Alpha Airports Group Plc 
Annual Report 2003/04
Alpha Airports Group Plc Annual Report 2003/04
People making travel special
Alpha Airports Group Plc
Europa House
804 Bath Road
Cranford
Middlesex TW5 9US
Telephone +44 (0)20 8580 3200
Facsimile +44 (0)20 8580 3201
www.alpha-group.com Alpha’s vision
Building an exceptional, international, 
world-class aviation services company by:
• Offering exceptional catering and retailing
experiences for our travelling customers
•Forging ever deeper and wider partnerships with 
our airline and airport customers
• Actively seeking out international acquisition and
alliance opportunities with like-minded companies
•Developing the full talents and active involvement 
of all our colleagues and thus creating a great 
place to work
• Dynamically improving and innovating every aspect
of our business
... and thereby delivering financial success for 
all our stakeholders
Alpha’s business is making travel special
Alpha provides catering and retailing services for
airlines and airports.
After nearly 50 years of continuous growth, Alpha 
now operates from over 150 catering and retailing
outlets at 69 airports in 11 countries across 
5 continents. In total, we are 5,000 fully trained
professionals at your service.
Alpha operates 2 distinct customer-facing
businesses:
Alpha Flight Services offers a comprehensive range
of catering logistics, in-flight catering, bonded
stores, and management services for over 100
airlines from 62 units in 8 countries. Alpha In-Flight
Retail offers inflight retail management services
and is the European leader in the fast-growing
market for the on-board sales of food, beverages
and gifts. Alpha D’Lish provides pre-ordered
catering solutions, allowing passengers to choose
from a range of locally relevant high quality meals
and refreshments for their journey.
Alpha Retail offers purpose-designed retailing 
and catering services for airports. Alpha Airport
Shopping and Alpha Duty Free in Europe, plus
Alpha Tax and Duty Free internationally, provide
a full range of high quality consumer brands at
excellent value prices. We operate stores
at 12 UK airports, 2 airports in North America
and 3 airports in the Indian Sub-Continent.
World News (confectionery, tobacco and
newspapers), Glorious Britain (destination gifts)
and Zinq (fashion accessories) are successful
specialist shops operating at 17 airports in
the UK and USA. Alpha Retail Catering offers
popular restaurant, café and bar services at
12 airports in the British Isles and Europe.
Contents
Financial and operational highlights of the year 1
Chairman’s review 2
Group at a glance 3
Chief Executive’s review 4
People making travel special 6
Review of operations
• Alpha Flight Services 10
• Alpha Retail 12
Financial review 14
Directors 16
Corporate governance report 17
Directors’ report 20
Remuneration report 22
Auditors’ report 27
Group profit and loss account 28
Statement of recognised gains and losses 28
Balance sheets 29
Group cash flow statement 30
Notes to the accounts 31
Five year financial summary 48
Notice of meeting 49
Shareholder information 52
Designed and produced by Linnett Webb Jenkins
Typeset and printed by Pillans & Waddies Financial highlights of the year
• Alpha’s performance improved in the second 
half, after a difficult first half, which was adversely
affected by the Iraq war and SARS. Sales revenues 
in the second half were up over 9% compared to 
the same period of 2002/03 giving Group sales 
for the year up over 5% at £440.9m (2002/03: £419.3m).
• In the second half, adjusted pre-tax profit* from
continuing operations were up nearly 9% to £12.2m
(2002/03: £11.2m) and for the full year were up 
nearly 2% to £21.7m (2002/03: £21.3m), in line with
expectations. Profit before taxation reduced by 16% 
to £17.4m (2002/03: £20.7m), due to the swing from
profit to losses in exceptional items.
• Adjusted earnings per share* remained steady
at 7.50p per share. Earnings per share decreased
23% to 5.33p from 6.91p. 
• Final dividend per share increased 7.7% to 2.8p
(2002/03: 2.6p), giving a full year dividend per share 
of 3.8p, up 5.6% from 2002/03 (3.6p).
• After significant net investment in the business of
£13.2m, Alpha still retains a strong balance sheet,
with net cash at 31 January 2004 of £1.9m, against 
net debt in 2002/03 of £0.3m.
*Adjusted pre-tax profit and adjusted earnings per share are before
goodwill amortisation and exceptional items and are presented to
assist readers to assess underlying trading performance.
Operational highlights of the year
•Alpha Flight Services generated a further 4%
improvement in productivity giving a total
improvement of 48% over the past five years.
•Alpha D’Lish successfully launched with Virgin
Express and recognised in global Mercury Awards
for innovation; UK launch with low-cost airline
customers planned for 2004.
• Australia completed a major upgrade of six recently
acquired flight service units. Alpha appointed to
manage the Qantas in-flight duty-free programme.
• All but two of our 15 UK Alpha Airport Shopping units
have been rebranded ‘pink’, generating excellent
15.5% like-for-like sales growth.
•New Alpha Airport Shopping seven year duty-free
contract awarded by Newcastle International Airport.
•Glorious Britain generates 47% sales growth and
attains Highly Commended recognition in global
travel retail Frontier awards.
• Serious accidents reduce 14% to achieve a level some
58% below our sector average.
• Employee satisfaction improves 22% to upper
quartile performance of quality UK companies; staff
turnover declined by 25%.
1
Alpha Airports Group Plc
Annual Report 2003/04 Chairman’s review
“In a challenging year for the aviation industry, both
businesses performed well despite the economic
conditions, with sales growth achieved in the
second half reflective of our underlying potential. ”
Review of the year
Hostilities in the Middle East and the SARS virus 
made this a challenging year for air travel. Our 
first half sales increased by only 1% above the same 
period last year, with adjusted pre-tax profit (from
continuing operations but before goodwill
amortisation and exceptionals) declining 7.8%.
Second half performance for the Group was
significantly better, with sales ahead 9% and adjusted
pre-tax profit up nearly 9%. Overall, we achieved an
increase in sales for the year of 5% to £440.9m and
adjusted pre-tax profit ahead nearly 2% to £21.7m,
in line with expectations. After goodwill amortisation
and exceptional items, pre-tax profit for the year was
£17.4m (2002/03: £20.7m).
The Flight Services business suffered most – with
sales down 0.6% to £244.0m and an 11.2% reduction 
in adjusted operating profit (from continuing
operations but before goodwill amortisation and
exceptionals) from £16.0m in 2002/03 to £14.2m in
2003/04, including profit from associates.
Our Retail business continued to return year on year
growth. Sales increased 13.2% to £196.9m with a 29.4%
improvement in adjusted operating profit to £8.8m
(2002/03: £6.8m).
2
Alpha Airports Group Plc
Annual Report 2003/04
Dividend
With last year’s industry uncertainty, we held our final
dividend. This year, we are delighted to announce a
proposed 7.7% increase in the final dividend to
2.8 pence per share (2002/03: 2.6p) giving a full year
dividend per share of 3.8 pence, up 5.6% from 2002/03.
Our people
Heightened security clearance at UK airports has 
set us recruitment challenges, yet our employees
everywhere have continued to maintain the highest
standards of service in what has been a difficult 
year . The Board is exceedingly grateful for all our
employees’ hard work. In January we were sad to bid
farewell to 90 staff, many with long service; we wish
them every success in the future.
The Board
In my second year as Chairman we have seen
changes in corporate governance. The Board takes 
its responsibilities for ensuring high standards 
very seriously and swiftly puts in place changes
necessary to comply with the revised Combined Code.
The only exception is we have no senior independent
director . This is because we have an adequate
representation of skills across the current Board 
and in my role as independent non-executive
Chairman I remain the principal point of contact for
shareholders – a situation we will review annually.
Both Mr Ennesser (non-executive director
representing Servair) and I will be standing for
re-election at this year’s AGM. 
Mr Stephenson resigned from the Board in January.
We thank him for his tremendous contribution to the
Group both as employee and, latterly, a director .
Outlook
The new financial year has started well with sales
ahead of last year by over 10%. With a clear focus 
on delivering strategic and operational progress, 
we anticipate a year of growth and improved
performance.
Graham Frost 
Chairman
25 March 2004 3
Alpha Airports Group Plc
Annual Report 2003/04
Alpha Retail
£196.9m
£173.9m
£8.8m
£6.8m
28
Eire 
India 
Maldives
Sri Lanka
UK 
USA
98 outlets 
Retail Catering
Alpha Airport Shopping Bar O8
Alpha Duty Free Bewleys 
Glorious Britain The Bar & Brasserie
World News Deli Sandwich Bar 
Zinq The Foodhall
1,739
BAA Plc
Birmingham International Airport 
Jersey Airport
Manchester Airport Plc
Newcastle International Airport  Plc
Peel Holdings plc
TBI plc
Group at a glance
Sales 2003/04
2002/03
Operating profit* 2003/04
2002/03 
Number of Airports serviced
Geographical spread
Service units/outlets
Trading names/Brands
Employees
Business partners include
Alpha Flight Services
£244.0m
£245.4m
£13.7m
£15.7m
62
Australia 
Europe 
Middle East
UK 
USA
62 service units
Alpha D’Lish
Alpha Flight Services
Alpha IFSM
Alpha In-Flight Retail
3,925
BA CitiExpress
BMI 
Britannia 
British Airways
Easyjet 
Excel 
Monarch Airlines
MyTravel
Qantas 
Ryanair 
*From continuing operations but
before goodwill amortisation and
exceptionals. 4
Alpha Airports Group Plc
Annual Report 2003/04
Our business
Our business is retailing and catering for airlines 
and airports. A major challenge in this business 
is that air travellers do not need to eat or shop 
in transit. The demise of Duty Free in Europe has 
in the past few years put the onus on attracting
customers squarely with store operators. At Alpha,
our experience tells us that if the offer represents
good value, the choice genuine, the buying
appropriate for the market and the experience
enticing, customers will stop and shop. And the 
same goes for catering. A well-targeted offer can
create a genuine success. At Alpha, our aim has
always been to make travel special and memorable,
every time, for every customer . So, we work hard 
to create stores and catering experiences that 
are destinations in themselves. 
A changing market
For Alpha, 83% of Group sales now come from our
focus at airports across the UK. With EU deregulation
in full force, the emergence of lower fares and wider
choice has created a real explosion in passenger
numbers and a new focus on regional airports. This is
a thriving business and one that, despite the SARS
virus and the conflict in Iraq, has given us nearly 9%
passenger growth in the year and continues to be a
key driver for our UK business as a whole.
Innovation
New and exceptional consumer experiences have
transformed our business over the past five years. 
In 2003, our substantial retail growth included 
a creditable 15% from our upgraded pink 
‘Everyone Can Buy’ Alpha Airport Shops, as well 
as an exceptional 47% from our Glorious Britain
destination gift format. Alpha D’Lish is an internet-
based fine meal ordering service for no-frills
travellers – evolving the low cost travel experience 
to meet the aspirations of both business and holiday
travellers. At the same time, major upgrades of 
our catering offer in airports such as Dublin are
raising and more than meeting consumer
expectations. Alpha staff continue to play a vital 
role in the success of these ventures, so we continue
to work hard to offer them the support they need 
to go the extra mile. 
Partnership
Over the year, we have continued to develop deeper 
and wider partnerships with both airport and airline
customers. In Manchester Airport, Bar 08 has
Chief Executive’s review
“ In a changing market with evolving
passenger needs, we are keenly aware
of the need to keep our offer focused
and enticing, making travel special and
memorable, every time.” 5
Alpha Airports Group Plc
Annual Report 2003/04
increased penetration into Alpha Airport Shopping
at Terminal 3. Also, this year we commenced our
highly successful partnership between IFSM and
BA CitiExpress. To round off the year, we are pleased
to announce new national service agreements with
both MyTravel and Monarch Airlines.
We continue to invest in our international 
operations. We have secured an extension to our
contract in Sri Lanka, to include an expanded 
Duty Free offer in better-located arrivals stores 
in Bandaranaike International Airport. We are 
also pleased to announce that our refurbishment 
of the ex-Ansett flight service units in Australia 
is now complete.
Our people
Creating a great place to work for our staff remains 
a high priority . As part of our ongoing investment 
in staff, we have launched Alpha Heroes – a new
programme celebrating and rewarding exceptional
contribution and performance. In an independent,
confidential survey of our staff by ORC, overall
employee satisfaction had improved 22%, to 77%, 
in 2003, while our staff turnover declined by 25%.
Benchmarked against other UK employers, this 
puts us firmly in the upper quartile – a strong and
positive foundation for further developing and 
growing our business. 
Compliance
Compliance remains a critical part of our focus. 
With our accredited training manual and our
involvement in the IFCA and IFSA new food safety
code of practice for the airline catering industry
world-wide, we are among the best in the industry
when it comes to hygiene and food safety.
The Department for Transport has again tightened
security procedures – renewal of our operating
licences depends on compliance. So, we are
constantly monitoring the situation and introducing
appropriate training and policies for our staff. 
Our rigorous compliance policies and training 
have also seen a reduction in the number of RIDDOR
accidents by 14% – an excellent performance, 58%
better than our sector average. 
Always improving
In a challenging marketplace, we continue to 
innovate and improve every aspect of our business.
What we do well today, we must do better tomorrow.
In Retail, our penetration of available customer
numbers has improved, with Alpha Airport Shopping
sales per passenger increasing by 6%. In UK 
Flight Services, despite an 8% reduction in meals
sold, we have improved productivity by 4%, giving 
a total improvement of 48% over the last five years. 
In 2004/05 we have embarked on a major IT
investment across our entire Retail estate, to give
solid support to our next phase of planned growth 
and development. In Flight Services, we will be
investing in centralised distribution and assembly 
of our fresh, high quality food offers, enabling 
us to offer a further enhanced service for our network 
airline customers. 
Following a challenging first half, I am pleased 
with our progress in the second half. Over the past 
five years, we have transformed our business model 
to adapt to a larger, faster-growing aviation market. 
We continue to concentrate on our core business
offerings and, with a healthy balance sheet and
strong Alpha team, we are well positioned to take 
the business forward.
Kevin Abbott 
Chief Executive
25 March 2004 People making travel special
When we defined our vision, we set our sights high.
We weren’t content just to provide our customers 
with what they need in transit. Our aim is to add real
surprise and delight to the experience, making travel
special for regular and occasional travellers alike. 
To achieve this, we work hard to make our 
catering and retail experiences really exceptional. 
We aim to inject genuine innovation into our
relationships with airline and airport partners to
make them more rewarding. We drive our business
with a programme of fresh ideas – sometimes
working solo, sometimes in partnership with
like-minded companies. At the heart of the Alpha
brand, though, are our people. We’re always studying 
our customers, finding out what they want, while 
we invest time and energy in helping our staff feel
engaged, fulfilled and rewarded in their work. 
6
Alpha Airports Group Plc
Annual Report 2003/04 Our people make our business
Great service is crucial to the success of every
aspect of our business. Engaged and confident
staff give great service. They do the job well and,
as importantly, they stay. This gives continuity
to high standards of service excellence , that
training alone cannot deliver, and develops a fount
of expertise to support the Company’s and our
staff’s growth and development.
Our Alpha Will development programme continues to
establish and reinforce the right behaviours and
attitudes required for achieving Alpha goals, every
day, in every area. Our staff have responded with
fantastic results – reaching and exceeding many
of their goals. We asked our staff how they’d like us
to recognise their achievements and so we launched
a scheme called Alpha Heroes to recognise and
reward those who go ‘the extra mile’ .  Meeting your needs 
We don’t just run duty free stores, nor do we just provide
catering and retail services for our airline and airport
partners. Instead, we talk to our partners to establish
and evaluate their needs and those of their customers. 
Then, we devise a solution specifically tailored to meet
those needs with creativity, innovation and real attention
to detail. We’re a diverse company, but we endeavour 
to pool our resources across the group, sharing
knowledge, contacts and information. This enables 
our buyers to maximise their close relationships with
the big brands as well as delivering the economies 
of scale that keep purchasing prices keen.  Right here, right now
These are challenging times for the airline 
industry. Travel patterns are always changing. 
For continued success in this industry you 
need to stay one step ahead, anticipating and 
responding to market trends as they arise. 
Currently, in Europe, the growth is all from 
low cost, no frills airlines for both business and
pleasure. Our strategic response to this trend 
was to get in early. Partnerships with easyJet 
and Virgin Express and our presence in key regional
airports at the forefront of the low cost trend, have
enabled us to study this new customer mindset 
and develop offers that meet their needs. Such an
initiative is our book-ahead fine food concept, 
D’Lish, currently available on Virgin Express. 10
Alpha Airports Group Plc
Annual Report 2003/04
Alpha Flight Services
Rising to the challenge of active growth in low 
cost airlines flying from regional European airports
has given us a new business profile and new
partnerships in Europe and the UK.
Challenging conditions
The last five years have been exciting, yet challenging.
So, our airline customer proposition has had to evolve.
Our business profile today breaks down as follows:
• 65% catering logistics – procurement of prepared
meals and food components from our high quality
dedicated suppliers.
• 28% in flight retailing – providing self-purchase 
food, beverages and gifts for sale onboard 
low cost and charter airlines.
• 7% traditional flight catering – meals prepared 
and cooked in our service units – offered at our long
haul hubs for First and Business Class travellers 
in London Heathrow, Gatwick, Manchester,
Birmingham, Amsterdam, Australia and the 
Middle East.
Market transformation coupled with active growth
in low cost airlines flying from regional European
airports has meant a change in direction for all
providers of airline catering. At Alpha, we continue to
focus on developing the best consumer experience at
lowest cost. With a 48% improvement in productivity
over the past five years, we are now achieving world-
class levels of performance and a 34% reduction in
catering errors. Even with a decline of 8% across the UK
for scheduled and charter airline customer meals, our
pr oductivity impr oved by 4%.
This 8% meal volume decline was driven by a general
shift among charter airlines away from free meals 
to a pay for meals service. Despite a creditable 73%
take-up, it’ s a significant volume decline from the 
100% free service provided in 2001/02, reducing Alpha’ s
sales revenues and introducing uncertainty, complexity
and indirect costs into our service delivery
programmes for our charter airline customers and
thus reducing our profit.
Partnerships
Following an unprecedented period of change and
contract renewal across the major airlines, Alpha has
now secured net contract gains in Europe that equate 
to an estimated 0.5% of annual sales. 
1 Ken Sakulku, Japanese chef, makes final
touches to a long haul meal.
2 Working with our airline partners for
improvement and innovation in our
business.
3 Alpha In-Flight Retail provides on-board
food, beverage and gift services.
1
2
3 11
Alpha Airports Group Plc
Annual Report 2003/04
We are delighted to have been appointed national service
partners for MyTravel Airways and Monarch Airlines 
but disappointed to lose Thomas Cook in the UK from April 
2004, Air Canada at London Heathrow from September 2004 
and Transavia in Amsterdam from April 2004. T o offset 
the Transavia loss, we are delighted to have won catering
contracts with both Japan Airlines and Singapore Airlines
in Amsterdam. 
In all, we have two years before any further major contract
renewals with existing clients are planned. Moreover, we
have capacity across our network and are actively seeking
additional clients’ business over this two-year period.
