TIDMDTG
RNS Number : 3833W
Dart Group PLC
18 November 2010
DART GROUP PLC
Interim Results
Dart Group PLC (the "Group"), the aviation and distribution group, announces its
interim results for the half year ended 30 September 2010. These results are
presented under International Financial Reporting Standards (IFRS).
Highlights
· Turnover up 25% to GBP340.4m (2009: GBP272.7m)
· Pre-tax profits up 38% to GBP38.7m (2009: GBP28.1m)
· Underlying pre-tax profits up 50% to GBP38.5m (2009: GBP25.7m)
· Jet2.com load factors increased to 87.5% (2009: 81.3%)
· Fowler Welch-Coolchain revenue up 23% to GBP70.4m (2009: GBP57.3m)
· GBP31.0m net cash generated from operating activities, before capex (2009:
GBP12.2m)
· Interim dividend declared at 0.40p per share (2009: 0.36p)
· Full year results anticipated to be ahead of market expectations, despite
increased losses forecast in the second half due to business growth
Chairman's Statement
I am pleased to report on the Group's trading for the six months ended 30
September 2010. The Group's profit before tax was GBP38.7m, an increase of 38%
on last year (2009: GBP28.1m).
On an underlying basis (excluding the specific IAS39 mark to market
adjustments), profit before tax amounted to GBP38.5m (2009: GBP25.7m),
reflecting a stronger performance in the aviation business. Jet2.com, the
Group's leisure airline, achieved both higher load factors and increased overall
yield per passenger. Underlying EBITDA increased by 60% to GBP64.0m (2009:
GBP40.0m).
Net cash flow from operations of GBP31.0m was generated in the period (2009:
GBP12.2m), before total capital expenditure amounting to GBP35.0m (2009:
GBP6.5m). The significant increase in capital expenditure reflected further
investment in the business with the acquisition of a freehold distribution
centre in Heywood, Greater Manchester, together with a higher number of aircraft
engine overhauls than the previous year. After capital expenditure, the Group
has reported an overall cash outflow of GBP4.2m in the period (2009: cash inflow
GBP4.7m). Net cash at the end of the period amounted to GBP47.7m, a GBP31.6m
improvement on September 2009, with Jet2.com customer advance payments of circa
GBP40m at 30 September 2010.
The Board has decided to pay an increased interim dividend of 0.40p per share,
in recognition of the Group's trading performance in the period. The dividend
will be paid on 28 January 2011 to shareholders on the register at 7 January
2011.
Aviation
Jet2.com, the Group's leisure airline, has continued to focus on its core
leisure routes from its seven Northern bases (Belfast, Blackpool, East Midlands,
Edinburgh, Leeds Bradford, Manchester and Newcastle), and increased its services
to Eastern Mediterranean destinations. The company operates 34 aircraft of
which 30 (21 Boeing 737-300s and 9 Boeing 757-200s) are owned by the Group.
In total, Aviation revenues rose by 25% to GBP270m, as a result of increased
passenger volumes, higher average revenues per passenger and continued growth in
Jet2holidays, the Group's ATOL bonded tour operator. This revenue growth was
achieved despite the disruption to Jet2.com's flying programme caused by volcano
Eyjafjallaj?kull, which resulted in the cancellation of over 400 flights. The
overall profit impact as a result of this disruption is estimated to have
amounted to GBP3m, comprising refunded flight revenues, compensation claims and
the repatriation of customers who were stranded overseas, together with an
estimate of lost revenues, offset by variable operating cost savings on
cancelled flights.
In the six months to 30 September 2010 we flew 2.4m scheduled passengers (2009:
2.2m) with the total number of routes served from all bases rising to 117 (2009:
94). We were able to increase load factors in Summer 2010 through a combination
of increased customer demand, the introduction of further enhancements to our
yield management systems, additional sales of allocations to third party tour
operators, the growth of Jet2holidays, and by focusing on flying popular leisure
routes at departure times convenient to our customers. Ticket yields increased
8% year on year partly as a result of the change in mix towards longer haul
destinations. We provide our customers with the unique proposition of "great
flight times", "22kg baggage allowance", "allocated seating" and "loyalty points
for free flights" as they start their holidays with us.
