Interim Results
17 November 2005 - 6:01PM
UK Regulatory
RNS Number:2601U
Dart Group PLC
17 November 2005
DART GROUP PLC
Interim Results for the Six Months Ended 30 September 2005
Dart Group PLC, the aviation and distribution group, announces its interim
results for the six months ended 30 September 2005.
CHAIRMAN'S STATEMENT
I am pleased to report on the Group's trading for the six months ended 30
September 2005. Profit before tax, goodwill amortisation and exceptional
items amounted to #14.8m (2004 restated : #11.9m) whilst profit before tax
but after goodwill amortisation and exceptional items was #18.2m (2004 restated
: #6.2m). The seasonal pattern of profitability seen in recent years is
likely to be repeated this year, with Jet2.com being profitable in the summer
and loss making in the winter.
The exceptional credit of #3.7m relates to the surplus of disposal proceeds over
the book value on the sale of the Benair companies, whose business is air and
sea freight forwarding and which were considered non-core to the Group's main
businesses. The restated prior year exceptional charge relates to the first
half effect of the change in the accounting policies covering foreign exchange
and maintenance accounting and the impairment review which was analysed fully
in the 2005 Annual Report and Accounts.
Capital expenditure in the first half amounted to #22.7m (2004 : #22.8m) and
related mainly to the acquisition of two Boeing 757 aircraft and ongoing
maintenance of the aircraft fleet. Net debt at 30 September was #7.7m
(2004 : #14.4m), representing gearing of 13% (2004 : 30%).
On 15 August 2005, the Company transferred its share listing from the main
market to AIM.
The Board is pleased to declare an increased interim dividend of 2.25p per share
(2004 : 2.04p), an increase of 10%. The dividend will be paid on 5 January 2006
to shareholders on the register as at 25 November 2005.
Aviation
During the past six months, Channel Express (Air Services) has operated 24
Boeing 737-300 aircraft (of which, 20 are owned) and three Airbus A300
"Eurofreighters". The company flies seven Boeing 737-300 "Quick Change"
aircraft nightly for Royal Mail in freight configuration. These are then
quickly re-configured into passenger aircraft to operate both charter flights
and Jet2.com 's low-cost services.
The main customer for our Airbus A300's, United Parcel Service, recently advised
us that its aircraft needs had changed with the ongoing development of its
European business. Consequently, we have taken the decision to cease operating
the type and to dispose of the Group's two owned aircraft and return the third
to its lessor. One aircraft has now been sold and there is encouraging
interest in the second. As far as possible, employees on this fleet are being
offered other jobs within the company.
Between 1 April and 30 September, Jet2.com has flown over 1.25 million
passengers (2004: 570,000) from its main Leeds Bradford and Manchester bases.
Operations were also commenced from Newcastle on 4 September and from Blackpool
on 29 September. In addition, new services have recently been announced from
Belfast and Edinburgh. The company's route structure is easily accessible at
www.jet2.com. Almost 97% of bookings are made over the internet, with our
contracted call centre (now based in India) handling the remainder as well as
flight enquiries.
We plan to continue to grow Jet2.com's low-cost services from the North,
primarily flying to leisure destinations from regional airports. As routes
develop, 148-seat Boeing 737-300 aircraft will be replaced by 235-seat Boeing
757-200s. The Boeing 757-200 offers both a competitive seat rate and greater
range, widening our choice of destinations. The Group purchased two Boeing
757-200s in May and the first of these is now in service from Leeds Bradford,
with the second joining it this month. This winter, services to Tenerife, Faro
and ski destinations are being flown with these aircraft. They will primarily
fly to southern Spain next summer.
The company will be operating these two aircraft types for the foreseeable
future and both fleets will be expanded as the business grows. We believe that
there is considerable potential for substantial growth in the low-cost sector
and that by offering a friendly product at the lowest possible price Jet2.com
will be a successful competitor in this exciting field.
Distribution
The Group's temperature-controlled distribution company, Fowler Welch-Coolchain,
is one of the country's largest providers of these specialist distribution
services to supermarkets, importers and producers. Operating from its primary
distribution centres in Spalding, Lincs, and Teynham, Kent, together with
operations in Portsmouth, Southampton, Bristol and Gateshead, the company
collects and distributes fresh produce and chilled foods throughout the UK and
from The Netherlands. This is a growing sector increasingly dominated by the
supermarkets, therefore, the business is geared to offering the highest
standard of service at the lowest possible price.