When it comes to building deeper partnerships, we 
are delighted with the 8% first year cost savings that we 
have achieved for BA CitiExpress with Alpha IFSM. The 
trial of Alpha D’Lish with Virgin Express in Brussels has 
also been a success, with UK trials scheduled in 2004/05.
Overseas business
Internationally, while our Jordan business recovered 
swiftly in the second half from the effects of the Iraq 
conflict, recovery in Amsterdam took longer . In Australia, 
our upgrade of flight service units acquired from the Ansett
administrators is now complete, enabling us to target 
long-haul scheduled airlines with services across 
Australia. We have already been appointed to manage
Qantas’ inflight duty-free programme and to cater Royal
Brunei, Air Vanuatu and Australian, Qantas’ low-cost
long-haul airline.
In-Flight Retail
In-Flight Retail sales grew 15% in line with the exciting
growth in European short-haul airline services from
regional airports. T o improve service and to grow with 
our partner airlines, we are further developing our 
pan-European management services capability, backed 
up by investment in fully cost-competitive flight service 
units as requested by our airline partners.
Distribution networks
As cost-saving gains from our Innovate programme
diminish we are embarking on a Central Distribution project
to simplify logistics and reduce costs across our UK supply
chain. A new Central Assembly format, to create high quality
meals at significantly reduced cost, will benefit our short-
haul airline customers, transforming our cost effectiveness
and capacity to serve thus allowing us to grow our UK
business. In Mainland Europe, we anticipate developing a
similar centralised network to service short-haul airlines
over the next two years.
4 The wide range of D’Lish products
includes a specially designed Funbox 
for children.
5 Alpha D’Lish is delivered direct to 
your seat.
6 D’Lish customers can choose 
from a tempting selection of nutritious
gourmet meals.
4
5
6 12
Alpha Airports Group Plc
Annual Report 2003/04
Alpha Retail
Regional airports have been a key focus in rolling 
out our new ‘pink’ shops with expansion into
premium brand “shop within shop” concepts, as well 
as development of our specialist brand offers.
In the pink
In the last few years we have built on our strong 
presence in regional airports to successfully overcome
the effects of Duty & T ax Free abolition within the EU,
the impact of the SARS virus, the Iraq conflict and 
the tightening of tobacco advertising legislation. 
To counter these major challenges in our industry, 
we have talked to our customers, reviewed our offer,
redesigned all UK retail offerings and invested heavily
in the people skills necessary to support the offer .
Our Alpha Airport Shopping ‘pink’ shops generated 
a 15.5% like-for-like sales advance compared 
with 2002/03. We are delighted to have won a 
seven-year duty-free concession at Newcastle
International Airport, to open expanded shops in 
2004. T o date, all but two of our 15 stores have been
rebranded ‘pink’. We are also investing in expansion 
of our stores at Manchester and introducing shop
within shop concepts with premium brands including 
Mac, Mont Blanc and Mulberry . 
Fashion accessories continue to be a growth market
within travel retail – we have recently opened a newly
rebranded Zinq store at the Eurotunnel terminal at
Folkestone. 
World News
Our World News stores have generated a 9% 
like-for-like sales growth and we are pleased with our
extended, renewed contracts in Birmingham, Exeter,
Humberside and Belfast City . We have also launched 
a stand-alone bookshop concept in Birmingham –
Bookbound – which we plan to offer elsewhere as
increasing passenger numbers demand.
Glorious Britain 
In Glorious Britain we have a new destination gift
format generating spectacular like-for-like sales
growth of 47%, predominantly in London Heathrow.
Glorious Britain won Highly Commended Specialist
Retailer of the Y ear Award in 2003 and we are delighted
to have successfully negotiated a new store location 
in T erminal 2 – the only Heathrow T erminal previously
without one. 
1 Alpha features its own people in 
a variety of marketing campaigns both 
on and off airport (Niall Ryan,
Manchester).
2 The newly re-branded Zinq store 
at Eurotunnel.
3Glorious Britain, our destination 
gift concept, continues to show
significant sales growth.
4World News continues to return sound
growth.
1
2
3
4 13
Alpha Airports Group Plc
Annual Report 2003/04
Retail catering
Our Retail catering sales developed strongly
throughout the year, following major expenditure 
on new outlets and new brands in both Dublin and
Birmingham Airports. Sales increases here have 
more than offset the loss of our Newcastle
International Airport outlets in June 2003. The
juxtaposition of our bars and shops has proved 
a success in Manchester and Birmingham and 
is a strategy we plan to continue.
International stores
Our duty-free stores in Florida posted an impressive
17% sales advance in US$ on passenger figures 8%
ahead of last year . Major expansion and upgrading 
is planned in 2004 for both our Sanford and Orlando
stores, ahead of what we anticipate will be an 
excellent year for European tourists.
In Asia, with 20% passenger growth, driven mainly 
by the fast developing Indian tourist market, our sales 
in US$ grew over 20%. With the US$80m expansion 
of the Bandaranaike International Airport in Sri Lanka
underway, we are excited to have won new, expanded
arrivals shops in better locations under an extended
contract. Major investment is planned in these
facilities and other development opportunities, both 
in Sri Lanka and across the Indian Sub-Continent.
People and partners
Alpha staff continue to be a priority – we are committed
to developing our Alpha Will programme going
forward. 2003 also saw the roll-out of GAP (Growing
Alpha’s People) throughout Alpha Airport Shopping
and Retail catering. Implemented as a launch pad for
future sales and contribution growth by clearly
defining roles and responsibilities, GAP also clarifies
desirable behaviours and attitudes in each role at every
level. Most recently, we have launched a new reward
and recognition scheme, Alpha Heroes. Already a great
success, Alpha Heroes has demonstrated how positive
it is to recognise and reward people at all levels on an
ongoing basis. 
Relationships are key to our business and we 
continue to work closely with our airport partners, 
as exemplified by the further expansion of 
all our Manchester stores in line with the airport
refining the airside/landside balance of their total
commercial offer .
5 At The Foodhall in Dublin Airport
customers can choose from a healthy
selection of salads, deep filled
sandwiches and desserts.
6 Our Deli Sandwich Bars in Birmingham,
Luton and Jersey offer freshly prepared
sandwiches to order .
7 Quality food produced by experienced
chefs is a key element of The Bar 
& Brasserie at Dublin Airport.
8People are the vital ingredient for 
high levels of customer service in our
bars, restaurants and retail outlets.
5
6
7
8 14
Alpha Airports Group Plc
Annual Report 2003/04
Results
Group turnover for the year was £440.9m, an 
increase of 5% over the previous year . The first half 
was adversely affected by the Iraq War and SARS
when sales only improved by 1%, however the Group’s
performance improved in the second half with
turnover increasing 9% compared to the same 
period of the previous year . Most of the sales growth
overall was derived from our retail business with
sales in Retail up over 13% through a combination 
of passenger growth, improved penetration of
passengers in our stores and higher levels of spend.
The reported turnover of Flight Services was 
slightly below last year (0.6%) due to the first half
constraints outlined above.
T able 1 shows adjusted profit before tax* for the Group
of £21.7m (2002/03: £21.3m) an increase of 2% on the
previous year . The Flight Services adjusted operating
profit* decreased 11% to £14.2m including profit from
associates. This reflects the pressure on our UK Flight
Services business where sales were down 8% caused
primarily by the withdrawal of free meals for
passengers on-board many of our charter airline
customers. These policies have not only reduced our
revenue but introduced added uncertainty, complexity
and thus indirect cost into our service delivery
programmes, thereby reducing our profit. Within
Retail, adjusted operating profit* increased 29%,
reflecting the underlying growth in sales and improved
benefits from our ‘ Activate’ initiatives. Net interest is
lower due to the lower average debt level and interest
rates throughout the year .
Table 2 illustrates the strength of our performance 
in the second half with profit ahead nearly 9% to
match the sales growth. The weak US$ exchange
rates in the last few months of the year held back
overseas performance in the second half. Profit
before taxation reduced by 16% to £17.4m (2002/03:
£20.7m), due to the swing from profit to losses in
exceptional items.
Exceptional items 
Having successfully restructured and streamlined 
the Retail management structure some two years
ago and introduced a more open style of working 
with our customer and supplier partners, the 
Group decided to implement a similar structure in
our Flight Services business at the end of the year . 
This unfortunately meant the redundancy of 90 roles
in the UK and Europe, costing some £2.9m. 
Financial review
Table 1 : Adjusted profit before tax*
2003/04 2002/03
£m £m
Flight Services 14.2 16.0
Retail 8.8 6.8 
23.0 22.8
Net Interest (1.3) (1.5)
21.7 21.3
Table 2: Adjusted profit before tax*
2003/04 2002/03
£m £m
First half 9.5 10.1
Second half 12.2 11.2
21.7 21.3
Table 3: Movement in net (debt)/cash
£m
Net debt at 31 January 2003 (0.3)
Free cashflow 9.1
Purchase of associates (0.7)
Equity dividends paid (6.2)
Issue of shares 0.2
Currency translation (0.2)
Net cash at 31 January 2004 1.9
*From continuing operations but before goodwill
amortisation and exceptionals.
“ The group’ s performance improved 
in the second half, turnover increasing 
9% compared to the same period of the
previous year, with most of our sales
growth coming from our retail business. ” 15
Alpha Airports Group Plc
Annual Report 2003/04
These costs were partially offset by the release of an
amount of £2.2m from the remaining onerous
contract provisions for our loss-making duty-free
retailing contracts with the Greater Orlando Airport
Authority, USA and Newcastle International Airport.
The net result is an exceptional loss for the year of
£0.7m, against an exceptional profit of £2.1m earned
last year, primarily from the disposal of businesses.
Taxation
The analysis of the our tax charge is set out in Note 8
to the Accounts. The tax charge for the year, before
exceptional items and goodwill amortisation is 33%,
unchanged from the previous year . The underlying
rate remains higher than the UK rate as a significant
proportion of profit is still earned from overseas with
the double tax relief restricted to the underlying UK
rate of 30%.
Free cash flow 
Free cash flow (see table 3) for the year of £9.1m was
40% (£2.6m) ahead of last year . There are two main
factors for this increase. The Group achieved a £7.9m
improvement in working capital. The average debtor
days throughout the year have remained around
31 days. Our stocks are 11% higher at the balance
sheet date this is mainly reflective of the advance
purchasing required to support continued business
growth in expanded shops. Year-end creditor days
represented an average of 46 days, compared with
36 days in the previous year . Offsetting this
improvement in working capital was an increase of
over £6.0m in capital expenditure projects. In total,
£13.2m of net capital expenditure was invested in the
business including a substantial investment in many
of our airport shops and retail catering outlets at
Nottingham East Midlands, Exeter, London
Heathrow, Dublin and Birmingham airports. This
expenditure is in excess of depreciation and our
normal replacement level of expenditure but reflects
the new and extended contract concessions which the
Group has enjoyed during the year .
As a result of the above movements in cashflow, we
ended the year with a net cash position of £1.9m
compared to net debt of £0.3m as at 31 January 2003.
Treasury
The Board annually sets the treasury policies and
objectives and lays down the parameters within
which all aspects of treasury management are
operated. Alpha Airports Group operates a central
treasury function to manage the Group’s financial
risks on a non-speculative basis. The key risks are
our exposure to exchange rate fluctuations and
interest rates. Our policy in relation to currency
exposure is to mitigate the effects, which may arise
from day-to-day trading, and to seek to match
overseas investments with borrowings denominated
in the same currency. Material transactions are
hedged via forward foreign exchange contracts.
Overseas subsidiaries regularly remit funds to the 
UK resulting in relatively low cash balances being
held in overseas jurisdictions. Our policy in relation
to interest rates has recently been updated to 
maximise, where possible, borrowings under the
£60m facility in currencies where the interest rates
are lower than sterling whilst minimising exchange
exposure. Our exposure to these risks is regularly
reviewed and swaps and commitments made, 
as appropriate.
The Group’s funding position is unchanged. A five 
year multi-currency facility of £60.0m is in place 
with a consortium of three major banks. This facility
will expire in October 2006. The draw down under 
the facility at 31 January 2004 was £3.0m. No
currency exchange contracts or interest rate swaps
existed at the balance sheet date.
International financial reporting standards
The Council of the European Union announced in
June 2002 that all European listed companies will be
required to adopt International Financial Reporting
Standards (IFRS) from 1 January 2005. This will affect
the Group results for the year ending 31 January
2006. Assessing the differences between current
accounting policies and IFRS is a complex task not
least as many of the IFRS are themselves in the
course of revision with a high number being produced
in the last few weeks. However, it is already evident
that certain accounting policies and presentational
aspects of the financial statements will change. Work
is underway to ensure the Group will be ready to meet
the conversion deadline and to represent clearly the
effects of the convergence.
Heather McRae 
Finance Director
25 March 2004 Directors
16
Alpha Airports Group Plc
Annual Report 2003/04
Graham Frost (56)
Independent non-executive Chairman
Chairman of Nominations Committee 
and member of Audit and Remuneration
Committees Was appointed to the Board 
on 3 April 2002. He is currently non-executive
Chairman of CHT Holdings Ltd and Member 
of the Supervisory Board of the Samlerhuset
Group B.V. He was previously Executive
Chairman of First Quench Retail, Chief
Executive of Argos plc and Managing 
Director of Grattan plc. His appointment 
as non-executive Deputy Chairman of
Monsoon Plc ended on 30 September 2003.
Kevin Abbott (49)
Chief Executive Started his career with
Schroders, then spent sixteen years with
Redland Plc, eventually as Global Roofing
Director on the main board. After a period 
as International Packaging and main 
board Director during Bowaters’ transition 
into Rexam Plc, he joined Alpha Airports 
Group Plc as Chief Executive in 1997.
David King (49)
Executive Director Was appointed to the
Board on 1 February 2003. He will continue in
his role as Managing Director, Alpha Airport
Shopping (UK) and in addition has assumed
responsibility for Alpha’s businesses 
in the US and Asia. He is also a director 
of The UK Travel Retail Forum.
Heather McRae (42)
Finance Director Joined Alpha Airports
Group Plc as Corporate Finance & Treasury
Manager in 1996 after serving eight years
with Price Waterhouse where she was audit
and advisory manager to Alpha through 
its period of flotation.
After a period as Alpha Flight Services
Divisional Finance Director she was
appointed to the board as Group Finance
Director in June 2000.
Michel Ennesser (61)
Non-executive Director Was appointed 
to the Board in October 2000. He is President
and Chief Executive Officer of Servair 
and was previously a senior vice president 
of Air France. In 2003 he was awarded 
the Légion d’Honneur .
Lesley James CBE (55)
Independent non-executive Director
Chairman of Remuneration Committee 
and Member of Audit and Nominations
Committees Was appointed to the Board 
on 1 September 2002. She is currently 
a non-executive director of Queens Moat
Houses PLC, Care UK PLC, West Bromwich
Building Society, WBBS (SRS) Limited and
Trustee Chairman of Invalid Children’s Aid
Nationwide. She was previously a director
of Tesco PLC.
Terry Stannard (53)
Independent non-executive Director
Chairman of Audit Committee and Member 
of Remuneration and Nominations
Committees Was appointed to the Board 
on 25 April 2002. He is currently a Director 
of S. Daniels Plc, Daniels Chilled Foods
Limited, James Beattie Plc and Bradford 
and Sons Limited. He was previously Chief
Executive of Uniq plc, formerly Unigate plc, 
and has held senior executive positions 
with Terranova Foods plc, Hillsdown Holdings
Limited and United Biscuits plc. 17
Alpha Airports Group Plc
Annual Report 2003/04
Corporate Governance Report
Introduction
The Board is committed to high standards of corporate governance.
Following the publication of the revised Combined Code on Corporate
Governance in July 2003, the Board has reviewed the principles and
provisions which should apply for reporting years commencing after
1November 2003. The report below and the remuneration report on
pages 22 to 26 describe the way in which the principles and practices
detailed in the Combined Code, issued in June 1988, appended to the
Listing Rules are operated and explain how the principles of section
one of the new Code are applied by the Company.
The Board
The Board is responsible for providing leadership and appropriate
controls over the running of the business. Strategy is developed and
determined by the Board and Company performance monitored against
the objectives set. The Board comprises the Chairman, three executive
directors and three non-executive directors, two of whom are
independent. Brief biographies of the directors are given on page16.
The current Board structure was reviewed in October 2003 and it was
decided that the balance of skills and experience added value to the
business and contributed to effective management. 
The two roles of the Chairman and the Chief Executive are separate.
The Chairman has responsibility for the effective functioning of the
Board and ensuring appropriate strategic focus and direction for the
Company. The Chief Executive, supported by the senior executive team,
is responsible for day to day operations and the implementation of
Board policy and decisions.
The directors are encouraged to bring an independent judgement
to bear on both strategic and operational matters. Non-executive
directors in particular monitor management performance against
agreed goals and maintain standards of corporate governance and
financial control. The Company is below the FTSE 350 and meets
the requirement to have at least two independent non-executive
directors on its Board and serving on the Audit and Remuneration
Committees. Any director may challenge company policy and
decisions are taken democratically after discussion. Any concern
which a director felt was unresolved after discussion and asked
to be recorded would be noted in the minutes of the meeting.
Methods for assessing the performance of the Chairman and other
non-executive directors and for formally evaluating Board
performance are being developed. The executive directors are
each subject to an annual performance appraisal.
The directors have wide and varied commercial experience. All
directors are entitled to accept appointments outside the Group and
retain any fees received providing that the Chairman’s permission
is sought. The external commitments of the Chairman have
decreased during the year .
No new appointments to the Board were made during the year but
the term of Mr Ennesser as representative of Servair was renewed
fora further three years. His re-election will be proposed at the annual
general meeting in 2004. All directors are required to retire every three
years and, subject to satisfactory performance, stand for re-election.
No non-executive director has been in office for more than four years
and succession planning issues are kept under review to help ensure
that the Board has a suitable balance of independence, experience and
continuity. One of the executive directors, Mr Stephenson was made
redundant from the business on 19 January 2004. The letters of
appointment for the non-executive directors and the service contracts
for executive directors are available for inspection at the registered
office during normal business hours. 
There is a formal schedule of matters reserved for the Board. These
include strategy, major capital expenditure and projects, material
contracts, significant investments and risk management strategy.
Decisions about contracts, projects and capital expenditure below
pre-defined values may be delegated to the General Management
Committee for authorisation.
There is a regular programme of eight Board meetings each year,
supplemented by additional meetings when required. All directors
attended the eight scheduled meetings, with the exception of Ms McRae
who was unable to attend one of the meetings and Mr Ennesser who
attended three of the meetings. The Board held three ad hoc meetings
during the year, all of which were attended by the Chairman and the
executive directors except for Mr King who was unable to attend one
of the meetings. Mr Stannard and Ms James attended one and two
meetings respectively. Mr Ennesser was unable to attend any of the
ad hoc meetings.