Jet2.com has opened a base at Glasgow airport (its eighth UK location) from
which services to nine sun destinations will be operated from March 2011 (which
are also on sale as package holiday destinations with Jet2holidays). We have
expanded our operations at East Midlands, Newcastle and Manchester Airports for
Summer 2011 with more flights to proven Jet2.com leisure destinations. Overall,
we have planned a 26% increase in scheduled seat capacity; new destinations for
next summer include Bodrum, Dordogne Valley (Brive) and Hurghada in Egypt, and
we have increased capacity to the Balearics, Portugal and Spain.
For Winter 2010/11, Jet2.com has increased its overall seat capacity by 29%,
driven by the first winter of services from East Midlands, the introduction of
services supported by tour operators including to Hurghada, and increased flying
to Salzburg and Geneva. A number of successful summer services will be flown
with increased winter frequencies, including Manchester routes to Budapest,
Murcia, Prague and Rome where competitors have either reduced or withdrawn
capacity.
Jet2holidays, our ATOL protected tour operator, carried over 71,000 customers on
package holidays in the half year to 30 September 2010, a 51% increase over the
same period last year. We offer holiday packages encompassing flights,
transfers, and accommodation ranging from budget self catering to five star
luxury hotels. We intend that Jet2holidays will grow through providing our
leisure customers with great holidays from their local airports, flying with
Jet2.com.
Retail revenues are continuously being developed, with revenue per passenger
increasing to GBP25.93 during this half year (2009: GBP20.70). This increase is
principally driven by sales made possible by our proprietary reservation system.
Pre-ordered meals, advanced seat assignment, and extra leg room seats lend
themselves well to the leisure profile of our customers and have all proved
successful. We will grow our retail revenues with new features such as targeted
discounted bundles, offering our customers more travel related products in one
easy purchase e.g. tailored travel insurance, great value car hire, and
hand-held entertainment devices.
Our passenger charter operation has operated 369 flights in the six months to 30
September 2010 (2009: 315) and forward bookings for the winter are encouraging.
We are proud to fly our 18 nightly services for the Royal Mail ensuring that the
first class post arrives on time, in line with demanding service levels. In
total, charter revenues were up 5% in the first half of the year.
Distribution
The Group's logistics company, Fowler Welch-Coolchain, provides an integrated
supply chain solution for retailers, food manufacturers, growers and importers.
Services provided from its distribution centres in Spalding (Lincolnshire),
Teynham (Kent), Washington (Tyne & Wear), Heywood (Greater Manchester) and
Portsmouth (Hampshire) include both chilled and ambient storage and
distribution, together with value adding pick-to-order warehousing operations.
The company also has port operations in Felixstowe, Sheerness and Southampton
which provide transport services for imported container traffic.
Our new 50,000 pallet capacity Heywood distribution centre, "The Hub",
strategically located for Manchester and just two minutes from the M62,
purchased in May 2010, has now been commissioned following completion of the
initial investment in the site infrastructure. Improvements include enlarged
and upgraded office space, loading and yard areas, enabling The Hub to become
the focal point for our ambient business. It will replace our previous 19,000
pallet, leasehold, ambient site in Stockport prior to Christmas 2010 as planned.
Year-on-year there has been an 18% increase in ambient business volumes, with
several new customer wins and significant further growth from our supermarket
customers. The much greater capacity of The Hub will facilitate growth in our
ambient business. Encouragingly, the ambient sales pipeline is strong and there
are also good prospects for new chilled distribution business, which will be
operated from The Hub as it is developed.
In the North East, Washington has continued to grow with a year-on-year sales
increase of 47% for the first six months. Developments are underway to
replicate our North East Tesco store delivery operation in other regions in the
near future. The company's European, Kent and Portsmouth sites have also traded
strongly, each seeing sales growth in excess of 20%. Similarly, our new ambient
contract in Desborough (Northamptonshire) has traded ahead of expected volumes
in the first six months and we hope to see further growth here early in 2011.
