RNS Number:7039A
Dart Group PLC
12 November 1999
Contact: Philip Meeson, Chairman
Mike Forder, Group Finance Director
Dart Group PLC Tel: 01202 597676
DART GROUP PLC
Interim Results for the Six Months Ended 30 September 1999
Dart Group PLC, the distribution and aviation services group,
announces its interim results for the six months ended 30
September 1999.
CHAIRMANS STATEMENT
I am pleased to report on the Groups trading during the six
months to 30 September 1999. Profit before tax has risen to
#3.5m (1998: #3.1m) on turnover of #59.6m (1998: #49.4m) and
earnings per share have risen to 7.49p (1998: 6.55p). The
Board has declared an interim dividend of 1.46p per share
(1998: 1.27p) which will be paid on 7 January 2000 to
shareholders on the register as at 26 November 1999 .
On 27 September 1999 the company raised #2.87m, net of expenses,
via a placing of 1,622,150 new ordinary shares. Net gearing at
30 September 1999 stood at 9.7%.
Distribution
The companies within the Distribution Division, Fowler Welch and
Channel Express (CI), specialise in the physical distribution of
fresh produce and horticultural products to supermarkets and
wholesale markets throughout the UK. The business presently
operates from its primary distribution centres in Spalding,
Lincs., and Portsmouth and from secondary operating bases in key
locations across the UK mainland and in the Channel Islands.
Our continued strategic aim for the division is to grow the
business both organically and by targeted acquisitions that
enable us to enhance our services in the major growing and
importing areas of the country. I was, therefore, very pleased
to announce on 1 November that Dart Group has agreed, subject to
shareholders approval, to purchase the entire issued share
capital of Coolchain Group Ltd from Credit Agricole Indosuez.
Coolchain is the largest distributor of fresh produce in the
South-East of England, and presently operates a fleet of over
100 temperature-controlled vehicles from a purpose-built
distribution centre at Teynham, Kent, and premises at Paddock
Wood, Kent.
Coolchains core business is similar to that of the companies in
our distribution division, having secured important nationwide
produce distribution contracts from multiple retailers. We
believe that its operations can be integrated into the
divisions existing distribution network, thereby delivering
more efficient utilisation of the enlarged vehicle fleet and the
provision of the most cost-effective service for our customers.
Coolchain is especially well-positioned in Kent to serve both
local growers and importers whose products arrive via Dover
Docks, the Channel Tunnel and the nearby Sheerness deepwater
terminal.
We believe that this acquisition will enable the enlarged
distribution division to achieve the critical mass and economies
of scale necessary to support ongoing investment in the
business, particularly on IT and other systems and to secure its
position as the UK market leader in the fresh produce
distribution sector.
Aviation Services
Channel Express (Air Services) freighter aircraft fly on behalf
of express parcel companies, postal authorities, freight
forwarders and other airlines. Whilst the overall demand for
the rapid transportation of air cargo continues to grow, the
companys express parcel customers have experienced a lower rate
of growth in 1999 than in previous years.
Consequently, the growth in demand for the Groups 6 tonne
capacity Fokker F27s, 15 tonne Lockheed Electras and 45 tonne
Airbus A300 "Eurofreighters" has been less buoyant in the first
half. In October, therefore, the Group decided to take the
opportunity to sell one of its Eurofreighters - it is planned
that this will be replaced with a leased-in aircraft as demand
improves. We believe that the softer market conditions we are
experiencing are a reflection of the still flat continental
European economies and that the overall growth in express parcel
services and the demand for our cargo aircraft will improve as
these economies recover.
Channel Express (Air Services) Parts Trading operation, which
supplies Airbus parts to other operators and overhaul agencies,
continues to make satisfactory and profitable progress as it
widens its customer base. We expect it to become an
increasingly important source of revenue for our Aviation
Services Division in the future.
We are particularly encouraged by the progress during the year
of our freight management company, Benair Freight International,
which is now benefiting from its strengthened management and the
recovery in the Far Eastern economies. The recent improvements
in its sales and marketing function have resulted in a number of
new, prestigious freight management contracts. We are
optimistic that the company will make an increasingly valuable
contribution to the Group over the coming years.
Finally, I am pleased to report that trading in the second half
of the year continues satisfactorily.
