Annual Report 1999 in PDF - Aer Lingus

AER LINGUS GROUP PLCDirectors’ ReportYear Ended 31 December, 1999IntroductionThe Directors present their report to shareholders, together with the consolidated accounts of Aer Lingus Group plc and theauditors’ report thereon, for the year ended 31 December, 1999.Principal Activities and Business ReviewThe principal continuing activities of the Group during the year were the provision of passenger and cargo air transportationservices to the UK, mainland Europe, the US and within Ireland.During the year, the Group discontinued its ground and cargo handling activities at London Heathrow through the sale of thebusiness. The Group also completed the disposal of its Shannon based aircraft maintenance subsidiary, Shannon MRO Limited,and disposed of 49% of its cargo handling subsidiary, Manchester Cargo Centre Limited.Results for the Year and State of Affairs as at 31 December, 1999The consolidated profit and loss account for the year ended 31 December, 1999 and the consolidated balance sheet at thatdate are set out on pages 24 and 25. The profit for the year, after net exceptional losses of e11.3 million, amounted toe51.9 million (1998 - e74.6m, after net exceptional profits of e4.4m).The movement on the consolidated profit and loss account for the year is as follows:e millionBalance, 31 December, 1998 – as previously reported (57.4)Prior year adjustment (23.7)Balance, 31 December, 1998 – as restated (81.1)Profit for the year 51.9Other movements, net 1.1Balance, 31 December, 1999 (28.1)As a result of the profit for the year of e51.9 million, currency translation and other adjustments of e1.1 million, a prior yearadjustment of e23.7 million arising from a change in accounting policies and the issue of 2.0 million ordinary shares of IR£1(e1.269738) each under the Employee Share Participation Scheme, shareholders’ funds increased by e31.8 million since thosereported at 31 December, 1998. No further transfers to or from reserves are proposed by the Directors.DividendsThe Directors do not propose the payment of any dividends in respect of the year ended 31 December, 1999.Important Events since 31 December, 1999No significant events affecting the Group have taken place between 31 December, 1999 and the date of approval of theseaccounts.Future DevelopmentsThe Directors intend to continue the development of the Group’s activities by focusing on core businesses, consolidating onprogress achieved to date, and seeking prudent expansion in the context of growth opportunities. Following the IrishGovernment announcement on 14 December, 1999 that a decision had been taken to arrange an Initial Public Offering (IPO) ofthe Company’s shares, work has been ongoing on preparations for an IPO.20