Our Spalding distribution centre, the location of the Company's head office,
remains the largest site in the network with substantial temperature controlled
and ambient facilities, and is the principal consolidation point for many
deliveries across the Fowler Welch-Coolchain network. An additional ten acres
of land previously purchased immediately adjacent to the Spalding site is now
under development, initially for vehicle parking, but with the expectation of
additional warehouse space in the future.
Elsewhere, Bawdsey Haulage Limited, located in Felixstowe, has been renamed
Fowler Welch (Containers) Limited and has been restructured to include the
Sheerness port operations team, which will continue to be integrated into the
Fowler Welch-Coolchain network in the remainder of this financial year.
Our IT infrastructure is being developed across the business. The Manhattan
Warehouse Management System has been implemented across the company, yielding
significant operating efficiencies. The next step in the systems evolution for
Fowler Welch-Coolchain will be to upgrade the Transport Management System in
2011, enhancing the service offered to customers and giving greater transparency
for managing fleet resources. Investment in fleet telemetry and engine
diagnostics, together with a continued expansion of our double-deck trailer
fleet, will not only generate fuel savings and operating efficiencies, but
further reduce our carbon footprint.
Overall, revenues grew by 23% year-on-year as a result of both new business wins
and additional volumes with existing customers, although operating margins have
suffered due to higher short term vehicle lease costs and further investment in
our own fleet to maintain our high standard of customer service levels. The
acquisition and commissioning of The Hub has also resulted in short term dual
running costs.
Whilst the marketplace remains extremely competitive, the outlook for Fowler
Welch-Coolchain is encouraging. The company's focused commitment to operational
excellence, its national network coverage, and its growing presence in the
ambient arena positions it well for future growth.
Outlook
Performance in the Group's stronger six-month trading period has outperformed
our expectations, despite the Icelandic volcano. However, the Group expects to
report increased losses in the second half of the financial year as a result of
our ongoing investment for continued growth. This reflects expansion of the
Aviation business's cost base, which is being carried through the traditionally
loss making winter months, and Fowler Welch-Coolchain's growth related operating
cost increases including the development of The Hub.
Nevertheless, I am pleased to report that Jet2.com's overall forward booking
levels are encouraging and we expect that Fowler Welch-Coolchain will see
continued revenue growth next year.
As a result of the Group's strong trading performance in the first half of the
year, we expect full year results to be ahead of current market expectations.
Philip Meeson
Chairman
18 November 2010
www.dartgroup.co.uk
Enquiries:
+-----------------------------------+-----------------------------------+
| Philip Meeson, Chairman | Mobile: 07785 258666 |
+-----------------------------------+-----------------------------------+
| Andrew Merrick, Group Finance | Mobile: 07788 565358 |
| Director | |
+-----------------------------------+-----------------------------------+
| Andy Pedrette / Charles Combe, | |
| Smith & Williamson Corporate | 020 7131 4000 |
| Finance Limited | |
+-----------------------------------+-----------------------------------+
Dart Group PLC
Consolidated Group Income Statement (unaudited)
For the half year ended 30 September 2010
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | Half year ended 30 | | Half year ended 30 | | Year ended 31 March |
| | | September 2010 | | September 2009 | | 2010 - Audited |
+------------------------+------+---------------------------------+----------+---------------------------------+----------+---------------------------------+
| | | Results | | | | Results | | | | Results | | |
| | | before | Specific | | | before | Specific | | | before | Specific | |
| | | specific | fair | Results | | specific | fair | Results | | specific | fair | Results |
| | | fair | value | for the | | fair | value | for the | | fair | value | for the |
| | | value | movements | period | | value | movements | period | | value | movements | year |
| | | movements | [1] | | | movements | [1] | | | movements | [1] | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Continuing operations |Note | GBPm | GBPm | GBPm | | GBPm | GBPm | GBPm | | GBPm | GBPm | GBPm |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Turnover | 4 | 340.4 | - | 340.4 | | 272.7 | - | 272.7 | | 434.5 | - | 434.5 |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Net operating expenses | | (301.7) | 0.2 | (301.5) | | (247.4) | 2.4 | (245.0) | | (415.1) | 3.1 | (412.0) |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Operating profit | | 38.7 | 0.2 | 38.9 | | 25.3 | 2.4 | 27.7 | | 19.4 | 3.1 | 22.5 |
