Major group-wide capital programme underway and greater cost efficiencies required
Balanced Regional Development must be a national priority to address current imbalances – Chairman
Shannon Group plc, which includes Shannon Airport, Shannon Commercial Properties and Shannon Heritage, in its first full year of trading recorded total turnover of €65.6m in 2015 with post-tax profits of €7.3m.
Announcing Shannon Group’s 2015 results, its Chairman Rose Hynes said that the outlook for the Group is positive and stated that a major capital investment programme to address historical underinvestment and drive growth opportunities is underway.
Passenger numbers at the airport grew by 5% last year, bringing the total passenger growth to 22% since airport independence. Passenger growth and route development remains a key priority for Shannon Airport.
Commenting on the results Rose Hynes, Chairman, Shannon Group said: “We had a solid performance in our first full trading year as Shannon Group but greater opportunities for growth lie ahead. These opportunities can best be seized by the delivery of a major five year investment programme and a realignment of our cost base.
“The investment programme is critical for correcting the historical investment deficit in infrastructure across our businesses, moving each of the businesses onto the next level and improving competitiveness.”
Commenting on the Shannon Group results, Mary Considine, Acting CEO, Shannon Group, “We are pleased with last year’s results but the long term sustainability of our business model remains a key challenge for the Group. Further work needs to be done to increase the operating revenue and ensure that the cost base of the three group companies are competitive in the marketplace.
“This year we have embarked on a five-year €60m capital programme to address historical infrastructure deficits at Shannon Airport, at Shannon Commercial Properties and Shannon Heritage. Our investment plans have already and will continue to make a significant contribution to the local economy during the construction phase and will deliver long-term benefits in terms of growing revenue at each of our individual businesses.”
Among projects targeted in the capital investment programme are a major overlay of the airport runway; a significant upgrade of the Airport’s Transit Lounge and European departure gates; a major redevelopment programme to regenerate the Shannon Free Zone, which will significantly strengthen the hand of development agencies in attracting major investments and enabling job creation in the region; a new retail offering and cafe at Bunratty Castle and Folk Park to enhance the visitor experience.
The Chairman said, “Shannon Group is a major driver of the economy of the Mid-West and beyond. We at Shannon Group are strongly supportive of balanced regional development which we believe will allow the people of this and other regions to achieve their full potential. Balanced regional development must be a national priority so that there is a greater and wider spread of growth and development across the country. There must be an economic rebalancing as a priority to address both the current uneven pattern of economic recovery and to drive development.”
The 2015 Shannon Group plc Annual Report is available to view under ‘Publications’ on the home page of the group website at www.shannongroup.ie
Shannon Group Facts:
- Shannon Group recorded €65.6m turnover in first full year of operation in 2015
- Shannon Group returned a first year post-tax profit of €7.3m in 2015
- Announcement of a five-year €60m capital investment programme across Shannon Group companies
- Shannon Airport passenger numbers have increased 22% since 2013
- Shannon Heritage recorded an 8.6% increase in visitors to its heritage sites in 2015
- Shannon Commercial Properties embark on €21m first phase regeneration plans for Shannon Free Zone