TIDMDTG
RNS Number : 9501I
Dart Group PLC
23 June 2011
DART GROUP PLC
PRELIMINARY UNAUDITED RESULTS FOR YEAR ENDED 31 MARCH 2011
Dart Group PLC (the 'Group'), the Aviation and Distribution
Group, announces its preliminary results for the year ended 31
March 2011. These results are presented under International
Financial Reporting Standards (IFRS).
CHAIRMAN'S STATEMENT
I am pleased to report on the Group's trading for the year ended
31 March 2011. Group turnover increased to GBP543m (2010: GBP435m)
and profit before tax amounted to GBP26.2m (2010: GBP22.2m) with
earnings per share of 12.2p (2010: 11.1p). Underlying profit before
tax and before specific IAS 39 fair value movements was GBP25.9m
(2010: GBP19.1m).
In consideration of the Group's current trading performance, the
Board recommends a final dividend of 0.83p per share (2010: 0.75p).
If approved at the Group's Annual General Meeting to be held on 8
September 2011, this dividend will be payable on 21 October 2011 to
shareholders on the Group's register at the close of business on 16
September 2011. The associated ex-dividend date will be 14
September 2011.
Profitability increased in Aviation, primarily due to increasing
load factors, but decreased in Distribution, due to start-up costs
at its new North West distribution centre and the rationalisation
of its container operations.
Capital expenditure for the year was GBP68.0m (2010: GBP32.1m).
This expenditure related principally to long term maintenance spend
on aircraft airframes and engines and the freehold acquisition of
the distribution centre at Heywood, near Manchester, "the Hub". Net
cash flow from operating activities amounted to GBP113.8m (2010:
GBP73.2m), driven principally by improved forward bookings at
Jet2.com and Jet2holidays, the Group's ATOL bonded tour
operator.
As at 31 March 2011, the cash position amounted to GBP106.8m
(2010: GBP52.2m), including money market deposits, at which point
Jet2.com had received circa GBP135m of advance payments from
customers in respect of future flights.
Aviation
Our strategy is to understand and meet the holiday needs of our
Northern based customers. We fly carefully scheduled flights to
high volume leisure destinations, offering "friendly low fares" to
seat only customers and "package holidays you can trust" to
Jet2holidays' customers.
Both products meet the demand for real value in these difficult
and uncertain economic times. Higher utility prices, the rising
cost of food and fuel, and employment uncertainty, are all taking
their toll on leisure spend. Both our seat only and package holiday
products are absolutely geared to meet the holiday needs of value
seeking customers.
To ensure we continue to deliver the right product, we are
working hard to build our customer data capture and analysis
capabilities which, coupled with our substantial in-house IT
development expertise, means that we can progressively improve the
tailoring of our leisure products, both seat only and packages, to
meet our customers' needs, both present and future. Customer demand
will lead our strategy - understanding the needs of our customers
is key and we believe we are making great progress along this
exciting and interesting path.
Aviation revenues rose by 28% as a result of increased passenger
volumes and the growth of Jet2holidays. This revenue growth was
achieved despite the disruption to Jet2.com's flying programme
caused by the eruption of volcano Eyjafjallaj kull in April and May
2010, which resulted in the cancellation of over 400 flights. The
overall profit impact as a result of this disruption is estimated
at 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 January 2011, we
reluctantly took the decision to cease services to Sharm El Sheikh,
Hurghada and Tunisia due to political unrest, re-directing the
capacity to Western Mediterranean resorts.
During the financial year the company flew 135 routes from its
Northern bases to 51 destinations. Our unique proposition of "great
flight times", "22 kg baggage allowance", "allocated seating" and
"loyalty points for free flights" helped us to raise our overall
load factor to 85% (2010: 80%). In March 2011 we commenced
operations from our eighth Northern base, Glasgow, with services to
nine popular sun destinations. This contributed to a 26% overall
increase in network seat capacity for summer 2011.
We are particularly pleased to report the progress of
Jet2holidays which is gaining encouraging sales momentum. We
carried nearly 98,000 of our own package holiday customers on our
flights during the past year, and we are now working to double that
number for the current financial year.
Our packages encompass the flight, transfer and accommodation,
with "3 star" and "4 star", "half board" and "all inclusive"
packages being the top sellers. The company now has over 800
directly contracted hotels in leading Eastern and Western
Mediterranean resorts. We are determined to develop these
relationships further in order to deliver our "best value" product.
