Interim Results
22 November 2007 - 6:02PM
UK Regulatory
RNS Number:2492I
Dart Group PLC
22 November 2007
DART GROUP PLC
Interim Results
Dart Group PLC ("the Group"), the aviation and distribution group, announces
its interim results for the six months ended 30 September 2007. These results
are presented under International Financial Reporting Standards (IFRS).
Highlights
. Turnover up 27% to #252.9 million (2006 restated: #198.8m)
. Pre-tax profits up 15% to #18.4m (2006 restated: #16.0m)
. Underlying pre-tax profits down 39% to #12.2m (2006 restated: #20.1m)
. Aviation revenues up 33%
. Passengers flown increased by 51% to 2.6m (2006:1.7m)
. Owned fleet increased to 29 aircraft (2006: 26)
. Jet2holidays.com launched
. Distribution revenues (from continuing operations) up 11%
. Distribution fleet increased by 8%
. Unchanged interim dividend of 0.65p per share
Chairman's Statement
I am pleased to report on the Group's trading for the six months ended 30
September 2007. Profit before tax amounted to #18.4m (2006 restated: #16.0m).
Net cash from operations reduced to #2.1m (2006: #22.8m) reflecting principally
an increase in the seasonal reversal of advance payments in line with business
growth. Capital expenditure in the first half amounted to #16.0m (2006: #25.0m)
and primarily related to the overhaul of aircraft engines.
On an underlying basis (excluding the Specific IAS39 mark to market adjustments)
Jet2.com profitability reduced as the emphasis has been placed on growth rather
than margin in its scheduled operations, with capacity increased by 59% for the
2007 summer season. Fowler Welch-Coolchain has improved performance, turnover
increasing by 11% at margins slightly behind the same period last year.
The Board has declared an unchanged dividend of 0.65p per share. The dividend
will be paid on 11 January 2008 to shareholders on the register at 14 December
2007.
Jet2.com
Jet2.com has continued to grow its operations from its bases in the North
(Belfast, Blackpool, Edinburgh, Leeds Bradford, Manchester and Newcastle) with
passengers flown during the 6 months to 30 September rising to 2.6 million
(2006: 1.7 million) and routes served increasing to 77 (2006: 49). During the
period the company has operated 32 aircraft of which 29 (21 Boeing 737-300s and
8 Boeing 757-200s) are owned by the Group. The 235 seat Boeing 757-200, with
its 3,500 nm range, greatly increases the leisure destinations that we can
serve, whilst still offering very competitive economics to traditional
Mediterranean resorts.
For the winter season, Jet2.com has increased its services to the Canary Islands
from each of its bases, and added capacity to its ski destinations. The company
has recently announced 8 new summer destinations from Leeds Bradford, including
Cyprus and Crete. Ancillary revenues are continually being developed and have
averaged a gross income of #8.60 per passenger during this half year
(2006: #5.80).
Our freight and passenger charter business is thriving, making the most of both
the enlarged 757 fleet and the passenger and freight capabilities of our 737
"quick change" aircraft. We continue to build our presence in this important
market.
Jet2holidays.com, which offers a complete leisure package of flights, hotel,
transfers etc., was launched in February 2007 and we expect, going forward,
that this operation will make a significant contribution to the airline's
passenger numbers, as well as offering packages with flights from other
carriers. We plan to grow this business as quickly as possible in the medium
term and for Jet2holidays.com to become a favoured choice for our leisure
customers.
Finally, during the summer the relocation of our offices and staff to Leeds
Bradford International Airport was completed. We are now well positioned to
continue to develop and build our charter, scheduled and packaged leisure
businesses based on Jet2.com's very significant brand awareness in the North.
Fowler Welch-Coolchain
The Group's logistics company, Fowler Welch-Coolchain, has grown its sales
during the first half across each of its core activities.
Fowler Welch-Coolchain primarily provides an integrated supply chain solution
to supermarkets and their suppliers, food manufacturers, growers and importers.
Services provided include both chilled and ambient storage and distribution
together with value added and pick to order warehousing operations. The ambient
business purchased in April 2006, continues to show encouraging revenue growth
and makes a positive contribution to the overall distribution network. Further
opportunities exist in this area.
