RNS Number:1548N
Dart Group PLC
15 November 2001
FOR IMMEDIATE RELEASE 15 November 2001
DART GROUP PLC
Interim Results for the Six Months Ended 30 September 2001
Dart Group PLC, the distribution and aviation services group, announces its
interim results for the six months ended 30 September 2001.
CHAIRMAN'S STATEMENT
I am pleased to report on the Group's trading for the six months ended 30
September 2001. Profit before tax, and before the amortisation of goodwill,
has risen to #5.2m (2000: #4.9m) on turnover of #99.2m (2000: #94.4m).
Earnings per share, before the amortisation of goodwill, were 10.38p (2000:
9.91p). Net borrowings have increased to #22.8m (31 March 2001: #2.3m).
This increase has primarily arisen as a result of new loans taken out to
finance the purchase of two Boeing 737-300QC aircraft. Gearing at 30
September 2001 was 70% (31 March 2001: 8%)
The Board has declared an increased interim dividend of 1.85p per share
(2000: 1.8p). The dividend will be paid on 4 January 2002 to shareholders
on the register as at 23 November 2001.
Whilst not directly affected by the events of 11 September, Group companies
are experiencing tighter trading conditions and our cargo airline, Channel
Express (Air Services), higher insurance costs. The second half of the
financial year will, therefore, be challenging but we remain optimistic that
the Group will continue to successfully develop its Distribution and Aviation
Services' activities.
Distribution
The Dart Distribution companies, Coolchain, Fowler Welch and Channel Express
(CI) provide specialist road distribution services to fresh produce,
horticulture and chilled and frozen food suppliers that serve the UK's leading
supermarkets and wholesale markets throughout the country. The companies also
provide a range of value-adding services such as sorting, grading, pre-packing
and storage of fresh produce and horticultural products. They operate through
a network of regional consolidation and distribution centres strategically
sited in the country's main producing and importing areas. Dutch subsidiary,
Fowler Welch BV, based close to the ports of Rotterdam and the Hook of
Holland, principally serves the dynamic Dutch horticultural industry that
supplies leading UK retailers.
There is no doubt that the wet winter, the less buoyant economy and the
national foot and mouth epidemic brought immense problems to the countryside
in general. This affected both the supply of and, through the downturn in
the number of visitors to this country, the demand for fresh produce.
Consequently, the volumes distributed by our business resulted in lower
growth than expected in the first half, however, operating costs have been
carefully managed to mitigate this situation as far as possible.
Predictably, the division's retail customers continue to seek efficiencies and
economies in their supply chains and so, our management co-operates closely
with them to continually develop cost-effective services and seek new business
opportunities. As a result, in Kent, Coolchain recently won additional
pre-packing work on behalf of a major fresh produce supplier, and in
Lincolnshire, Fowler Welch is commissioning a new national distribution
initiative for horticultural products on behalf of a major supermarket. New
business is also being won in the chilled and frozen sectors.
The Dart Distribution companies are particularly focusing their attention on
network efficiencies that will result from the integration of the individual
companies' transport operations. Significantly, the first phase of the
division's new single operating IT system was successfully implemented on
time when Coolchain's Portsmouth and Southampton operations went live. The
roll-out programme continues throughout the division's consolidation centres
and full implementation is on target for June 2002. Traffic managers will
then, for the first time, have on-line visibility across the division's
entire vehicle fleet which will lead to the greatly improved co-ordination and
utilisation of operating resources.
Dart Distribution is the country's leading distributor of fresh produce and
horticultural products and is well-positioned to take advantage of both the
continued growth and consequent commercial opportunities in the sector. The
Group's policy remains to grow the division both organically and through
carefully selected acquisitions.
Aviation Services
The companies within this division are Channel Express (Air Services), which
operates a fleet of 15 freighter aircraft on behalf of express parcel
companies, postal authorities, freight forwarders and other airlines, and
Benair Freight International, which manages international freight movements on
behalf of a wide customer base.
