Jet2.com Jet2holidays Jet2.com Jet2.com Fowler Welch Fowler Welch Fowler Welch Jet2holidays

Company Announcements

Half Yearly Report 20 November 2014

20th November 2014

RNS Number : 5089X
Dart Group PLC
20 November 2014
 



DART GROUP PLC

 

Interim Results

 

 

Dart Group PLC, the Leisure Travel and Distribution & Logistics Group ("the Group"), announces its interim results for the half year ended 30 September 2014.  These results are presented under International Financial Reporting Standards ("IFRS").  

 

 

Financial Highlights

Half year ended

30 September

2014

(Unaudited)

Half year ended

30 September

2013

(Unaudited) 

Change

Group revenue

£902.2m

£787.1m

+15%

Group operating profit (underlying1)

£89.4m

£81.2m

+10%

Operating profit margin (underlying1)

9.9%

10.3%

(0.4ppt)

Group operating profit

£72.4m

£81.2m

(11%)

Operating profit margin

8.0%

10.3%

(2.3ppts)

Profit before tax (underlying1)

£88.7m

£78.1m

+14%

Profit before tax

£71.7m

£78.1m

(8%)

Basic earnings per share (underlying1)

48.25p

41.51p

+16%

Basic earnings per share

38.93p

41.51p

(6%)

Interim dividend per share

0.75p

0.60p

+25%

           Note 1: Underlying profit references are stated excluding Separately disclosed items (Note 6)

 

*    Group revenue increased 15% to £902.2m (2013: £787.1m) whilst underlying Group operating profit increased 10% to £89.4m (2013: £81.2m) underpinned by continued growth in the Leisure Travel business.

 

*    Underlying profit before tax grew 14% to £88.7m (2013: £78.1m).  Interim dividend per share increased by 25% to 0.75p (2013: 0.60p).

 

*    As a result of a Supreme Court ruling delivered on 31 October 2014 on EU Regulation 261, the Group has made an exceptional provision of £17.0m for possible passenger compensation claims, which may be payable in certain circumstances, for historical flight delays which occurred over the past six years due to technical reasons.  After accounting for this exceptional item, overall profit before tax fell 8% to £71.7m.

 

*    Leisure Travel revenue growth of 16% to £824.1m (2013: £708.9m) reflects a 12% increase in total passengers flown, which is marginally below the increased seat capacity of 13%, and includes a 21% increase in package holiday customers.

 

*    Distribution & Logistics contributed £78.1m of revenue (2013: £78.2m).

 

*    With winter 14/15 Leisure Travel bookings continuing to perform in line with expectations, the Board is optimistic that current market expectations for full year operating profit, before adjusting for the exceptional provision of £17.0m, will be achieved.

 



 

Chairman's Statement

I am pleased to report on the Group's trading performance for the half year ended 30 September 2014 in our two businesses, Leisure Travel - incorporating Jet2.com, the North's leading leisure airline and Jet2holidays, our ATOL protected package holidays operator - and Distribution & Logistics, comprising Fowler Welch, one of the UK's leading logistics providers.

Underlying Group operating profit increased 10% to £89.4m (2013: £81.2m) and underlying profit before tax by 14%, to £88.7m (2013: £78.1m).  After accounting for an exceptional provision of £17.0m, in relation to possible passenger compensation claims, which may be payable in certain circumstances,for historical flight delays under EU Regulation 261, Group profit before tax, fell by 8% to £71.7m.

The increase in underlying Group operating profit reflects improved trading in our Leisure Travel business in the later summer months, which was in contrast to the challenging market conditions experienced earlier in the season.  However, increased losses are to be expected in the second half of the year as our expanding Leisure Travel operations, which concentrate on high volume leisure destinations in the Mediterranean, the Canary Islands and European Leisure Cities, invest in additional aircraft, advertising and people in readiness for the summer 15 season.

The Group generated increased net cash flow from operating activities of £93.2m (2013: £89.5m), reflecting the improved Leisure Travel trading performance.  Total capital expenditure of £25.5m (2013: £42.7m), included continued investment in the long-term maintenance of our aircraft fleetThe business will be adding a further four aircraft in the second half of the financial year in readiness for summer 15, two of which will be leased.