The Board considers the non-executive Chairman should be the
principal point of contact for shareholder concerns of whatever nature
to be conveyed but that any of the other non-executive directors may
also be contacted and has therefore decided not to separately nominate
a senior independent director . This decision is reviewed annually.
Directors are supplied in advance with supporting papers for each
Board agenda, which give detailed information tailored to their needs
about the matters under discussion and ongoing company and
divisional performance, to ensure that they can make an effective
contribution as Board members. Further information can be requested
at any time from the Company’s management. All new directors are
given appropriate induction training in the Group’s business and site
visits to key locations are regularly arranged for all directors. Further
training is available on request. The Chairman discusses prominent
issues with the non-executive directors in situations when it would be
helpful to have a separate discussion independently from the executive
directors. Independent professional advice is available to all directors
at the Company’s expense if required in connection with their duties
and no such advice was requested during the year . The Company
Secretary is available to give advice to all directors and ensures that
Board procedures are complied with. Appropriate insurance cover
is in place in case of legal action against the Company’s directors.
Shareholder Communication
The Company remains committed to good communication with its
shareholders and maintaining an open and proactive dialogue with
its institutional investors. The Finance Director and Chief Executive
normally attend all investor meetings and the Chairman attends the
briefings held with major institutional shareholders and analysts on
the Company’s announcements of full year and interim results. In order
to bring further communication and understanding, opportunity will
be given at the end of such briefings for the Chairman or other
non-executive director to meet alone with major shareholders so they
may communicate to him directly any concerns. The Chairman and
non-executive directors are free to attend any shareholder meetings
or enter into dialogue whenever they wish and are available for
discussion at the request of key investors.
A presentation is made by the Chief Executive at the Annual General
Meeting on the Group’s businesses, performance and future prospects,
for the benefit in particular of private investors, and shareholders are
encouraged to raise questions and express their views. The Chairman
aims to ensure that all directors including Committee Chairmen are
available at the meeting to answer relevant questions. Private investors
are invited to submit concerns and questions in advance which are reported to the Board and the Chairman responds to the main themes
from these at the meeting. The report from Paul Myners to the
Shareholder Voting Working Group published in February 2004 will
be reviewed and consideration given to what further action should
be taken. Meeting documentation is mailed at least 20 working days
beforehand. Proxy results are reported at the meeting and are
available on request afterwards.
Board Committees
Membership and Chairmen of the Board committees are shown below.
The terms of reference of the Audit, Nominations and Remuneration
committees are available from the Company Secretary on request. 
The General Management Committee 
The General Management Committee (“GMC”) comprises all the
executive directors together with the Group HR Director . It met nine
times during the year . Mr Abbott chairs the meetings and was present
at each meeting, Mr King missed one of the meetings and Ms McRae
missed two meetings. It reviews all transactions to be proposed to the
Board and has delegated authority to approve capital expenditure,
projects, investments and material contracts up to pre-determined
limits. In addition it reviews internal control procedures and policies
and makes recommendations to the Board. It also has authority to
determine changes in terms and conditions, pay and benefits to
all staff except executive directors and senior executives who report
to the Chief Executive. 
The Nominations Committee
Succession planning issues have been identified by the Board for
future consideration by the Nominations Committee which did not meet
during the year . Its terms of reference include the authority to review
and make recommendations to the Board about Board appointments.
Mr Frost chairs the Committee but would not chair the meeting if
succession planning for the role of Chairman were being considered.
The other members are the independent non-executive directors.
The Remuneration Committee
The Remuneration Committee met four times during the year and all its
members were present at every meeting. The Committee is chaired by
Ms James and Mr Frost and Mr Stannard are both members. The Report
of the Remuneration Committee is included on pages 22 to 26.
The Audit Committee 
The Audit Committee met three times during the year and all Committee
members were present at every meeting. Mr Stannard has chaired the
Committee since 1 April 2003, before which it was chaired by Sir Hugh
Bidwell who served on the Committee until his retirement on 31 March
2003. Mr Stannard, Ms James and Mr Frost have served on the
Committee all year . The external auditors, the Finance Director, the
Director of Audit and Risk Management and senior members of the
Company’s finance team are invited to attend meetings. The Committee
also meets regularly alone with the external auditors so that there can
be open and honest discussion. All the members are financially literate
independent non-executive directors and believe that the Audit
Committee collectively has the financial capability to fulfil its obligations.
In addition to the internal control function described below, the
Committee considers and makes recommendations in connection with
the external auditors, dividends, external financial reporting and internal
audits. The Group’s accounting policies and practices are reviewed at
least annually and the accounts are examined before publication, taking
particular note of any significant financial reporting judgements made.
The Committee considers the appointment of the external auditor and
reviews the scope, adequacy and results of the audit.
Consideration is given to the volume and type of non-audit services
provided by the external auditor in order that the independence of the
audit is safeguarded. It has been agreed that the current auditors will
provide all audit, accounting and tax advisory services including auditing
services throughout the world where cost effective. Due diligence on
business opportunities in the same sectors as the Company will
normally be carried out by the auditors in order to utilise their skills
and knowledge of the business. They may provide pension fund auditing
and due diligence in new fields if appropriate. The auditors would be
excluded from providing all other significant advisory and
consultancy services to the Group unless they were considered to be
outstanding in that field of excellence and to exclude them would be to
the detriment of the Company and its shareholders in obtaining
the best advice.
Appropriate arrangements are in place for the investigation of any
concerns of possible improprieties raised within the Company. A report
of the Audit Committee business and conclusions is usually given at
the following Board meeting. 
The auditors continue to operate procedures to safeguard against the
possibility that the auditors’ objectivity and independence could be
compromised. This includes the use of independent concurring
partners, use of a technical review board (where appropriate) and
annual independence confirmations by all staff. The auditors report to
the Audit Committee on matters including independence and non-audit
fees on an annual basis. In addition, the role of the audit partner is
rotated on a periodic basis.
Financial Reporting
Detailed assessments of the performance and financial position of
each part of the Group appear in the divisional and financial reviews.
These, together with the Chairman’s review and the directors’ report
on pages 20 to 21, present a balanced and clear assessment of the
Company’s position and prospects. The directors’ responsibilities
for the financial statements are described on page 19.
Internal Control
The Board has reviewed the effectiveness of the internal controls of
the Group for the period 1 February 2003 to the date of this report.
The Board as a whole is responsible for the Group’s system of internal
control and for reviewing its effectiveness. The system of internal
control is designed to ensure compliance with laws and regulations and
to create effective and efficient operations. In establishing this system,
the directors review the nature of the Group’s businesses, including the
materiality of the risks being run, the likelihood of a loss being incurred
and the costs of control and of mitigation of likely losses. It therefore
follows that the system of control can only provide reasonable and not
absolute assurance. 
The Board reviews the Group’s system of internal control, including
its financial, operational, compliance and risk management controls.
The Company’s system for identifying, evaluating and managing the
significant risks within the business includes a comprehensive annual
review by the Board, quarterly review meetings and an ongoing process
of continual risk assessment in accordance with the Turnbull guidance.
There is a Group framework of clearly defined structures and
accountabilities supported by appropriate policies and procedures.
The Board receive a comprehensive monthly update on the Group’s
operational activities and detailed monthly management accounts.
Steps continue to be taken to align internal controls which may have
altered with the needs of the business during the year . 
18
Alpha Airports Group Plc
Annual Report 2003/04
Corporate Governance Report continued The key components of the risk management structure were reviewed
at the annual Risk Management Forum which brings together senior
managers from all the Company’s businesses and was attended by the
Chairman of the Audit Committee. The risk process is fully embedded
in the business and the monitoring and managing of risk is continually
reviewed to improve, enhance and simplify the process.
Key procedures are subject to ongoing review to provide effective
internal and financial control. These are:
• Control environment: Control is exercised through an organisation
structure with clearly defined levels of responsibility and authority
and appropriate reporting procedures, particularly with respect to
capital expenditure, investment, contractual commitments, granting
of guarantees and health and safety issues. 
• Financial reporting and information systems: The Board has a
comprehensive budgeting system with an annual budget approved
by the Board. Monthly trading results, balance sheets and cashflow
statements are reported against the corresponding figures for the
budget and the previous year with any significant variances examined
and explained by operating management and action taken as
appropriate.
• Risk management: Identification of major business risks is carried
out in conjunction with divisional management and appropriate steps
taken to monitor and mitigate risks.
• Monitoring system: A comprehensive system for measuring
compliance and risks is in place throughout the business.
The Group’s processes are subject to review by the risk-focused
internal audit department which reports to the Audit Committee.
Internal audit plans and twice yearly reports are reviewed by the Audit
Committee on behalf of the Board together with external audit plans
and management letters prepared by the external auditors. The scope
of work, authority and resources of internal audit are reviewed annually.
Going Concern Basis
The Group’s accounts have been prepared on the basis that the Group
is a going concern. In forming this view, the directors have reviewed
the Group’s budget for 2004/2005 and outline projections for the
subsequent year based on normal business planning and control
procedures. The directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in
operation for the foreseeable future. The directors, therefore, continue
to adopt the going concern basis in preparing the accounts.
Directors’ Responsibilities Statement 
Company law requires the directors to prepare financial statements for
each financial year which give a true and fair view of the state of affairs
of the Company and Group as at the end of the financial year and of the
profit or loss of the Group for that year . In preparing those financial
statements, the directors are required to:
• adopt suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed,
subject to any material departures disclosed and explained in the
financial statements;
• prepare the financial statements on the going concern basis unless it
is inappropriate to presume that the Group will continue in business.
The directors are responsible for ensuring that proper accounting
records are kept which disclose with reasonable accuracy the financial
position of the Company and Group at any time, and which enable them
to ensure that the financial statements comply with the Companies Act
1985. They are responsible for safeguarding the assets of the Company
and the Group and for taking reasonable steps to prevent fraud and
detect any other irregularities.
The directors are responsible for the maintenance and integrity of the
Alpha Airports Group Plc website, upon which the financial statements
will be available. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
Compliance with Code Provisions
The Company seeks to uphold best practice in corporate governance.
The Board considers that it has complied with the provisions set out
in Section 1 of the Combined Code, issued in June 1998, (as annexed to
the Listing Rules) throughout the period under review, except provision
A.2.1. In accordance with the requirements of the revised Combined
Code, the Company will in future be required to report on its compliance
with the detailed provisions of this revised Code. The Board has
reviewed the revised provisions against its current practice and
amended its processes where appropriate and the report above gives
an explanation of how the revised principles are applied.
After consideration, it has been decided not to appoint a separate senior
non-executive director as either of the two independent non-executive
directors may be contacted where there are concerns that cannot be
discussed through the Chairman who would be the usual principal
contact. Further, the Chairman is currently a member of the Audit
Committee but is not allowed to chair it and the Company is compliant
with the requirement to have two independent non-executive directors
on the Committee. Decisions about these exceptions will be reviewed
annually.
The Company continues to review relevant mechanisms for
performance evaluation of the Chairman, non-executives, Board and
Committees and will aim to introduce suitable procedures during the
year . All other revised Code provisions have been complied with.
19
Alpha Airports Group Plc
Annual Report 2003/04 The directors present their annual report and the audited financial
statements of the Company and the Group for the year ended
31 January 2004.
Principal Activities of the Group, Results and Future Prospects
The principal activities of the Group, its trading results, future
prospects and review of operations are described in the Chairman’s
Review, the Chief Executive’s Review, Divisional Reviews, the Financial
Review and the Accounts.
Directors
Profiles of the directors in office at 31 January 2004, who all served
throughout the year, are shown on page 16. Mr King was appointed as
executive director with effect from 1 February 2003. Sir Hugh Bidwell
retired as a non-executive director with effect from 31 March 2003 and
the role of Mr Stephenson as executive director was made redundant
on 19 January 2004.
In accordance with the Company’s Articles of Association, Mr Frost and
Mr Ennesser will retire by rotation at the forthcoming Annual General
Meeting and, being eligible, offer themselves for re-election.
The Remuneration Report on pages 22 to 26 includes details of
service contracts and letters of appointment and shows the interests
of directors in share options and ordinary shares of the Company.
Significant Contracts
There were no contracts of significance as defined in the Listing Rules
of the Financial Services Authority subsisting during or at the end of the
year ended 31 January 2004 in which a director of the Company was
materially interested.
Dividends
An interim dividend of 1.0 pence per ordinary share was paid on
7November 2003. The directors recommend the payment of a final
dividend for the year ended 31 January 2004 of 2.8 pence per ordinary
share on 9 June 2004 to ordinary shareholders on the register at
16 April 2004 which, if approved, will result in a total dividend for the
year of 3.8 pence per ordinary share.
Changes in Share Capital
At the Annual General Meeting on 29 May 2003, a resolution was passed
giving the Company the authority to make market purchases of ordinary
shares up to a maximum of 10% of the issued share capital. During
the year no market purchases have been made by the Company under
this authority which is due to expire at the forthcoming Annual General
Meeting. A resolution for its renewal will be proposed to the
shareholders at that meeting and is included in the Notice of Meeting
on page 50.
Payments to Suppliers
The Company’s policy is to pay suppliers according to the agreed terms
and conditions of business under which transactions are conducted
provided that goods and services have been supplied in accordance
with the agreed terms. The Company is a holding company and
therefore does not have any trade creditors. The total amount of trade
creditors for the Group for the year end represents an average of 46
days (2002/03: 36 days).
Substantial Shareholdings
As at the date of this report, the following were registered as being
interested in 3% or more of the Company’s issued share capital.
Number of % of Issued
ordinary shares Share Capital
Servair 46,616,666 27.14
Schroder Investment Management Ltd* 32,038,554 18.66
Fidelity International Ltd* 20,502,943 11.94
UBS Global Asset Management Ltd* 6,801,622 3.96
*Non beneficial.
Donations
The Group made no charitable donations (2002/03: £nil) and no political
donations (2002/03: £nil) during the year .
Directors’ and Officers’ Insurance
The Company maintains insurance in respect of its directors and officers
against liabilities they may incur in the performance of their duties.
Employment Policies
Employee Communication and Involvement
During the year regular consultations and briefings took place with
employees and their representatives to increase their knowledge and
understanding of the Group’s performance and financial and economic
factors which affect it, as well as enabling the Group to take into account
the views of employees when making decisions. Feedback from
employees is actively encouraged; the annual Employee Survey not only
provides valuable information on how our teams feel about working for
Alpha, but also enables us to target areas which require improvement. 
Training and Development
The importance of training and development as a key to business
success is recognised at all levels. The Group provides training
programmes both internally and externally, to support the development
of the business and its internal culture, to improve business efficiency
and safety, and to enable the Group to comply fully with relevant
legislation and local regulations.
Incentive and Recognition Programmes
The Group operates various incentive bonus schemes and recognition
programmes which are linked to profit performance at local, regional
and divisional level and individual performance. The majority of the
programmes focus on improving sales and profit, productivity and
customer service. A new bonus arrangement is being proposed for the
executive directors and details of this are summarised in resolution
seven in the Notice of Meeting on pages 49 to 51.
The Group has an employee option allocation policy – Sharing in
Success – for the purpose of encouraging all employees to participate
in the development of the Group. As a reward system, grants are made
annually to employees based on length of service ranging from over
2years to 30 years. For those countries where it is appropriate,
a deferred bonus scheme exists to provide employees with a cash
benefit equivalent to any gains they would have received had they been
granted normal share options. Details of total options granted are
shown in note 20 on page 44.
The Group also offers an executive share option scheme, details of
which are given in the Remuneration Report on pages 22 to 26.
Equal Opportunities
The Group is committed to equality of opportunity and does not
discriminate between employees or potential employees on any
grounds and the requirements of all relevant employment legislation
are fully recognised. Due consideration is given to the recruitment,
promotion, training and working conditions of all staff including those
with disabilities. In the event of an employee becoming disabled, the
Group uses its best endeavours to ensure continuity of employment.
20
Alpha Airports Group Plc
Annual Report 2003/04
Directors’ Report Environmental and Social Review
Success in environmental and social management continues to be
a joint effort between employees and management, with the Group
recognising it can only achieve its business objectives if the operational
activities reflect the environmental and social priorities of the
community it serves.
Responsibility
As nominated by the Board, the Chief Executive is responsible for
maintaining effective environmental and social policies for the Group.
Policies are reviewed as a matter of importance at regular intervals
by the Board. The quarterly Health, Safety and Environmental Forum
continues to play a major part in the regular review of performance
throughout the Group; risks are identified and appropriate policies
and procedures are adopted in accordance with industry best practice.
The Group’s Compliance Department monitors performance on a
regular basis and liaises closely with operational management to
ensure that policies are effective and reflect prevailing legislation.
Policies, Procedures and Verification
In support of the Group’s environmental and social policies, the
Group continues to use a self audit system which forms the basis of
performance measurement and continuous improvement. Unit self
audit analysis is continuously subject to internal verification by the
compliance department.
Regular internal training programmes are an important feature in the
Group’s approach to maintaining and continually improving compliance.
During 2003 the Group achieved formal accreditation with the Royal
Institute of Public Health and Hygiene for its national health and safety
training manual and in addition achieved formal accreditation to deliver
IOSH managing safely intermediate courses . The compliance training
department has delivered a series of internal courses on accident
investigation for junior line management in conjunction with the
Group’s insurance brokers. Additionally, basic health and safety and
food safety certificated courses were run during the year for existing
and new operational management.
On an annual basis, the compliance management team produce
internal annual reports on performance measurement for trend
analysis and for target improvements in the forthcoming year which
are linked to management appraisals.
Statistical performance measurement on food safety, health and safety,
security, transport and facilities management are also included in the
monthly compliance report indicating key performance measurements
and this is circulated to all senior Group management for trend analysis
and continual improvement targeting. Compliance support managers
continue to actively support and measure performance on an ongoing
basis for all operating units for all aspects of compliance management.
Over the past two years the compliance department has in conjunction
with representatives of the flight catering industry, suppliers and
airlines contributed towards a new world food safety code of practice
for the industry. This was published during 2003 jointly by both IFCA
and IFSA.
The compliance team have been working closely with the Health and
Safety Executive on improving airside safety for the catering industry
and have implemented a series of additional safety measures which
will benefit all staff working airside.
During 2003 Flight Services operations were re-measured against
ISO 9001:2000 standards by the accreditation body ISOQAR with
5 units being externally audited. Accreditation on a national scale was
maintained for all flight catering and bonded stores operations.
Alpha continues to look at ways of improving the environment and
actively targets the reduction of waste through its national supplier
network. It continues to target energy reduction and the reduction
of air emissions.
Pension Schemes
The Alpha Airports Group Pension and Life Assurance Plan (“the Plan”)
is a final salary related pension scheme which the Group offers to UK
employees. The Plan provides for an accrual rate of 1/60th of final
salary for each year of service and life assurance cover of three times
earnings. Members contributions were increased from 6% to 8% of
pensionable salary in August 2003 following the results of the April 2002
Actuarial Valuation. Employees who do not contribute to the Plan
receive life assurance cover of one times salary. 