Philip Meeson, Chairman
12 November 1999
UNAUDITED INTERIM CONSOLIDATED RESULTS
for the half year to 30 September 1999
Half year to Half year to Year to
30 September 30 September 31 March
1999 1998 1999
(unaudited) (unaudited) (audited)
Notes #000 #000 #000
TURNOVER 1 59,577 49,350 105,730
Net operating expenses (55,874) (45,751) (98,920)
_______ _______ ______
OPERATING PROFIT 3,703 3,599 6,810
Net interest payable (249) (574) (1,004)
Surplus on disposal
of fixed assets 1 62 299
_______ _______ ______
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 3,455 3,087 6,105
Taxation (1,026) (972) (1,936)
_______ _______ _____
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION 2,429 2,115 4,169
Dividends (497) (410) (1,380)
_______ _______ ______
RETAINED PROFIT FOR THE PERIOD 1,932 1,705 2,789
_______ _______ ______
EARNINGS PER SHARE
- basic 7.49p 6.55p 12.91p
- diluted 7.43p 6.48p 12.78p
_______ _______ _______
DIVIDEND PER SHARE 1.46p 1.27p 4.27p
_______ _______ _______
STATEMENT OF TOTAL
RECOGNISED GAINS AND LOSSES
Profit on ordinary activities
after taxation 2,429 2,115 4,169
Foreign exchange gain/(loss)
on foreign equity investments 5 (23) (15)
______ ______ ______
Total gains and losses
recognised in the period 2,434 2,092 4,154
______ ______ ______
CONSOLIDATED BALANCE SHEET
at 30 September 1999 1999 1999
30 September 31 March
(unaudited) (audited)
Notes #000 #000 #000 #000
FIXED ASSETS
Tangible assets 38,207 38,820
Investments 126 106
_______ ________
CURRENT ASSETS 38,333 38,926
Stock 1,473 1,435
Debtors 15,798 14,122
Cash at bank and in hand 11,864 9,147
_______ _____
29,135 24,704
CURRENT LIABILITIES
CREDITORS: amounts falling
due within one year (29,359) (25,867)
_______ _______
NET CURRENT (LIABILITIES) (224) (1,163)
_______ _____
TOTAL ASSETS LESS CURRENT
LIABILITIES 38,109 37,763
CREDITORS: amounts falling
due after more than one year (10,409) (14,942)
PROVISION FOR LIABILITIES
AND CHARGES (3,251) (3,251)
_______ _______
(13,660) (18,193)
_______ ______
24,449 19,570
_______ ______
CAPITAL AND RESERVES
Called up share capital 1,784 1,617
Share premium account 7,339 4,564
Profit and loss account 2 15,326 13,389
_______ ______
SHAREHOLDERS FUNDS -
equity interests 24,449 19,570
_______ ______
CONSOLIDATED CASH FLOW STATEMENT
for the half year to 30 September 1999
Half year to Half year to Year to
30 September 30 September 31 March
1999 1998 1999
(unaudited) (unaudited) (audited)
Notes #000 #000 #000
NET CASH INFLOW FROM
OPERATING ACTIVITIES 3 8,778 8,767 24,480
______ ______ ______
RETURNS ON INVESTMENT AND
SERVICING OF FINANCE
Interest paid: bank and
other loans (401) (709) (1,413)
Interest element of
finance lease rental
payments (31) (62) (103)
Interest received: bank 183 197 512
______ ______ ______
(249) (574) (1,004)
TAXATION
Corporation and advance
corporation tax paid (192) (173) (512)
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT
Purchase of tangible fixed assets(5,740) (8,791) (17,250)
Disposal of tangible fixed assets 140 615 2,159
______ ______ _______
(5,600) (8,176) (15,091)
EQUITY DIVIDENDS PAID (973) (807) (1,217)
______ _______ _______
CASH INFLOW/(OUTFLOW) BEFORE
MANAGEMENT OF LIQUID RESOURCES
AND FINANCING 1,764 (963) 6,656
MANAGEMENT OF LIQUID RESOURCES 4,549 - (4,549)
FINANCING
Ordinary share capital issued 2,942 20 37
Other loans repaid (1,670) (1,772) (3,441)
Bank loans repaid (172) (172) (346)
Capital elements of finance
lease rental payments (147) (200) (356)
_______ ______ ______
953 (2,124) (4,106)
INCREASE/(DECREASE) IN CASH
IN THE PERIOD 7,266 (3,087) (1,999)
______ _______ ________
NOTES TO THE INTERIM RESULTS
at 30 September 1999
1. TURNOVER
Half year to Half year to Year to
30 September 30 September 31 March
1999 1998 1999
(unaudited) (unaudited) (audited)
#000 #000 #000
Distribution 29,439 21,825 44,942
Aviation Services 30,138 27,525 60,788
______ _______ ______
59,577 49,350 105,730
______ _______ _______
Turnover arising within:
The United Kingdom and the
Channel Islands 58,932 48,840 104,663
The Far East 645 510 1,067
_______ _______ ________
59,577 49,350 105,730
======= ======= =======
Analyses of profit before taxation and net assets between the
different segments of the Group are not given as, in the opinion
of the directors, such analyses would be seriously prejudicial
to the commercial interests of the Group. Turnover to third
parties by destination is not materially different to that by
source and relates to continuing activities.