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Finance income | | 1.2 | - | 1.2 | | 2.2 | - | 2.2 | | 1.9 | - | 1.9 |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Finance costs | | (1.4) | - | (1.4) | | (1.8) | - | (1.8) | | (2.4) | - | (2.4) |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Net financing costs | | (0.2) | - | (0.2) | | 0.4 | - | 0.4 | | (0.5) | - | (0.5) |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Profit on disposal of | | - | - | - | | - | - | - | | 0.2 | - | 0.2 |
| fixed assets | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Profit before taxation | 38.5 | 0.2 | 38.7 | | 25.7 | 2.4 | 28.1 | | 19.1 | 3.1 | 22.2 |
+-------------------------------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Taxation | 7 | (10.7) | - | (10.7) | | (7.2) | (0.7) | (7.9) | | (5.6) | (1.0) | (6.6) |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Profit for the period | | 27.8 | 0.2 | 28.0 | | 18.5 | 1.7 | 20.2 | | 13.5 | 2.1 | 15.6 |
| (all attributable to | | | | | | | | | | | | |
| equity shareholders of | | | | | | | | | | | | |
| the Parent) | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Earnings per share - | 5 | | | | | | | | | | | |
| total [2] | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| - basic | | | | 19.72p | | | | 14.31p | | | | 11.06p |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| - diluted | | | | 18.87p | | | | 13.83p | | | | 10.62p |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| Non - GAAP measures | | | | | | | | | | | |
| Underlying earnings per | | | | | | | | | | | |
| share [3] | | | | | | | | | | | |
+-------------------------------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| - basic | | 19.63p | | | | 13.10p | | | | 9.54p | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| - diluted | | 18.79p | | | | 12.67p | | | | 9.17p | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
| | | | | | | | | | | | | |
+------------------------+------+-----------+-----------+---------+----------+-----------+-----------+---------+----------+-----------+-----------+---------+
[1] In order to assist the reader to understand the underlying business
performance, the Group discloses separately within the income statement specific
IAS 39 fair value movements (refer to note 2 accounting policies - basis of
preparation of the interim report).
[2] Earnings per share is calculated in accordance with IAS 33, "Earnings per
share".
[3] Underlying earnings per share excludes specific fair value movements [1].
Dart Group PLC
Consolidated Group Statement of Comprehensive Income (unaudited)
For the half year ended 30 September 2010
+-----------------------------+----+------------+----------+-----------+----------+---------+
| | | Half year | | Half year | | Year |
| | | ended 30 | | ended 30 | | ended |
| | | September | | September | | 31 |
| | | 2010 | | 2009 | | March |
| | | | | | | 2010 |
| | | GBPm | | GBPm | | Audited |
| | | | | | | |
| | | | | | | GBPm |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| Profit for the period | | 28.0 | | 20.2 | | 15.6 |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| Effective portion of | | (21.5) | | (0.5) | | 10.6 |
| changes in fair value | | | | | | |
| movements in cash flow | | | | | | |
| hedges | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| Net change in fair value of | | - | | - | | 0.1 |
| effective cash flow hedges | | | | | | |
| transferred to profit | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| Taxation on components of | | 6.0 | | 0.1 | | (3.0) |
| other comprehensive income | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| Other comprehensive income | | (15.5) | | (0.4) | | 7.7 |
| & expense for the period, | | | | | | |
| net of taxation | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| Total comprehensive income | | 12.5 | | 19.8 | | 23.3 |
| for the period, all | | | | | | |
| attributable to owners of | | | | | | |
| the parent | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
| | | | | | | |
+-----------------------------+----+------------+----------+-----------+----------+---------+
Dart Group PLC
Consolidated Group Balance Sheet (unaudited)
As at 30 September 2010
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | 30 | | 30 | | 31 March |
| | | September | | September | | 2010 |
| | | 2010 | | 2009 | | Audited |
| | | | | | | |
| | | GBPm | | GBPm | | GBPm |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Non-current assets | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Goodwill | | 7.0 | | 7.0 | | 7.0 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Property, plant and | | 201.3 | | 183.4 | | 191.4 |
| equipment | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Derivative financial | | 1.2 | | 5.0 | | 2.9 |
| instruments | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | 209.5 | | 195.4 | | 201.3 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Current assets | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Inventories | | 0.4 | | 1.0 | | 0.3 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Trade and other | | 68.9 | | 45.4 | | 66.8 |