Cash and money market deposits increased by £68.1m (2013: £48.9m), resulting in total cash held at the reporting date of £331.8m (2013: £269.8m), which included advance payments from Leisure Travel customers of £145.0m (2013: £134.4m).

Underlying basic earnings per share increased to 48.25p from 41.51p.  However, after accounting for the exceptional provision of £17.0m, overall basic earnings per share fell to 38.93p.  In view of the outlook for the full year, the Board has decided to pay an increased interim dividend of 0.75p per share (2013: 0.60p).  The dividend will be paid on 2 February 2015 to shareholders on the register at 5 January 2015.

Leisure Travel

In the first half of the year, flight-only passengers grew by 8% to 3.07m (2013: 2.84m), whilst Jet2holidays took 0.77m (2013: 0.64m) customers on holiday, an increase of 21%. This growth is a reflection of the popularity of both our flight-only and package holiday products with package holiday customers now making up 33% of all passengers flown (2013: 31%).

 

Our leisure airline, Jet2.com, flew 5.0m sector seats at an overall load factor of 91.8% equating to 4.6m flown passengers, an increase of 12% over the same period last year. Overall net ticket yield of £79.99 was 1.6% down as early season demand was slower than expected, which was particularly pronounced in relation to our Canary Islands and Eastern Mediterranean destinations.  Retail revenue (non-ticket revenue) per passenger increased by 5% to £34.04 (2013: £32.32); a result of continued focus on pre-departure, in-flight and ancillary product sales. The average price of a package holiday grew 3%.

As a result, Leisure Travel revenue grew by 16% to £824.1m (2013: £708.9m) at an underlying operating margin of 10.7% (2013: 11.2%).  Underlying operating profit grew 10.6% to £87.8m (2013: £79.4m).

During summer 2014 the Leisure Travel business operated 54 aircraft (2013: 49) from its eight Northern UK bases - Belfast International, Blackpool, East Midlands, Edinburgh, Glasgow, Leeds Bradford, Manchester and Newcastle airports.  In early October 2014, the owners of Blackpool Airport announced that the airport was to close on 15 October 2014, ending a long-standing relationship established in 2005. The two aircraft which were based at Blackpool Airport have since been redeployed into other existing bases.

We will continue to develop our customer-focused flying programme into summer 15, which will also include the addition of four new destinations - Antalya in Turkey, Enfidha in Tunisia, Kefalonia in Greece, and Malta.

EU Regulation 261

Subsequent to a judgment given on 11 June 2014, in which the Court of Appeal held that a technical defect was not in itself an extraordinary circumstance and that compensation for delay may be payable, Jet2.com had its application to the Supreme Court, to appeal the Court of Appeal's earlier decision, rejected. 

 

Accordingly, the Consolidated Group Income Statement includes an exceptional provision of £17.0m in relation to possible passenger compensation claims, which may be payable in certain circumstances, for historical flight delays over the past six years.

 

KPIs






Half Year Ended

30 Sept 14

 

Half Year Ended

30 Sept 13

 

Half Year End Change

 

Year Ended

31 Mar 14

 

Owned aircraft at 30 September

44

44

0%

44

Aircraft on operating leases at 30 September

10

5

100%

6

Total sector seats available (capacity)

5.03m

4.44m

13%

6.16m

Total sectors seats flown

4.62m

4.11m

12%

5.61m

Flight-only passenger sectors flown

3.07m

2.84m

8%

3.95m

Package holiday passenger sectors flown

1.54m

1.27m

21%

1.66m

Package holiday customers

0.77m

0.64m

21%

0.83m

Overall load factor

91.8%

92.5%

(0.7 ppt)

91.0%

Overall net ticket yield per passenger sector (excl. taxes)

£79.99

£81.30

(2%)

£78.39

Retail revenue per passenger sector

£34.04

£32.31

5%

£32.14

Average package holiday price

£593.26

£577.80

3%

£571.53

Advance Leisure Travel sales as at the reporting date

£266.8m

£224.7m

19%

£484.9m

Distribution & Logistics

Fowler Welch is one of the UK's leading providers of distribution and logistics to the food industry supply chain, serving retailers, growers, importers and manufacturers through its distribution network.