The corporate trustee of the Plan is Alpha Airports Pension Trustees
Limited, which is chaired by the Finance Director and whose other
directors include one actuary, one pensioner, two member-nominated
directors and one company-nominated director . The trustee directors
take specialist advice from appropriate sources, including independent
actuaries and the Plan’s investments are managed by Deutsche Asset
Management. Members receive an annual statement of benefits and
a printed report detailing developments concerned with the Plan.
The next actuarial funding review will be undertaken as at 6 April 2005.
The Group closed the existing Plan to most new employees from
1 September 2001, at the same time a new money purchase scheme
was launched to comply with the regulations on stakeholder pensions.
The Group matches contributions made to this money purchase
scheme depending on length of service. Other defined contribution
schemes operate within the Group and all are invested separately from
the main Plan.
Auditors
A resolution to re-appoint PricewaterhouseCoopers LLP will be
proposed at the forthcoming Annual General Meeting.
Annual General Meeting
The Annual General Meeting will be held on Thursday 3 June 2004
at 11.00am at the Conference Centre, Le Meridien Hotel, Bath Road,
Heathrow, Middlesex UB7 0DU. The Notice convening the meeting
is contained on pages 49 to 51.
By Order of the Board
Heather McRae
Company Secretary
25 March 2004
21
Alpha Airports Group Plc
Annual Report 2003/04 In preparing this Report and establishing its policy, the Board has given
full consideration to, and follows the provisions of, the Combined Code
and the Directors’ Remuneration Report Regulations 2002. Following
publication of the revised Combined Code, the Committee continues
to review remuneration policy and principles and believes that it meets
the requirements of the new Code.
The Remuneration Committee
The members of the Remuneration Committee are Ms Lesley James
(Chairman), Mr Stannard and Mr Frost, two independent non-executive
directors and the Company’s Chairman, who have no personal interest
in the matters to be decided, other than as shareholders and no day to
day involvement in the management of the Company. Sir Hugh Bidwell
served on the Committee until his retirement on 31 March 2003, and the
Committee was chaired by Mr Frost until that date. The Chief Executive
and the Group HR Director attend to advise the Committee when
required but do not participate in decisions relating to their own
remuneration.
Remuneration Policy 
The aim of the Committee is to establish a level of remuneration
sufficient to attract, retain and motivate executive directors and senior
managers of the highest calibre required to achieve the Group’s
objectives in the current and future years as well as establishing an
overall framework for remunerating all employees. The Committee
has responsibility delegated to it to determine remuneration packages
for the executive directors of the Company and also those senior
executives reporting directly to the Chief Executive. Additionally it has
an overview role in relation to Group remuneration policy generally and
makes recommendations thereon to the Board for its approval.
Reviews of the Group’s remuneration policy are carried out periodically
with advice from independent consultants as required to ensure that the
type and level of emoluments and incentive schemes are competitive in
the market place and are supportive of the Group’s business objectives
and the creation of shareholder value. Benchmarking comparisons are
made with the remuneration policies of companies whose turnover
and/or activities are similar to the Group’s. Advice is given by Deloitte
and Touche who have been appointed by the Committee to provide
remuneration consultancy services and who are not engaged by the
Company to provide any other services.
The Committee has developed a remuneration policy which includes
acompetitive base salary having regard to levels of responsibility,
experience and market comparatives. Performance-related elements
form a significant and growing part of the total remuneration package
and include bonus payments linked to challenging performance targets
and an annual award of share options to link the rewards of executives
to the long term success of the Group. To encourage long term
commitment, a change to the bonus plan is proposed to allow executive
directors to receive a proportion of bonus in the form of shares to be
held in trust until three years after the award date.
The composition of targeted remuneration for executive directors
will change following the introduction of the changes noted below
to bonuses and share options in the current year .
Remuneration Package
The Committee seeks to maintain an appropriate balance between
performance and non-performance related elements of the
remuneration packages in respect of each executive director and senior
manager . The components of the remuneration package comprise long
term and short term goals in four elements: base salary and benefits,
an annual performance bonus, long term incentive arrangements and
pension benefits as outlined below: 
Base Salary
Base salary is designed to recognise the executive director’s or senior
manager’s ongoing market value. Reviews of base salary are conducted
annually by the Committee having regard to the individual’s performance,
any changes to the level of responsibility and the practice of similar
companies. The Company also provides private healthcare and a car . 
Performance Bonus
The Company operates bonus schemes for executive directors and
for management. The level of bonus is dependent on Group profit and
individual performance. The Committee considers the profit and
personal performance criteria to be appropriately challenging.
For the year ended 31 January 2004, executive directors and senior
management could earn a cash bonus set at a maximum amount of
25% of their salary, calculated on the basis of two equal factors. The
first factor was based on employee satisfaction results at unit,
divisional and group levels and the second was financial. The
percentage achieved on the first factor determined the percentage
paid on the second factor . For the year ending 31 January 2005, the
Committee has decided that the payment of bonus will be dependent
on Group profit for the year . Provided that challenging profit targets
are met, employee satisfaction results will then determine the level
of bonus paid out for 50% of the potential award.
In line with the policy of increasing the proportion of remuneration
linked to corporate and individual performance, the Committee has
reviewed information provided by Deloitte and Touche and decided
to increase the maximum level of incentive bonus payments for
executive directors to 50% of salary beginning with the bonus
calculation for year ending 31 January 2005. It is intended that if an
award of more than 10% of salary is made then half of the award above
10% would be in the form of shares rather than cash and the executive
would lose their entitlement to the shares if they left the Company
within three years of the award. Proposals to establish an appropriate
Bonus Plan for administration of this scheme will be considered by
shareholders at the forthcoming Annual General Meeting and a
summary of the main terms of the proposed Plan are shown in the
Notice of Meeting on pages 49 to 51.
Details of directors’ remuneration during the year are shown on
page 24 (Table 1).
Long-Term Incentives
Executive Share Option Scheme
The Committee has a programme for the granting of share options
to executive directors and senior management on an annual basis to
incentivise long-term performance. No payment is required on such
22
Alpha Airports Group Plc
Annual Report 2003/04
The Remuneration Report
2003/04 2004/05 and subsequent years
111111111111111111 111111111111111111
Non-performance Performance Non-performance Performance
related related related related
Executive directors 65%-75% 25%-35% 50%-60% 40%-50%
Non-executive directors 100% – 100% – grant and no share options are granted at a discount. Executive options
granted in previous financial years are subject to a performance
condition that the growth in the Group’s earnings per share before
exceptional items must exceed by at least 6% the growth in the retail
price index over any rolling three year period prior to exercise.
Following the expiry of the original Scheme, a new Share Option Plan
was approved at the AGM in 2003 and appropriately challenging targets
have been set by the Remuneration Committee after discussion with
major shareholders. In respect of options granted to executive directors
and senior employees during 2004/05, the performance target is that
the growth in adjusted earnings per share (before goodwill amortisation
and exceptional items) must exceed growth in the retail price index by a
total of at least 9% over the three year period ending 31 January 2007.
The Committee believe that this criteria is appropriate for the Company
because it provides a direct link between rewards for executives and
returns to shareholders and encourages senior executives to identify
with the longer term results of the Company reflected in the share price.
Performance targets are reviewed before each grant of options and the
most appropriate measure is selected at that time. If the condition is
met, the options will become exercisable in full from the third
anniversary of the grant date. If the condition is not met for the period
ending 31 January 2007, no re-testing will be allowed and the option will
lapse. In the event of the early exercise of options on a change of control
or cessation of employment, conditions will be time-apportioned unless
the Committee considers it appropriate to waive them in full or in part.
Executive directors were previously granted up to 120,000 options each
year and, in line with the Deloitte and Touche review, this has been
increased to a maximum amount of one year’s salary per annum which
will be granted under the new Plan this year and in future years. Senior
management will continue to receive either 70,000 or 30,000 options
depending on their level of seniority.
Employee Share Option Scheme
The Company also has an employee share option scheme in which all
employees including the executive directors are eligible to participate.
The Company makes annual share option awards at market price to
qualifying employees to recognise and reward length of service. The
level of award is determined by number of years in employment with the
Company and there are no other eligibility or performance criteria.
Long-Term Incentive Plan
A Long-Term Incentive Plan for the Chief Executive was approved in
2002 following consultation with a number of the Company’s larger
institutional investors. An award of 715,000 shares was accordingly
made under the Plan on 30 May 2002 and the shares acquired on the
open market during July 2002 in three tranches when the Company’s
average share price was 69 pence. Details of the award made to
Mr Abbott are shown on page 25 (Table 3) along with the performance
criteria selected by the Committee as being appropriately challenging.
Pension Benefits
All of the executive directors participate in the Alpha Airports Group
Pension and Life Assurance Plan (“the Plan”). This is a contributory
defined benefit scheme. The executive directors are eligible for
membership of the executive section of the Plan which provides for
retirement at the age of 60 with a maximum pension, after 20 years‘
service, equivalent to two-thirds of the highest year’s pensionable
salary in the five years ending on retirement. It also provides a lump
sum death in service benefit of four times pensionable salary, a
spouses’ pension of four-ninths of pensionable salary or two thirds
of prospective pension. 
Pensions are guaranteed to increase at the rate of 5% per annum or
inflation if less (3% per annum or inflation if less for benefits earned
before 6 April 1997). Following advice from the Plan’s actuary the
Company pays a contribution rate equivalent to 13.1% of capped
pensionable salary (additional to the members’ contribution which is
8% from 1 August 2003).
In 1997, the Company established a Funded Unapproved Retirement
Benefit Scheme (“FURBS”) to provide executive directors affected by the
earnings cap (£99,000 per annum for the 2003/04 tax year) with benefits
equivalent to those which would be provided by the executive section of
the Plan if the earnings cap did not apply. 
Details of directors’ pension benefits and the additional pension
entitlements earned during the year ended 31 January 2004 which will
accrue for them under FURBS are shown on page 26 (Table 4).
Performance Graph
The line graph shown below illustrates the Company’s total
shareholder return for the past five years compared to the average total
shareholder return achieved by the companies making up the FTSE
Small Cap index over the same period. The FTSE Small Cap index was
selected by the Committee as the most representative index
appropriate for comparison, because it is a widely used and understood
index of broadly similar size UK companies to the Company.
Total Return Indices
Directors’ Service Contracts
The Company’s policy is that executive directors should have rolling
service contracts with an indefinite term providing for a maximum
of one year’s notice. Normal termination payments under directors’
contracts are not intended to exceed 100% of annual basic salary plus
bonus, in line with the one year notice period.
Under Mr Abbott’s contract dated 4 June 1998, Ms McRae’s contract
dated 1 March 2003, Mr Stephenson’s contract dated 1 June 2001 and
Mr King’s letter of appointment dated 31 January 2003, the Company
must give 12 months‘ notice to terminate the agreement and pay salary
and contractual benefits in respect of that period. In the event of early
termination, the Company’s policy is to act fairly in all circumstances
and to take the duty to mitigate into account. Neither Ms McRae nor
Mr King are entitled to receive pre-determined amounts of
compensation and the same terms applied to the executive director
Mr Stephenson who was made redundant from the Company
on 19 January 2004. The Committee are currently reviewing the
contractual arrangements for Mr Abbott, the Chief Executive whereby a
sum equal to 125% of annual salary plus any unpaid but accrued bonus
would be payable to him in the event of a take-over or acquisition of the
Company which resulted in his loss of office or status. 
1999 2000 2001 2002 2003 2004
Alpha Airports Group Plc Source: Datastream
FTSE  Small Cap Index
0
50
100
150
200
250
300
350
23
Alpha Airports Group Plc
Annual Report 2003/04 Table 1: Directors’ Remuneration
Aggregate emoluments of the Directors of the Company are set out in Note 5 to the Accounts on page 35.
Compensation
Total remuneration
Salary for loss
(excl pensions)
2003/04 Fees Bonuses Benefits of office 2003/04 2002/03 
Notes £000 £000 £000 £000 £000 £000 £000
Executive
K A Abbott 290 – 55 16 – 361 367
D W King 155 – 29 10 – 194 –
H L McRae 155 – 29 15 – 199 190
R W Stephenson 3 184 – 36 12 313 545 208
Non-Executive
G E Frost – 80 – – – 80 58
M Ennesser 4 –20 – – –2020
L James – 30 – – – 30 13
T G Stannard – 30 – – – 30 23
Sir Hugh Bidwell 5 –22 – – –2232
784 182 149 53 313 1,481 911 
Notes
1 The value of the benefits in kind received during the year relates principally to the provision of company cars, life assurance and medical
expenses cover. 
2 No taxable expense allowances were paid to the directors during the year .
3 £95,000 of the loss of office payment is conditional on Mr Stephenson not obtaining comparable employment before 19 July 2004.
4 Mr Ennesser’s fees were paid direct to SERVAIR.
5 Sir Hugh Bidwell retired as a director with effect from 31 March 2003.
24
Alpha Airports Group Plc
Annual Report 2003/04
None of the non-executive directors have service contracts. The
Chairman and independent non-executive directors have each been
appointed for an initial three year term and in 2005 the Company and the
individual may review whether to renew the appointment for a further
term of three years. Mr Ennesser is a non-independent non-executive
director and was re-appointed during the year for a second term of
three years from 21 September 2003, subject to Servair continuing to
hold at least 25% of the Company’s issued ordinary share capital. Each
non-executive director is entitled to receive notice in the event of
termination under their letters of appointment and the Company’s
policy is that such notice periods should not exceed one year . Mr Frost is
entitled to 12 months‘ notice and Mr Stannard, Ms James and Mr Michel
Ennesser are each entitled to 6 months‘ notice. Sir Hugh Bidwell retired
as a director on 31 March 2003 and was entitled to 6 months‘ notice. The
Board is responsible for setting non-executive directors’ fees and these
are reviewed annually. The non-executive directors are not eligible to
participate in the share option plan or long term incentive plan, nor in
any Company pension arrangement.
The Remuneration Report continued Table 2: Directors’ Interests in Share Options
Number of Granted Number of Earliest Latest
options at during options at Exercise exercise exercise
Note 31 Jan 2003 year 31 Jan 2004 price date date
K A Abbott 564,972 – 564,972 88.5p 10 Oct 2000 9 Oct 2007
300,000 – 300,000 57.0p 29 Jul 2002 28 Jul 2009
300,000 – 300,000 42.5p 12 Apr 2003 11 Apr 2010
2 200 – 200 42.5p 26 Oct 2003 25 Oct 2010
200,000 – 200,000 69.5p 04 Apr 2005 3 Apr 2012
2 – 200 200 59.5p 28 Mar 2006 27 Mar 2013
2 – 600 600 81.5p 23 Oct 2006 22 Oct 2013
D W King 50,000 – 50,000 56.5p 30 Mar 2004 29 Mar 2011
50,000 – 50,000 69.5p 4 Apr 2005 3 Apr 2012
2 200 – 200 62.5p 7 Nov 2005 6 Nov 2012
– 120,000 120,000 59.5p 28 Mar 2006 27 Mar 2013
2 – 200 200 59.5p 28 Mar 2006 27 Mar 2013
H L McRae 30,000 – 30,000 106.5p 15 Oct 1999 14 Oct 2006
35,926 – 35,926 81.0p 30 Oct 2000 29 Oct 2007
50,000 – 50,000 57.0p 29 Jul 2002 28 Jul 2009
2 200 – 200 57.0p 29 Jul 2002 28 Jul 2009
50,000 – 50,000 42.5p 12 Apr 2003 11 Apr 2010
100,000 – 100,000 56.5p 30 Mar 2004 29 Mar 2011
2 300 – 300 46.5p 25 Oct 2004 24 Oct 2011
100,000 – 100,000 69.5p 4 Apr 2005 3 Apr 2012
– 120,000 120,000 59.5p 28 Mar 2006 27 Mar 2013
2 – 500 500 59.5p 28 Mar 2006 27 Mar 2013
R W Stephenson 5 60,000 – 60,000 50.0p 12 Jan 2002 11 Jan 2009
50,000 – 50,000 57.0p 29 Jul 2002 28 Jul 2009
50,000 – 50,000 42.5p 12 Apr 2003 11 Apr 2010
100,000 – 100,000 56.5p 30 Mar 2004 29 Mar 2011
2 200 - 200 46.5p 25 Oct 2004 24 Oct 2011
100,000 – 100,000 69.5p 4 Apr 2005 3 Apr 2012
– 120,000 120,000 59.5p 28 Mar 2006 27 Mar 2013
2 – 200 200 59.5p 28 Mar 2006 27 Mar 2013
Notes
1 The middle market price of the Company’s shares as at 31 January 2004 was 81p, with a range during the year of 46.5p to 90p.
2Granted under the Employee Share Option Scheme. All other options are under the Executive Share Option Scheme.
3 No options held by the directors lapsed unexercised since 31 January 2003.
4 All options are normally exercisable at any time on or after the third, but not later than the tenth, anniversary of the date on which the
option was granted.
5 Details are given for Mr Stephenson as at 19 January 2004 when he was made redundant and all his options became exercisable.
6 As at 25 March 2004, there have been no changes in directors’ interests in share options from those disclosed above.
7 No options were exercised during the year .
Table 3: Directors’ Interests in the Long Term Incentive Plan
Number at Awarded Vested Number at Performance
Award date 31 January 2003 during year during year 31 January 2004 Vesting date conditions
K A Abbott 30 May 2002 715,000 – – 715,000 1 February 2005 Note 1
Note
1Vesting of the award is conditional on earnings per share (EPS) and share price performance criteria being met and the payment of £1 by the
executive. If adjusted EPS (before goodwill amortisation and exceptional items) for the year ending 31 January 2005 calculated on a basis
consistent with current accounting policies is 11p or more, then 50% of the award will vest. If such adjusted EPS is 9p, 16.5% of the award will
vest. At adjusted EPS levels of between 9p and 11p, the proportion of the award which will vest will be calculated on a straight line basis. If the
Company’s share price averaged over the period 1 December 2004 to 31 January 2005 is 120p or more, 50% of the award will vest. If such average
share price is 90p, 16.5% of the award will vest. At levels of between 90p and 120p, the proportion of the award which will vest will be calculated on
a straight line basis.
25
Alpha Airports Group Plc
Annual Report 2003/04 Table 4: Pension Benefits
Additional accrued Inflationary Total increase Accrued
benefit earned in the increase in accrued in accrued benefit benefit at
year (excluding inflation) benefit over the year over the year 31 January 2004 
111111111111 111111111111 111111111111 111111111111
Age at Main FURBS Main FURBS Main FURBS Main FURBS
31 January 2004 £pa £pa £pa £pa £pa £pa £pa £pa
K A Abbott 49 1,568 5,638 242 676 1,810 6,314 10,450 30,463
D W King 49 5,114 – 146 – 5,260 – 10,488 –
H L McRae 41 3,584 2,070 621 – 4,205 2,070 26,400 2,070
R W Stephenson 51 (11,269)(774) 1,117 63 (10,152)(711) 29,747 1,525
Director’s Increase in transfer
Transfer value at Transfer value at Increase in contributions over value less directors
31 January 2004 31 January 2003 transfer value the year contributions
111111111111 111111111111 111111111111 111111111111 111111111111
Main FURBS Main FURBS Main FURBS Main Main FURBS
££££££ £££
K A Abbott 74,906 218,359 59,356 165,902 15,550 52,457 6,912 8,638 52,457
D W King 72,261 – 34,524 – 37,737 – 10,051 27,686 –
H L McRae 135,762 10,645 112,899 – 22,863 10,645 10,051 12,812 10,645
R W Stephenson 635,455 32,577 290,665 16,289 344,790 16,288 12,151 332,639 16,288
Notes
1 None of the directors contributed to FURBS during the year .
2 The FURBS provides benefits in lump sum form, but these have been notionally converted into pensions in the above table for ease of comparison.