2. PROFIT AND LOSS ACCOUNT
Half year to Year to
30 September 31 March
1999 1999
(unaudited) (audited)
#000 #000
Balance at the beginning of the period 13,389 10,615
Retained profit for the period 1,932 2,789
Currency translation differences 5 (15)
_______ _____
15,326 13,389
______ ______
3. RECONCILIATION OF OPERATING PROFIT TO
NET CASH FLOW FROM OPERATING ACTIVITIES
Half year to Half year to Year to
30 September 30 September 31 March
1999 1998 1999
(unaudited) (unaudited) (audited)
#000 #000 #000
Operating Profit 3,703 3,599 6,810
Depreciation 4,932 6,290 15,315
(Increase)/decrease in stock (38) (90) 43
(Increase) in debtors (1,252) (1,158) (1,689)
Increase in creditors 1,428 149 4,016
Exchange differences 5 (23) (15)
______ ______ ______
Net cash inflow from
operating activities 8,778 8,767 24,480
______ ______ ______
4. RECONCILIATION OF NET CASH FLOW
TO MOVEMENT IN NET DEBT
Half year to Year
to
30 September 31 March
1999 1999
(unaudited) (audited)
#000 #000
Increase/(decrease) in cash
in the period 7,266 (1,999)
(Decrease)/increase in short
term deposits (4,549) 4,549
Cash outflow from decrease
in net debt in the period 1,989 4,143
_______ ______
Change in net debt in the period 4,706 6,693
Net debt at 1 April (7,072) (13,765)
______ ______
Net debt at end of period (2,366) (7,072)
______ ______
5. YEAR 2000 COMPLIANCE STATEMENT
The Group is fully aware of the serious implications of
disruption to business operations as a result of Year 2000 date
problems.
Given the complexity of the problem, it is not possible for any
organisation to guarantee that no Year 2000 problems will
remain. The Group has now completed the testing of its business
critical internal computer systems which it believes are now
fully millennium ready. It has also completed the audit of its
mission critical suppliers to ensure that they too have fully
dealt with Year 2000 issues and there will be no disruption to
the service they supply to Group companies. The Group has also
drawn up detailed contingency plans which will be continually
updated and revised to minimise any possible disruption to its
business. The costs of the Year 2000 compliance have not been
separately analysed out from the investments made in upgrading
the Groups computer systems, as the incremental expenditure is
not material.
As a result of the action the Group has taken and will take,
customers, suppliers and investors can have every expectation
that its businesses will continue to function in such a way that
no disruption to either its own or its clients businesses will
result from the Year 2000 problem.
6. OTHER MATTERS
The financial information for the year to 31 March 1999 does not
constitute statutory accounts, as defined in Section 240 of the
Companies Act 1985, but is based on the statutory accounts for
the year then ended. Those accounts, upon which the auditors
issued an unqualified opinion, have been delivered to the
Registrar of Companies.
The accounts to 30 September 1999 have been prepared using
accounting policies consistent with those adopted for the year
to 31 March 1999.
Basic earnings per share has been calculated by reference to
earnings of #2,429,000 (1998 : #2,115,000) and a weighted
average number of ordinary shares in issue of 32,425,030 (1998:
32,282,759).
This report is being sent to all shareholders and copies are
available from the Company Secretary at the registered office of
the Company, Building 470, Bournemouth International Airport,
Christchurch, Dorset, BH23 6SE.
END
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