7         543.1        531.8
Plant and equipment                            62.5        68.4       75.3          60.6         120.1        114.4
AICC                                          735.9     1,010.1      362.7         397.3         456.5        631.6
                                            2,493.6     2,872.6    3,123.2       3,272.5       3,458.4      3,695.4

Current assets                               127.9        97.7       116.4         88.5         448.3         101.3
Creditors due within one year             –1,027.5    –1,113.5    –1,466.7     –1,249.5      –1,661.1      –1,348.9
Total assets less current liabilities      1,594.0     1,856.8     1,772.9      2,111.5       2,245.6       2,447.8

Creditors due after one year*                –143.0      –205.7     –264.9        –338.4        –890.1       –910.0
Net assets                                  1,451.0     1,651.1    1,508.0       1,773.1       1,355.5      1,537.8

Represented by:
Share capital                                 380.2       380.2      380.2         380.2         380.3        380.3
Revaluation reserve                           782.9       811.8      892.8         966.2       1,012.0      1,021.1
Profit and loss account                       287.9       459.1      235.0         426.7         –36.8        136.4
Shareholders’ funds                         1,451.0     1,651.1    1,508.0       1,773.1       1,355.5      1,537.8

Calculation of net debt (including
 group balances):
Cash                                           8.3         3.2         7.0          8.2             -             -
Due from fellow subsidiaries                     -         6.9        11.2          5.5           5.4           5.7
Loan to parent company                           -           -        19.7         21.1         379.0          27.7
Amount due to parent company                –834.5     –935.5     –1,313.8     –1,078.1      –1,411.2      –1,153.9
Loan from parent company                         -       –60.0      –125.0       –200.0        –578.2        –539.1
Net debt                                    –125.0      –125.0      –125.0       –125.0        –125.0        –125.0
                                            –951.2    –1,110.4    –1,525.9     –1,368.3      –1,730.0      –1,784.6

Enterprise value†                           2,402.2     2,761.5    3,033.9       3,141.4       3,085.5      3,322.4
Mean enterprise value                       2,166.3     2,581.9    2,897.7       3,087.7       3,113.5      3,204.0

Return of profit:
 On revenue (%)‡                              42.5        30.5        39.9          38.9          39.1          35.9
 On mean enterprise value (%)§                15.6         9.3        11.1          10.5          11.2          10.1
Gearing (%)¶                                  39.6        40.2        50.3          43.6          56.1          53.7

  Source: BAA.


  *During 2001/02 BAA applied three new accounting standards—FRS 17 (retirement benefits), FRS 18 (accounting
policies) and FRS 19 (deferred tax). The results for 2000/01 in the above table have been restated to take account of
the changes resulting from the application of FRSs 17 and 19. The adoption of FRS 18 did not have a significant impact
on the results or financial position of the BAA group.
  †Shareholders’ funds and net debt including group balances.
  ‡Operating profit divided by revenue.
  §Operating profit divided by mean enterprise value.
  ¶Net debt (including group balances) divided by the sum of net debt (including group balances) and shareholders’
funds.




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