Peel Ports Group Limited – Financial Highlights
Peel Ports Group is the second largest port group in the UK, handling over 60 million tonnes of cargo per year and welcoming 13% of the UK’s total port traffic through its waters.
In December 2012, the Group established its investment grade secured corporate debt programme, which was structured to enable access on a pari passu basis to bank debt, public bonds and private placement notes. The facilities were provided by an international banking syndicate and institutional investors in the US private placement market. Since December 2012, the Group has refinanced bank debt in excess of £1bn, as well as raising additional debt to support continued investment in the Group’s infrastructure.
The Group operates a number of ports at key locations, serving a broad mix of customers and handling a range of cargoes. The quality of its operating locations and in particular their proximity to major cities (including Liverpool, Manchester, London, Glasgow and Dublin) continue to support the Group’s EBITDA performance.
In FY16, Peel Ports reported revenues of £596m (2015: £616m) and EBITDA of £212m (2015: £195m). The Group has grown its EBITDA annually since 2008, including during the most recent general economic downturn and more latterly changes in the coal market, demonstrating its resilience even in challenging times.
This growth is underpinned by strong customer ties, diversity of cargo types and management’s commitment to capital investment and improving efficiency. In FY16 the Group continued its investment in the Liverpool2 container facility (which became operational in FY17) and it also acquired Great Yarmouth Port.
The current shareholders of Peel Ports are Peel Group (50.1%) and RREEF Infrastructure (“RREEF”) (49.9%). The stable cash flows generated by Peel Ports have driven growth in EBITDA leading to a natural de-leveraging of the business.
As reported in accordance with the terms of the Group’s covenants.
Peel Ports’ business model can be considered a “value added model” where it acts as both a landlord and an operator. Revenues are underpinned by the Group’s key role as the Statutory Harbour Authority and Competent Harbour Authority for its harbours, with the right to levy pilotage and ships’ dues (including conservancy) on all vessels entering its waters and goods’ dues on all goods imported and exported through its facilities.
Core revenues are driven primarily by statutory dues and port operations relating to berthing and cargo fees. The Group has no reliance on any one revenue stream, cargo type or customer.
Peel Ports leases port estate, acting as landlord and providing tenants with ancillary port services. Importantly, the Group also proactively looks to offer additional elements of the supply chain. This assists in developing and maintaining long term profitable customer relationships.
Peel Group is a privately owned conglomerate business with a wide range of interests from property to wind farms and hotels. Peel Ports benefits from the shareholders’ significant experience in investing and managing other key UK real estate and infrastructure assets such as the Trafford Centre and Liverpool Airport. Peel Group has a long-standing interest in the ports industry, having initially acquired The Manchester Ship Canal in 1987, Clydeport in 2003 and The Mersey Docks and Harbour Company in 2005.
Deutsche Asset & Wealth Management
Deutsche Asset & Wealth Management (“DAWM”), investing through its Pan-European Infrastructure Fund, is part of Deutsche Bank AG, with more than €2 billion of assets under management. DAWM is an experienced investor owning significant interests in core infrastructure assets in the energy, utility and transport sectors across Europe. DAWM is one of the largest asset managers in the world with more than 20 years of continuous portfolio management expertise.