€1.7m decrease in profits for London City Airport

PROFITS at the Dermot Desmond-owned London City Airport fell by £1.2 million (€1.7m) last year as a number of airlines cut back on services from the Docklands facility.

According to accounts just filed at the Companies Office in London, pre-tax profits for 2003 were £4.8 million down from £6.03 million in 2002.

The company said this was because of fewer services in the first few months of 2003. But the directors said they had succeeded in expanding the business later in the year with new routes to Bremen and Leipzig in Germany. “There was a reduction in the capacity offered by airlines at the airport as a result of the Iraq war and other international events, but helped by the introduction of services by British Airways in spring 2003, passenger throughput was recovering strongly by the year end.”

Turnover slipped from £31.1m to £29.3m, again as a result of fewer services in the early months. After tax profits were £2.4m against £4m the previous year.

The accounts shows that the company has cash of £9.2m and over £66m in retained profits. Shareholders’ funds were £98m.

Mr Desmond is the sole shareholder of the airport’s parent company, which is registered in Jersey.

A total of £103,769 was owed to International Investment & Underwriting for managers charges. This company is Mr Desmond’s main financing vehicle.

The accounts show that the company’s directors were paid £209,000, an £11,000 increase on 2002.

Last month, a record number of passengers passed through its doors and is on course to beat the 1.6 million that flew through the airport last year.