3 The transfer values in the above table have been calculated in accordance with “Retirement Benefit Schemes – Transfer Values (GN11)” as
published by the Institute and Faculty of Actuaries.
4 Figures for Mr King show the increase in pension over the year . The accrued pension shown includes service before 1 February 2003.
5 Figures are based on salaries as at 1 February 2003.
6 Mr Stephenson was made redundant on 19 January 2004 and elected to take early retirement in respect of his pension entitlement. As such the
figures shown above in respect of this member have been calculated as at 19 January 2004 and show the early retirement pension payable at that
date. The increase in pension is negative due to the reductions made on early retirement. The transfer value shown as at 31 January 2004 is the
value of the immediate early retirement pension. The large increase in transfer value reflects the different valuation methods for pensions in
payment as compared to the method for deferred pensions.
Table 5: Directors’ Beneficial Interests in Ordinary Shares
Number of shares as at
Number of shares as at 31 January 2003 or date of
31 January 2004 appointment if later
G E Frost 20,000 –
K A Abbott 220,964 220,964
D W King 10,000 10,000
H L McRae 1,000 1,000
M Ennesser ––
L James 19,000 19,000
T G Stannard ––
Note
1 As at 25 March 2004, there have been no changes in directors’ interests in shares from those disclosed above.
Under Part 3 of Schedule 7A of the Companies Act 1985, Tables 1 to 4 above, including notes thereto, are subject to audit. The other parts of this
Report are not subject to audit.
Lesley James
Chairman of the Remuneration Committee
25 March 2004
26
Alpha Airports Group Plc
Annual Report 2003/04
The Remuneration Report continued We have audited the financial statements which comprise the Group
profit and loss account, the Group and Company balance sheet, the
Group cash flow statement, the statement of total recognised gains
and losses and the related notes. We have also audited the disclosures
required by Part 3 of Schedule 7A to the Companies Act 1985
contained in the Remuneration Report (“the auditable part”).
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report, the
Remuneration Report and the financial statements in accordance with
applicable United Kingdom law and accounting standards are set out
in the Directors’ Responsibilities Statement.
Our responsibility is to audit the financial statements and the auditable
part of the Remuneration Report in accordance with relevant legal and
regulatory requirements and United Kingdom Auditing Standards
issued by the Auditing Practices Board. This report, including the
opinion, has been prepared for and only for the Company’s members
as a body in accordance with Section 235 of the Companies Act 1985
and for no other purpose. We do not, in giving this opinion, accept or
assume responsibility for any other purpose or to any other person to
whom this report is shown or in to whose hands it may come save
where expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the financial statements
give a true and fair view and whether the financial statements and the
auditable part of the Remuneration Report have been properly prepared
in accordance with the Companies Act 1985. We also report to you if,
in our opinion, the Directors’ Report is not consistent with the financial
statements, if the Company has not kept proper accounting records,
if we have not received all the information and explanations we require
for our audit, or if information specified by law regarding directors’
remuneration and transactions is not disclosed.
We read the other information contained in the Annual Report and
consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the financial
statements. The other information comprises only the Directors’
Report, the unaudited part of the Remuneration Report, the Chairman’s
Review, the Chief Executive’s Review, Divisional Reviews, the Financial
Review and the Corporate Governance Statement.
We review whether the Corporate Governance Statement reflects the
Company’s compliance with the seven provisions of the Combined Code
issued in June 1998 specified for our review by the Listing Rules of
the Financial Services Authority, and we report if it does not. We are
not required to consider whether the Board’s statements on internal
control cover all risks and controls, or to form an opinion on the
effectiveness of the Group’s or Company’s corporate governance
procedures or its risk and control procedures.
Basis of audit opinion
We conducted our audit in accordance with auditing standards
issued by the Auditing Practices Board. An audit includes examination,
on a test basis, of evidence relevant to the amounts and disclosures in
the financial statements and the auditable part of the Remuneration
Report. It also includes an assessment of the significant estimates
and judgements made by the directors in the preparation of the
financial statements, and of whether the accounting policies are
appropriate to the Company’s circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so as to obtain all the information
and explanations which we considered necessary in order to provide
us with sufficient evidence to give reasonable assurance that the
financial statements and the auditable part of the Remuneration Report
are free from material misstatement, whether caused by fraud or other
irregularity or error . In forming our opinion we also evaluated
the overall adequacy of the presentation of information in the
financial statements.
Opinion
In our opinion:
• The financial statements give a true and fair view of the state of
affairs of the Group and Company at 31 January 2004 and of the profit
and cash flows of the Group for the year then ended;
• The financial statements have been properly prepared in accordance
with the Companies Act 1985; and
• Those parts of the Remuneration Report required by Part 3 of
Schedule 7A to the Companies Act 1985 have been properly prepared
in accordance with the Companies Act 1985.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
Harman House
1 George Street
Uxbridge
Middlesex UB8 1QQ
25 March 2004
27
Alpha Airports Group Plc
Annual Report 2003/04
Independent Auditors’ Report to the Members of Alpha Airports Group Plc Before Exceptional
Exceptional Items
Items (Note 3.2) Total Total
2004 2004 2004 2003
Notes £m £m £m £m
Turnover 2 440.9 – 440.9 419.3
Cost of sales (280.7)(0.8)(281.5) (267.1)
Gross profit 160.2 (0.8) 159.4 152.2 
Administration expenses (140.9) 0.1 (140.8) (132.3)
EBITDA 32.4 (0.7) 31.7 33.1 
Depreciation on tangible assets (9.9) – (9.9) (10.3)
Amortisation of goodwill (3.2) – (3.2) (2.9)
Operating profit 3 19.3 (0.7) 18.6 19.9 
Operating profit
– Continuing 19.3 (0.7) 18.6 19.6 
– Discontinued –– – 0.3 
19.3 (0.7) 18.6 19.9
Share of operating profit of associates (including goodwill
charges of £0.4m (2002/03: £0.1m)) 0.1 – 0.1 0.2 
Profit on disposal of discontinued operations 3 ––– 2.1 
Profit on ordinary activities before interest 19.4 (0.7) 18.7 22.2 
Interest receivable and similar income 0.1 – 0.1 0.4 
Interest payable and similar charges 7 (1.4) – (1.4) (1.9)
Profit on ordinary activities before taxation 2 18.1 (0.7) 17.4 20.7 
Taxation on profit on ordinary activities 8 (7.3) 0.6 (6.7) (7.2)
Profit on ordinary activities after taxation 10.8 (0.1) 10.7 13.5 
Minority interest (equity) (1.6) – (1.6) (1.7)
Profit for the financial year 9.2 (0.1) 9.1 11.8 
Equity dividends 9 (6.5) – (6.5) (6.2)
Retained profit for the financial year 21 2.7 (0.1) 2.6 5.6 
Earnings per share 10 5.33p 6.91p 
Diluted earnings per share 10 5.28p 6.87p 
Statement of total recognised gains and losses
for the year ended 31 January 2004
2004 2003
£m £m 
Profit for the financial year 9.1 11.8 
Currency translation differences on foreign currency net assets and certain loans 0.2 (0.5)
Total recognised gains and losses for the year 9.3 11.3 
All turnover is derived from continuing operations.
Cost of sales, gross profit and administrative expenses in respect of discontinued operations for the year ended 31 January 2003 were credits of
£0.2m, £0.2m and £0.1m respectively.
There are no differences between the Group and Company reported results for the current and prior year and the results for those years on an
historical cost basis.
28
Alpha Airports Group Plc
Annual Report 2003/04
Group Profit and Loss Account
for the year ended 31 January 2004 Group Company
111111111111111111 111111111111111111
2004 2003 2004 2003
Notes £m £m £m £m
Fixed assets
Intangible assets 11 11.3 13.0 – –
Tangible assets 12 56.0 53.5 – – 
Investments 13 3.9 3.7 201.2 201.4
71.2 70.2 201.2 201.4 
Current assets
Stocks 14 22.5 20.2 – –
Debtors 15 28.2 25.7 47.6 42.0 
Cash at bank and in hand 16 8.6 6.4 – 0.3
59.3 52.3 47.6 42.3 
Creditors: amounts falling due within one year
Bank and other borrowings 16 (6.7) (6.7) (20.3) (6.0)
Other creditors 17 (62.5) (57.5) (12.8) (20.4)
(69.2) (64.2) (33.1) (26.4)
Net current (liabilities)/assets (9.9) (11.9) 14.5 15.9 
Total assets less current liabilities 61.3 58.3 215.7 217.3 
Provisions for liabilities and charges 18 (5.9) (7.5) – –
Total net assets 2 55.4 50.8 215.7 217.3 
Capital and reserves
Called up share capital 20 17.2 17.1 17.2 17.1 
Share premium account 20 42.6 42.5 42.6 42.5 
Capital redemption reserve 20 0.4 0.4 0.4 0.4 
Other reserves 21 – – 152.3 152.3 
Profit and loss account 21 (6.1) (10.1) 3.2 5.0 
Shareholders' funds 22 54.1 49.9 215.7 217.3 
Minority interests (equity) 1.3 0.9 – –
Total equity 55.4 50.8 215.7 217.3 
Approved by the Board of Directors on 25 March 2004.
Kevin Abbott Heather McRae
Chief Executive Finance Director
29
Alpha Airports Group Plc
Annual Report 2003/04
Balance Sheets
at 31 January 2004 2004 2003
Notes £m £m
Net cash inflow from operating activities 23.1 31.1 23.5 
Dividends received from associates 13.1 0.2 0.1 
Returns on investments and servicing of finance
Interest received 0.1 0.4 
Interest paid (1.5) (1.9)
Dividends paid to minority shareholders in subsidiary undertakings (1.1) (1.6)
Net cash outflow from returns on investments and servicing of finance (2.5) (3.1)
Taxation (6.5) (6.7)
Capital expenditure and financial investment
Purchase of tangible fixed assets (13.6) (6.8)
Sale of plant and machinery 0.4 –
Purchase of own shares – (0.5)
Net cash outflow for capital expenditure and financial investment (13.2) (7.3)
Acquisitions and disposals
Disposal of businesses – 1.3 
Purchase of associates (0.7) –
Net cash (outflow)/inflow for acquisitions and disposals (0.7) 1.3 
Equity dividends paid (6.2) (6.1)
Net cash inflow before financing 2.2 1.7 
Financing
Decrease in unsecured loans less than 1 year (3.0) (17.1)
Issue of shares 0.2 0.3 
Net cash outflow from financing (2.8) (16.8)
Decrease in cash 23.3 (0.6) (15.1)
30
Alpha Airports Group Plc
Annual Report 2003/04
Group Cash Flow Statement
for the year ended 31 January 2004 1Accounting policies
The Board has reviewed the accounting policies set out below and considers them to be the most appropriate to the Group’s business activities.
(1) Basis of accounting
The accounts have been prepared under the historical cost convention and in accordance with applicable accounting standards. The particular
accounting policies adopted are described below. The accounting policies are the same as those used last year .
In respect of Retirement Benefits, in accordance with the transitional arrangements permitted by FRS 17, the Group's results do not include the
effect of fully implementing FRS 17 but Note 6 illustrates the impact on the Group's profit and loss account, balance sheet and reserves for the
year ended 31 January 2004 as if FRS 17 were fully implemented.
(2) Basis of consolidation
The Group accounts for the year ended 31 January 2004 include the accounts of Alpha Airports Group Plc and all of its subsidiary undertakings
and the relevant proportion of the results of associates in which the Group holds a long term equity interest and over which it exercises significant
influence.
(3) Accounting for acquisitions
The results of businesses acquired are consolidated from the effective date of acquisition. On the acquisition of a business or an associate, the
acquisition cost is allocated to the fair value of net tangible assets after adjustments to bring accounting policies in line with those of the Group.
(4) Goodwill
Goodwill arising on acquisitions is capitalised and amortised on a straight line basis through the profit and loss account over its useful economic
life not exceeding 20 years and is subject to regular impairment review. Goodwill arising on acquisitions prior to 1 February 1998 was written off
direct to reserves upon acquisition. On disposal or closure of a business goodwill previously written off to reserves is charged to the profit and loss
account.
(5) Turnover
Turnover represents the amounts receivable for goods sold and services provided, excluding VAT and similar sales taxes.
In respect of goods sold, turnover is recognised at the point of sale to the customer in the Group's Retail or Retail Catering outlets, or
on-board aircraft in the case of inflight sales.
For the supply of airline catering services, turnover is recognised at the point of delivery of meals and drinks to the aircraft.
(6) Onerous contracts
Where the benefits to be derived from a contract are lower than the unavoidable costs of meeting the Group's obligation under the contract,
aprovision is recognised. The provision is stated at the present value of the future net cash outflows expected to be incurred in respect of
the contract.
(7) Fixed assets
All fixed assets are stated at cost less depreciation. Cost includes all relevant external expenditure incurred in acquiring the asset; in connection
with the introduction of new systems costs are capitalised once the Group  is committed to the implementation.
The Group selects its depreciation rates carefully and reviews them regularly to take account of any changes in circumstances. When
determining expected useful lives, the Group considers the expected rate of technological developments and the intensity at which the assets are
expected to be used. All assets are subject to annual review and where necessary, further provision is made for any impairment in value.
In line with the above depreciation policy, freehold properties are amortised over a period of 50 years and leasehold properties amortised over the
unexpired lease term. Depreciation is provided on other assets on a straight line basis at annual rates estimated to write-off their book values
over their expected useful lives. The depreciation rates range from 10-15 years for plant and machinery and 4-10 years for furniture and
equipment. Costs incurred in respect of new systems are written off in equal annual instalments over the expected useful life of the system,
commencing in the year in which the benefits arise.
(8) Leases
Finance leases are those which transfer substantially all the risks and rewards of ownership to the lessee. Assets acquired as lessee under such
leases are capitalised as tangible assets and depreciation is provided accordingly. Outstanding finance lease obligations, net of finance charges,
are included under creditors. The finance element of the rental payments is charged to the profit and loss account over the period of the lease to
reflect the capital payments outstanding. All other leases are operating leases. The rentals on such leases are charged to the profit and loss
account as incurred.
(9) Stocks
Stocks are stated at the lower of cost and net realisable value.
31
Alpha Airports Group Plc
Annual Report 2003/04
Notes to the Accounts 1Accounting policies continued
(10) Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where the
transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance
sheet date. Timing differences are differences between the Group's taxable profit and its results as stated in the financial statements.
Deferred tax is measured using the average tax rate that is expected to apply in the period in which the timing differences are expected to reverse.
An asset is not recognised where the transfer of economic benefits in the future is uncertain. Deferred tax assets and liabilities recognised have not
been discounted.
Provision is made for the tax that could be payable (taking account of any double tax relief) on any future remittance of the past earnings of a
subsidiary or associate, only to the extent that dividends have been accrued as receivable, or there is a binding agreement for the subsidiary or
associate to distribute past earnings in the future.
(11) Foreign currencies
The profit and loss accounts and cash flows of overseas subsidiaries and associates are translated into sterling at average rates of exchange
during the accounting period. Overseas net assets and UK loans denominated in foreign currencies are expressed in sterling at the rates of
exchange ruling at the balance sheet date.
Exchange differences arising on the retranslation, at closing rates, of the opening balance sheets of overseas subsidiaries and associates,
together with the year end adjustment to closing rates of profit and loss accounts translated at average rates, are taken to reserves.
Exchange differences arising in the normal course of trading and on the translation of monetary assets and liabilities are dealt with in the profit and
loss account. Differences arising on the translation of foreign currency borrowings are taken directly to reserves where there is a corresponding
exchange difference on the translation of the related net investment in overseas subsidiaries and associates.
The Group uses forward foreign exchange contracts to hedge its foreign exchange transaction exposure. Gains and losses are recognised on
maturity of the underlying transaction.
(12) Interest rate transactions
Interest receipts and payments due under interest rate swap agreements used to manage the interest rate exposure on borrowings and
investments are accrued so as to match the net costs with the related finance income and expense.
(13) Pensions and other post-retirement benefits
Where there is a defined benefit scheme, the cost of providing pensions and other post-retirement benefits is charged against profits on a
systematic basis, with pension surpluses and deficits arising being allocated over the expected remaining service lives of current employees. The
differences between the amounts charged in the profit and loss account and payments made to the pension scheme are treated as assets and
liabilities. The pension cost is assessed in accordance with the advice of qualified actuaries. For the defined contribution schemes, costs are
charged to the profit and loss account as incurred.
The Group continues to comply with the transitional arrangements permitted by FRS 17 "Retirement Benefits".
(14) Investments
Investments in subsidiary undertakings are stated at historic cost less any required provision for impairment.
(15) Long Term Incentive Plan ("LTIP")
The amount initially recognised on the purchase of shares by a trust in connection with an LTIP is based on the cost of purchasing those shares in
the open market. The cost is charged to the profit and loss account on a straight-line basis over the period to which the specified performance
criteria relate, subject to additional adjustments as necessary to deal with changes in the probability of performance criteria being met.
32
Alpha Airports Group Plc
Annual Report 2003/04
Notes to the Accounts continued 2 Segmental analysis Profit
Turnover before taxation Net assets
111111111 111111111 111111111
2004 2003 2004 2003 2004 2003
£m £m £m £m £m £m
(a) Business sector analysis
Flight Services
– continuing operations * 244.0 245.4 13.7 15.7 36.8 38.3
– discontinued operations – – – 0.3 – (0.5)
– share of operating profit of associates (including goodwill amortisation) – – 0.1 0.2 – –
– goodwill amortisation – – (1.4) (1.1) – –
– exceptional items (continuing operations) – – (2.9) – – –
– profit on disposal of discontinued operations – – – 1.9 – – 
244.0 245.4 9.5 17.0 36.8 37.8 
Retail
– continuing operations * 196.9 173.9 8.8 6.8 16.7 13.3 
– goodwill amortisation – – (1.8) (1.8) – –
– exceptional items (continuing operations) – – 2.2 – – –
196.9 173.9 9.2 5.0 16.7 13.3 
440.9 419.3 18.7 22.0 53.5 51.1 
Corporate
– profit on disposal of discontinued operations – – – 0.2 – –
440.9 419.3 18.7 22.2 53.5 51.1
Net interest payable – – (1.3) (1.5) – –
Net cash/(borrowings) – – – – 1.9 (0.3)
Turnover, profit on ordinary activities before taxation and net assets 440.9 419.3 17.4 20.7 55.4 50.8 
(b) Geographical analysis
United Kingdom
– continuing operations * 367.8 355.5 14.2 13.3 25.5 30.4 
– exceptional items (continuing operations) – – (0.3) – – –
367.8 355.5 13.9 13.3 25.5 30.4
Rest of the World
– continuing operations * 73.1 63.8 8.3 9.2 28.0 21.2
– discontinued operations – – – 0.3 – (0.5)
– goodwill amortisation – – (3.2) (2.9) – –
– share of operating profit of associates (including goodwill amortisation) – – 0.1 0.2 – –
– exceptional items (continuing operations) – – (0.4) – – –
– profit on disposal of discontinued operations – – – 1.9 – –
73.1 63.8 4.8 8.7 28.0 20.7 
440.9 419.3 18.7 22.0 53.5 51.1
Corporate
– profit on disposal of discontinued operations – – – 0.2 – –
440.9 419.3 18.7 22.2 53.5 51.1 
Net interest – – (1.3) (1.5) – –
Net cash/(borrowings) – – – – 1.9 (0.3)
Turnover, profit on ordinary activities before taxation and net assets 440.9 419.3 17.4 20.7 55.4 50.8 
*Before goodwill amortisation and exceptional items.
