Detailed Financial Performance Report: IVY HOLDCO LIMITED Analysis

This report presents a detailed financial performance analysis of IVY HOLDCO LIMITED, an airport group. It examines passenger numbers, flight movements, key revenue sources (aeronautical, retail, car parking, etc.), and operational costs (staff, retail, maintenance, etc.). The analysis compares financial data from 2018 and 2019, highlighting growth in passenger numbers and revenues. The report identifies key factors influencing the airport group's long-term success, such as aeronautical and retail income, and staff and retail expenses. The conclusion summarizes the financial health of IVY HOLDCO LIMITED, emphasizing the importance of revenue and expense management for sustained success. The report uses data from financial statements to support its findings, providing a comprehensive overview of the airport group's financial performance.

Assessment

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1. What are the most recently published figures for passenger numbers and flight movements in the
airport/airport group................................................................................................................................3
2. What are the key sources of revenue at this airport/airport group?......................................................4
3. What are the key operational costs incurred at this airport/airport group.............................................5
4. Which of the factors are most influential on the airport/airport group’s longer term success?............6
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................9

INTRODUCTION
The project report is based on analysis of financial performance of an airport group in terms of
expense and revenues. In this project report an airport group has been selected which IVY
HOLDCO LIMITED. This is located in London and it offers a range of commercial services to
customers (King, Stomberg and Utke, 2020). In the project report detailed information about,
passenger numbers and flight movements in the airport/airport group and their revenues and
expenses are mentioned.
MAIN BODY
1. What are the most recently published figures for passenger numbers and flight movements in
the airport/airport group.
Over the year, IVY HOLDCO LIMITED’s passenger numbers managed to show good growth,
rising to 46.4 million passengers by 0.7 million (1.6 percent). A big source of expansion, rising
by 1.1 million passengers or 14.3 percent, was lengthy aspects (Saito and Fukui, 2019). Air
travel and local passengers is less than 0.4 million passengers in the subsequent year, primarily
due to the absence of Monarch Airlines, which stopped trading in October 2017, and the sluggish
usage of the prior assignment of Monarch slots.
2018 2019
Change
in
passeng
er
%
change
in
passeng
er
number
s
Passengers
45,693,3
29
46,442,1
54 748,825 1.61%
Air transport
movements 280,792 281,741 949 0.34%

Passengers per ATM 162.7 164.8 2 1.27%
Seats per ATM 187.4 191 4 1.88%
Load factors (%) 86.80% 86.30%
On the basis of above table, this can be stated that number of passengers has been increased in
year 2019 by 1.61% as compared to year 2018. Apart from his, passenger per ATM (Air
transport movements) also increased in year 2019 comparison to year 2018. The change in
passenger per ATM number is of 1.27% increased for year 2019. As a result, in year 2019 seat
per Air transport movements also increased due to higher number of passengers.
2. What are the key sources of revenue at this airport/airport group?
Revenue: The term revenue can be defined as a sum which is produced by a company or an
organization by selling any commodity and service (Chao, Peng and Alsaadi, 2019). The value
of revenue is not considered as net income because under revenue, several types of expenses are
deducted to find out net income.
In the context of IVY HOLDCO LIMITED, this can be inferred that their total revenues for year
2018 are of £ 764.2 Million which rose for next year and became of £810.8 Million. Under this
total revenue amount the revenue from Aeronautical is of £ 396.6 Million. Below a table is
presented which shows classification of generated revenues from different aspects:

Item Amoun
t
(2018)
% of
total
revenu
e
Amoun
t
(2019)
% of
total
revenu
e
Aeronautic
al income
396.6 51.90
%
427.8 52.76
%
Retail
income
177.3 23.20
%
191.3 23.59
%
Car parking
income
87.8 11.49
%
88.3 10.89
%
Property
income
29.1 3.81% 31.9 3.93%
Operational
facilities
and utilities
income
34.5 4.51% 32.5 4.00%
Other
income
38.9 5.09% 39.0 4.81%
The above table shows that majority of revenues have been produced from Aeronautical
operation which is 51.90% of total revenues. While revenue from other operations was of
48.10% in year 2018. On the other side, in year 2019 this % of revenues from Aeronautical
operation increased and became of 52.76%. While revenue from other operation was of 47.24%.
Comparison of revenues from ACI:

In comparative manner, this can be inferred that ACI’s revenue % from Aeronautical income is
higher in year 2018 as compared to IVY HOLDCO LIMITED. This is so because of larger
number of passengers as well as increased volume of flights. Herein, this is important to note that
above airport group’s performance has been improved in year 2019 as compared to year 2018.
As their revenues from Aeronautical activities was of 52.76% that is slight better and nearby
ACI’s revenue % from Aeronautical income.
3. What are the key operational costs incurred at this airport/airport group.
Expenses relating to the running of a company or to the development of a system, part, and piece
of product or service are administrative costs or maintenance costs (Joshi, 2020). They are the
expense of a firm's money used only to sustain its life.
Operating expenses rose during the year fiscal year Ended march 31 2019 by £ 18.8 million or
3.6 percent to £ 539.4 million.
2018 2019 Change in cost % change in cost
Staff costs 201.9 203.6 1.7 0.8
Retail expenditure 2.5 3.4 0.9 36.0
Car parking expenditure 19.5 19.1 -0.4 -2.1
Maintenance and IT
expenditure 40.6 45.2 4.6 11.3
Utility costs 21.1 23.1 2 9.5
Rent and rates 30.3 32.8 2.5 8.3
Other operating expenses 37.1 42.2 5.1 13.7
Depreciation and amortization 167.6 170 2.4 1.4
Total operating cost 520.6 539.4 18.8 3.6
The above table shows that each cost of operating has been raised in year 2019 as compared to
year 2018. Though, there is only one operating cost that is Car parking expenditure which has
been reduced for year 2019 by 2.1%. Apart from such cost each type of cost has been increased
which indicates that in year 2019 revenues might be increased because more number of expenses

