10773 AirlingPDF - Aer Lingus

AER LINGUS GROUP PLCdirectors’REPORT YEAR ENDED 31 DECEMBER 2000IntroductionThe Directors present their report to shareholders, together with the consolidated accounts ofAer Lingus Group plc and the auditors' report thereon, for the year ended 31 December 2000.Principal Activities and Business ReviewThe principal continuing activities of the Group during the year were the provision of passengerand cargo air transportation services to the UK, mainland Europe, the US and within Ireland.During the year, the Group disposed of the remaining 51% of its cargo handling subsidiary,Manchester Cargo Centre Limited.Results for the Year and State of Affairs as at 31 December 2000The consolidated profit and loss account for the year ended 31 December 2000 and theconsolidated balance sheet at that date are set out on pages 18 and 19. The profit for the year,after net exceptional profits of €5.5 million, amounted to €71.6 million (1999 - €55.5m, afternet exceptional losses of €7.4m).The movement on the consolidated profit and loss account for the year is as follows:€ millionBalance, 31 December 1999 – as previously reported (28.1)Prior year adjustment (6.7)Balance, 31 December 1999 – as restated (34.8)Profit for the year 71.6Other movements, net 1.7Balance, 31 December 2000 38.5As a result of the profit for the year of €71.6 million, currency translation and other adjustmentsof €1.7 million and a prior year adjustment of €6.7 million arising from a change in accountingpolicies, shareholders' funds increased by €66.6 million since those reported at 31 December1999. No further transfers to or from reserves are proposed by the Directors.DividendsThe Directors do not propose the payment of any dividends in respect of the year ended 31December 2000.Future DevelopmentsThe Directors intend to continue the development of the Group’s activities by focusing on corebusinesses, consolidating on progress achieved to date, and seeking prudent expansion in thecontext of growth opportunities.12