The Company operates from a number of UK distribution sites, with major operations in the key produce growing and importing areas of Spalding in Lincolnshire, Teynham in Kent and Hilsea near Portsmouth.  Fowler Welch also operates a 500,000 square foot ambient (non-temperature controlled) consolidation and distribution centre near Bury, Greater Manchester and a regional distribution centre in Washington, Tyne and Wear.  A full range of added value services is provided including storage, case level picking, produce packing and an award-winning national distribution network.

Fowler Welchreported a slight revenue reduction of £0.1m to £78.1m (2013: £78.2m) whilst like-for-like operating profit of £2.1m was in line with the previous half year, at an operating margin of 2.7% (2013: 2.7%).

 

Overall operating profit fell 11% to £1.6m (2013: £1.8m) as a result of expected start up losses at our new joint venture operation in Teynham, Kent which commenced operation in May 2014 storing, ripening and packing stone-fruit and exotic and organic fruits.  Margins are encouraging in this business and with volumes now committed for the remainder of the current and following year, the operation is expected to generate a profit in the second half, which will continue into the financial year ending 31 March 2016.

A major distribution contract for a Danish pork product processor, which builds on existing business, was successfully implemented at Spalding making them Fowler Welch's second largest customer.  At Heywood, the implementation of a substantial beverages contract was impacted by lower than anticipated stock holdings, however, the operation has now stabilised and further new revenues are planned for the final quarter.

The focus on operational efficiency following the roll out of our Enterprise transport planning system, has contributed to improved gross margins due to better visibility of vehicle performance, important in the context of increasing cost pressures in the industry in general. 

The Fowler Welch business will continue to focus on growing its revenue pipeline and the successful development of existing and new business opportunities.

 

 

KPIs






Half Year Ended

30 Sept 14

 

Half Year Ended

30 Sept 13

 

Half Year End Change

 

Year

Ended

31 Mar 14

 

Warehouse space (square feet)

847,000

847,000

-

847,000

Number of tractor units in operation

450

450

-

450

Number of trailer units in operation

640

640

-

640

Miles per gallon

9.4

9.0

4%

8.9

Fleet mileage

21.4m

21.9m

(2%)

42.6m

 

 

Outlook

 

We have been encouraged by the Group's underlying operating profit growth of 10%, particularly in light of the less than buoyant consumer demand and weak market pricing experienced in the early summer months.  And, with winter 14/15 Leisure Travel bookings performing in line with expectations, the Board is optimistic that current market expectations for full year operating profit, before adjusting for the exceptional provision of £17.0m, will be achieved.

 

 

 

 

Philip Meeson

Chairman

20 November 2014

 

For further information please contact:

Dart Group PLC

Philip Meeson, Group Chairman and Chief Executive

Tel:              0113 239 7817

Gary Brown, Group Chief Financial Officer

Smith & Williamson Corporate Finance Limited

Nominated Adviser

David Jones

Tel:              020 7131 4000

Canaccord Genuity - Joint Broker

Peter Stewart / Mark Whitmore

Tel:              020 7523 8000

Arden Partners - Joint Broker

Christopher Hardie

Tel:              020 7614 5900

Buchanan - Financial PR

Richard Oldworth

Tel:              020 7466 5000

 


Consolidated Group Income Statement (Unaudited)

For the half year ended 30 September 2014

 

 

Description

Note




Half year ended

30 September

2014

Unaudited


Half year ended

30 September

2013

Unaudited


Year ended

31 March

2014

Audited




Results before separately disclosed items

£m

Separately disclosed items

 

£m

Total

 

 

 

£m


Total

 

 

 

£m


Total

 

 

 

£m











Turnover

4


902.2

-

902.2


787.1


1,120.2

Net operating expenses

4, 6


(812.8)

(17.0)

(829.8)


(705.9)


(1,071.0)

Operating profit

4, 6


89.4

(17.0)

72.4


81.2


49.2











Finance income



1.1

-

1.1


0.8


1.4

Finance costs



(0.6)

-

(0.6)


(0.7)


(1.4)

Revaluation of derivative hedges



(1.8)

-

(1.8)


(3.2)


(3.3)

Revaluation of foreign currency balances


0.6

-

0.6


-


(3.8)

Net financing costs

7


(0.7)

-

(0.7)


(3.1)


(7.1)











Profit before taxation



88.7

(17.0)

71.7


78.1


42.1











Taxation

9


(18.3)

