Heathrow shareholders flying high with first dividend payment since Covid and expansion on horizon: Mohammed Nihad

However, pre-tax profit rose by 30.8 per cent to £917m for the year.

The airport attributed the decline in revenue and EBITDA to lower airline fees, which were set by the regulator, the Civil Aviation Authority.

Heathrow has also undergone a significant ownership change. French private equity firm Ardian acquired a 23 per cent stake, while the Saudi Public Investment Fund (PIF) took a 15 per cent share, following the sale of 25 per cent of shares by Spanish infrastructure firm Ferrovial and other shareholders. Other shareholders include Qatari and Chinese sovereign wealth funds, as well as infrastructure funds.

Despite these changes, the company’s strategy remains focused on cost reduction and improving efficiency to enhance EBITDA margins, according to CEO Thomas Woldbye.

Heathrow is expected to play a key role in the UK government’s plan to expand the nation’s transport network. In January, Chancellor Rachel Reeves backed the proposal for a third runway, with a multi-billion pound project plan expected to be submitted this summer.

Mr Woldbye anticipates that Heathrow will see the largest private investment in UK transport infrastructure over the next decade, unlocking new growth opportunities.

Meanwhile, Shein, the fast fashion giant, has struggled to maintain its 2023 profit levels in 2024, with net profit falling by more than a third to £789m, despite a 19 per cent growth in sales.

Although the company manufactures most of its products in China, its headquarters are in Singapore, and it is now pursuing an initial public offering (IPO) on the London Stock Exchange.

Before its earnings announcement, Shein had estimated its valuation at £50bn, which would have made it the largest listing in London’s history. However, Shein is under pressure from investors to reduce its valuation to approximately £24bn.

Shein had initially aimed to list on the New York Stock Exchange but shifted its focus to London after facing regulatory problems in the United States.

Temu, a fast-growing rival with an aggressive low-cost strategy, has been poaching Shein’s suppliers, forcing Shein to increase spending on marketing and shipping.

Shein is also expected to undergo major supply chain changes as it diversifies manufacturing locations. Increased tariffs on Chinese imports into the US could threaten its ability to maintain low prices. To mitigate this risk, Shein has expanded its manufacturing operations in Vietnam.

Initially planning to go public by Easter 2025, Shein has delayed its IPO to the second half of the year as it awaits regulatory approval in China and the UK and continues adjusting its supply chain.

Mohammad Nihad is part of the Investment Research Team at Redmayne Bentley