shows that there will be more number of passengers. The major change among all activities is
found under cost of retail which has been changed by 36% in year 2019 and became of 3.4
million pounds in year 2019 from 2.5 million pounds. While lowest change was in staff cost
which was of just 0.8% and became of 203.6 Million pounds. The change in overall cost was of
3.6% from 520.6 Million pounds to 539.4 Million pounds in year 2019.
4. Which of the factors are most influential on the airport/airport group’s longer term success?
From above done analysis, this can be inferred that there are ranges of income and expenses
which may lead to long term success of IVY HOLDCO LIMITED. Below some factors are
mentioned:
In terms of revenues:
Aeronautical income- The bulk of airport income contains aeronautical revenue, including airline
terminal room leases, arrival charges for flights, and use fees for checkpoints, exits, facilities,
and traveler numbers (Arnold, Ault and Cooper, 2019). Pilot charges are growing upwards with
aviation sales, as per Airport World. In the context of above IVY HOLDCO LIMITED, this can
be stated that this is the main factor may lead to major success in future time period. It is so
because their revenue from Aeronautical activities is increased in current year 2019 as compared
to year 2018.
Retail income- Retail profit margin is the indicator of the viability of the business. This
illustrates the proportion of profits that constitutes benefit. The actual quantity of products and
costs a company needs to spend to manufacture and market the product reflects the retail
profitability. In the aspect of above IVY HOLDCO LIMITED, this can be stated that this is the
main factor may lead to major success in future time period. It is so because their revenue from
retail activities increased in year 2019 as compared to year 2018. And this income covers higher
% of revenue after income from aeronautical activities.
In terms of expenses:
Staff cost- Expenditure paid for the time employed by workers used to completing tasks. In the
context of above IVY HOLDCO LIMITED, this can be stated that this factor can be useful for

them in order to become successful in future. It is so because the cost of staff is not increased by
huge margin in current year 2019 as compared to year 2018.
Retail expense- A retail costs are costs incurred by a corporation by its regular commercial
practices. Often shortened as OPEX, leasing, supplies, product cost, marketing, payroll, benefits,
phase costs, and resources reserved for design and technology include operational costs (Daniels
and Grinstein-Weiss, 2019). In the context of above IVY HOLDCO LIMITED, this can be stated
that this factor can be useful for them in order to become successful in future. It is so because the
cost of retail is not increased by huge margin in current year 2019 as compared to year 2018.
CONCLUSION
On the basis of above project report this can be concluded that financial performance analysis
play a key role in the context of each type of business. The report articulates about financial
performance evaluation of IVY HOLDCO LIMITED that is an air group and its performance is
assessed under revenue and expenses. In comparative manner, it can be assessed that air group’s
performance is enhanced in year 2019 compare to previous year 2018. Though, herein it is
important to know that their expenses also increased in year 2019. In accordance of analysis of
cost and revenues, it can be evaluated that there are different factors which are Aeronautical
income and Retail income. These factors may lead to long term success of above air group. In
addition to this, above air group’s number of passengers also increased in year 2019 compared to
year 2018.

REFERENCES
King, Z., Lynch, D., Stomberg, B. and Utke, S., 2020. Does Financial Reporting for Income Tax
Expense Affect the Timeliness of Goodwill Impairments?. Available at SSRN 3455659.
Saito, S. and Fukui, Y., 2019. Whither the concept of income?. Accounting, Economics, and
Law: A Convivium, 9(1).
Chao, X., Kou, G., Peng, Y. and Alsaadi, F.E., 2019. Behavior monitoring methods for trade-
based money laundering integrating macro and micro prudential regulation: a case from
China. Technological and Economic Development of Economy, 25(6), pp.1081-1096.
Joshi, P., 2020. Does Private Country‐by‐Country Reporting Deter Tax Avoidance and Income
Shifting? Evidence from BEPS Action Item 13. Journal of Accounting Research, 58(2),
pp.333-381.
Arnold, B.J., Ault, H.J. and Cooper, G. eds., 2019. Comparative income taxation: a structural
analysis. Kluwer Law International BV.
Daniels, K. and Grinstein-Weiss, M., 2019. The impact of the gig-economy on financial hardship
among low-income families. Available at SSRN 3293988.
Online:
About financial data of IVY HOLDCO LIMITED, 2019 [Online] available through :<
https://www.gatwickairport.com/globalassets/business--community/investors/march-
2019/ivy-holdco-limited-consolidated-financial-statements-31-march-2019.pdf >