The freehold property purchased in the North East last year to replace our
Gateshead, Tyne and Wear, distribution centre has been developed with a
significant temperature controlled facility to enable further expansion in
both the chilled and ambient businesses at that site. Further improvements
will be completed during the second half of this financial year.
The company's significant Spalding depot continues to increase its revenues
with ongoing growth in its key supermarket distribution business and with the
successful introduction of new chilled storage, order picking and distribution
contracts for several major food providers, together with the start of a new
retailer managed ambient consolidation contract. These business wins should
add approximately #6m per annum to turnover.
The business' warehousing and picking operations continue to expand, with in
excess of one million cases picked on a weekly basis. A new contract commenced
in Kent has led to the refurbishment of our Paddock Wood facility, which,
coupled with the continuing development of all our sites, further increases our
capacity in this core activity throughout the network.
Fowler Welch-Coolchain is a significant, successful, established business with
considerable growth prospects in both its chilled and ambient (non temperature
controlled) warehousing and distribution sectors. It continues to grow its
business in a highly competitive market.
Outlook
On an underlying basis, we now expect second half performance to be in line with
last year. This revised expectation is driven principally by a combination of
winter revenues being lower than previously anticipated and an increase in
aircraft maintenance costs.
The Group's underlying profitability for the year will therefore be
significantly reduced from last year, reflecting the investment made in growing
the scheduled airline operations, which have seen passenger growth of over 50%
in the first half of the year. We believe this investment in the growth of the
airline leaves us well placed to improve profitability going forward.
Philip Meeson,
Chairman 22nd November 2007
www.dartgroup.co.uk
Enquiries:
Philip Meeson, Chairman Mobile: 07785 258666
Andrew Merrick, Group Finance Director Mobile: 07788 565358
Andy Pedrette
Smith & Williamson Corporate Finance Limited (Tel: 020 7131 4000)
Dart Group Plc
Consolidated Profit and Loss Account (unaudited)
For the half year ended 30 September 2007
Half year to 30 September 2007
Before Specific Specific IAS 39 IFRS
IAS 39 mark to mark to market
market adjustments
adjustments
Note #m #m #m
Turnover 252.9 - 252.9
Net Operating Expenses (238.7) 6.2 (232.5)
----------- ----------- -----------
Operating Profit 14.2 6.2 20.4
Profit on disposal of fixed - - -
assets
Finance Income - - -
Finance Costs (2.0) - (2.0)
----------- ----------- -----------
Profit on ordinary
activities before
taxation 12.2 6.2 18.4
Taxation 5 (3.0) (1.6) (4.6)
----------- ----------- -----------
Profit / (loss) for the
period from
Continuing operations 9.2 4.6 13.8
Discontinued operations - - -
Profit for the period
----------- ----------- -----------
Profit for the period
attributable to equity
shareholders 9.2 4.6 13.8
======= ======= =======
Earnings per share - total 4
- basic 6.48p 9.78p
- diluted 6.44p 9.72p
Earnings per share -
continuing operations
- basic 6.48p 9.78p
- diluted 6.44p 9.72p
Dart Group Plc
Consolidated Profit and Loss Account (unaudited)
For the half year ended 30 September 2007
Half year to 30 September 2006
Before Specific Specific IAS 39 IFRS
IAS 39 mark to mark to market
market adjustments
adjustments
Note #m #m #m
Turnover 198.8 - 198.8
Net Operating Expenses (175.6) (4.1) (179.7)
----------- ----------- -----------
Operating Profit 23.2 (4.1) 19.1
Profit on disposal of - - -
fixed assets
Finance Income 0.1 - 0.1
Finance Costs (3.2) - (3.2)
----------- ----------- -----------
Profit on ordinary
activities before
taxation 20.1 (4.1) 16.0