There are major opportunities to cross sell between our flight only
and package holiday customers and we look forward to the continued
growth of both.
Tremendous progress continues to be made with the development of
our in-house sales and reservation systems for both Jet2.com and
Jet2holidays. Our industry leading IT team has enabled us to build
a fast and very customer friendly sales platform for both our
flight only and package products. Our revenue and IT teams work
closely together to deliver additional customer focussed services
including choice of seating, meals, onboard entertainment and car
hire. Together, these yielded GBP25.39 in additional retail revenue
per passenger during the last financial year (2010: GBP21.12). Both
Jet2.com and Jet2holidays revenues will benefit from our continued
IT innovations and associated retail product developments.
As we build our customer focussed leisure brand, information on
all customer purchases and trends is constantly being gathered from
bookings, questionnaires, surveys and focus groups. This is
collated by our data management team and forms the basis of our
continually evolving future strategy. Overall we believe we have
the right formula of innovation and differentiation for continued
development and success in a tough and competitive trading
environment.
Distribution
The Group's leading logistics business Fowler Welch, which
specialises in the distribution of chilled and ambient foods on
behalf of leading supermarkets and their suppliers, has experienced
challenges during a year of considerable growth and development.
Our new 50,000 pallet capacity Heywood distribution centre, the
Hub, which is located near Bury on the M62, north of Manchester,
was opened with its enhanced facilities, IT infrastructure and
layout alterations, all being ready for business prior to
Christmas. However, a combination of factors led to operational
challenges and higher than anticipated operating costs in the
initial months to ensure that customer service was protected. These
early development issues have now been resolved. The Hub is now set
to become the focal point for our ambient business with a strong
sales pipeline and improving financial performance. There are very
significant opportunities for growth at this site over the coming
years.
Overall our distribution revenues grew by 18% year on year, as a
result of both new business wins and additional volumes, although
operating margins have suffered from increased costs. Our
Washington, Kent, South Coast and European operations each
performed satisfactorily, although margins remained under pressure.
Our main Spalding distribution centre had a more challenging period
of trading and a weaker financial performance. Fowler Welch was
careful to protect customer service at the expense of contribution
in a challenging period of trading. The outcome of this has been
the securing of additional business, as a direct result of the
achievement of generally satisfactory service levels, especially
during the very severe weather disruption during the Christmas
trading period.
Fowler Welch (Containers) Limited (formally Bawdsey Haulage)
experienced difficult trading conditions in the container market,
which led to the review and subsequent closure of our container
operation in Felixstowe, whilst retaining a significant presence in
the container market at our Kent, Spalding and Alconbury sites.
Although reduced in scale, Fowler Welch (Containers) will retain
the ability to provide a full service to its customers.
Following the success of our Tesco Express store distribution
operations from Washington in the North East, we are delighted to
have secured the business to develop a similar distribution
operation to service Tesco's smaller stores in the South West. A
newly leased site in Newton Abbot, Devon, will come on stream in
the first half of this financial year to service Devon and
Cornwall. We expect this to be the basis of further business
expansion in the South West.
Considerable progress is being made in developing IT
infrastructure across the business. The efficient Manhattan
warehouse system has been fully implemented, yielding significant
operational improvements. Further work is now being carried out to
choose a solution to upgrade our transport management capabilities
in this financial year, thereby giving greater transparency for
managing fleet resources and enhancing the service we offer to our
customers. The investment in fleet telemetry and management,
coupled with the continual selection of increasingly efficient
vehicles and the expansion of our double-deck trailer fleet, will
generate both fuel savings and operating efficiencies and further
improve our carbon footprint.
Over the past few years, the company has significantly expanded
its operations, widening its customer base and building a
considerable position in the ambient distribution market, alongside
its leading chilled distribution operations. We are now taking the
opportunity to strengthen the senior management team in order that
we fully capitalise on the potential of our distribution
infrastructure, network, expertise and our reputation.
Our Staff
I believe we all understand and appreciate the financial
challenges being experienced by our customers. To succeed in these
difficult times, we have to deliver the best possible service at
the lowest possible price. Fowler Welch, Jet2.com and Jet2holidays
each depends on our customers' satisfaction for continuing and,
hopefully, increasing business. I count on everyone's support in
delivering this together in the coming months.