In June and August of this year, Channel Express (Air Services) commenced
operating two Boeing 737-300 "Quick Change" aircraft replacing two of the
company's Lockheed Electras which have been retired. The two Boeing
737-300s, based at Stansted and Edinburgh airports, operate night mail
flights on behalf of Consignia plc and day-time passenger charters for a
varied customer base, which includes orchestras, football teams and their
supporters, incentive groups and conferences. The Quick Change concept
allows the interior of the aircraft to be changed between freighter and
passenger roles in less than 45 minutes and significantly widens the company's
potential customer base.
The company's Airbus A300 "Eurofreighters" and Fokker F27s are fully
contracted to the delivery of overnight express parcels, newspapers and mail
and supplement their income with additional charters, often to meet the
just-in-time delivery needs of vehicle and other manufacturers. In the
present economic climate, our customers' careful control of costs is limiting
the amount of additional charter revenue, whilst at the same time the company
has incurred increased insurance costs post 11 September. However, we
remain optimistic that the air cargo market will maintain its traditional
year-on-year growth as global economic confidence resumes. Therefore,
although naturally cautious in the current economic and political climate, the
Group intends to increase the Boeing 737-300 fleet as its business for the
type develops.
Channel Express Parts Trading, the company's aircraft parts business, has had
a successful half year. The company has dismantled a further two A300
aircraft for their parts and continues to support both the Group's own
aircraft and those of its many other customers. Parts Trading is also
developing its capability to market and deal in parts for the Boeing 737
series in line with the Group's acquisition of that type.
Benair Freight International has had an encouraging six months trading. The
company's offices in London, Manchester, East Midlands and Newcastle, together
with the wholly-owned Singapore business are each generating increased levels
of business and the specialist ornamental fish business continues to grow.
Outlook
Finally, I am pleased to report that trading during the second half of the
year continues satisfactorily.
Philip Meeson,
Chairman 15 November 2001
For further information on Dart Group PLC and its subsidiary companies please
visit our website, www.dartgroup.co.uk
UNAUDITED INTERIM CONSOLIDATED RESULTS
for the half year to 30 September 2001
Half year Half year
to to Year to
30 September 30 September 31 March
2001 2000 2001
(unaudited) (unaudited) (audited)
Note #'000 #'000 #'000
Turnover - continuing operations 1 99,225 94,407 190,912
Net operating expenses, excluding
amortisation of goodwill (93,323) (89,212) (180,630)
Amortisation of goodwill (248) (248) (497)
Net operating expenses (93,571) (89,460) (181,127)
Operating profit - continuing operations 5,654 4,947 9,785
(Loss)/Profit on disposal of fixed (13) 42 18
assets
Net interest payable (680) (292) (592)
Profit on ordinary activities before 4,961 4,697 9,211
taxation
Taxation (1,657) (1,564) (3,085)
Profit on ordinary activities after 3,304 3,133 6,126
taxation
Dividends (633) (614) (2,040)
Retained profit for the period 2,671 2,519 4,086
Earnings per share
- basic 9.65p 9.19p 17.94p
- basic, excluding the amortisation of 10.38p 9.91p 19.40p
goodwill
- diluted 9.55p 9.10p 17.77p
Dividend per share 1.85p 1.80p 5.96p
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Half year Half year
to to Year to
30 September 30 September 31 March
2001 2000 2001
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Profit on ordinary activities after 3,304 3,133 6,126
taxation
Foreign exchange gain on foreign
equity investments 6 21 33
Total gains and losses recognised in the 3,310 3,154 6,159
period
CONSOLIDATED BALANCE SHEET
at 30 September 2001
30 September 31 March
2001 2001
(unaudited) (audited)
Note #'000 #'000
Fixed assets
Intangible assets 9,023 9,271