3.4

(14.9)


(17.9)


(6.2)











Profit for the period



70.4

(13.6)

56.8


60.2


35.9

All attributable to equity shareholders

of the parent company


















Earnings per share

5









 - basic



48.25p


38.93p


41.51p


24.68p

 - diluted



47.56p


38.37p


40.75p


24.28p











 

Consolidated Group Statement of Comprehensive Income (Unaudited)

For the half year ended 30 September 2014

 

 


Half year ended

30 September

2014

Unaudited

£m


Half year ended

30 September 2013

Unaudited

£m


Year ended

31 March

2014

Audited

£m








Profit for the period attributable to equity holders of the parent company


 

56.8


 

60.2


 

35.9








Effective portion of changes in fair value movements in cash flow hedges


(19.5)


(14.4)


(33.8)

Net change in fair value of effective cash flow hedges transferred to profit


21.4


(24.7)


(16.9)

Taxation on components of other comprehensive income


(0.4)


9.0


11.5








Other comprehensive income & expense for the period, net of taxation


1.5


(30.1)


(39.2)








Total comprehensive income for the period attributable to equity holders of the parent company


58.3


30.1


(3.3)








 

 

Consolidated Group Balance Sheet (Unaudited)

As at 30 September 2014

 


30 September 2014

Unaudited

£m


30 September 2013

Unaudited

£m


31 March

2014

Audited

£m

Non-current assets







Goodwill


6.8


6.8


6.8

Property, plant and equipment


274.6


276.9


291.6

Derivative financial instruments


2.3


1.5


0.4



283.7


285.2


298.8








Current assets







Inventories


2.4


2.2


3.1

Trade and other receivables


185.0


140.7


285.9

Derivative financial instruments


4.7


2.6


1.4

Money market deposits


29.5


19.0


52.5

Cash and cash equivalents


302.3


250.8


211.2



523.9


415.3


554.1

 







Total assets


807.6


700.5


852.9

 







Current liabilities







Trade and other payables


194.3


183.1


107.0

Deferred revenue


263.9


224.7


484.5

Borrowings


0.8


0.8


0.8

Provisions


24.4


2.4


2.4

Derivative financial instruments


31.6


22.1


35.0



515.0


433.1


629.7








Non-current liabilities







Other non-current liabilities


12.7


8.9


10.7

Borrowings


8.6


9.4


9.0

Derivative financial instruments


10.7


8.2


2.2

Deferred tax liabilities


20.3


23.5


19.7

 


52.3


50.0


41.6

 







Total liabilities


567.3


483.1


671.3

 







Net assets


240.3


217.4


181.6

 














Shareholders' equity














Share capital


1.8


1.8


1.8

Share premium


11.6


11.2


11.4

Cash flow hedging reserve


(25.3)


(17.7)


(26.8)

Retained earnings


252.2


222.1


195.2

Total shareholders' equity


240.3


217.4


181.6

 

 

Consolidated Group Cash Flow Statement (Unaudited)

For the half year ended 30 September 2014



Half year ended 30 September 2014

Unaudited

£m


Half year ended 30 September 2013

Unaudited

£m


Year ended

    31 March

2014

Audited

£m

Cash flows from operating activities







Profit on ordinary activities before taxation

71.7


78.1


42.1

Adjustments for:







Finance income


(1.1)


(0.8)


(1.4)

Finance costs


0.6


0.7


1.4

Revaluation of derivative hedges


1.8


3.2


3.3

Revaluation of foreign currency balances


(0.6)


-


3.8

Depreciation


42.5


34.9


60.7

Equity settled share based payments


0.2


0.2


0.4








Operating cash flows before movements in working capital


115.1


116.3


110.3








Decrease / (increase) in inventories


0.7


(0.9)


(1.8)

Decrease / (increase) in trade and other receivables

101.0


85.1


(59.7)

Increase in trade and other payables

77.9


73.5


10.3

(Decrease) / increase in deferred revenue

 (218.2)


(182.4)


77.5

Increase in provisions

22.0


0.4


0.3








Cash generated from operations


98.5


92.0


136.9








Interest received


1.1


0.7


1.4

Interest paid


(0.6)


(0.6)


(1.4)

Income taxes paid


(5.8)


(2.6)


(6.1)