Taxation 5 (6.3) 1.2 (5.1)
----------- ----------- -----------
Profit / (loss) for the
period from
Continuing operations 13.8 (2.9) 10.9
Discontinued operations 2.5 - 2.5
Profit for the period
----------- ----------- -----------
Profit for the period
attributable to equity
shareholders 16.3 (2.9) 13.4
======= ======= =======
Earnings per share - total 4
- basic 12.07p 9.53p
- diluted 11.96p 9.44p
Earnings per share -
continuing operations
- basic 10.48p 7.77p
- diluted 10.39p 7.70p
Dart Group Plc
Consolidated Profit and Loss Account (unaudited)
For the half year ended 30 September 2007
Year to 31 March 2007
Before Specific Specific IAS 39 IFRS
IAS 39 mark to mark to market
market adjustments
adjustments
Note #m #m #m
Turnover 349.0 - 349.0
Net Operating Expenses (330.1) (17.7) (347.8)
----------- ----------- -----------
Operating Profit 18.9 (17.7) 1.2
Profit on disposal of
fixed assets (0.1) - (0.1)
Finance Income 2.4 - 2.4
Finance Costs (7.1) - (7.1)
----------- ----------- -----------
Profit on ordinary
activities before
taxation 14.1 (17.7) (3.6)
Taxation 5 (3.5) 5.3 1.8
----------- ----------- -----------
Profit / (loss) for the
period from
Continuing operations 10.6 (12.4) (1.8)
Discontinued operations 2.5 - 2.5
Profit for the period
----------- ----------- -----------
Profit for the period
attributable to equity
shareholders 13.1 (12.4) 0.7
======= ======= =======
Earnings per share - total 4
- basic 9.73p 0.53p
- diluted 9.66p 0.52p
Earnings per share -
continuing operations
- basic 7.98p (1.23)p
- diluted 7.92p (1.22)p
Dart Group Plc
Consolidated Balance Sheet (unaudited)
As at 30 September 2007
30 September 30 September 31 March 2007
2007 2006
#m (restated) (restated)
#m #m
Non-current assets
Property, plant and
equipment 184.9 149.7 185.5
Goodwill 6.8 6.8 6.8
Derivative financial
instruments 0.3 0.6 0.5
Deferred tax assets 6.2 2.3 5.5
---------- ---------- ----------
198.2 159.4 198.3
---------- ---------- ----------
Current assets
Inventories 0.2 0.2 0.2
Trade and other
receivables 42.4 26.1 44.0
Cash and cash
equivalents 4.1 12.7 3.9
Derivative financial
instruments 2.6 5.7 1.1
---------- ---------- ----------
49.3 44.7 49.2
---------- ---------- ----------
Total Assets 247.5 204.1 247.5
---------- ---------- ----------
Current liabilities
Trade and other payables 108.9 89.3 138.1
Derivative financial
instruments 11.5 1.3 11.3
Borrowings - 2.1 -
---------- ---------- ----------
120.4 92.7 149.4
---------- ---------- ----------
Non-current liabilities
Borrowings 36.1 16.4 18.0
Derivative financial
instruments 8.2 6.5 6.8
Deferred tax 16.4 14.7 14.3
---------- ---------- ----------
60.7 37.6 39.1
---------- ---------- ----------
Total Liabilities 181.1 130.3 188.5
---------- ---------- ----------
Net Assets 66.4 73.8 59.0
====== ====== ======
Capital and reserves
Called up share capital 1.8 1.8 1.8
Share premium account 9.3 8.8 9.2
Cash flow hedging reserve (3.8) 2.6 0.9
Profit and loss account 59.1 60.6 47.1
---------- ---------- ----------
Shareholders' funds -
equity interests 66.4 73.8 59.0
====== ====== ======
Dart Group Plc
Consolidated Cash Flow Statement (unaudited)
For the half year ended 30 September 2007
Six months ended 30 Year ended
September
Note 2007 2006 31 March 2007
(restated) (restated)
#m #m #m
Cash flows from operating
activities
Cash generated from operations 6 2.1 22.8 62.9
Interest received - 0.3 1.1
Interest paid (1.5) (0.7) (2.2)
Tax paid (1.1) (1.2) (1.0)
---------- ---------- ----------
Net Cash (used) / generated
from operating activities (0.5) 21.2 60.8
Cash flows from investing
activities
Proceeds from sale of tangible
fixed assets 0.1 2.2 2.8
Purchase of tangible fixed
assets (16.0) (25.0) (72.5)
Proceeds from disposal of
discontinued operations - 3.8 3.8
---------- ---------- ----------
Net Cash used in investing
activities (15.9) (19.0) (65.9)
Cash flows from financing
activities
Net proceeds from issue of
ordinary shares 0.1 0.2 0.7
