The Shannon Airport Group Annual Report and Accounts 2024

Annual Report and Accounts | 2024

GOING CONCERN The directors believe that sufficient financial resources are available to enable the Group and Company to meet its obligations as they fall due, covering a period up to 31 March 2026. In forming their view the directors have reviewed the Group’s projections, with particular reference to the Group’s liquidity, operating cash flows, expected passenger volumes and existing bank facilities. For this reason, the directors continue to adopt the going concern basis in preparing the financial statements. ADDITIONAL COMPLIANCE OBLIGATIONS The Group complies with the Corporate Governance and other obligations imposed by the Ethics in Public Office Act 1995 and the Standards in Public Office Act 2001. The Group meets its obligations under other legislation including, but not limited to, the Disability Act 2005, the Regulation of Lobbying Act 2015 and the Safety, Health and Welfare at Work Act 2005. The Group has implemented a Protected Disclosures Policy in accordance with the requirements of the Protected Disclosures Act 2014, as amended by the Protected Disclosures (Amendment) Act 2022 (the “Protected Disclosures Act”). The mechanism whereby the Group’s employees can raise concerns which cannot be appropriately addressed through normal channels or make disclosures in the public interest in accordance with the Protected Disclosures Act, is outlined within the Protected Disclosures Policy. All disclosures by employees may be raised to the employee’s line manager, Human Resources or to the Company Secretary and Head of Group Legal in accordance with the procedures set out in the policy. The Group is also committed to protecting the rights and privacy of individuals in accordance with the Data Protection Acts 1988 to 2018 and all associated legislation. The Group has undertaken an assessment of equality and human rights issues relevant to its function to identify potential human rights issues, risks and preventive measures within the Group and the policies, procedures, plans and actions in place or proposed to be put in place to address those issues in compliance with Section 42(s) of the Irish Human Rights and Equality Act, 2014. Details of the assessment and measures are published on the Group’s website. IRISH HUMAN RIGHTS AND EQUALITY COMMISSION ACT 2014

and investments of €59.1 million (2023: Nil), of which €7.2 million is a long term investment. Total external bank loans were €10.5 million at the year end date (2023: €24.2 million) (Note 23). No external bank loans were drawn down in 2024, with one loan repaid in full during the year. Total loan repayments in the year were €13.8 million (2023: €2.7 million). The Group has total assets of €308.6 million (2023: €278.5 million). Investment in capital expenditure projects is seen as key to ensuring the future sustainability of the Group. As reflected in the Consolidated Cash Flow Statement, the Group had cash outflows of €7.4 million for capital projects across the Group in the year (2023: €15.5 million). In addition, the Group realised proceeds of €1.2 million on capital disposals in the year (2023: €11.8 million). PRINCIPAL RISKS AND UNCERTAINTIES The principal areas of risk and uncertainty which could materially and adversely affect the Group’s future operating profits or financial position, along with the strategies to mitigate these, are outlined in the Risk and Governance report on page 45. DIRECTORS AND SECRETARY AND THEIR INTERESTS The names of the persons who were directors during the year are set out on page 50. The directors and secretary who held office at 31 December 2024 had no interest in the shares of Shannon Group plc or its subsidiary companies either at the start of the year or their date of appointment, if later, nor at the end of the year. ACCOUNTING RECORDS The directors believe that they have complied with the requirements of Sections 281 to 285 of the Companies Act 2014 with regard to maintaining adequate accounting records by employing accounting personnel with appropriate expertise and by providing adequate resources to the financial function. The accounting records of the Company are maintained at Shannon Airport, Shannon, Co. Clare. AUDIT COMMITTEE The Group has established an audit and risk committee. Details of this committee are disclosed in the Risk and Governance Report. RESEARCH AND DEVELOPMENT The Group does not undertake research and development activities.

DIRECTORS’ REPORT

In monitoring the Group’s performance, the directors and management have regard to a range of key performance indicators including the following: Total assets Airport passenger numbers Revenue EBITDA (earnings before interest, tax, depreciation and amortisation) Profit/(loss) before tax Profit/(loss) after tax Net cash position Capital expenditure Proceeds from capital sales Airport passenger numbers for the year were 2,104,361 (2023: 1,958,731). Consolidated revenue from all operations for the year was €73.1 million (2023: €71.3 million, including revenue of €3.4 million from discontinued operations). Group EBITDA 1 for the year is €18.3 million (2023: €21.0 million). This result is considered satisfactory and reflects continuing focus on both revenue generation and cost control across all Group companies. During the year the Group recorded an exceptional gain of €22.7 million in respect of the reversal of the remaining impairment loss recorded in 2020, as described in Note 3 to the financial statements. During 2023 the Group recorded an exceptional gain of €1.7 million in respect of the partial reversal of this impairment loss. The Group recorded a consolidated profit of €44.3 million (post-tax and exceptional items) (2023: €26.0 million, after recording a loss of €0.1 million on discontinued operations (Note 9)). The Group has cash reserves and investments to meet its operating and recurring short-term capital expenditure needs. A treasury strategy is in place to maximise the short-term return on the Group’s cash reserves and during 2024 the Group invested in a money market fund and purchased a number of government bonds with laddered maturities. The Group held net cash deposits of €14.4 million at the year end date (2023: €77.4 million) 1 Group EBITDA is calculated as follows (before exceptional items and including discontinued operations 2023) - €’000

The directors present their annual report and the audited consolidated financial statements of Shannon Group plc (trading as “The Shannon Airport Group”) and subsidiaries (“the Group”) for the year ended 31 December 2024. PRINCIPAL ACTIVITIES Shannon Group plc (“the Company”) was incorporated on 29 August 2014 and, following the enactment of the State Airports (Shannon Group) Act 2014 (“Shannon Group Act”) on 5 September 2014, the Group was formed. Shannon Airport Authority DAC (“Shannon Airport”) and Shannon Commercial Enterprises DAC (“Shannon Commercial Enterprises”) are subsidiaries of the Company. SAA Pension Corporate Trustee DAC and Shannon Airport Authority Financial Services DAC are subsidiaries of Shannon Airport Authority DAC. The Group’s principal activities are the operation, management and development of Shannon Airport (“the Airport”) and the management and development of the extensive commercial property portfolio held by Shannon Commercial Enterprises, including Shannon Airport Business Park. There has been no significant change in the principal activities of the Group during the year. REVIEW OF THE BUSINESS AND FUTURE DEVELOPMENTS Shannon Group plc is a state company with a clear commercial mandate. The purpose of the Group is to promote and facilitate air transport and aviation services in and around Shannon Airport, and optimise the return on its land and property assets. In addition to information directly included in this report, detailed commentaries on performance for the year ended 31 December 2024 including information on recent events, likely future developments facing the business and key performance indicators, required in accordance with the Companies Act 2014, are contained in the Chief Executive Officer’s Review. RESULTS FOR THE YEAR The directors are satisfied with the performance of the Group for the year. The results of the Group for the year ended 31 December 2024 are set out in the Consolidated Statement of Profit or Loss on page 60 and in the related notes.

2024 2023 10,237 17,079 10,146 5,648 (2,094) (1,698) 18,289 21,029

Operating profit before other income/(expenses) Depreciation and amortisation of intangible assets

Amortisation of capital grants

EBITDA