BAA (BAA).

Investors Chronicle, October, 2005

630p - Transport - BAA's decent dividend income, combined with its utility-like regulated nature, has proved beguiling for investors searching for steady capital appreciation. But several key factors affecting BAA's performance have recently turned more negative.

First, the growth in the number of passengers passing through BAA's airports is slowing. In its financial year to March, passenger growth was 6 per cent as air travel recovered from 11 September 2001's terrorist attacks and the Sars virus outbreak. Then, in July, BAA said that it expected 3.5 per cent growth in the current year. But, in last month's trading update, the group was forced to trim this growth forecast to 3 per cent, causing brokers to cut earnings estimates. London's terrorist attacks and...

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