| receivables | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Derivative financial | | 6.3 | | 6.3 | | 18.8 |
| instruments | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Cash and cash | | 48.0 | | 16.5 | | 52.2 |
| equivalents | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | 123.6 | | 69.2 | | 138.1 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Total assets | | 333.1 | | 264.6 | | 339.4 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Current liabilities | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Trade and other | | 163.0 | | 114.5 | | 181.9 |
| payables | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Borrowings | | 0.3 | | 0.4 | | 0.3 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Derivative financial | | 12.0 | | 2.0 | | 9.4 |
| instruments | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | 175.3 | | 116.9 | | 191.6 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Non-current | | | | | | |
| liabilities | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Other non-current | | 8.6 | | 6.1 | | 6.6 |
| liabilities | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Borrowings | | - | | - | | 0.3 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Derivative financial | | 4.0 | | 7.3 | | 0.3 |
| instruments | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Deferred tax | | 16.8 | | 20.9 | | 25.1 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | 29.4 | | 34.3 | | 32.3 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Total liabilities | | 204.7 | | 151.2 | | 223.9 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Net assets | | 128.4 | | 113.4 | | 115.5 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Shareholders' equity | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Called up share | | 1.8 | | 1.8 | | 1.8 |
| capital | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Share premium | | 9.5 | | 9.3 | | 9.3 |
| account | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Cash flow hedging | | (5.9) | | 1.5 | | 9.6 |
| reserve | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Retained earnings | | 123.0 | | 100.8 | | 94.8 |
+----------------------+--+-----------+----------+-----------+-+-----------+
| Total shareholders' | | 128.4 | | 113.4 | | 115.5 |
| equity | | | | | | |
+----------------------+--+-----------+----------+-----------+-+-----------+
Dart Group PLC
Consolidated Group Cash Flow Statement (unaudited)
For the half year ended 30 September 2010
+------------------------------+--+-----------+----------+-----------+----------+----------+
| | | Half | | Half | | Year |
| | | year | | year | | ended |
| | | ended | | ended | | 31 March |
| | | 30 | | 30 | | 2010 |
| | | September | | September | | Audited |
| | | 2010 | | 2009 | | |
| | | | | | | |
| | | GBPm | | GBPm | | GBPm |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Cash flows from operating | | | | | | |
| activities | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Profit before taxation from | 38.7 | | 28.1 | | 22.2 |
| continuing operations | | | | | |
+---------------------------------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Adjustments for: | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Finance income | | (1.2) | | (2.2) | | (1.9) |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Finance costs | | 1.4 | | 1.8 | | 2.4 |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Profit on disposal of | | - | | - | | (0.2) |
| property, plant and | | | | | | |
| equipment | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Depreciation | | 25.1 | | 14.7 | | 33.0 |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Net financial derivative | | (1.8) | | 7.4 | | 6.0 |
| close out (gain) / cost | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Equity settled share based | | 0.2 | | - | | 0.3 |
| payments | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Specific fair value | | - | | (2.4) | | (2.8) |
| movements | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Operating cash flows before | | 62.4 | | 47.4 | | 59.0 |
| movements in working capital | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| (Increase) / decrease in | | (0.1) | | (0.6) | | 0.1 |
| inventories | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| (Increase) / decrease in trade | (3.1) | | 0.6 | | (21.8) |
| and other receivables | | | | | |
+---------------------------------+-----------+----------+-----------+----------+----------+
| (Decrease) / increase in trade | (27.3) | | (33.4) | | 40.0 |
| and other payables | | | | | |
+---------------------------------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Cash generated from | | 31.9 | | 14.0 | | 77.3 |
| operations | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Interest paid | | (0.5) | | (1.8) | | (2.4) |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Income taxes paid | | (0.4) | | - | | (1.7) |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Net cash from operating | 31.0 | | 12.2 | | 73.2 |