The company works closely with its customers to maximise business opportunities
and has won both additional business from existing customers and new
distribution business from Somerfield Stores during the period. Since then
further distribution business has also been won at both Gateshead and Teynham.
The summer saw the start of significant warehousing and distribution contracts
which formed a basis for further opportunities for the company. The new
operation from Teynham involves the picking and despatch of up to 150,000 cases
of cheeses and pasta per week whilst in Spalding our chilled foods pick and
despatch business has now reached 350,000 cases per week. In the short-term we
have incurred some start up costs as these new operations have been brought
on-stream. However, we believe that the long-term opportunities for the
division in this business are significant.
Outlook
We have made an encouraging start to the second half of the financial year and,
therefore, remain optimistic for a successful outcome to the full year.
Philip Meeson,
Chairman 17 November 2005
www.dartgroup.co.uk
Enquiries: Philip Meeson, Chairman
Tel: 01202 597676
Mobile: 07785 258666
Mike Forder, Group Finance Director
Tel: 01202 597676
Mobile: 07721 865850
UNAUDITED INTERIM CONSOLIDATED RESULTS
for the half year to 30 September 2005
Half Year Half Year Half Year Half Year Half Year Half Year Year to Year to Year to
to 30 to 30 to 30 to 30 to 30 to 30 31 March 31 March 31 March
September September September September September September 2005 2005 2005
2005 2005 2005 2004 2004 2004 (audited) (audited) (audited)
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Before Except- Total
Before Exceptional Total Before Exceptional Total except- tional (restated)
exceptional items exceptional items (restated) ional items
items items items
(restated) (restated)
Note #m #m #m #m #m #m #m #m #m
--------- --------- -------- -------- -------- --------- -------- -------- --------
Turnover
- continuing
operations 174.8 - 174.8 129.0 - 129.0 246.0 - 246.0
- discontinued
operations 9.5 - 9.5 11.4 - 11.4 22.0 - 22.0
--------- -------- -------- -------- -------- -------- -------- -------- --------
2 184.3 - 184.3 140.4 - 140.4 268.0 - 268.0
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net operating
expenses,
excluding
amortisation
of goodwill (169.1) - (169.1) (128.6) (4.4) (133.0) (254.0) (8.2) (262.2)
Amortisation
of goodwill (0.3) - (0.3) (0.3) - (0.3) (0.5) - (0.5)
Net operating
expenses (169.4) - (169.4) (128.9) (4.4) (133.3) (254.5) (8.2) (262.7)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Operating
Profit
- continuing
operations 14.5 - 14.5 10.9 (4.4) 6.5 12.8 (8.2) 4.6
- discontinued
operations 0.4 - 0.4 0.6 - 0.6 0.7 - 0.7
-------- -------- -------- -------- -------- -------- -------- -------- --------
14.9 - 14.9 11.5 (4.4) 7.1 13.5 (8.2) 5.3
-------- -------- -------- -------- -------- -------- -------- -------- --------
Profit on
disposal of
discontinued
operations - 3.7 3.7 - - - - - -
Profit on
disposal of
fixed assets - - - - - - - 0.8 0.8
Net interest
(payable)/
receivable 3 (0.4) - (0.4) 0.1 (1.0) (0.9) (0.1) 2.4 2.3
-------- -------- -------- -------- -------- -------- -------- -------- --------
Profit on
ordinary
activities
before
taxation 14.5 3.7 18.2 11.6 (5.4) 6.2 13.4 (5.0) 8.4
Taxation (4.7) - (4.7) (3.8) 1.6 (2.2) (4.3) 1.5 (2.8)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Profit for
the period 9.8 3.7 13.5 7.8 (3.8) 4.0 9.1 (3.5) 5.6
-------- -------- -------- -------- -------- -------- -------- -------- --------
Half Year Half Year Half Year Half Year Year to Year to
to 30 to 30 to 30 to 30 31 March 31 March
September September September September 2005 2005
2005 2005 2004 2004 (audited) (audited)
(unaudited) (unaudited) (unaudited) (unaudited) Before Total
Before Total Before Total except- (restated)
exceptional exceptional (restated) ional
items items items
(restated) (restated)
-----------------------------------------------------------------------------------------------------
Earnings per share
- total
- basic 28.53p 39.18p 22.77p 11.73p 26.52p 16.32p
- basic, excluding
the amortisation
of goodwill 29.24p 39.89p 23.49p 12.45p 27.96p 17.76p