Net cash from operating activities

93.2


89.5


130.8








Cash flows from investing activities







Purchase of property, plant and equipment

(25.5)


(42.7)


(83.5)

Proceeds from sale of property, plant and equipment


-


-


0.2

Net decrease / (increase) in money market deposits


23.0


11.0


(22.5)








Net cash used in investing activities


(2.5)


(31.7)


(105.8)

 







Cash flows from financing activities







Repayment of borrowings

(0.4)


(8.3)


(8.7)

New loans advanced


-


10.0


10.0

Proceeds on issue of shares


0.2


0.5


0.7

Equity dividends paid


-


-


(2.8)








Net cash (used in) / from financing activities

(0.2)


2.2


(0.8)








Effect of foreign exchange rate changes


0.6


(0.1)


(3.9)








 







Net increase in cash in the period

91.1


59.9


20.3

 

Cash and cash equivalents at beginning of period

 

211.2


190.9


190.9

 







Cash and cash equivalents at end of period


302.3


250.8


211.2


Consolidated Group Statement of Changes in Equity

For the half year ended 30 September 2014

                                                                                                                       



Share

capital

Share premium


Cash flow hedging reserve


Retained earnings


Total reserves



£m


£m


£m


£m



£m













Balance at 1 April 2013 - Audited


1.8


10.7


12.4


161.7



186.6













Total comprehensive income for the period


-


-


(30.1)


60.2



30.1

Share based payments


-


-


-


0.2



0.2

Issue of share capital


-


0.5


-


-



0.5













Balance at 30 September 2013 - Unaudited


1.8


11.2


(17.7)


222.1



217.4













Total comprehensive income for the period


-


-


(9.1)


(24.3)



(33.4)

Dividends paid in the period


-


-


-


(2.8)



(2.8)

Share based payments


-


-


-


0.2



0.2

Issue of share capital


-


0.2


-


-



0.2













Balance at 31 March 2014 - Audited


1.8


11.4


(26.8)


195.2



181.6













Total comprehensive income for the period


-


-


1.5


56.8



58.3

Share based payments


-


-


-


0.2



0.2

Issue of share capital


-


0.2


-


-



0.2













Balance at 30 September 2014 - Unaudited


1.8


11.6


(25.3)


252.2



240.3

                                                                                                                                                               


Notes to the consolidated financial statements

For the half year ended 30 September 2014 (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.

This interim financial report does not fully comply with IAS 34 "Interim Financial Reporting", which is not currently required to be applied by AIM companies.

The interim report for the half year ended 30 September 2014 was approved by the Board of Directors on 19 November 2014. 

 

2.             Accounting policies

Basis of preparation of the interim report

The unaudited consolidated interim financial report for the half year ended 30 September 2014 does not constitute statutory accounts as defined in s435 of the Companies Act 2006.  The accounts for the year ended 31 March 2014 were prepared in accordance with IFRS and have been delivered to the Registrar of Companies.  The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under s495(2) nor (3) of the Companies Act 2006.  In this report, the comparative figures for the year ended 31 March 2014 have been audited, with the exception of the revised segmental disclosure in Note 4.  The comparative figures for the half year ended 30 September 2013 are unaudited.

The financial statements have been prepared under the historical cost convention except for derivative financial instruments, which have been measured at fair value.

The Group uses forward foreign currency contracts and aviation fuel swaps to hedge exposure to foreign exchange rates and aviation fuel price volatility.  The Group also uses forward EU Allowance contracts and forward Certified Emissions Reduction contracts to hedge exposure to Carbon Emissions Allowance 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.

The Group's accounts are presented in pounds sterling and all values are rounded to the nearest £100,000 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 2017.

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, forecasts of future trading through to 31 March 2017, including performance against financial covenants, and the assessment of principal risks and uncertainties.

Having considered the points outlined above, the Directors have a reasonable expectation that the Company and the Group will be able to operate within the considered levels of available facilities and cash for the foreseeable future. Consequently, they continue to adopt the going concern basis in preparing the financial statements for the half year ended 30 September 2014.

 

3.             Adoption of new and revised standards

The following new or revised International Financial Reporting Standards and IFRIC interpretations will be adopted, where applicable, for the purpose of preparing future financial statements.  The Group does not anticipate that the adoption of these new or revised standards and interpretations will have a material impact on its financial position or results from operations. 