| activities | | | | | |
+---------------------------------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Cash flows from investing | | | | | | |
| activities | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Purchase of property, plant and | (35.0) | | (5.8) | | (32.1) |
| equipment | | | | | |
+---------------------------------+-----------+----------+-----------+----------+----------+
| Business acquisitions | | - | | (0.7) | | (0.5) |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Proceeds from sale of | | - | | - | | 0.3 |
| property, plant and | | | | | | |
| equipment | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Net cash used in investing | | (35.0) | | (6.5) | | (32.3) |
| activities | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Cash flows from financing | | | | | | |
| activities | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Repayment of borrowings | (0.3) | | - | | (0.4) |
+---------------------------------+-----------+----------+-----------+----------+----------+
| Proceeds on issue of shares | | 0.2 | | - | | - |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Equity dividends paid | | - | | (1.0) | | (1.5) |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Net cash used in financing | (0.1) | | (1.0) | | (1.9) |
| activities | | | | | |
+---------------------------------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Effect of foreign exchange | | (0.1) | | - | | 1.4 |
| rate changes | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Net (decrease) / increase in | (4.2) | | 4.7 | | 40.4 |
| cash in the period | | | | | |
+---------------------------------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Cash and cash equivalents at | 52.2 | | 11.8 | | 11.8 |
| beginning of period | | | | | |
+---------------------------------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
| Cash and cash equivalents at | | 48.0 | | 16.5 | | 52.2 |
| end of period | | | | | | |
+------------------------------+--+-----------+----------+-----------+----------+----------+
Dart Group PLC
Consolidated Group Statement of Changes in Equity (unaudited)
For the half year ended 30 September 2010
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| | | Share | | Share | | Cash flow | | Retained | | | Total |
| | | capital | | premium | | hedging | | earnings | | | reserves |
| | | | | | | reserve | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| | | GBPm | | GBPm | | GBPm | | GBPm | | | GBPm |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Balance at 1 April 2009 | | 1.8 | | 9.3 | | 1.9 | | 80.4 | | | 93.4 |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Total comprehensive | | - | | - | | (0.4) | | 20.2 | | | 19.8 |
| income for the period | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Share based payments | | - | | - | | - | | 0.2 | | | 0.2 |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Balance at 30 September | | 1.8 | | 9.3 | | 1.5 | | 100.8 | | | 113.4 |
| 2009 | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Total comprehensive | | - | | - | | 8.1 | | (4.6) | | | 3.5 |
| income for the period | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Dividends paid in the | | - | | - | | - | | (1.5) | | | (1.5) |
| period | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Share based payments | | - | | - | | - | | 0.1 | | | 0.1 |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Balance at 31 March 2010 | | 1.8 | | 9.3 | | 9.6 | | 94.8 | | | 115.5 |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Total comprehensive | | - | | - | | (15.5) | | 28.0 | | | 12.5 |
| income for the period | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Share based payments | | - | | - | | - | | 0.2 | | | 0.2 |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Issue of share capital | | - | | 0.2 | | - | | - | | | 0.2 |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
| Balance at 30 September | | 1.8 | | 9.5 | | (5.9) | | 123.0 | | | 128.4 |
| 2010 | | | | | | | | | | | |
+--------------------------+--+----------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+
Dart Group PLC
Notes to the consolidated financial statements
For the half year ended 30 September 2010 (unaudited)
1. General information
The accounts for Dart Group PLC (the "Group") have been prepared and approved by
the Directors in accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union ("Adopted IFRS"). The Group's accounts
consolidate the accounts of Dart Group PLC and its subsidiaries.
The interim report for the six months ended 30 September 2010 was approved by
the Board of Directors on 17 November 2010.
2. Accounting policies
Basis of preparation of the interim report
The financial statements have been prepared under the historical cost convention
except for all derivative financial instruments that have been measured at fair
value and disposal groups held for sale that have been measured at the lower of
fair value, less costs to sell, and their carrying amounts prior to the decision
to treat them as held for sale.