Net proceeds from long term
borrowings 18.1 - 74.6
Repayment of long term
borrowings - (13.0) (88.1)
Dividends paid (2.0) (1.8) (2.7)
---------- ---------- ----------
Net Cash generated / (used)
in financing activities 16.2 (14.6) (15.5)
Effects of exchange rate
changes 0.4 (0.9) (1.5)
---------- ---------- ----------
Net increase / (decrease) in
cash and cash equivalents 0.2 (13.3) (22.1)
Cash and cash equivalents at
beginning of period 3.9 26.0 26.0
---------- ---------- ----------
Cash and cash equivalents at
end of period 4.1 12.7 3.9
====== ====== =======
Dart Group Plc
Consolidated Statement of Changes in Equity (unaudited)
For the half year ended 30 September 2007
Cash Flow Retained Total
Share Share Hedging Earnings Reserves
Capital Premium Reserve
#m #m #m #m #m
Balance at 1 April
2006 1.7 8.6 4.5 48.9 63.7
Movement on cash
flow hedges - - (2.7) - (2.7)
Deferred tax relating
to cash flow hedges - - 0.8 - 0.8
Issue of shares under
share option scheme 0.1 0.2 - - 0.3
Share based payments - - - 0.1 0.1
Profit for the
period - - - 13.4 13.4
Dividends paid - - - (1.8) (1.8)
---------- --------- ---------- -------- -------
Balance at 30
September 2006 1.8 8.8 2.6 60.6 73.8
Movement on cash
flow hedges - - (2.5) - (2.5)
Deferred tax
relating to cash
flow hedges - - 0.8 - 0.8
Issue of shares under
share option scheme - 0.4 - - 0.4
Share based payments - - - 0.1 0.1
Loss for the period - - - (12.7) (12.7)
Dividends paid - - - (0.9) (0.9)
---------- --------- ---------- -------- -------
Balance at 31
March 2007 1.8 9.2 0.9 47.1 59.0
Movement on cash
flow hedges - - (6.5) - (6.5)
Deferred tax relating
to cash flow hedges - - 1.8 - 1.8
Issue of shares under
share option scheme - 0.1 - - 0.1
Share based payments - - - 0.2 0.2
Profit for the
period - - - 13.8 13.8
Dividends paid - - - (2.0) (2.0)
---------- --------- ---------- -------- -------
Balance at
30 September 2007 1.8 9.3 (3.8) 59.1 66.4
========== ========= ========== ======== =======
Dart Group Plc
Notes to the consolidated financial statements
For the half year ended 30 September 2007 (unaudited)
1. General information
Dart Group plc and its subsidiary companies ("the Group") have previously
prepared consolidated financial statements under UK Generally Accepted
Accounting Principles ("UK GAAP"). In common with other companies listed on the
Alternative Investment Market, the Group is required to adopt International
Financial Reporting Standards ("IFRS") for its first consolidated financial
statements for periods beginning on or after 1 January 2007.
The interim report for the six months ended 30 September 2007 was approved by
the board of directors on 21st November 2007. The interim financial statements
are un-audited but have been reviewed by KPMG Audit Plc.
2. Accounting policies
First time adoption of IFRS
The financial information has been prepared on the basis of the recognition and
measurement requirements of adopted IFRS expected to be in effect for the year
ending 31 March 2008. However, the adopted IFRS's that will be effective (or
available for early adoption) in the annual financial statements for the year
ending 31 March 2008 are still subject to change and to additional
interpretations and therefore cannot be determined with certainty. Accordingly,
the accounting policies for that annual period will be determined finally only
when the annual financial statements are prepared for the year ending 31 March
2008.
These statements are covered by IFRS 1, because they form part of the period
included in the Group's first IFRS financial statements for the year ended 31
March 2008.
Comparative figures
The comparative figures in respect of 2006 have been restated to reflect the
revised accounting policies. IFRS 1, First-time adoption of International
Financial Reporting Standards, permits companies adopting IFRS for the first
time to take some exemptions from the full requirements of IFRS and also certain
elections in the transition period.