Turnover is disclosed by origin. There is no material difference in turnover by destination.
Net interest payable has not been allocated recognising the centre's role and responsibility in allocating financial resources.
33
Alpha Airports Group Plc
Annual Report 2003/04 3 Operating profit
3.1 Operating profit is stated after charging:
2004 2003
£m £m 
Staff costs (Note 4) 108.0 105.8 
Depreciation on owned tangible fixed assets 9.9 10.2 
Depreciation on leased plant and machinery – 0.1 
Short term hire of plant and machinery 0.9 1.2 
Operating lease charges – Plant and machinery 1.7 1.7
– Other 6.3 6.3 
Foreign exchange loss 0.4 0.7 
Goodwill amortisation – businesses and subsidiaries (Note 11) 2.0 1.7 
Goodwill amortisation – Orient Lanka (Note 22) 1.2 1.2 
During the year the Group (including its overseas subsidiaries) obtained the following services from the Group's auditors as detailed below:
2004 2003
£m £m 
Audit services
– statutory audit 0.2 0.2 
– audit-related regulatory reporting 0.1 0.1 
0.3 0.3
Tax advisory services 0.2 0.1
Due diligence 0.1 –
0.6 0.4
In addition to the above services, the Group's auditors acted as auditor to the Alpha Airports Group Pension and Life Assurance Plan in the UK
and the Funded Unapproved Retirement Benefits Scheme for executive directors in the UK. The appointment of auditors to the Group's pension
schemes and the fees paid in respect of those audits are agreed by the trustees of each scheme, who act independently from the management
of the Group.
In order to maintain the independence of the external auditors, the Board has determined policies as to what non-audit services can be provided by
the company's external auditors and the approval processes related to them. Under those policies the Board has agreed that the external auditors
should be excluded from providing management, strategic, IT consultancy and all other non-audit and non-tax related services, unless the firm
appointed as external auditor is:
– the only provider of the specific expertise/service required; or
– the clear leader in the provision of the service on a competitively priced basis.
As auditors, PricewaterhouseCoopers LLP will undertake work that they must or are best placed to complete.
3.2 Exceptional items
The results for the year ended 31 January 2004 include net exceptional items of £0.7m charged against operating profit.
At the end of the year the Group decided to implement a new management structure in Flight Services to introduce a more streamlined and
customer focused organisation. This resulted in the loss of 90 positions in the UK and Europe with a related redundancy cost of £2.9m. These costs
were partly offset by the release of an amount of £2.2m from two onerous contract provisions. At Newcastle the Group exited a loss making
contract during the year and no further provision is required. In Orlando, USA trading performance is better than forecast when the provision
was established and consequently the provision has been reduced to the directors' current best estimate of losses up until expiry of the contract
in July 2005.
In the year ended 31 January 2003 the profit on disposal of discontinued operations of £2.1m comprised a profit of £1.1m arising on the disposal of
the Group's associate investment in In-Flight Sales Group (Asia) Limited, deferred consideration of £0.8m which was received in July 2002 relating
to the disposal of the Group's In-Flight Retail Canada operation in November 2001 which was not recognised in 2001/02 and a release of a provision
of £0.2m no longer required.
34
Alpha Airports Group Plc
Annual Report 2003/04
Notes to the Accounts continued 4 Employees
2004 2003
(a) Staff costs comprise: £m £m 
Wages and salaries 96.1 95.6 
Social security costs 8.4 7.1 
Other pension costs 3.5 3.1 
108.0 105.8 
2004 2003
(b) The average numbers of staff employed by the Group during the year were: Number Number
Flight Services full time 3,713 3,923 
part time 212 311 
Retail full time 1,433 1,181 
part time 306 250 
5,664 5,665 
5 Directors' emoluments
2004 2003
£m £m 
Aggregate emoluments 1,168 950 
Compensation for loss of office 313 – 
1,481 950 
At 31 January 2004, 3 directors (2002/03: 3) have retirement benefits accruing under the Group's defined benefit pension scheme.
More detailed information concerning directors' emoluments, shareholdings and options is shown in the Remuneration Report on pages 22 to 26.
6Pensions
The Group has continued to account for pensions in accordance with SSAP 24 and the disclosures given in (a) are those required by that standard.
FRS 17 was issued in November 2000 with full adoption not yet mandatory. The transitional arrangements require additional disclosures which
are set out in Note 6(b).
(a) SSAP 24
The Group operates a number of pension plans throughout the world which are established in accordance with local conditions and practices and
include defined contribution and benefit schemes. The largest scheme in operation is in respect of the UK employees. There is also a defined
benefit scheme in the Netherlands.
The Alpha Airports Group Pension and Life Assurance Plan ("the UK Plan") is a defined benefit scheme. The Plan is funded by payments to a
separate pension fund administered by trustees and maintained independently of the Group's finances. The Group's funding policy is to ensure
that the assets of the UK Plan are sufficient to meet the accrued liabilities of its members allowing, where appropriate, for future pay increases.
Hewitt Bacon & Woodrow, independent Consulting Actuaries, carried out an actuarial valuation of the benefits due to the members of the
UK Plan as at 6 April 2002, using the projected unit method. The principal financial assumptions used were:
Price inflation 2.8% p.a.
Pay increases 3.8% p.a.
LPI pension increases 2.7% p.a.
Discount rate 6.1% p.a.
The market value of the UK Plan's assets as at 6 April 2002 amounted to £37.1m and the actuarial value of those assets, after allowing for an
adjustment that recognises over a three year period the over- or under-performance of the UK Plan's assets against a portfolio constructed to
match its liabilities, represented 89% of the benefit that had accrued to the members based on service to that date after allowing for assumed
future salary increases. As a result of the valuation, the Group agreed to contribute at the rate of 10.4% of pensionable salaries to cover the cost
of ongoing accrual of benefits plus an amount to accrue a valuation shortfall of £5.0m, as determined at 6 April 2002 over the average remaining
service lives of members. In addition, members' contributions increased by broadly 2% of pensionable salaries with effect from August 2003.
The next actuarial valuation is due to be carried out as at 6 April 2005.
The SSAP 24 pension cost has been based on the funding valuation at 6 April 2002 set out above but with a discount rate of 6.85% p.a. before
retirement and 5.6% pa after retirement. This revised valuation revealed a past service shortfall of £2m which is being accrued over the average
remaining service of the active members, using the straight line method.
35
Alpha Airports Group Plc
Annual Report 2003/04 6Pensions continued
The total defined benefit pension cost of the Group for the year amounted to £3.5m (2002/03: £3.0m) of which £0.3m (2002/03: £0.3m) related to
overseas schemes.
The pension cost in accordance with SAAP 24 for 2003/04 in respect of the UK Plan is £2.6m (2002/03: £2.7m), comprising a regular cost of £2.2m
and a variation of £0.4m, which, together with an additional contribution of £0.6m resulted in a total UK pension cost for the year of £3.2m.
As at 31 January 2004, there is a provision of £nil (2002/03: £0.4m) on the balance sheet.
In respect of the Pensioen reglement von Alpha Flight Services in the Netherlands, pension cost has been assessed under the local accounting
standard, in accordance with SSAP 24. The pension cost is equal to the employer's contributions, £0.3m (2002/03: £0.3m). There is no balance
sheet prepayment or provision at the balance sheet date (2002/03: £nil).
The Group's balance sheet has a provision of £nil (2002/03: £nil) in respect of benefits payable to certain executive directors from a funded,
unapproved retirement benefits scheme ("FURBS"). The FURBS provides retirement benefits in respect of salaries above the Inland Revenue
earnings cap. Further details are included in the Remuneration Report on pages 22 to 26.
The assets of the Group's defined contribution scheme are held separately from those of the Group in an independently administered fund.
The total defined contribution pension cost of the Group amounted to £0.1m (2002/03: £0.1m).
(b) FRS 17
Details are given below for the two main pension arrangements in the Group; the UK Plans (comprising the main plan for employees and the
FURBS plan for directors) and the Pension reglement von Alpha Flight Services in the Netherlands. The valuation used for the FRS 17 disclosures
for the UK Plan has been based on the most recent actuarial valuation at 6 April 2002 and updated by Hewitt Bacon & Woodrow to take account
of the requirements of FRS 17 in order to assess the liabilities of the Plan at 31 January 2004. Plan assets are stated at their market value at
31 January 2004.
In respect of the Netherlands, an actuarial valuation at 31 January 2004 was performed to determine the FRS 17 disclosures. The underlying plan
assets are insured contracts and the values quoted are based on information provided by the insurance company as at 31 December 2003, updated
to allow for premiums paid during January 2004 and the insurer's bonus interest rate for the period 1 January 2004 to 31 January 2004.
For the purposes of the FRS 17 disclosures, the UK and Netherlands plans have been combined. As at 31 January 2004, the UK Plans had assets
of £40.6m and the Netherlands Plan had assets of £5.4m.
31 January 2004 31 January 2003 31 January 2002
The principal financial assumptions used to calculate the liabilities under FRS 17 were: % p.a. % p.a. % p.a
Rate of general long-term increase in salaries 3.7 3.3 3.3 
Rate of increase to pensions in deferment 2.8 2.3 2.3 
Rate of increase to pensions in payment 2.6 2.4 2.4 
Discount rate for scheme liabilities 5.5 5.3 5.6 
Inflation 2.8 2.3 2.3 
31 January 2004 31 January 2003 31 January 2002
1111111111 1111111111 1111111111
Expected Expected Expected
long- long- long-
term term term
rate of rate of rate of
return Value return Value return Value
The assets in the Plans and the expected rates of return were: % p.a. £m % p.a. £m % p.a. £m
Equities 8.4 32.6 7.9 22.9 8.3 28.9 
Bonds 5.1 11.0 4.9 9.4 5.4 8.5 
Other 4.9 2.4 4.4 2.2 4.8 3.5 
Total market value of assets 46.0 34.5 40.9 
Present value of scheme liabilities (70.2) (59.1)(48.9)
Deficit in schemes (24.2) (24.6)(8.0)
Related deferred tax asset 7.3 7.3 2.4 
Net pension liability (16.9) (17.3)(5.6)
36
Alpha Airports Group Plc
Annual Report 2003/04
Notes to the Accounts continued 6Pensions continued
The analysis below illustrates the amounts that would have been charged/(credited) to the profit and loss account in respect of defined benefit
schemes under the requirements of FRS 17:
2004 2003
£m £m 
Expected return on pension scheme assets (2.4) (3.2)
Interest on pension scheme liabilities 3.1 2.8 
Amount charged/(credited) to other finance income 0.7 (0.4)
Amount charged to operating profit in respect of current service cost 3.9 3.4 
Net charge to the profit and loss account 4.6 3.0 
Movement in deficit during the year
Deficit in the schemes at the beginning of the year (24.6) (8.0)
Current service cost (3.9) (3.4)
Contributions 3.2 2.5 
Other finance income (0.7) 0.4 
Actuarial gain/(loss) 1.8 (16.1)
Deficit in the schemes at the end of the year (24.2) (24.6)
The analysis below illustrates the amounts that would have been recognised in the Statement of Total Recognised Gains and Losses ("STRGL")
under the requirements of FRS 17:
2004 2003
£m £m 
Actual return less expected return on pension scheme assets 4.5 (12.9)
Experience gains and losses arising on the scheme liabilities 0.5 1.2 
Changes in assumptions underlying the present value of the scheme liabilities (3.2) (4.4)
Actuarial gain/(loss) recognised in STRGL 1.8 (16.1)
History of experience gains and losses
Difference between expected and actual return on scheme assets:
Amount (£m) (4.5) 12.9 
Percentage of scheme assets % 9.8 37.4
Experience gains and losses on scheme liabilities:
Amount (£m) 0.5 1.2 
Percentage of the present value of the scheme liabilities % 0.7 2.0
Total amount recognised in STRGL:
Amount (£m) 1.8 (16.1)
Percentage of the present value of scheme liabilities % 2.6 27.2
The effect of the FRS 17 pension liability on the net assets and reserves of the Group are set out below:
2004 2003
£m £m 
Net assets per Group balance sheet 55.4 50.8 
Less SSAP 24 pension liability (net of deferred tax) – 0.3 
Add FRS 17 pension liability (net of deferred tax) (16.9) (17.3)
Net assets including FRS 17 pension liability 38.5 33.8 
Profit and loss deficit per Group balance sheet (6.1) (10.1)
Less SSAP 24 pension liability (net of deferred tax) – 0.3 
Add FRS 17 pension liability (net of deferred tax) (16.9) (17.3)
Profit and loss deficit including FRS 17 pension liability (23.0) (27.1)
37
Alpha Airports Group Plc
Annual Report 2003/04 7 Interest payable and similar charges
2004 2003
£m £m 
Bank and other borrowings repayable within five years 1.1 1.4 
Amortisation of discount in provisions (Note 18) 0.3 0.5 
1.4 1.9
8Taxation
2004 2003
£m £m 
Current tax
United Kingdom
Corporation tax at 30% (2002/03: 30%) 6.0 5.9 
Double tax relief (2.0) (1.1)
Tax on exceptional items (0.4) 0.1 
3.6 4.9 
Overseas
Corporation taxes 3.0 2.6 
Share of taxation of associates 0.3 0.3 
Tax on exceptional items (0.5) – 
Prior year adjustments (0.2) 0.3 
Total current tax 6.2 8.1 
Deferred tax
United Kingdom
Origination and reversal of timing differences 0.2 (0.7)
Tax on exceptional items 0.3 –
0.5 (0.7)
Overseas
Origination and reversal of timing differences – (0.2)
Total deferred tax 0.5 (0.9)
Total tax on profit on ordinary activities 6.7 7.2
Taxation as a percentage of profit before taxation 38% 35%
Taxation as a percentage of profit before taxation before exceptional items 40% 38%
Taxation as a percentage of profit before taxation, exceptional items and goodwill amortisation 33% 33%
The standard rate of tax for the year, based on the UK standard rate of corporation tax is 30%. The actual tax charge for the current and the previous
year exceeds the standard rate for the reasons set out in the following reconciliation:
2004 2003
£m £m 
Profit on ordinary activities before tax 17.4 20.7 
Tax on profit on ordinary activities at standard rate (30%) 5.2 6.2 
Factors affecting tax charge for the period:
Adjustments to tax in respect of prior period (0.2) 0.3 
Adjustment in respect of foreign tax rates (0.7) (0.4)
Expenses not deductible for tax purposes 2.4 1.6 
Capital allowance in excess of depreciation 0.2 0.2 
Other short term timing differences (0.7) 0.2 
Total actual amount of current tax 6.2 8.1 
38
Alpha Airports Group Plc
Annual Report 2003/04
Notes to the Accounts continued 9 Equity Dividends
2004 2003
£m £m 
Interim dividend paid of 1.0p per ordinary share (2002/03: 1.0p) 1.7 1.7 
Proposed final dividend of 2.8p per ordinary share (2002/03: 2.6p) 4.8 4.5 
Total dividend of 3.8p per ordinary share (2002/03: 3.6p) 6.5 6.2 
10 Earnings per share
Profit for the year Earnings per share
1111111111111111111 1111111111111111111
2004 2003 2004 2003
£m £m Pence Pence
Profit for the financial year and earnings per share 9.1 11.8 5.33 6.91 
Adjustment for profit on disposal of discontinued operations – (2.1) – (1.23)
Adjustment for goodwill amortisation and impairment 3.6 3.0 2.11 1.76 
Adjustment for exceptional items 0.7 – 0.41 –
Taxation relating to these items (0.6) 0.1 (0.35) 0.06 
Adjusted profit and adjusted earnings per share 12.8 12.8 7.50 7.50 
The weighted average number of shares in issue during the year was 170,733,330 (2002/03: 170,722,782). Earnings per share is calculated by
dividing the profit for the financial year by the weighted average number of shares in issue during the year . Adjusted earnings per share is
calculated by eliminating the effect of goodwill amortisation and exceptional items, adjusted for any tax effect.
Diluted earnings per share of 5.28p (2002/03: 6.87p) is calculated by reference to the profit for the financial year of £9.1m (2002/03: £11.8m) and the
weighted average number of shares in issue during the year of 170,733,330 (2002/03: 170,722,782), as adjusted for potentially dilutive ordinary
shares of 1,510,307 (2002/03: 1,029,935).
11 Fixed assets – intangible assets
Cost Amortisation Net book value
Group £m £m £m
Goodwill on acquisition of businesses and subsidiaries
At 1 February 2003 32.3 (19.3) 13.0 
Currency translation 0.4 (0.3) 0.1
Additions 0.2 – 0.2
Amortisation during the year – (2.0)(2.0)
At 31 January 2004 32.9 (21.6) 11.3
At 31 January 2004 the Group accrued a cost for additional goodwill arising from a contingent payment of £0.2m payable in respect of the
acquisition of ATS (Australia) in a previous year, for which the contingent consideration was not deemed to be  payable at that time. This additional
consideration has been amortised in full at 31 January 2004.