Tangible assets 51,637 41,534
Investments 59 59
60,719 50,864
Current assets
Stock 2,943 1,756
Debtors 31,463 29,965
Cash at bank and in hand 3,178 7,061
37,584 38,782
Current liabilities
Creditors: amounts falling due
within one year (39,313) (49,301)
Net current liabilities (1,729) (10,519)
Total assets less current liabilities 58,990 40,345
Creditors: amounts falling due after
more than one year (20,930) (6,790)
Provision for liabilities and charges (5,335) (3,569)
(26,265) (10,359)
32,725 29,986
Capital and reserves
Called up share capital 1,713 1,710
Share premium account 7,610 7,551
Profit and loss account 2 23,402 20,725
Shareholders' funds - equity interests 32,725 29,986
CONSOLIDATED CASH FLOW STATEMENT
for the half year to 30 September 2001
Half year Half year
to to
30 30 Year to
September September 31 March
2001 2000 2001
(unaudited) (unaudited) (audited)
Note #'000 #'000 #'000
Net cash inflow from operating 3 10,640 13,355 24,909
activities
Returns on investment and
servicing of finance
Interest paid: bank and other loans (697) (472) (832)
Interest element of finance lease rental (13) (20) (44)
payments
Interest received: bank 30 200 284
(680) (292) (592)
Taxation
Corporation tax paid (1,016) (252) (2,089)
Capital expenditure and financial
investment
Purchase of tangible fixed assets (28,456) (7,462) (13,620)
Disposal of tangible fixed assets 397 528 743
(28,059) (6,934) (12,877)
Equity dividends paid (1,422) (1,179) (1,798)
Cash (outflow)/ inflow before financing (20,537) 4,698 7,553
Financing
Share capital issued 62 68 120
Other loans repaid (1,698) (3,374) (7,583)
Bank loans repaid (174) (173) (346)
Other loans advanced 18,595 - -
Finance lease capital (131) (176) (338)
16,654 (3,655) (8,147)
(Decrease)/Increase in cash in the (3,883) 1,043 (594)
period
NOTES TO THE INTERIM RESULTS
at 30 September 2001
1. Turnover
Half year to Half year to Year to
30 September 30 September 31 March
2001 2000 2001
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Distribution 61,676 57,815 116,065
Aviation Services 37,549 36,592 74,847
99,225 94,407 190,912
Turnover arising within:
The United Kingdom and the Channel 96,238 91,841 185,931
Islands
Mainland Europe 2,236 1,836 3,300
The Far East 751 730 1,681
99,225 94,407 190,912
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.
2. Profit and loss account
Half year to Year to
30 September 31 March
2001 2001
(unaudited) (audited)
#'000 #'000
Balance at the beginning of the period 20,725 16,606
Retained profit for the period 2,671 4,086
Currency translation differences 6 33
23,402 20,725
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
2001 2000 2001
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Operating profit 5,654 4,947 9,785
Depreciation 6,658 7,548 14,690
Amortisation of goodwill 248 248 497
(Increase)/decrease in stock (1,187) (243) 17
Increase in debtors (1,497) (4,712) (4,776)
Increase in creditors 758 5,546 4,663
Exchange differences 6 21 33
10,640 13,355 24,909
NOTES TO THE INTERIM RESULTS
at 30 September 2001
4. Reconciliation of net cash flow to movement in net debt
Half year Half year
to to
30 30 Year to
September September 31 March
2001 2000 2001
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
(Decrease)/increase in cash in the period (3,883) 1,043 (594)
Cash (inflow)/outflow from (increase)/
decrease
in net debt in the period (16,592) 3,723 8,267
Change in net debt in the period (20,475) 4,766 7,673
Net debt at 1 April (2,326) (9,999) (9,999)
Net debt at end of period (22,801) (5,233) (2,326)
5. Other matters
The financial information for the year to 31 March 2001 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 2001 have been prepared using
accounting policies consistent with those adopted for the year to 31 March
2001.
Basic earnings per share has been calculated by reference to
earnings of #3,304,000 (2000 : #3,133,000) and a weighted average number of
ordinary shares in issue of 34,221,983 (2000:34,111,600).
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.
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