The exemptions and elections which the Group has taken advantage of along with
reconciliations and explanations of the effect of adopting IFRS compliant
accounting policies on the Group's equity (net assets), profits and cash flows
are provided in the document entitled "IFRS Restatement 2006/07 Report", which
can be found on the Group's website, www.dartgroup.co.uk.
Basis of preparation
The financial statements have been prepared under the historical cost
convention, except for all derivative financial instruments which have been
measured at fair value. In addition this interim financial report does not
comply with IAS 34, Interim Financial Reporting, which is not currently required
to be applied under AIM rules.
Other than as detailed in the "IFRS Restatement 2006/07 Report", all other
accounting policies, presentation and methods of computation remained the same
as were applied in the preparation of the Group's financial statements for the
year ended 31 March 2007.
The financial information contained in this statement does not constitute the
Company's statutory accounts for the year ended 31 March 2007. Those accounts,
which were prepared under UK GAAP, have been reported on by the Company's
auditors and delivered to the registrar of companies. The report of the auditors
was (i) unqualified, (ii) did not include a reference to any matters to which
the auditors drew attention by way of emphasis without qualifying their report,
and (iii) did not contain a statement under section 237(2) or (3) of the
Companies Act 1985.
3. Segmental Information
For management purposes the Group is divided into two main segments, Aviation
Services and Distribution. These divisions are the basis on which the Group
reports its primary segment information in the day-to-day management of the
business. The following is an analysis of the Group's revenue by operating
segment. All of the segment revenue reported above is from external customers.
Segment Revenues Half year to Half year to Year to
30 September 30 September 31 March 2007
2007 2006
#m #m #m
Aviation Services 194.1 145.7 239.0
Distribution 58.8 53.1 110.0
----------- ----------- -----------
252.9 198.8 349.0
======= ======= =======
4. Earnings per share
The calculation of earnings per share is based on the following:
Half year to Half year to Year to
30 September 30 September 31 March
2007 2006 2007
(restated) (restated)
Profit for the period attributable
to equity shareholders (#million) 13.8 13.4 0.7
Weighted average number of ordinary
shares in issue during the period
used to calculate basic earnings
per share 141,004,913 139,501,501 140,073,882
Weighted average number of ordinary
shares in issue during the period
used to calculate diluted earnings
per share 141,915,649 140,701,179 141,122,024
5. Taxation
The tax charge of #4.6 million is calculated by applying an estimated effective
tax rate for the year to the half year profit.
The charge for deferred taxation has been calculated at a rate of 28% following
the announcement in the 2007 budget by the Chancellor to reduce the rate of UK
corporation tax to 28%. The benefit from the re-translation of the opening
deferred tax liability to this lower rate gives rise to a lower effective tax
rate of 25.1% for the year to 31 March 2008.
6. 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
2007 2006 2007
#m (restated) (restated)
#m #m
Operating profit from continuing
operations 20.4 19.1 1.2
Operating profit from discontinued
operations - 0.2 0.2
Depreciation and impairment 15.6 10.8 20.9
Profit on disposal of fixed assets - 0.1 -
Specific mark to market adjustments (6.2) 4.1 17.7
Share based payments 0.2 0.1 0.2
(Increase) / Decrease in debtors 1.6 (4.4) (21.5)
(Decrease) / Increase in creditors (29.5) (7.2) 44.2
---------- ----------- -----------
Net cash flow from operating
activities 2.1 22.8 62.9
====== ======= =======
7. Reconciliation of net cash flow to movement in net debt
Half year to Half year to Year to
30 September 30 September 31 March
2007 2006 2007
#m (restated) (restated)
#m #m
Decrease in cash in the period (0.2) (12.4) (20.6)
Cash (inflow) / outflow from
(increase) / decrease in net debt in
the period (18.1) 13.0 13.5
---------- ---------- ----------
Change in net debt resulting from
cash flows in the period (18.3) 0.6 (7.1)
Exchange differences 0.4 (0.9) (1.5)
Net debt at beginning of period (14.1) (5.5) (5.5)
---------- ----------- -----------
Net debt at end of period (32.0) (5.8) (14.1)
====== ======= =======
8. Other matters
This report will posted on the Company's website 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
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