Outlook
We hope to grow both our businesses in the year ahead, despite
the continuing uncertain economic climate. Fowler Welch has
significant business development opportunities throughout its
operations and particularly, of course, in the North West. We have
expanded our leisure airline for summer 2011 with four additional
aircraft, a new base at Glasgow and a growing package holiday
programme.
Both businesses have started the year reasonably satisfactorily,
although we expect these challenging economic conditions to
continue to impact on yields in the Aviation sector for the
foreseeable future.
Philip Meeson
Chairman
23 June 2011
BUSINESS AND FINANCIAL REVIEW
The Group comprises two principal operating businesses, Aviation
and Distribution, which trade in separate market segments.
2010/11 performance
The Group's financial performance for the year to 31 March 2011
is reported in line with International Financial Reporting
Standards (IFRS), as adopted by the EU, which were effective at 31
March 2011.
Underlying Group profit before tax increased from GBP19.1m to
GBP25.9m in the year ended 31 March 2011, reflecting an improved
trading environment for the Group's Aviation operations and a year
of investment in Fowler Welch, the Group's logistics business.
Overall turnover increased by 25%, with growth in both businesses,
including the establishment of an additional base for Jet2.com at
East Midlands airport and business wins in Fowler Welch. Underlying
EBITDA of GBP64.2m (2010: GBP52.6m) is up 22% on last year, driven
by both overall business growth and improved load factors in the
Aviation operations.
The Group's effective tax rate for the year of 34% (2010: 30%)
is higher than the headline corporation tax rate as a result of the
impact of the acquisition of our new North West property on our
deferred tax liabilities.
The Group generated net cash inflows of over GBP54m in the year,
resulting in a positive net cash position, including money market
deposits, of GBP106.8m (2010: GBP52.2m) as at 31 March 2011. The
Group's cash generation was principally driven by the Aviation
division which saw an increase in forward bookings in the latter
part of the year, reflecting the 26% expansion of the summer
programme. Capital expenditure increased from GBP32.1m to GBP68.0m
in the year, driven by both a significant increase in long term
aircraft maintenance expenditure, with an above average number of
engines falling due for overhaul in the year, and the acquisition
of "the Hub", Fowler Welch's new North West distribution
centre.
The Group's balance sheet continued to strengthen, driven by
both profit performance in the year and cash generation from
advance bookings. The resultant increase in shareholders' equity,
the improved cash position and the increase in non-current assets
are the principal changes in the balance sheet from the previous
year end. The business continues to be funded in part by customer
payments received in advance of flights and holidays taken. The
deferred revenue growth reflects stronger customer forward booking
performance for the forthcoming summer relative to the previous
year.
Segmental performance
Aviation
The Aviation division comprises the Group's leisure airline,
tour operation and associated commercial activities, trading under
the Jet2.com and Jet2holidays.com brands. The Company operates 24
Boeing 737-300 aircraft, including eight Quick Change aircraft,
twelve Boeing 757-200 aircraft, and two Boeing 737-800 aircraft
from its home base of Leeds Bradford International Airport, and
Belfast, Blackpool, East Midlands, Edinburgh, Glasgow, Manchester
and Newcastle airports.
Jet2.com added two leased Boeing 757-200 aircraft and two leased
Boeing 737-800s to the fleet towards the end of the financial year
to enable the development of Glasgow as a new base and the
expansion of East Midlands, Manchester, and Newcastle
operations.
The Aviation division is supported by a number of revenue
streams. Seat only sales represent the majority of aviation
revenues, sold direct over the internet, via the high street and
online travel trade. Seats are also sold in the form of allocations
to third party tour operators. The business also derives
significant revenues from its whole plane passenger charters and
its contract with Royal Mail for the overnight transportation of UK
first class mail utilising the Group's Quick Change aircraft. An
increasing proportion of airline seats are now sold as part of a
holiday package by the Group's ATOL bonded tour operator
Jet2holidays.
During the year ended 31 March 2011 we carried over 3.6 million
scheduled and charter passengers, with more than 5% of these having
purchased a Jet2holidays package.
The Aviation division saw improved financial performance,
despite the eruption of the Eyjafjallaj kull volcano in April and
May 2010, which impacted profitability by circa GBP3m. In
particular we saw increased customer demand for both flights and
packages in the summer months, enabling higher load factors to be
achieved across the network. Our seventh UK base, East Midlands,
contributed profitably to this performance with an initial
programme of seven routes. Winter performance suffered as a
consequence of reduced demand for ski trips and by the cancellation
of all flying to Tunisia and Egypt from February onwards. Aviation
PBIT increased by 84% to GBP23.4m with a 28% increase in revenue to
almost GBP400m. Overall, costs increased by 25%, reflecting a
combination of business growth, increasing fuel costs and the
continued weakness of sterling.