- diluted 28.27p 38.83p 22.69p 11.69p 26.34p 16.21p
Earnings per share
- continuing
operations
- basic 27.60p 27.60p 21.48p 10.44p 24.96p 14.76p
- basic, excluding
the amortisation
of goodwill 28.31p 28.31p 22.20p 11.16p 26.40p 16.20p
- diluted 27.36p 27.36p 21.41p 10.41p 24.79p 14.66p
Earnings per share
- discontinued
operations
- basic 0.93p 11.58p 1.29p 1.29p 1.56p 1.56p
- basic, excluding
the amortisation
of goodwill 0.93p 11.58p 1.29p 1.29p 1.56p 1.56p
- diluted 0.91p 11.47p 1.28p 1.28p 1.55p 1.55p
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the half year to 30 September 2005
Half Year Half Year Year to
to 30 to 30 31 March
September September 2005
2005 2004 (audited)
(unaudited) (unaudited) Total
Total Total
(restated)
#m #m #m
----------------------------------------
Profit for the period 13.5 4.0 5.6
Exchange gain on foreign
equity investment - - 0.1
----------------------------------------
Total recognised gains and losses
relating to the period 13.5 4.0 5.7
======== =======
Prior year adjustment
- FRS 21 Proposed
dividends (note 1) 1.6
-------
Total recognised gains and
losses since previous annual report 15.1
=======
CONSOLIDATED BALANCE SHEET
at 30 September 2005
Note 30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
(restated) (restated)
#m #m #m
--------- ---------- --------
Fixed assets
Intangible assets 7.0 7.5 7.3
Tangible assets 112.7 86.6 99.3
--------- ---------- --------
119.7 94.1 106.6
--------- ---------- --------
Current assets
Stock 5.8 1.6 4.6
Debtors 25.5 34.1 25.5
Cash at bank and in hand 13.2 18.4 27.4
--------- ---------- --------
44.5 54.1 57.5
Current liabilities
Creditors: amounts falling
due within one year (78.0) (63.8) (88.6)
--------- ---------- --------
Net current liabilities (33.5) (9.7) (31.1)
--------- ---------- --------
Total assets less current
liabilities 86.2 84.4 75.5
Creditors: amounts falling
due after more than one year (18.1) (29.6) (19.4)
Provisions for liabilities and
charges (6.2) (6.2) (6.2)
--------- ---------- --------
(24.3) (35.8) (25.6)
--------- ---------- --------
Net assets 61.9 48.6 49.9
--------- ---------- --------
Capital and reserves
Called up share capital 1.7 1.7 1.7
Share premium account 8.1 7.7 8.0
Profit and loss account 5 52.1 39.2 40.2
--------- ---------- --------
Shareholders' funds - equity
interests 6 61.9 48.6 49.9
--------- ---------- --------
CONSOLIDATED CASH FLOW STATEMENT
for the half year to 30 September 2005
Note Half year to Half year to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
(restated)
#m #m #m
---------- --------- ---------
Net cash inflow from operating
activities 7 16.4 24.4 68.3
---------- --------- ---------
Returns on investment and
servicing of finance
Interest paid: bank and other
loans (0.6) (0.3) (0.8)
Interest received: bank 0.2 0.3 0.7
---------- --------- ---------
(0.4) - (0.1)
---------- --------- ---------
Taxation
Corporation and overseas tax
paid (5.6) (0.5) (1.4)
---------- --------- ---------
Capital expenditure and
financial investment
Purchase of tangible fixed
assets (22.7) (22.8) (51.6)
Disposal of tangible fixed
assets - 1.9 2.5
---------- --------- ---------
(22.7) (20.9) (49.1)
---------- --------- ---------
Acquisitions and disposals 4
Proceeds from disposal of
discontinued operations (net of
disposal costs) 4.9 - -
Net cash balances leaving the
Group with disposal of
discontinued operations (0.9) - -
---------- --------- ---------
4.0 - -
---------- --------- ---------
Equity dividends paid (1.6) (1.5) (2.2)
---------- --------- ---------
Cash (outflow)/ inflow before
financing (9.9) 1.5 15.5
---------- --------- ---------
Financing
Ordinary share capital issued 0.1 - 0.3
Other loans repaid (4.4) (4.8) (31.9)
Other loans advanced - 8.8 29.4
---------- --------- ---------
(4.3) 4.0 (2.2)
---------- --------- ---------
(Decrease) / Increase in cash
in the period (14.2) 5.5 13.3
---------- --------- ---------
NOTES TO THE INTERIM RESULTS
at 30 September 2005
1. Accounting Policies
The accounting policies adopted by the Group are consistent with those disclosed
in the Group's financial statements for the year ended 31 March 2005 except for
the adoption and impact of FRS 21 and FRS 22.