12 Fixed assets – tangible assets
Land and buildings
11111111111111111111
Freehold Leasehold
Plant and Furniture and Assets under 1111111111 1111111111
Long Short machinery equipment construction Total
Group £m £m £m £m £m £m £m
Cost
At 1 February 2003 9.5 5.4 31.7 74.8 16.8 – 138.2 
Currency translation 0.2 – (0.1) 0.3 (0.2) – 0.2 
Additions 1.5 – 1.0 8.8 1.5 0.7 13.5 
Disposals (0.1) – (3.3)(8.2)(1.1) – (12.7)
At 31 January 2004 11.1 5.4 29.3 75.7 17.0 0.7 139.2
Accumulated depreciation
At 1 February 2003 2.6 1.4 14.7 52.9 13.1 – 84.7
Currency translation 0.1 – (0.1) 0.1 (0.1) – –
Charge for the year 0.2 0.1 1.6 6.2 1.8 – 9.9 
Disposals (0.1) – (2.6)(7.6)(1.1) – (11.4)
At 31 January 2004 2.8 1.5 13.6 51.6 13.7 – 83.2
Net book value
At 31 January 2004 8.3 3.9 15.7 24.1 3.3 0.7 56.0
At 31 January 2003 6.9 4.0 17.0 21.9 3.7 – 53.5
39
Alpha Airports Group Plc
Annual Report 2003/04 13 Fixed assets – investments
Group Company
111111111111111111 111111111111111111
2004 2003 2004 2003
£m £m £m £m
Investment in associates 3.7 3.3 – –
Shares in subsidiary undertakings – – 201.0 201.0 
Interest in own shares 0.2 0.4 0.2 0.4 
3.9 3.7 201.2 201.4 
In the opinion of the directors, the value of the Company's investments in shares in subsidiary undertakings exceeds the carrying value of those
investments in the Company's balance sheet.
Details of principal subsidiary undertakings are set out in Note 26.
13.1 Group – investment in associates
Total
Cost of Goodwill on Share of interest in
investment acquisitions reserves associates
£m £m £m £m
At 1 February 2003 0.8 2.4 0.1 3.3
Currency translation – 0.1 – 0.1 
Additions – 0.7 – 0.7 
Share of profit after tax – – 0.2 0.2 
Dividends received from associates – – (0.2) (0.2)
Amortisation of goodwill – (0.4) – (0.4)
At 31 January 2004 0.8 2.8 0.1 3.7 
In March 2003, the Group purchased a 20% shareholding in Calibre Airline Services Limited (an information technology company) for £0.6m, for
which the fair value of the Group's share of net assets acquired was £nil, generating goodwill on acquisition of £0.6m. This goodwill is being
amortised over 1.75 years (the life of the service contract provided).
In April 2003 the Group made a capital contribution to Servair Airchef srl of £0.1m.
The Group's investments in associates as at 31 January 2004 are listed in Note 26.
13.2 Group and company – interest in own shares
Cost Amortisation Net book value
£m £m £m
At 1 February 2003 0.5 (0.1) 0.4
Amortisation charge for the year – (0.2)(0.2)
At 31 January 2004 0.5 (0.3) 0.2
The interest in own shares comprises 715,000 shares, purchased by a trust company in the open market in July 2002, to meet the obligations of the
Long-term Incentive Plan ("LTIP") for the Chief Executive. The investment is being amortised over 2.5 years and the market value of the shares at
31 January 2004 was £0.6m. The rights to dividends on these shares have not been waived.
14 Stocks
Group Company
111111111111111111 111111111111111111
2004 2003 2004 2003
£m £m £m £m
Raw materials and consumables 2.6 2.1 – –
Goods for resale 19.9 18.1 – –
22.5 20.2 – –
40
Alpha Airports Group Plc
Annual Report 2003/04
Notes to the Accounts continued 15 Debtors
Group Company
111111111111111111 111111111111111111
2004 2003 2004 2003
£m £m £m £m
Trade debtors 19.2 17.1 – –
Amounts owed by group undertakings – – 47.6 42.0 
Amounts owed by associates – 0.1 – –
Other debtors 6.8 4.4 – –
Prepayments and accrued income 2.2 4.1 – –
28.2 25.7 47.6 42.0 
Other debtors included £0.6m (2002/03: £0.7m) due after more than one year .
16 Net cash/(borrowings) and financial instruments
2004 2003
£m £m
16.1 Bank and other borrowings
Unsecured loans (3.0) (6.0)
Bank overdrafts (3.7) (0.7)
Total bank and other borrowings due within one year (6.7) (6.7)
16.2 Net cash/(borrowings)
Total bank and other borrowings (6.7) (6.7)
Cash at bank and in hand 8.6 6.4 
Net cash/(borrowings) 1.9 (0.3)
16.3 Currency analysis
Bank and other borrowings are payable in the following currencies:
– Sterling (6.0) (6.4)
– Others (0.7) (0.3)
(6.7) (6.7)
Cash at bank and in hand is analysed in the following currencies:
– Sterling 1.6 1.6 
– Australian Dollar 0.8 0.6 
– United States Dollar 2.4 2.6 
– Euro 3.7 0.9 
– Others 0.1 0.7 
8.6 6.4 
41
Alpha Airports Group Plc
Annual Report 2003/04 16 Net cash/(borrowings) and financial instruments continued
16.4 Financial assets
The following table analyses the currency and interest rate composition of the Group's financial assets, comprising cash at bank and in hand.
As at 31 January 2004 As at 31 January 2003
1111111111111111111111111111 1111111111111111111111111111
Non-interest Non-interest
Floating rate earning Floating rate earning
financial assets financial assets Total financial assets financial assets Total
£m £m £m £m £m £m
Sterling 0.8 0.8 1.6 – 1.6 1.6 
United States Dollar 2.1 0.3 2.4 1.0 1.6 2.6 
Euro 2.3 1.4 3.7 – 0.9 0.9 
Others – 0.9 0.9 0.6 0.7 1.3 
5.2 3.4 8.6 1.6 4.8 6.4 
There are no fixed rate financial assets at 31 January 2004 or 31 January 2003. Floating rate financial assets attract interest at rates based on the
relevant national LIBOR equivalents. Short-term debtors have been excluded from the above analysis.
Non-interest earning financial assets comprise cash in hand and as such do not have a weighted period to maturity.
16.5 Financial liabilities
The following table analyses the currency and interest rate composition of the Group's financial liabilities, comprising bank and other borrowings
and provisions for liabilities and charges which are expected to result in cash payments. Short term creditors have been excluded from the
analysis below.
As at 31 January 2004 As at 31 January 2003
1111111111111111111111111111 1111111111111111111111111111
Non-interest Non-interest
Floating rate bearing Floating rate bearing
financial liabilities financial liabilities Total financial liabilities financial liabilities Total
£m £m £m £m £m £m
Sterling 6.3 1.5 7.8 8.7 – 8.7 
Euro - 1.1 1.1 – – –
United States Dollar 2.7 – 2.7 4.8 – 4.8 
Others 0.1 – 0.1 0.3 – 0.3 
9.1 2.6 11.7 13.8 – 13.8 
The period to maturity of financial liabilities was as follows:
2004 2003
£m £m
Within one year 10.5 8.9 
Between one and two years 1.2 2.4 
Between two and five years – 2.5 
11.7 13.8 
There were no fixed rate financial liabilities at 31 January 2004 or 31 January 2003.
Floating rate financial liabilities relating to bank and other borrowings bear interest at rates based on the relevant national LIBOR equivalents.
At 31 January 2004 the non-interest bearing financial liabilities had a weighted average period to maturity of 0.25 years in respect of Sterling
liabilities of £1.5m and 0.36 years in respect of Euro liabilities of £1.1m.
16.6 Fair values
As at 31 January 2004 and 31 January 2003 the Group's financial assets and financial liabilities were of such a nature that their fair values were not
materially different from their book values.
16.7 Hedging
A hedging analysis has not been presented as the Group did not have any hedging instruments at 31 January 2004 or 31 January 2003.
16.8 Currency exposure analysis
At 31 January 2004 and 31 January 2003 the Group’s subsidiaries did not hold material net monetary assets in currencies other than their
functional currency, with the exception of Alpha Catering Services Limited which had net monetary assets of £0.6m in Euros (2002/03: £nil), Alpha
Airport Holdings (UK) Limited which had monetary assets of £0.3m in US dollars (2002/03: £1.0m) and Alpha Overseas Holdings Limited which had
net monetary assets of £0.3m in US dollars (2002/03: £nil).
42
Alpha Airports Group Plc
Annual Report 2003/04
Notes to the Accounts continued 17 Other creditors
Group Company
1111111111111111111 1111111111111111111
2004 2003 2004 2003
£m £m £m £m
Amounts due within one year
Trade creditors 32.6 24.0 – –
Amounts owed to group undertakings – – 8.0 15.8 
Other creditors 8.9 9.6 – –
Taxation and social security 4.9 5.9 – –
Accruals and deferred income 11.3 13.5 – 0.1 
Proposed dividend 4.8 4.5 4.8 4.5 
62.5 57.5 12.8 20.4 
18 Provisions for liabilities and charges
Group
11111111111111111111111111111111111111
Deferred Onerous Restructuring/
taxation contracts redundancy Total
£m £m £m £m
At 1 February 2003 0.4 7.1 – 7.5 
Currency translation – (0.3) – (0.3)
Profit and loss account 0.5 (2.2) 2.9 1.2 
Utilised during the year – (2.5)(0.3) (2.8)
Amortisation of discount – 0.3 – 0.3 
At 31 January 2004 0.9 2.4 2.6 5.9
The onerous contract provision at 31 January 2004 was £2.4m in respect of the duty free retail operation in Orlando, being the directors' estimate of
the unavoidable costs accruing under the remaining life of this onerous contract, until its expiry in 2005, after adjusting for the amortisation of
discount. As described in Note 3.2, an amount of £2.2m was released from the onerous contract provision during 2003/04 following improved
trading performance in Orlando and the exit from an onerous contract in the UK.
Total restructuring and redundancy charges of £2.9m arose from the loss of 90 positions in the UK and Europe as discussed in Note 3.2. Of the total
amount charged, £0.3m was paid during the year and £2.6m remained at the year end.
There were no provisions held by the Company.
19 Deferred taxation
Group
1111111111111111111
2004 2003
£m £m 
Timing differences due to :
Accelerated capital allowances 0.8 1.0 
Other timing differences 0.1 (0.6)
0.9 0.4 
The Group has not recognised a deferred tax asset of £0.4m at 31 January 2004 (2002/03: £0.2m) relating to cumulative carried forward trading
losses due to uncertainty as to the specific timing of suitable taxable profits in the relevant jurisdictions against which the asset would crystallise.
The Group has no unprovided deferred tax liabilities at 31 January 2004 (2002/03: £nil).
20 Share capital and share premium account
Group and Company
11111111111111111111111111111111111111
Number Number
of shares of shares 2004 2003
20.1 Authorised and issued share capital 2004 2003 £m £m
Authorised
Ordinary Shares of 10 pence each 249,540,000 249,540,000 25.0 25.0 
6
1
⁄ 2 % cumulative redeemable preference shares of £1 each 46,000 46,000 – –
25.0 25.0 
Issued, allotted and fully paid
Ordinary Shares of 10 pence each 171,736,417 171,303,217 17.2 17.1 
43
Alpha Airports Group Plc
Annual Report 2003/04 20 Share capital and share premium account continued
20.2 Movement in called up share capital and share premium account
Share Capital 
Ordinary premium redemption 
Shares account reserve Total
£m £m £m £m
At 1 February 2003 17.1 42.5 0.4 60.0
Share issues relating to share options 0.1 0.1 – 0.2
At 31 January 2004 17.2 42.6 0.4 60.2 
During the year 433,200 shares were issued at option prices ranging from 42.5p to 69.5p per ordinary share.
20.3 Share options
At 31 January 2004 options had been granted and remained outstanding over 11,727,072 (2002/03: 9,116,576) ordinary shares under the Company's
share option schemes.
Executive share option scheme 
The normal exercise period for options granted under this scheme is between 3 and 10 years and the exercise of options is dependent upon a
performance target being satisfied which, in summary, requires the growth in the Company’s earnings per share before exceptional items to
exceed the growth in the retail price index by at least 6% over any three consecutive years prior to exercise.
At 31 January 2004 there were options outstanding over 7,474,796 (2002/03: 6,736,250) ordinary shares under the executive share option scheme.
Number of shares Exercise price per share Exercise period
6,894,511 31.0p – 88.5p October 2000 – July 2012
580,285 106.5p – 140.0p February 1997 – January 2007
Employee share option scheme
Under the Company`s employee share option scheme at 31 January 2004, employees held options over 4,252,276 (2002/03: 2,380,326) ordinary
shares.
Number of shares Exercise price per share Exercise period
3,804,800 42.5p – 81.5p July 2002 – October 2013
447,476 140.0p – 149.0p February 1997 – October 2004
21 Reserves
21.1 Group
Profit
and loss
£m
At 1 February 2003 (10.1)
Retained profit for the year 2.6 
Goodwill charged to the profit and loss account previously written off directly to reserves (Note 22) 1.2 
Currency translation differences 0.2 
At 31 January 2004 (6.1)
The cumulative amount of goodwill eliminated directly against reserves at 31 January 2004 was £172.8m (2002/03: £174.0m).
21.2 Company
Profit Special 
and loss reserve Total
£m £m £m
At 1 February 2003 5.0 152.3 157.3
Retained loss for the year (1.8) – (1.8)
At 31 January 2004 3.2 152.3 155.5 
The Company has not presented its own profit and loss account as permitted by section 230 (i) of the Companies Act 1985. The profit after tax dealt
with in the accounts of the Company for the year ended 31 January 2004 is £4.7m (2002/03: £3.6m).
44
Alpha Airports Group Plc
Annual Report 2003/04
Notes to the Accounts continued 22 Reconciliation of movements in shareholders' funds
2004 2003
£m £m 
Profit for the financial year 9.1 11.8 
Dividends (6.5) (6.2)
Retained profit for the financial year 2.6 5.6 
Currency translation differences on foreign currency net assets and certain loans 0.2 (0.5)
Issue of shares 0.2 0.3 
Goodwill charged to the profit and loss account previously written off directly to reserves 1.2 1.2 
Net increase to shareholders' funds 4.2 6.6 
Opening shareholders' funds 49.9 43.3 
Closing shareholders' funds 54.1 49.9 
Goodwill of £10.3m which arose on the acquisition of the original shareholding of Orient Lanka Limited in 1996 was written off to reserves. With
effect from 1 February 1998 this is being amortised through the profit and loss account over 8.5 years (the remaining life of the licence as at that
date). Accordingly, the charge in the profit and loss account of £1.2m (2002/03: £1.2m) has been added back into shareholders' funds.
23 Notes to the cash flow statement
23.1 Reconciliation of operating profit to net cash inflow from operating activities 
2004 2003
£m £m 
Operating profit 18.6 19.9 
Depreciation 9.9 10.3 
Goodwill amortisation 3.2 2.9 
Long term incentive plan amortisation charge 0.2 0.1 
(Increase) in stocks (2.7) (1.8)
(Increase) in debtors (2.6) (2.0)
Increase/(decrease) in creditors 4.5 (5.9)
Net cash inflow from operating activities 31.1 23.5 
23.2 Reconciliation of net cash flow to movement in net cash/(debt)
2004 2003
£m £m 
Increase/(decrease) in cash in the period 2.4 (14.4)
Increase in overdrafts in the period (3.0) (0.7)
Decrease in debt and lease financing 3.0 17.1 
Change in net cash/(debt) from cash flows 2.4 2.0 
Currency translation (0.2) (1.0)
Movements in net cash/(debt) in period 2.2 1.0 
Net debt at 1 February (0.3) (1.3)
Net cash/(debt) at 31 January 1.9 (0.3)
23.3 Analysis of net cash/(debt)
1 February Cash Exchange 31 January
2003 flows movement 2004
£m £m £m £m
Cash at bank and in hand 6.4 2.4 (0.2) 8.6
Overdrafts (0.7)(3.0) – (3.7)
5.7 (0.6)(0.2) 4.9
Debt due within 1 year (6.0) 3.0 – (3.0)
Total (0.3) 2.4 (0.2) 1.9
45
Alpha Airports Group Plc
Annual Report 2003/04 24 Commitments
24.1 Operating lease commitments and minimum guaranteed concession rent
At 31 January 2004 there were annual commitments under operating leases and minimum guaranteed concession rent as follows:
Group 
1111111111111111111
2004 2003
£m £m
Land and buildings
Expiring within one year 0.4 0.4 
Expiring between two and five years 1.5 1.4 
Expiring over five years 3.0 3.1 
4.9 4.9 
Other and minimum guaranteed concession rent
Expiring within one year 1.2 1.6 
Expiring between two and five years 8.0 12.1 
Expiring over five years 1.5 2.9 
15.6 21.5 
The commitments exclude other rental obligations where the obligations vary in accordance with passenger numbers or turnover . Rental
payments in 2003/04, which were based upon passenger numbers or turnover, totalled £38.2m (2002/3: £34.0m). These payments exclude rents
paid to airport authorities which have been recharged to our customers.
24.2 Capital commitments
Authorised and contracted 6.1 4.5 
25 Contingent liabilities
Alpha Airports Group Plc has guaranteed bank overdrafts and other facilities of subsidiary undertakings to the extent of £0.1m (2002/03: £0.6m).
Drawings under these facilities totalled £nil (2002/03: £nil). The Company has also issued guarantees of £1.5m (2002/03: £1.6m) to support
guaranteed rent obligations to an airport authority. The Company has also guaranteed ongoing performance obligations of its subsidiary
undertakings.
The Group's subsidiary undertakings have issued guarantees in favour of HM Customs and US Insurance Companies totalling £3.8m (2002/03:
£2.8m) to support ongoing obligations. They have also guaranteed ongoing performance obligations of their subsidiary undertakings.
46
Alpha Airports Group Plc
Annual Report 2003/04
Notes to the Accounts continued 26 Principal subsidiary undertakings and associates
Percentage of
Country of issued share
incorporation and capital held by
operation the Group % Business Description
(1) Subsidiary undertakings
UK
Alpha Airport Holdings (UK) Limited * UK 100.0 Retail, retail catering and Holding company
Alpha Overseas Holdings Limited * UK 100.0 Holding company
Alpha Catering Services Limited UK 100.0 Flight services
Overseas
Alpha Flight Services Overseas Limited Jersey 100.0 Holding company
Alpha Airports Group (Jersey) Limited Jersey 100.0 Flight services, retail catering and retail 
Alpha Airport Catering (Ireland)Limited Ireland 100.0 Retail catering
Alpha Flight Services Ireland Limited Ireland 100.0 Flight services
Alpha Airport Holdings BV * Netherlands 100.0 Holding company
Alpha Flight Services BV Netherlands 100.0 Flight services
Alpha- Keys Orlando Retail Associates Limited USA 185.0 Retail 
Alpha Airport Services Inc USA 100.0 Retail and flight services
Alpha Flight Services Pty. Limited Australia 100.0 Flight services
Orient Lanka Limited Sri Lanka 100.0 Retail 
Jordan Flight Catering Company Limited Jordan 151.0 Flight services
Alpha MVKB Maldives Pvt Limited Maldives 160.0 Retail 
(2) Associates
Virgin Express Catering Services N.V. Belgium 49.98 Inflight retailing
Servair Airchef srl Italy 25.0 Flight services
Calibre Airline Services Limited UK 20.0 Information technology
The percentage of the issued share capital held by the Group is equivalent to the percentage of the voting rights held . Where the percentage is
100% the Group holds the whole of all classes of issued share capital. The share capital of all the subsidiary undertakings comprised ordinary
shares. The companies listed above include all those which materially affect the amount of profit and the assets of the Group. A full list of
subsidiary undertakings will be annexed to the next annual return of Alpha Airports Group Plc to be filed with the Registrar of Companies.