During the year, Jet2.com continued its careful development of
the scheduled airline network, expanding the programme from
Newcastle and Manchester, largely by adding flights to tried and
trusted Jet2.com destinations. New destinations added to the
network in 2010 were Madeira, Monastir, Bergerac, Kos, Gran Canaria
and Reus. 35 new routes were added in total from our Northern
bases, including seven winter routes.
Overall scheduled airline seat capacity was increased by 7% in
the year ended 31 March 2011. This careful route and capacity
management, coupled with some improvement in customer demand,
resulted in load factors increasing to 85% (2010: 80%), with yields
also increasing to GBP52.42 from GBP48.69 in the previous year.
Load factor performance was underpinned by the ongoing
development of the airline's yield management system and by the
sale of seat allocations to third party tour operators,
particularly on newer routes. The loyalty programme continues to
prove popular with our customers, with over 330,000 customers now
having earned points towards free Jet2.com flights.
Retail revenues continue to be a very important source of income
for the leisure airline business, allowing low fares to be
maintained. Retail revenue per passenger increased from GBP21.12 to
GBP25.39 in 2010/11, this being generated from a number of sources
including hold baggage charges for a sector leading 22kg weight
allowance, online seat assignment, extra leg room seats, on board
sales, and commissions on car hire. Customers can both pre-order
hot meals and watch the latest movie releases on board. Using our
customer information analytics capability, we are able to target
customers through pre-departure communications in a very tailored
way to generate additional retail sales.
The business devotes considerable in-house IT resources to
develop its airline and holidays reservation systems to improve the
booking experience for customers and optimise retail revenues. In
the last quarter of the year, unique visitors to the
Jet2holidays.com site increased by 50% year on year with a 31%
increase in Jet2.com site visitors. The Jet2.com reservation system
has also been enhanced to offer customers the opportunity to
acquire bundles of optional retail products at discounted pricing.
We provide the travel trade with a bespoke link to the Jet2.com
reservation system to facilitate flight bookings.
Jet2.com's passenger and freight charter operations increased
revenues by 9% in the year. The passenger charter activity provides
flights for many different end users, including tour operators,
specialist holiday providers, the MoD, and in support of
promotional, sporting and other events, enabling the business to
improve utilisation of aircraft outside peak periods. We operated
over 800 passenger charter flights during the year including taking
over 2,000 Fulham supporters to the Europa Cup final in Hamburg in
May 2010 and 20 Hajj flights to Jeddah in October and November. The
Royal Mail contract, for which night mail flights are undertaken
every weekday from six UK airports, continues to be serviced with
industry leading punctuality, enabling the Royal Mail to meet its
universal service obligation.
Jet2.com continued to improve fuel efficiency during the year,
with a programme aimed at reducing both fuel burn and associated
emissions. The company has a significant checklist of actions,
which include efficient aircraft loading, route optimisation, and
lower aircraft flying speeds, supported by the flight planning
system and supplemented by ongoing engineering activity.
In order both to save costs, and improve customer service, we
brought customer handling in-house at Manchester for summer 2010,
with Blackpool and Newcastle following for summer 2011. We are also
now undertaking all the passenger handling operations for our
customers at Alicante airport, our fourth self handling base in
Spain, the others being Malaga, Murcia and Palma.
Jet2holidays, the package holiday arm of the Aviation business
grew significantly with almost 98,000 package holidays customer
departing in the year, all on Jet2.com flights, a 52% increase on
the previous year. In order to improve the product range, pricing
and the quality of the offering to our customers, the vast majority
of accommodation is now secured directly with carefully chosen
hotels by our in-house contracting team.
The Jet2holidays.com website is continually being developed to
improve the quality of both the customer and the trade booking
experience which has resulted in significantly higher conversion
levels year on year. The business also introduced a more
sophisticated yield management tool in order to facilitate much
more tailored holiday pricing. During the year, we secured a
distribution agreement with both the Co-operative Travel Group and
TUI to sell Jet2holidays through their retail outlets. Our in-house
call centre and direct bookings made through online travel trade
sites are also important elements of the distribution mix.