FRS 21: Post Balance Sheet Events
This standard requires that dividends declared after the period end should not
be recognised as a liability at the balance sheet date. The comparative profit
and loss accounts and the balance sheets for the periods ended 30 September 2004
and 31 March 2005 have been restated in accordance with FRS21. The impact of
these changes on the profit and loss reserve and shareholders' funds can be seen
in notes 5 and 6.
FRS 22: Earnings per Share
This standard has had no impact on the calculation of earnings per share.
However, it requires the Group to present earnings per share from continuing
operations on the face of the profit and loss account and to disclose earnings
per share for discontinued operations.
Previous changes in accounting policies
In addition the comparatives for the half year ended 30 September 2004 have been
restated in order to be consistent with the accounting policies disclosed in the
Group's financial statements for the year ended 31 March 2005 as follows:
Half year to 30 September 2004
Net Operating Net Interest Profit before Taxation Profit after
Expenses taxation taxation
#m #m #m #m #m
As originally
stated (129.6) 0.1 10.9 (3.5) 7.4
Foreign
currency
branch (4.7) (1.0) (5.7) 1.6 (4.1)
Aircraft
maintenance
costs 1.0 - 1.0 (0.3) 0.7
--------- -------- -------- ------- ---------
As restated (133.3) (0.9) 6.2 (2.2) 4.0
--------- -------- -------- ------- ---------
At 30 September 2004
Tangible Fixed Creditors due Provisions for Net Assets
Assets within one year liabilities and
charges
#m #m #m #m
As originally
stated 86.4 (61.1) (10.1) 47.2
Foreign
currency
branch (4.7) (2.3) 3.7 (3.3)
Aircraft
maintenance
costs 4.9 (1.1 ) 0.2 4.0
Proposed
dividend - 0.7 - 0.7
--------- --------- ---------- ----------
As restated 86.6 (63.8) (6.2) 48.6
--------- --------- ---------- ----------
2. Turnover
Half year to Half year to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
#m #m #m
---------- ---------- ----------
Distribution
- continuing operations 55.2 51.0 100.1
Aviation Services
- continuing operations 119.6 78.0 145.9
- discontinued operations 9.5 11.4 22.0
(see note 4)
---------- ---------- ----------
184.3 140.4 268.0
---------- ---------- ----------
Turnover arising within:
Continuing operations
United Kingdom and the
Channel Islands 170.7 126.2 240.4
Mainland Europe 4.1 2.8 5.6
Discontinued operations
United Kingdom and the
Channel Islands 9.1 10.9 21.0
Far East 0.4 0.5 1.0
---------- ---------- ----------
184.3 140.4 268.0
---------- ---------- ----------
Analyses of profit before taxation and net assets between the different segments
of the Group are not given as, in the opinion of the directors, such analyses
would be seriously prejudicial to the commercial interests of the Group.
3. Net interest (payable) / receivable
Half year to Half year to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
#m #m #m
---------- ---------- ----------
On other loans (0.6) (0.2) (0.5)
Other interest payable - - (0.3)
---------- ---------- ----------
(0.6) (0.2) (0.8)
Interest receivable 0.2 0.3 0.7
Realised foreign exchange
(loss) / gain - (1.0) 2.4
---------- ---------- ----------
(0.4) (0.9) 2.3
---------- ---------- ----------
4. Exceptional items
Half year to Half year to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
#m #m #m
Operating items
Impairment of fixed assets - (4.4) (8.2)
Profit on disposal of investments
and fixed assets
Profit on disposal of
discontinued operations 3.7 - -
Gain on disposal of F27
fleet - - 0.8
Net interest
including exchange
(losses)/gains - (1.0) 2.4
--------- --------- ---------
Net exceptional items before
taxation 3.7 (5.4) (5.0)
--------- --------- ---------
On 31st August 2005, the Group completed the sale of Benair Freight
International Limited and Benair Freight Pte Limited, representing the entire
freight forwarding activities of the Group. The disposal is analysed as follows:
#m
Net Assets disposed of:
Fixed Assets 0.3
Debtors 4.0
Cash at bank 0.9
Creditors (4.0)
---------
1.2
Costs of
disposal 0.2
Profit on
disposal 3.7
---------
5.1
=========
Satisfied by:
Cash 5.1
=========
The profit attributable to members of the parent company for the half year to 30
September 2005 includes profits of #0.5m earned by Benair Freight International
Limited and Benair Freight Pte Limited up to the date of disposal.