International Financial

Reporting Standards

Applies to periods

beginning after



IAS 27  - Separate Financial Statements

January 2016

Annual Improvements to IFRS - 2012-14 cycle

January 2016

IFRS 9 - Financial Instruments

January 2018

4.             Segmental information

Business Segments

 

The Chief Operating Decision Maker ("CODM") is responsible for the overall resource allocation and performance assessment of the Group.  The Board of Directors approves major capital expenditure, assesses the performance of the Group and also determines key financing decisions.  Consequently, the Board of Directors is considered to be the CODM.

The Group's operating segments have been identified based on the internal reporting information provided to the CODM in order for the CODM to formulate allocation of resources to segments and assess their performance.  Previously, the Leisure Airline, Package Holidays and Distribution & Logistics businesses were determined to represent operating segments.  However, the Leisure Airline and Package Holidays businesses have been working progressively closer together as one Leisure Travel business and, following on from changes in the operational structure of the business, internal financial reporting to the CODM now represents one Leisure Travel operating segment. Consequently, the Group now has two operating segments: Leisure Travel and Distribution & Logistics.

Following the identification of the operating segments, the Group has assessed the similarity of their characteristics.  Given the different performance targets, customer bases and operating markets of each of the operating segments, it is not currently appropriate to aggregate the operating segments for reporting purposes. Accordingly, both of the identified operating segments are disclosed as reportable segments for the half year ended 30 September 2014.

Group eliminations include the removal of intercompany assets and liabilities.  Revenue from reportable segments is measured on a basis consistent with the income statement and is principally generated from within the UK, the Group's country of domicile.

Distribution

& Logistics

Leisure Travel

Group

Eliminations

Consolidated

Total


£m

£m

£m

£m

 

Half year to 30 September 2014 (Unaudited)

 

Turnover

78.1

824.1

-

902.2

EBITDA

2.7

129.2

-

131.9

Underlying operating profit

1.6

87.8

-

89.4

Finance income

-

1.1

-

1.1

Finance costs

-

(0.6)

-

(0.6)

Revaluation of derivative hedges

-

(1.8)

-

(1.8)

Revaluation of foreign currency balances

-

0.6

-

0.6

Underlying profit before taxation

1.6

87.1

-

88.7

Separately disclosed items

-

(17.0)

-

(17.0)

Profit before taxation

1.6

70.1

-

71.7

Taxation

(0.3)

(14.6)

-

(14.9)

Profit after taxation

1.3

55.5

-

56.8






Assets and liabilities





Segment assets

76.7

737.3

 (6.4)

807.6

Segment liabilities

(32.9)

(540.8)

6.4

(567.3)

Net assets

43.8

196.5

-

240.3





 

Other segment information




Property, plant and equipment additions

1.3

24.2

-

25.5

Depreciation and amortisation

(1.1)

(41.4)

-

(42.5)

Share based payments

-

(0.2)

-

(0.2)

 

 

Half year to 30 September 2013 (Unaudited)

 

Turnover

78.2

708.9

-

787.1

EBITDA

2.8

113.3

-

116.1

Operating profit

1.8

79.4

-

81.2

Finance income

-

0.8

-

0.8

Finance costs

(0.1)

(0.6)

-

(0.7)

Revaluation of derivative hedges

-

(3.2)

-

(3.2)

Revaluation of foreign currency balances

-

-

-

-

Profit before taxation

1.7

76.4

-

78.1

Taxation

(0.3)

(17.6)

-

(17.9)

Profit after taxation

1.4

58.8

-

60.2






Assets and liabilities





Segment assets

74.2

633.0

(6.7)

700.5

Segment liabilities

(34.6)

(455.2)

6.7

(483.1)

Net assets

39.6

177.8

-

217.4





 

Other segment information




Property, plant and equipment additions

0.6

42.1

-

42.7

Depreciation and amortisation

(1.0)

(33.9)

-

(34.9)

Share based payments

-

(0.2)

-

(0.2)






 

Year to 31 March 2014 (Unaudited)

 

Turnover

153.2

967.0

-

1,120.2

EBITDA

5.7

104.2

-

109.9

Operating profit

3.6

45.6

-

49.2

Finance income

-

1.4

-

1.4

Finance costs

(0.3)