Distribution
The Group's distribution business, Fowler Welch, is one of the
UK's leading logistics providers serving UK retailers, importers
and manufacturers. The business operates from twelve strategically
located distribution centres and offers a range of logistics
solutions including storage, case pick-to-order and national
distribution of both temperature-controlled and ambient
products.
In May 2010, the business completed the purchase of a 500,000
sq. ft. freehold distribution centre on 22 acres of land in
Heywood, Greater Manchester. The acquisition of these premises, the
Hub, increased our stockholding capacity within our ambient
business from circa 17,000 to 50,000 pallets. Further space is
available at this site for the development of
temperature-controlled storage, enabling the provision of a chilled
distribution facility in the North West should customers require
it.
The company has built its reputation around a flexible service
offering that meets the strict time-sensitive and multi-temperature
supply chain requirements of UK retailers. On a daily basis, Fowler
Welch collects suppliers' products, which are then consolidated
with product picked from stock holding in the Company's warehouses
before delivery. This activity has increased in the year to
approximately 1.5 million cases of various fast moving consumer
goods handled on a weekly basis.
Overall, Fowler Welch operating profit reduced by GBP4.6m year
on year principally as a result of relocation to the Hub, reduced
operating efficiency, and weakness in the container market, leading
to closure of the Felixstowe site. The switch to the Hub during the
year impacted profitability by circa GBP2m as a result of both
one-off dual running costs and the step-up in the cost base
associated with this larger facility. Elsewhere in the network,
operational efficiency was impacted by the reduced availability of
sub-contractors and increased short term vehicle hire costs.
The container market proved challenging throughout the financial
year, with reduced volumes seen across all ports and over capacity
in the marketplace which led, inevitably, to a softening of
distribution rates and a significant downturn in the trading
position of our container operations. Since the year end, the
decision has been taken to close our Felixstowe site whilst
retaining significant customer volumes which will be serviced
through our Kent, Spalding and Alconbury operating bases.
Distribution revenue increased by 18% in the year through a
combination of growth with existing customers and substantial new
business wins. In particular, we continued to increase the volume
of deliveries for Tesco's smaller store formats from our Washington
site, and have added ambient delivery volumes with both Asda and
Morrisons. Fowler Welch also gained considerable new business and
volume growth from a number of leading food producers.
Overall our vehicle fleet increased 15% to 391 vehicles, with
additional vehicles being added to the majority of sites reflecting
increased volumes and a reduction in sub-contractor availability.
Driver numbers increased to 596 from 497 in the previous year. The
trailer fleet remained static at circa 600 as we improved the
tractor to trailer ratio. We have taken the decision to purchase a
significant proportion of our refrigerated trailer fleet in the
future and commenced this programme with a purchase of 30 trailers
in January 2011.
During the year, the company focused its infrastructure
investment on the Hub, which included the establishment of a fuel
bunkering facility, vehicle wash, further loading bays and the
implementation at this site of the Manhattan warehouse management
system. The Hub was fully operational in time for Christmas after
which the previous leasehold Stockport site was decommissioned.
Significant work was undertaken in the remainder of the year to
maximise the operational efficiency of this site.
Fowler Welch continues to maximise CO(2) efficiency through a
combination of investment in vehicle telemetry, which has increased
overall fleet visibility and control to reduce empty running;
deployment of double deck trailers; and further optimisation of
vehicle journey length. Our fleet replacement programme for both
tractor and trailer units continues to evaluate the marketplace to
ensure the optimum fuel efficient equipment is procured including
EURO VI specification tractor units, further improving the
business' carbon footprint.
The business has continued to promote a culture of green action
and awareness across all activities. For example, the division has
made substantial investments in new warehouse doors and loading
bays which deliver increased thermal efficiency and lower energy
costs for chilled warehouse operations. Ongoing driver training
continues across all sites, encompassing regular defensive driver
assessments that in turn deliver fuel efficiency improvements.