In order to allow a better understanding of the financial information presented,
and specifically the Group's underlying business performance, the Group presents
its income statement in three columns such that it identifies: (i) results
before specific IAS 39 fair value movements; (ii) the effect of specific IAS 39
fair value movements; and (iii) results for the period. For the purpose of
clarity, in the explanation of the basis of preparation applied to these
consolidated financial statements, we describe these columns as the "left hand
column", the "middle column" and the "right hand column" respectively.
The Group uses forward foreign currency contracts, currency option products and
aviation fuel swaps to hedge exposure to foreign exchange rates and aviation
fuel price volatility. Such derivative financial instruments are stated at fair
value.
Ineffectiveness in qualifying cash flow hedges under IAS 39 can arise as a
result of the difference between the contractual profile of a hedge and the
profile of transactions defined as the hedged item. IAS 39 requires
ineffectiveness in qualifying cash flow hedges to be recorded in the income
statement, and therefore the Group records this ineffectiveness in the left hand
column when it relates to a cash flow hedge, reflecting underlying performance.
IFRS compliant hedge documentation was not in place prior to 1 April 2007.
Movements in the fair value of derivatives in existence at this time, along with
subsequent fair value movements on these cash flow hedges that would have
qualified for hedge accounting had the documentation requirement been met, are
separately presented in the middle column to assist the reader's understanding
of underlying business performance and to provide a more meaningful
presentation.
The right hand column presents the results for the period showing all gains and
losses recorded in the consolidated Group income statement.
The Group's accounts are presented in pounds sterling and all values are rounded
to the nearest GBP100,000 except where indicated otherwise.
Going Concern
The Directors have prepared financial forecasts for the Group, comprising
operating profit, balance sheet and cash flows through to 31 March 2013.
For the purposes of their assessment of the appropriateness of the preparation
of the Group's unaudited interim accounts on a going concern basis, the
Directors have considered the current cash position, the availability of bank
facilities and forecasts of future trading. The Directors have assessed the
underlying assumptions and principal areas of uncertainty within these
forecasts, in particular those related to market and customer risks, cost
management, working capital management and treasury risks. A number of these are
subject to market uncertainty and impact financial covenants. Recognising the
potential uncertainty, the Directors have considered a range of actions
available to mitigate the impact of these potential risks should they
crystallise and have also reviewed the key strategies which underpin the
forecast and the Group's ability to implement them successfully.
On the basis of the current liquidity position, the forecasts and these
considerations, the Directors have assessed future covenant compliance and
headroom for the foreseeable future and conclude that it is appropriate for the
unaudited financial statements for the period ended 30 September 2010 to be
prepared on a going concern basis.
3. Adoption of new and revised standards
The following new or revised IFRS standards and IFRIC interpretations will be
adopted for purposes of the preparation of future financial statements, where
applicable. We do not anticipate that the adoption of these new or revised
standards and interpretations will have a material impact on our financial
position or results from operations.
· IAS 24 (revised 2009), "Related Party Disclosures" (effective for fiscal
periods beginning on or after January 1, 2011).
· Amendments to IFRIC 14, "IAS 19 - The Limit on a Defined Benefit Assets,
Minimum Funding Requirements and their Interaction" (effective for fiscal
periods beginning on or after January 1, 2011).
· IFRIC 19, "Extinguishing Financial Liabilities with Equity Instruments"
(effective for fiscal periods beginning on or after July 1, 2010).
· IFRS 9, "Financial Instruments" (effective for fiscal periods beginning on
or after January 1, 2013).
· The IASB's third annual improvements project, "Improvements to
International Financial Reporting Standards 2010", published on May 6, 2010
(effective dates are dealt with on a standard-by-standard basis).
4. Segmental information
Business Segments
The Group's businesses are organised into two operating segments:
· Aviation, comprising the Group's scheduled leisure airline and tour
operations, trading under the Jet2.com and Jet2holidays.com brands; and
· Distribution, comprising the Group's logistic operations.
These divisions are the basis on which the Group reports its primary segmental
information in the day-to-day management of the business. The following is an
analysis of the Group's revenue by operating segment.
Revenue from reportable segments is measured on a basis consistent with the
income statement. All segment revenue is derived wholly from external customers
hence intersegment revenue is nil. Revenue is principally generated from within
the UK, the Group's country of domicile.