During the half year to 30 September 2005 Benair Freight International Limited
and Benair Freight Pte Limited utilised #0.1m of the Group's net operating
cashflows, received #nil in respect of net returns on investments and servicing
of finance, paid #0.1m in respect of taxation and utilised #nil for capital
expenditure and financial investment.
5. Profit and loss account reserve
Half year to Half year to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
(restated) (restated)
#m #m #m
Balance at the beginning of
the period as previously
reported 38.6 31.2 31.2
Prior period adjustments 1.6 5.5 5.5
--------- --------- ---------
Balance at the beginning of
the period as restated 40.2 36.7 36.7
Profit for the period 13.5 4.0 5.6
Dividends paid in the period (1.6) (1.5) (2.2)
Currency translation
differences - - 0.1
--------- --------- ---------
52.1 39.2 40.2
--------- --------- ---------
Half year Half year Year to
to 30 September to 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
#m #m #m
Prior period adjustments
- Foreign currency branch - 0.7 0.7
- Aircraft maintenance cost - 3.3 3.3
- FRS 21 Proposed dividends
(note 1) 1.6 1.5 1.5
--------- --------- ---------
1.6 5.5 5.5
--------- --------- ---------
6. Reconciliation of movements in shareholders' funds
Half year to Half year to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
(restated) (restated)
#m #m #m
Profit for the period 13.5 4.0 5.6
Dividends paid in the period (1.6) (1.5) (2.2)
--------- -------- --------
11.9 2.5 3.4
Currency translation
differences - - 0.1
Issue of shares under share
option schemes 0.1 - 0.3
--------- -------- --------
Net addition to
shareholders' funds 12.0 2.5 3.8
--------- -------- --------
Opening shareholders' funds
as previously reported 48.3 40.6 40.6
Prior period adjustments
(note 5) 1.6 5.5 5.5
--------- -------- --------
Opening shareholders' funds
as restated 49.9 46.1 46.1
--------- -------- --------
Closing shareholders' funds 61.9 48.6 49.9
--------- -------- --------
7. Reconciliation of operating profit to net cash flow from
operating activities
Half year to Half year to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
(restated)
#m #m #m
---------- --------- --------
Operating profit 14.9 7.1 5.3
Depreciation 9.1 14.8 31.2
Amortisation of goodwill 0.3 0.3 0.5
Profit on disposal of fixed assets - - (0.1)
(Increase) / Decrease in stock (1.2) 0.6 (2.4)
(Increase) / Decrease in debtors - (2.9) 5.7
(Decrease) / Increase in creditors (6.7) 4.5 28.1
---------- --------- --------
Net cash flow from operating
activities 16.4 24.4 68.3
---------- --------- --------
8. Reconciliation of net cash flow to movement in net debt
Half year to Half year to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (audited)
(restated)
#m #m #m
---------- --------- --------
(Decrease) / Increase in cash in the
period (14.2) 5.5 13.3
Cash outflow / (inflow) from decrease
/(increase) in net debt in the period 4.4 (4.0) 2.5
---------- --------- --------
Change in net debt resulting from
cashflows in the period (9.8) 1.5 15.8
Exchange differences (0.3) (0.9) 1.6
Net funds / (debt) at beginning of
period 2.4 (15.0) (15.0)
---------- --------- --------
Net (debt) / funds at end of period (7.7) (14.4) 2.4
---------- --------- --------
9. Other matters
The financial information for the year ended 31 March 2005 does not constitute
statutory accounts, as defined in Section 240 of the Companies Act 1985, but is
based on the statutory accounts for the year then ended. Those accounts, upon
which the auditors issued an unqualified opinion, have been delivered to the
Registrar of Companies.
The calculation of basic earnings per share is based on earnings for the period
ended 30 September 2005 of #13.5m (2004 restated - #4.0m). The calculation of
basic earnings per share before exceptional items is based on earnings before
exceptional items for the period ended 30 September 2005 of #9.8m (2004 restated
- #7.8m). Both calculations are based on 34,551,299 shares (2004 - 34,358,217)
being the weighted average number of shares in issue for the period.
This report is being sent to all shareholders and copies are available from the
Company Secretary at the registered office of the Company, Building 470,
Bournemouth International Airport, Christchurch, Dorset, BH23 6SE.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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