(1.1)

-

(1.4)

Revaluation of derivative hedges

-

(3.3)

-

(3.3)

Revaluation of foreign currency balances

-

(3.8)

-

(3.8)

Profit before taxation

3.3

38.8

-

42.1

Taxation

(0.6)

(5.6)

-

(6.2)

Profit after taxation

2.7

33.2

-

35.9






Assets and liabilities





Segment assets

71.0

789.8

(7.9)

852.9

Segment liabilities

(32.7)

(646.5)

7.9

(671.3)

Net assets

38.3

143.3

-

181.6





 

Other segment information




Property, plant and equipment additions

1.0

82.5

-

83.5

Depreciation and amortisation

(2.1)

(58.6)

-

(60.7)

Share based payments

(0.1)

(0.3)

-

(0.4)






5.             Earnings per share

The calculation of earnings per share is based on the following:


Half year to

30 September

2014

(Unaudited)

 


Half year to

30 September

2013

(Unaudited)


Year to

31 March

2014

 (Audited)







Underlying profit for the period (£m)

70.4


60.2


35.9

Profit for the period (£m)

56.8


60.2


35.9







Weighted average number of ordinary shares in issue during the period used to calculate basic earnings per share

145,907,224


145,021,355


145,300,720







Weighted average number of ordinary shares in issue during the period used to calculate diluted earnings per share

148,032,833


147,727,104


147,703,529

 

6.             Separately disclosed items

Separately disclosed items are presented in the middle column of the half year ended 30 September 2014 Consolidated Group Income Statement in order 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 half year showing all gains and losses recorded in the Consolidated Group Income Statement.

EU Regulation 261

Subsequent to a judgment given on 11 June 2014, in which the Court of Appeal held that a technical defect was not in itself an extraordinary circumstance and that compensation for delay may be payable, Jet2.com had its application to the Supreme Court, to appeal the Court of Appeal's earlier decision, rejected.

 

Accordingly, the Consolidated Group Income Statement includes an exceptional provision of £17.0m in relation to possible passenger compensation claims, which may be payable in certain circumstances, for historical flight delays over the past six years.

 

7.             Net financing costs


Half year to

30 September

2014

Unaudited

 


Half year to

30 September

2013

Unaudited


Year to

31 March

2014

    Audited







Finance income - interest receivable

1.1


0.8


1.4







Finance costs - borrowings

(0.6)


(0.7)


(1.4)







Revaluation of derivative hedges:






- ineligible for cash flow hedge accounting

-


(1.3)


(1.4)

- change in fair value of ineffective cash flow hedges

(1.8)


(1.9)


(1.9)


(1.8)


(3.2)


(3.3)







Revaluation of foreign currency balances

0.6


-


(3.8)







Net financing costs

(0.7)


(3.1)


(7.1)







 

8.             Dividends

The declared interim dividend of 0.75p per share (2013: 0.60p) will be paid, out of the Company's available distributable reserves, on 2 February 2015, to shareholders on the register at 5 January 2015.  In accordance with IAS 1, dividends are recorded only when paid and are shown as a movement in equity rather than as a charge to the Income Statement.

 

9.             Taxation

The tax charge for the period of £14.9m (2013: £17.9m) reflects an estimated effective tax rate of approximately 21% (2013: 23%).  The Government has enacted a further reduction in the headline rate of corporation tax to 20% from 1 April 2015.

 

10.          Reconciliation of net cash flow to movement in net cash


Half year to

30 September

2014

Unaudited

 

£m


Half year to

30 September

2013

Unaudited

 

£m


Year to

31 March

2014

Audited

 

£m









Increase in cash in the period

91.1


59.9


20.3


Decrease / (increase) in net debt in the period

0.4


(1.7)


(1.3)


 

Change in net cash resulting from cash flows in the period

 

 

91.5


 

 

58.2


 

 

19.0


Net cash at beginning of period

201.4


182.4


182.4









Net cash at end of period

292.9


240.6


201.4


 

11.          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.

 

12.          Other matters

This report will be posted on the Group's website, www.dartgroup.co.uk and copies are available from the Group Company Secretary at the registered office address: 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 QKCDDCBDDKDD

Written by Internal

Posted in

November 20, 2014 at 00:00

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