The additional warehousing capacity secured and the company's
growing reputation as a quality, low cost end-to-end service
provider, offering national as well as regional solutions, will
enable the business to continue to grow organically through
existing and new customer relationships. Following the investment
in the last twelve months, profitability in our Distribution
business is expected to improve in the year to 31 March 2012.
www.dartgroup.co.uk
Enquiries:
Philip Meeson, Chairman Mobile: 07785 258666
Andrew Merrick, Group Finance Director Mobile: 07788 565358
Andy Pedrette / Siobhan Sergeant
Smith & Williamson Corporate Finance
Limited 020 7131 4000
For further media enquiries:
Contact the Press Office on 0113 243 1355 or email
pressoffice@jet2.com
Consolidated Group Income Statement
for the year ended 31 March 2011
Unaudited Audited
Year ended 31 March 2011 Year ended 31 March 2010
Results Results
before Specific before Specific
specific fair specific fair
fair value Results fair value Results
value movements for the value movements for the
movements (1) year movements (1) year
Continuing
operations GBPm GBPm GBPm GBPm GBPm GBPm
Turnover 542.9 - 542.9 434.5 - 434.5
Net operating
expenses (516.3) 0.3 (516.0) (415.1) 3.1 (412.0)
Operating profit 26.6 0.3 26.9 19.4 3.1 22.5
Finance income 1.3 - 1.3 1.9 - 1.9
Finance costs (2.0) - (2.0) (2.4) - (2.4)
---------- ---------- --------- ---------- ---------- --------
Net financing
costs (0.7) - (0.7) (0.5) - (0.5)
Profit on disposal
of fixed assets - - - 0.2 - 0.2
Profit before
taxation 25.9 0.3 26.2 19.1 3.1 22.2
Taxation (8.8) (0.1) (8.9) (5.6) (1.0) (6.6)
Profit for the
year (all
attributable to
equity
shareholders of
the Parent) 17.1 0.2 17.3 13.5 2.1 15.6
========== ========== ========= ========== ========== ========
Earnings per share (2)
- basic 12.20p 11.06p
- diluted 11.68p 10.62p
Non-GAAP measures
Underlying earnings per share (3)
- basic 12.03p 9.54p
- diluted 11.52p 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
Notes to the Group Financial Statements Note 2 "Basis of
Preparation").
(2) Earnings per share is calculated in accordance with IAS 33,
'Earnings per share'.
(3) Underlying earnings per share excludes specific IAS 39 fair
value movements.
Consolidated Group Statement of Comprehensive Income
for the year ended 31 March 2011
Year ended
Year ended 31 March
31 March 2011 2010
Unaudited Audited
GBPm GBPm
Profit for the year 17.3 15.6
Exchange differences on translating foreign
operations - -
Effective portion of fair value movements
in cash flow hedges 21.3 10.6
Net change in fair value of effective cash
flow hedges transferred to profit - 0.1
Taxation on components of other comprehensive
income (5.3) (3.0)
--------------- -----------
Other comprehensive income and expense
for the period, net of taxation 16.0 7.7
Total comprehensive income for the period
all attributable to owners of the parent 33.3 23.3
=============== ===========
Consolidated Group Balance Sheet
at 31 March 2011
Unaudited Audited
2011 2010
GBPm GBPm
Non-current assets
Goodwill 6.8 7.0
Property, plant and equipment 222.2 191.4
Derivative financial instruments 19.7 2.9
248.7 201.3
---------- --------
Current assets
Inventories 0.8 0.3
Trade and other receivables 74.1 66.8
Derivative financial instruments 39.7 18.8
Money market deposits 8.5 -
Cash and cash equivalents 98.3 52.2
---------- --------
221.4 138.1
---------- --------
Total assets 470.1 339.4
---------- --------
Current liabilities
Trade and other payables 243.8 181.9
Borrowings 0.7 0.3
Derivative financial instruments 24.7 9.4
---------- --------
269.2 191.6
---------- --------
Non-current liabilities
Other non-current liabilities 9.9 6.6
Borrowings 8.7 0.3
Derivative financial instruments - 0.3
Deferred tax liabilities 34.4 25.1
---------- --------
53.0 32.3
Total liabilities 322.2 223.9
Net assets 147.9 115.5
========== ========
Shareholders' equity
Share capital 1.8 1.8
Share premium 9.6 9.3
Cash flow hedging reserve 25.6 9.6
Retained earnings 110.9 94.8
Total shareholders' equity 147.9 115.5
========== ========
Consolidated Group Cash Flow Statement
for the year ended 31 March 2011
Unaudited Audited
2011 2010
GBPm GBPm
Cash flows from operating activities
Profit on ordinary activities before
taxation 26.2 22.2
Adjustments for:
Finance income (1.3) (1.9)
Finance costs 2.0 2.4
Profit on disposal of property, plant
and equipment - (0.2)
Depreciation 37.1 33.0
Impairment of goodwill 0.2 -
Equity settled share based payments 0.4 0.3
Net financial derivative close out
costs (1.8) 6.0
Specific fair value movements - (2.8)