+----------------------------+-----------+----------+-----------+----------+---------+
| Segmental Revenues | Half | | Half | | Year to |
| | year to | | year to | | |
| | 30 | | 30 | | 31 |
| | September | | September | | March |
| | 2010 | | 2009 | | 2010 |
| | | | | | Audited |
| | | | | | |
| | GBPm | | GBPm | | GBPm |
+----------------------------+-----------+----------+-----------+----------+---------+
| | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+
| Aviation | 270.0 | | 215.4 | | 312.0 |
+----------------------------+-----------+----------+-----------+----------+---------+
| Distribution | 70.4 | | 57.3 | | 122.5 |
+----------------------------+-----------+----------+-----------+----------+---------+
| | 340.4 | | 272.7 | | 434.5 |
+----------------------------+-----------+----------+-----------+----------+---------+
5. Earnings per share
The calculation of earnings per share is based on the following:
+-----------------------------+-------------+----------+-------------+----------+-------------+
| | Half | | Half | | Year to |
| | year to | | year to | | 31 |
| | 30 | | 30 | | March |
| | September | | September | | 2010 |
| | 2010 | | 2009 | | Audited |
| | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| Profit for the period | 28.0 | | 20.2 | | 15.6 |
| (GBPm) | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| Weighted average number of | 141,349,326 | | 141,089,854 | | 141,117,098 |
| ordinary shares in issue | | | | | |
| during the period used to | | | | | |
| calculate basic earnings | | | | | |
| per share | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| Weighted average number of | 147,718,753 | | 145,906,222 | | 146,856,883 |
| ordinary shares in issue | | | | | |
| during the period used to | | | | | |
| calculate diluted earnings | | | | | |
| per share | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
6. Dividends
An interim dividend has been proposed during the six month period to 30
September 2010 of 0.40p per share (2009: 0.36p).
7. Taxation
The tax charge for the period of GBP10.7m is calculated by applying an estimated
effective tax rate of 28% to the profit for the period (2009: 28%). It was
announced in the 2010 Budget that a corporation tax rate of 27% will apply from
1 April 2011. As a result the Group's reported deferred tax liability of
GBP16.8m would reduce by GBP0.6m to GBP16.2m.
8. Reconciliation of net cash flow to movement in net cash
+---------------------------------------------------------------------------------+----------+----------+----------+----------+----------+
| Half Half Year | | | | | |
| year year to | | | | | |
| to to 30 | | | | | |
| 30 30 March | | | | | |
| September September 2010 | | | | | |
| 2010 2009 Audited | | | | | |
| | | | | | |
| GBPm GBPm GBPm | | | | | |
| (Decrease) / increase (4.2) 4.7 40.4 | | | | | |
| in cash in the period | | | | | |
| Movement in net debt 0.3 (0.4) 0.4 | | | | | |
| in the period | | | | | |
| Change in net cash | | | | | |
| resulting from cash (3.9) 4.3 40.8 | | | | | |
| flows in the period | | | | | |
| Other non cash changes - - (1.0) | | | | | |
| Net cash at beginning 51.6 11.8 11.8 | | | | | |
| of period | | | | | |
| Net cash at end of 47.7 16.1 51.6 | | | | | |
| period | | | | | |
| | | | | | |
+---------------------------------------------------------------------------------+----------+----------+----------+----------+----------+
9. Contingent liabilities
The Group has issued various guarantees in the ordinary course of business, none
of which are expected to lead to a financial gain or loss.
The Group is currently involved in litigation proceedings in the US against
Sutra Inc and Novak Niketic, who provided use of the reservation system operated
by Jet2.com until February 2008, in relation to the termination of the use of
this system. An unspecified counterclaim has been lodged which is being
vigorously defended by the Group in respect of which the Directors estimate
approximately $2.5m liability in the unlikely event that the counterclaim is
successful.
10. Other matters
This report will be posted on the Company's website, www.dartgroup.co.uk and
copies are available from the Company Secretary at the registered office of the
Company, Low Fare Finder House, Leeds Bradford International Airport, Leeds,
LS19 7TU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KKODQOBDDPDD
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