*The equity of these subsidiary undertakings is held directly by Alpha Airports Group Plc.
47
Alpha Airports Group Plc
Annual Report 2003/04 48
Alpha Airports Group Plc
Annual Report 2003/04
Five year financial summary
Profit and loss account for the years ended 31 January
2000 2001 2002 2003 2004
£m £m £m £m £m
Turnover
– Continuing operations 425.3 413.5 419.4 419.3 440.9
–Discontinued 89.8 19.5 11.4– –
Turnover 515.1 433.0 430.8 419.3 440.9
Cost of sales (334.5)(296.5)(283.3)(267.1) (281.5)
Gross profit 180.6 136.5 147.5 152.2 159.4
Administration expenses (159.8)(121.3)(151.4)(132.3) (140.8)
EBITDA 35.3 28.6 22.8 33.1 31.7
Depreciation on tangible assets (11.6)(10.2)(11.9)(10.3) (9.9)
Amortisation of goodwill (2.9)(3.2)(14.8)(2.9) (3.2)
Operating profit/(loss) 20.8 15.2 (3.9) 19.9 18.6
– Continuing operations 16.3 15.9 (4.2) 19.6 18.6
– Discontinued operations 4.5 (0.7) 0.3 0.3 –
Operating profit/(loss) 20.8 15.2 (3.9) 19.9 18.6
Share of operating (loss)/profit of associates 
(including goodwill amortisation) – (0.2)(2.4) 0.2 0.1
Profit/(loss) on disposal of discontinued operations 1.7 (8.4) 0.7 2.1 –
Profit on ordinary activities before interest 22.5 6.6 (5.6) 22.2 18.7
Net interest payable (3.2)(0.7)(1.3)(1.5) (1.3)
Profit on ordinary activities before taxation 19.3 5.9 (6.9) 20.7 17.4
Taxation on profit on ordinary activities (8.2)(6.4)(6.2)(7.2) (6.7)
Profit/(loss) on ordinary activities after taxation 11.1 (0.5)(13.1) 13.5 10.7
Minority interest (0.6) – (0.8)(1.7) (1.6)
Profit/(loss) for the financial period 10.5 (0.5)(13.9) 11.8 9.1
Equity dividends (5.6)(5.8)(6.1)(6.2) (6.5)
Retained profit/(loss) for the period 4.9 (6.3)(20.0) 5.6 2.6
Earnings/(loss) per share 6.07p (0.29p)(8.15p) 6.91p 5.33p
Diluted earnings per share 6.06p (0.29p)(8.15p) 6.87p 5.28p
Adjusted earnings per share 7.64p 6.55p 7.26p 7.50p 7.50p
Dividend per share 3.20p 3.40p 3.60p 3.60p 3.80p
Balance sheets as at 31 January
2000 2001 2002 2003 2004
£m £m £m £m £m
Fixed assets
Intangible assets 15.8 17.7 14.7 13.0 11.3
Tangible assets 57.9 60.0 56.9 53.5 56.0
Investments – 2.6 3.1 3.7 3.9
73.7 80.3 74.7 70.2 71.2
Net current operating assets 46.8 52.6 43.0 45.9 50.7
Net current operating creditors (59.7)(58.1)(60.0)(57.5) (62.5)
Long term creditors and provisions (8.6)(8.4)(12.2)(7.5) (5.9)
52.2 66.4 45.5 51.1 53.5
Net cash/(borrowings) 8.6 (3.4)(1.3)(0.3) 1.9
Total net assets 60.8 63.0 44.2 50.8 55.4
Capital and reserves
Called up share capital 17.5 17.1 17.1 17.1 17.2
Share premium 42.2 42.2 42.2 42.5 42.6
Capital redemption reserve – 0.4 0.4 0.4 0.4
Profit and loss account 0.8 3.3 (16.4)(10.1) (6.1)
60.5 63.0 43.3 49.9 54.1
Minority interests 0.3 – 0.9 0.9 1.3
Total equity 60.8 63.0 44.2 50.8 55.4 Notice is hereby given that the eleventh Annual General Meeting of
Alpha Airports Group Plc will be held at the Conference Centre, Le
Meridien Hotel, Bath Road, Heathrow, Middlesex UB7 0DU on Thursday
3 June 2004, commencing at 11.00 am for the following business:
Ordinary Business
Resolution 1
To receive the Company’s annual accounts for the year ended
31 January 2004, together with the Directors’ Report and the Auditors’
Report on those accounts.
Resolution 2
To approve the Remuneration Report, as set out on pages 22 to 26 in the
Company’s report and accounts for the year ended 31 January 2004.
Resolution 3
To declare a final dividend for the year ended 31 January 2004 of 2.8p
per ordinary share payable on 9 June 2004.
Resolution 4
To re-elect Mr Graham Frost as a director .
Resolution 5
To re-elect Mr Michel Ennesser as a director .
Resolution 6 
To re-appoint PricewaterhouseCoopers LLP as auditors of the
Company, to hold office until the conclusion of the next general meeting
at which accounts are laid before the Company, and to authorise the
directors to set the auditors’ remuneration for the year ending
31 January 2005.
Special Business
To consider and, if thought fit, pass the following resolutions of which
resolutions numbered 7 and 8 will be proposed as Ordinary Resolutions
and resolutions numbered 9 and 10 will be proposed as Special
Resolutions.
Resolution 7
That the Alpha Airports Group Plc Incentive Bonus Plan for Executive
Directors (“the Plan”), the main features of which are summarised
below, be approved and adopted and that the directors be authorised to
do all acts and things necessary to establish the Plan and carry it into
effect.
Notes: Incentive Bonus Plan for Executive Directors
The executive directors are currently eligible to participate in a cash
bonus scheme and it is proposed to establish a new incentive bonus
plan for executive directors so that a proportion of the bonus could be
paid in the form of shares. Shareholder approval is sought so that the
following rules would apply for the administration of bonuses to
executive directors. 
Summary of the proposed Alpha Airports Group Plc Incentive Bonus
Plan for Executive Directors
Administration
Awards under the Plan will be supervised by the Remuneration
Committee. It will be administered by the Board.
Eligibility
Bonuses may be awarded under the Plan to executive directors of the
Company.
Amount of bonuses payable
Bonuses may be payable under the Plan for any financial year of the
Company ending on 31 January in which the conditions set by the
Remuneration Committee at the beginning of that year have been
satisfied. The aggregate amount of cash and share bonus payable to
an executive director in any year shall not exceed 50% of their salary.
For the purpose of the Plan, “salary” excludes bonuses, pension
contributions and other benefits in kind.
Payment of cash element of bonus
When a bonus becomes payable to an executive director under the Plan,
any bonus which equals or is below 10% of the director’s salary will be
payable in cash. If the bonus due exceeds 10% of salary, 50% of the
amount above 10% will also be payable in cash. Cash bonuses shall be
paid to the director within 28 days after the Remuneration Committee
has determined that a bonus is payable.
When share bonuses are payable
Share bonuses may be payable under the Plan for any financial year
of the Company ending on 31 January in which the conditions set by
the Remuneration Committee at the beginning of that year have been
satisfied to such an extent that the bonus due to an executive director
before deduction of PAYE and NIC exceeds 10% of his or her salary. 
Amount of share bonuses payable
The share element of the bonus will be 50% of the total bonus amount
above 10% of salary.
Application of share bonus
An amount equal to the share element of the bonus payable to an
executive director after deduction of income tax and employees’ NIC
will be applied by the Company in the purchase of ordinary shares (“the
Bonus Shares”) for and on behalf of the executive director . The Bonus
Shares will be held on trust for the executive director by RBC Holdings
(Channel Islands) as trustees of the Company’s Employee Benefit Trust
(“the Trustees”). 
Period of deferral
It will be a condition of the acquisition of the Bonus Shares on behalf
of an executive director that they are held by the Trustees for a period
of three years (“the Deferral Period”). Provided the executive director
is still an officer and employee of the Company or any of its subsidiaries
at the end of that period the Trustees will transfer the Bonus Shares
to him.
Forfeiture on cessation of employment
If, after Bonus Shares have been acquired for and on behalf of an
executive director and before the end of the Deferral Period, he ceases
to be an officer or employee of the Company or any of its subsidiaries for
any reason other than death, injury, disability, ill-health, redundancy,
retirement or the disposal of the company or business by which he is
employed (“good leaver reasons”) he shall forfeit any entitlement to
the Bonus Shares. If the cessation of an executive director’s office or
49
Alpha Airports Group Plc
Annual Report 2003/04
Notice of Meeting and Resolutions to be Proposed employment is for a good leaver reason then the Trustees will transfer
the Bonus Shares to him as soon as is practicable after cessation
of his employment.
Change of control
If there is a change of control the Bonus Shares shall be transferred
to the executive director immediately prior to and conditionally on
such change of control becoming effective.
Amendment and termination
The Board may make amendments to the Plan but no amendments
to the material advantage of eligible executive directors may be made
without the prior approval of the Company in general meeting. No
amendments may be made which would adversely affect the rights
of an executive director to whom Bonus Shares have been awarded.
Copies of the documentation constituting the Plan are available for
inspection, together with the other documents referred to in note (vii)
below.
Resolution 8
That the authority and power, conferred on the directors under section
80 of the Companies Act 1985 (“the Act”) and in accordance with
Regulation 6 of the Articles of Association of the Company, to allot
relevant securities up to an aggregate nominal amount (the section 80
amount) of £5,752,050 be renewed for the period ending on the date of
the Annual General Meeting in 2005 or 2 September 2005 whichever is
the earlier .
Resolution 9
That, subject to the passing of resolution 8, the authority and power
conferred on the directors under section 95 of the Act and the authority
conferred by resolution 8 and in accordance with Regulation 7 of the
Articles of Association of the Company, to allot equity securities (within
the meaning of section 94(2) to section 94(3) of the Act) wholly for cash in
connection with a rights issue or otherwise than in connection with a
rights issue up to an aggregate nominal amount (the section 89 amount)
of £862,807 be renewed for the period ending on the date of the Annual
General Meeting in 2005 or 2 September 2005, whichever is the earlier .
This power applies in relation to a sale of shares which is an allotment of
equity securities by virtue of section 94(3A) of the Act as if in the
preceding paragraph the words “and the authority conferred by
resolution 8” were omitted.
Notes: Directors’ Authority to Allot Shares
At the Annual General Meeting held on 29 May 2003 shareholders gave
the directors authority to allot ordinary shares up to a cash amount of
£5,710,107 and to allot shares for cash, other than by way of a rights
issue up to an amount of £856,516. These authorities expire at the
conclusion of the Annual General Meeting and resolutions 8 and 9 will
renew the authorities on similar terms for a further year .
The authority to issue shares under resolution 8 is for an amount which
is one third of the nominal value of the issued share capital at the date of
this notice and the authority to allot shares for cash other than by way of
a rights issue, pursuant to resolution 9 represents 5% of the nominal
value of the issued share capital.
Resolution 9 includes the authority to sell shares held in treasury for
cash. This would give the Company the ability to re-issue treasury
shares quickly and cost-effectively and would give the Company
additional flexibility in the management of its capital base. At the date of
this Notice, no treasury stock transactions had taken place. 
The directors will only exercise these authorities when to do so would be
in the best interests of all shareholders and the Company or in relation
to shares being issued pursuant to the Company’s share option
schemes.
Resolution 10
That the Company be authorised generally and unconditionally to make
market purchases (as defined in section 163(3) of the Act) of fully paid
ordinary shares of 10 pence each in the Company and, where shares are
held as treasury shares, to use them for the purposes of employee
share schemes operated by the Company, provided that:
(a) the Company does not purchase under this authority more than
17,256,152 ordinary shares;
(b) the Company does not pay less than 10 pence for each share;
(c) the Company does not pay more for each share than 5% over the
average middle market price of the ordinary shares according to
the Daily Official List of the London Stock Exchange for the five
business days immediately preceding the date on which the
Company agrees to buy the shares concerned.
The authority shall continue for the period ending on the date of the next
Annual General Meeting of the Company or 2 September 2005
whichever is the earlier, provided that if the Company has agreed to
purchase ordinary shares where the purchase will or may be executed
after the authority terminates (either wholly or in part) the Company
may complete such a purchase.
50
Alpha Airports Group Plc
Annual Report 2003/04
Notice of Meeting and Resolutions to be Proposed continued Notes: Share Buy-Back
Authority is sought to purchase up to 10% of the ordinary issued share
capital. Resolution 10 specifies the maximum number of shares that
may be purchased and the minimum and maximum prices at which they
may be bought. The directors will only exercise this authority when to do
so would be in the best interests of all the shareholders and an overall
improvement in earnings per share could be expected to result. The
authority will expire at the conclusion of the next Annual General
Meeting or on 2 September 2005, whichever is the earlier .
This resolution would enable the Company to purchase up to a
maximum of 17,256,152 of its ordinary shares. The total number of
ordinary shares that may be issued on the exercise of outstanding
options under the Company’s employee share schemes as at 23 April
2004 is 11,896,365 which represents approximately 6.89% of the issued
share capital at that date. If the Company were to purchase and cancel
shares up to the maximum permitted by this resolution, the proportion
of ordinary shares subject to outstanding options would represent
approximately 7.66% of the issued share capital as at 23 April 2004.
Following legislation which came into force on 1 December 2003, shares
purchased under the authority given by resolution 10 may be held by the
Company as treasury shares, within the limits allowed by law. These
shares may be resold. Resolution 10 also authorises the Company to
transfer any shares repurchased and held in treasury for the purposes
of its employee share schemes. If any such shares are so used the
Company will, so long as required under institutional guidelines, count
them towards the limits in such employee share schemes on the
number of new shares which may be issued under them.
23 April 2004 Registered Office
By Order of the Board Europa House
Heather McRae 804 Bath Road
Company Secretary Cranford
Middlesex TW5 9US
Notes and Instructions for Attending and Voting:
(i) If you have sold or transferred all or any part of your holding of
shares in Alpha Airports Group Plc please inform the purchaser
or transferee or the stockbrokers or the agent through whom the
transaction was effected as soon as possible.
(ii) A member entitled to attend and vote at the Annual General
Meeting may appoint a proxy or proxies to attend and vote on a poll
on his/her behalf. A proxy need not be a member of the Company.
(iii) If you wish to appoint a proxy, please complete the accompanying
form. To be valid, the form must be received by the Company’s
Registrar by 11am on 1 June 2004. 
(iv) A person you appoint as your proxy must attend the meeting.
Your proxy will be asked to present the Annual General Meeting
attendance card and show a form of identification at registration.
If you appoint a proxy you may still choose later to come to the
meeting. Please bring the attendance card with you. 
(v) A corporation intending to be present at the Annual General
Meeting through a representative should fill in the name of the
representative on the attendance card and affix its common seal or
have the form signed by an authorised officer . Such representative
will be asked to show a form of identification at registration.
Acorporation may appoint the chairman of the meeting as its
representative and instruct him how to vote by completing the
proxy form.
(vi) The time by which a person must be entered on the register of
members of the Company in order to attend and vote at the Annual
General Meeting is 6.00pm on 1 June 2004. Changes to entries after
this date will be disregarded in determining the rights of any person
to attend and vote at the meeting.
(vii) The Register of Directors’ Interests together with copies of
contracts of service between the Directors and the Company are
available for inspection during normal business hours at Europa
House, 804 Bath Road, Cranford, Middlesex, TW5 9US, from the
date of this notice until the date of the Annual General Meeting.
They will be available for inspection at the Conference Centre,
Le Meridien Hotel from 9.30 am on 3 June 2004 until the conclusion
of the Annual General Meeting.
51
Alpha Airports Group Plc
Annual Report 2003/04 Company Enquiries
General shareholder enquiries about the Company and requests for
copies of the Group’s literature, Annual Report or Interim Statements
should be directed to the Company Secretary at the registered office
address.
Internet
Visit our website at www.alpha-group.com for:
– share price updates
– the latest Alpha news as it happens
– information on operational locations
– further details about the Group
– latest Annual and Interim Reports
Shareholding Enquiries
Queries about personal shareholdings (e.g. lost certificates, dividend
payments, change of personal details, etc.) should be directed to the
Company’s Registrars, Lloyds TSB.
The Shareview service from Lloyds TSB Registrars gives you access
to information on your investments including balance movements,
indicative share prices and information on recent dividends. For more
details on this and practical help on transferring shares or updating
your details visit “www.shareview.co.uk”. You will need the shareholder
reference number printed on your proxy form or dividend stationery.
Financial Calendar
2004 14 April Ex-dividend date (final)
16 April Record date for final dividend
03 June Annual General Meeting
09 June Payment date for final dividend
September Announcement of interim results
October Posting of interim statement to shareholders
October Ex-dividend date (interim)
October Record date for interim dividend
November Payment date for interim dividend
2005 March/April Announcement of full year results
Company Secretary
Heather McRae
Registered Office
Europa House
804 Bath Road
Cranford
Middlesex TW5 9US
Telephone 020 8580 3200
Facsimile 020 8580 3201
Registered in England
Company Number 2854090
Registrars
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex BN99 6DA
Telephone 0870 600 3970
Principal Bankers
National Westminster Bank plc
City of London Office
PO Box 12258
1 Princes Street
London EC2R 8PA
Solicitors
Berwin Leighton Paisner
Adelaide House
London Bridge
London
EC4R 9HA
Auditors 
PricewaterhouseCoopers LLP
Chartered Accountants &
Registered Auditors
Harman House
1 George Street
Uxbridge
Middlesex UB8 1QQ
Stockbrokers
Panmure Gordon
50 Stratton Street
London W1J 8LL
Merchant Bankers & Financial
Advisors
Close Brothers Corporate Finance
Limited
10 Crown Place
London EC2A 4FT
52
Alpha Airports Group Plc
Annual Report 2003/04
Shareholder Information
Analysis of Ordinary Shareholdings
Shareholders Shareholders Shares Shares
At 31 January 2004 (Number)(%)(Number)(%)
By range of holdings
1–100 941 6.33 50,939 0.03
101–250 2,449 16.48 500,4270.29
251–500 3,622 24.37 1,200,595 0.70
501–750 2,570 17.29 1,622,542 0.94
751–1,000 1,420 9.56 1,281,394 0.75
1,001–2,000 2,204 14.83 3,034,924 1.77
2,001–5,000 1,100 7.40 3,280,600 1.91
5,001–10,000 245 1.65 1,773,069 1.03
10,001–50,000 190 1.28 3,926,471 2.29
50,001 and above 120 0.81 155,065,456 90.29
14,861 100.00 171,736,417 100.00
By category
Private Individuals 14,301 96.23 14,612,678 8.51
Banks 2 0.01 50,926 0.03
Nominee Companies 457 3.07 109,342,576 63.67
Insurance Companies 4 0.03 206,406 0.12
Pension Fund 1 0.01 12,250 0.00
Other Limited Companies 96 0.65 47,511,581 27.67
14,861 100.00 171,736,417 100.00