Operating cash flows before movements
in working capital 62.8 59.0
(Increase)/decrease in inventories (0.5) 0.1
Increase in trade and other receivables (7.3) (21.8)
Increase in trade and other payables 63.6 40.0
Cash generated from operations 118.6 77.3
Interest received 0.1 -
Interest paid (1.6) (2.4)
Income taxes paid (3.3) (1.7)
Net cash from operating activities 113.8 73.2
---------- --------
Cash flows from investing activities
Purchase of property, plant and equipment (68.0) (32.1)
Business acquisitions - (0.5)
Proceeds from sale of property, plant
and equipment 0.1 0.3
Net increase in money market deposits (8.5) -
Net cash used in investing activities (76.4) (32.3)
---------- --------
Cash flows from financing activities
Repayment of borrowings (0.6) (0.4)
New loans advanced 9.4 -
Proceeds on issue of shares 0.3 -
Equity dividends paid (1.6) (1.5)
Net cash from financing activities 7.5 (1.9)
---------- --------
Effect of foreign exchange rate changes 1.2 1.4
Net increase in cash in the year 46.1 40.4
Cash and cash equivalents at beginning
of year 52.2 11.8
Cash and cash equivalents at end of
year 98.3 52.2
========== ========
Consolidated Group Statement of Changes in Equity
(unaudited)
for the year ended 31 March 2011
Cash
flow
Share Share hedging Retained Other Total
capital premium reserve earnings reserves reserves
GBPm GBPm GBPm GBPm GBPm GBPm
-------- -------- -------- --------- --------- ---------
Balance at 1
April 2009 1.8 9.3 1.9 80.4 - 93.4
Total
comprehensive
income for
the year - - 7.7 15.6 - 23.3
Dividends paid
in the year - - - (1.5) - (1.5)
Share based
payments - - - 0.3 - 0.3
Balance at 31
March 2010 1.8 9.3 9.6 94.8 - 115.5
Total
comprehensive
income for
the year - - 16.0 17.3 - 33.3
Issue of share
capital - 0.3 - - - 0.3
Dividends paid
in the year - - - (1.6) - (1.6)
Share based
payments - - - 0.4 - 0.4
Balance at 31
March 2011 1.8 9.6 25.6 110.9 - 147.9
======== ======== ======== ========= ========= =========
NOTES TO THE GROUP FINANCIAL STATEMENTS
1. General information
The Group's Financial Statements consolidate the Financial
Statements of Dart Group PLC and its subsidiaries. The Group's
Financial Statements have been prepared and approved by the
Directors in accordance with International Financial Reporting
Standards ('IFRSs') as adopted by the European Union ('Adopted
IFRSs').
2. Basis of preparation
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.
Whilst the financial information included in this preliminary
announcement has been computed in accordance with IFRS as adopted
by the European Union, this announcement does not itself contain
sufficient information to comply with IFRS. The Company expects to
publish full financial statements in August 2011.
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 excluding
specific IAS 39 fair value movements; (ii) the effect of specific
IAS 39 fair value movements; and (iii) results for the year. For
the purpose of clarity, in the explanation of the basis of
preparation applied in 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, forward
carbon 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.
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 readers understanding of underlying
business performance and to provide a more meaningful presentation.
For the avoidance of doubt, references to underlying performance
refer to the left hand column.
The right hand column presents the results for the year showing
all gains and losses recorded in the Consolidated Group Income
Statement.
The financial information in this announcement is presented in
pounds sterling and all values are rounded to the nearest
GBP100,000, except where indicated otherwise.
The accounting policies adopted are consistent with those
described in the Annual Report and Accounts for the year ended 31
March 2010.
Going concern
The Directors have prepared financial forecasts for the Group,
comprising operating profit, balance sheet and cash flows to 31
March 2014.
For the purposes of their assessment of the appropriateness of
the preparation of the Group's 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
concluded that it is appropriate for the financial statements for
the year ended 31 March 2011 to be prepared on a going concern
basis.
3. Earnings per share
Earnings per share is presented both before specific IAS 39 fair
value movements and after specific IAS 39 fair value movements in
order to allow a better understanding of the financial information
presented, and specifically the Group's underlying business
performance.
