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ACSA-Availability of Annual Financial Statements
Airports Company South Africa SOC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/004149/30)
Issuer Code: BIACSA
Airports Company South Africa SOC Limited: Financial Performance
Highlights
Airports Company South Africa (ACSA) today reported financial
results for the year to 31 March 2021 that reflect the devastating
impact on aviation and tourism of the first year of the Covid-19
pandemic.
Revenue was R2,2-billion for the 12 months, less than a third of
the R7,1-billion generated in the previous financial year. While
the company produced a profit of R1,4-billion in the FY2019/20,
the result for FY2020/21 was a loss of R2,6-billion. This was the
second loss in the company’s 28-year history.
Chief Executive Officer Mpumi Mpofu said the wide and deep impact
of global measures to combat the pandemic have had a staggering
impact on airlines, airports and tourism around the world.
Global air traffic in 2020 fell by 65%, amounting to an equivalent
of loss of some $125-billion for both aeronautical and non-
aeronautical revenue. Across Africa, traffic declined by 68%
resulting in a loss of $2,7-billion in airports’ revenue.
In South Africa, ACSA’s departing passenger figures for the year
fell by 78.2% from 21-million to 4,6-million. Aircraft landings
for ACSA declined by 65% from 248 519 to 86 434.
“These figures represent the low point in terms of pandemic impact
because the 12 months involved either complete lockdown or
significant restrictions on domestic and international flying,”
said Mpofu.
“Since the start of the current financial year on 1 April 2021
there has been a continued gradual increase in domestic passenger
figures, although off a low base. However, we are encouraged by
developments of the past several weeks that suggest we can
anticipate accelerated improvement.
“South Africa is not only off the United Kingdom’s red list but
most of our key source markets have already opened for flying to
and from the country. The increasing pace of vaccinations locally
and in other countries, along with the advent of vaccination
certificates should encourage continued recovery in cross-border
travel,” said Mpofu.
She believes conditions have improved to the extent that, if Covid
infection rates remain subdued, South Africa can anticipate a
stronger summer holiday season in terms of both domestic and
international passengers than was thought possible at the height
of the third wave of Covid infections in July 2021.
Mpofu said the impact of the pandemic is reflected in every stream
of ACSA’s revenue. Aircraft landing fees were R368-million compared
to R1,3-billion the previous year, aircraft parking fees were R29-
million compared to R55-million and passenger service charges fell
to R414-million to compared R2,4-billion.
Non-aeronautical revenue fell by 60% to R1,34-billion compared to
R3,38-billion the previous year. The non-aeronautical revenue
includes advertising, retail, parking, car hire, property rental
and hotel operations.
In response to the emerging impacts of the pandemic, ACSA initiated
a series of funding and liquidity management activities from as
early as March 2020 onwards to secure its short-term position and
to bolster its long-term financial sustainability.
The company disposed of its 10% shareholding in Mumbai
International Airport for R1,26-billion, received a loan of R810-
million from the Development Bank of Southern Africa, and received
R2,3-billion from the issuance of preference shares to government.
As a result of the funding initiatives, the company’s gearing ratio
rose to 23% from 17% the previous year.
“Our responsible approach meant that when the pandemic struck,
ACSA had already reduced its debt by some R10-billion over the
previous seven years. The low gearing and asset base of more than
R31-billion are therefore providing a solid base for recovery over
the next three to five years,” said Mpofu.
In terms of liquidity management, ACSA increased short-term credit
facilities from R1,5-billion to R3-billion while maintaining
effective management of working capital to preserve cash.
Mpofu said that ACSA had also taken significant steps to support
its long-term financial sustainability. Capital expenditure
projects that would have required investment of more than R14-
billion were suspended in 2020. Operating expenditure has been cut
significantly by R1.2-billion and headcount has been reduced by
20% to date, she added.
In terms of outlook for the current financial year and beyond,
ACSA’s Recover and Sustain strategy for the period up to 2025
involves extending and defending core businesses, exploring
emerging business and revenue opportunities. Capital expenditure
will be only on maintenance and replacement of critical airport
infrastructure.
Noteholders are also advised that the issuer’s audit reports were
unqualified and that following restatements were made to the
FY2018/19 and FY2019/20 figures in the FY2020/21 annual financial
statements, as outlined in note G.16.
Property, plant and equipment and depreciation and intangible assets
Useful lives of fully depreciated/amortised assets still in use
were reassessed and extended, resulting in restated (lower)
depreciation and amortisation charges (and therefore restated net
book values of assets).
Non-current assets held for sale
A vehicle was incorrectly classified as held for sale in the
FY2019/20 financial year, resulting in overstatement of non-
current assets held for sale, and understatement of property, plant
and equipment and depreciation expense.
Trade and other receivables
Insurance expenses for the FY2020/21 and FY2021/22 financial years
were incorrectly recognised in the FY2019/20 financial year. This
error resulted in the overstatement of insurance expenses and
understatement of prepayments in FY2019/20. In addition, VAT
receivables with credit balances were reclassified to trade and
other payables.
Operating expenses
Insurance expenses for the FY2020/21 and FY2021/22 financial years
were incorrectly recognised in the FY2021/20 financial year,
resulting in the overstatement of insurance expenses and
understatement of prepayments in FY2019/20.
Employee costs
Consulting fees were incorrectly classified as employee costs
instead of as part of the acquisition costs of assets in FY2019/20.
Taxation
Taxation expense and the deferred tax liability were restated for
the tax effect of all the restatements.
The integrated annual report for Airports Company South Africa can
be viewed and downloaded at:
https://www.airports.co.za/business/investor-relations/financial-information
Johannesburg
19 October 2021
Debt Sponsor
The Standard Bank of South Africa Limited
Date: 19-10-2021 01:54:00
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