Unaudited Audited
2011 2010
No. No.
Basic weighted average number of shares in
issue 141,558,080 141,117,098
Dilutive potential ordinary shares:
Employee share options 6,260,822 5,739,785
Diluted weighted average number of shares in
issue 147,818,902 146,856,883
============= ============
Basis of calculation - earnings (basic and Unaudited Audited
diluted) 2011 2010
GBPm GBPm
Profit before specific IAS 39 fair value
movements 17.1 13.5
Specific IAS 39 fair value movements 0.2 2.1
Profit after specific IAS 39 fair value movements
for the purposes of calculating basic and
diluted earnings 17.3 15.6
============= ===========
Year to 31 March 2011 Year to 31 March 2010
------------------------------ -------------------------------
Before After Before After
specific specific specific specific
IAS 39 IAS 39 IAS 39 IAS 39 fair
fair value fair value fair Value Value
movements movements movements movements
Unaudited Unaudited Audited Audited
Earnings per share -
Total
- basic 12.03p 12.20p 9.54p 11.06p
- diluted 11.52p 11.68p 9.17p 10.62p
-------------- -------------- -------------- ---------------
4. Segmental Reporting
Business segments
Segment reporting is presented in respect of the Group's
business segments which are also the primary reportable segments,
as the Group's risk and rates of return are affected predominantly
by the different services provided.
Year ended 31 March 2011 Distribution Aviation Unallocated Total
Continuing GBPm GBPm GBPm GBPm
Revenue 144.2 398.7 - 542.9
------------- --------- ------------ ------
EBITDA(1) 4.6 59.6 - 64.2
Operating profit(1) 2.8 23.8 - 26.6
Profit on disposal of
property, plant and
equipment - - - -
Finance income - - 1.3 1.3
Finance costs - (0.4) (1.6) (2.0)
Underlying profit/(loss)
before taxation(1) 2.8 23.4 (0.3) 25.9
Specific fair value
movements(2) - 0.3 - 0.3
Profit/(loss) before taxation 2.8 23.7 (0.3) 26.2
Taxation - - (8.9) (8.9)
------------- --------- ------------ ------
Profit/(loss) for the year
after taxation 2.8 23.7 (9.2) 17.3
============= ========= ============ ======
Year ended 31 March 2010 Distribution Aviation Unallocated Total
Continuing GBPm GBPm GBPm GBPm
Revenue 122.5 312.0 - 434.5
------------- --------- ------------ ------
EBITDA(1) 8.4 44.2 - 52.6
Operating profit(1) 7.4 12.0 - 19.4
Profit on disposal of
property, plant and
equipment - 0.2 - 0.2
Finance income - 0.5 1.4 1.9
Finance costs - - (2.4) (2.4)
Underlying profit/(loss)
before taxation(1) 7.4 12.7 (1.0) 19.1
Specific fair value
movements(2) - 3.1 - 3.1
Profit/(loss) before taxation 7.4 15.8 (1.0) 22.2
Taxation - - (6.6) (6.6)
------------- --------- ------------ ------
Profit/(loss) for the year
after taxation 7.4 15.8 (7.6) 15.6
============= ========= ============ ======
Note 1: stated excluding specific IAS 39 fair value movements
Note 2: specific IAS 39 fair value movements relate to fuel and FX
derivatives, entered into for the purposes of the Aviation
business, for which IFRS compliant hedge documentation was not in
place prior to 1 April 2007
5. The financial information set out above does not constitute
the Company's consolidated statutory accounts for the periods ended
31 March 2011 or 31 March 2010. Statutory accounts for the period
ended 31 March 2010 have been delivered to the Registrar of
Companies, and those for the period ended 31 March 2011 will be
delivered following the Company's Annual General Meeting. The
auditors, KPMG Audit Plc, have reported on the accounts for the
year ended 31 March 2010; their reports were unqualified and did
not contain statements under section 498(2) or (3) of the Companies
Act 2006 or equivalent preceding legislation. The statutory
accounts for 2011 will be finalised on the basis of the financial
information presented by the directors in this preliminary
announcement and will be delivered to the registrar of companies in
due course.
6. The 2011 Annual Report and Accounts (together with the
Auditor's Report) will be posted to shareholders no later than 4
August 2011. The Annual General Meeting will be held on 8 September
2011.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ZMGZVRZLGMZM
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