RNS Number:1788Z
Dart Group PLC
28 June 2007
DART GROUP PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31 MARCH 2007
Dart Group PLC, the aviation services and distribution group, announces its
preliminary results for the year ended 31 March 2007.
CHAIRMAN'S STATEMENT
I am pleased to report on the Group's trading for the year ended 31 March 2007.
Profit before tax, goodwill amortisation and exceptional items amounted to
#16.6m (2006 - #14.5m restated). Profit before tax and after goodwill
amortisation and exceptional items amounted to #18.1m (2006 - #14.8m restated).
Turnover was #352.0m (2006 - #310.6m). Earnings per share before the
amortisation of goodwill and exceptional items were 8.78p (2006 - 7.11p
restated), whilst basic earnings per share were 9.73p (2006 - 7.95p restated).
The Board is recommending a final dividend of 1.430p (2006 - 1.295p), taking the
total dividend for the year to 2.08p (2006 - 1.86p), an increase of 12%. The
dividend, if approved, will be payable on 24 August 2007 to shareholders on the
register on 6 July 2007. The lower tax charge of 25% is as a result of the
largely tax free gain on the Channel Islands' business disposal together with a
number of prior year tax credits, both of which are unlikely to re-occur in
the future.
In total, capital expenditure amounted to #71.8m (2006 - #48.7m), and mainly
related to the acquisition of five Boeing 757-200 aircraft, spare engines and
the Group's spending on capitalised aircraft maintenance. As at 31 March 2007
the Group's net debt amounted to #14.1m (2006 - #5.5m). Gearing as
at 31 March 2007 was 20% (2006 - 9%).
In excess of 72% of the expected 2007/08 Jet2.com fuel requirements have been
hedged for the year ending 31 March 2008, together with 100% of the forecast US$
requirements. Neither Jet2.com's contract charter operations nor Fowler
Welch-Coolchain currently has any material exposure to oil price risk as this is
substantially covered in their commercial contracts.
The Group completed the sale of its non-core Channel Islands' distribution
business on 3 July 2006. The exceptional credit of #2.2m relates to the surplus
of proceeds over book cost.
Jet2.com
Jet2.com, the Group's low-cost airline, expanded its operations from each of its
six Northern UK bases during the year. The move of the administration and
operational offices to Leeds Bradford International Airport was substantially
completed and the Group's owned fleet increased to 29 aircraft with the addition
of the five Boeing 757-200 aircraft. Leased-in aircraft have also been operated
to meet seasonal demand.
Jet2.com's aim is to be the leading supplier of scheduled leisure flights from
the North and the brand is aggressively promoted to achieve the public's
recognition, via on-line advertising, press, posters, TV and radio. During the
year the number of destinations served increased to 38 for summer 2007
(2006: 31). Passengers carried are forecast to rise to 4.3m compared to 3.0m in
the year ended 31 March 2007. The company also operates night-time mail flights
on behalf of Royal Mail and many series and individual charter flights for a
diverse customer base.
In the autumn of 2006 the company commenced services to The Canary Islands from
Leeds Bradford, Manchester, Newcastle, Belfast and Blackpool utilising Boeing
757 aircraft. During the winter of 2007/08 up to 27 services a week will be
flown to Tenerife, Gran Canaria and Lanzarote. It is also planned to introduce
other year-round sun destinations. The company's policy is to offer the lowest
possible fares throughout its network. The revenue from these is supplemented
with value-added ancillary revenue streams such as commission on sales of
insurance, hotels and car hire together with the profits on sales of in-flight
food, drink and gifts. The associated revenues per passenger for the current
year are forecast to increase considerably over that achieved in the last
financial year.
In February 2007, Jet2holidays.com was launched to offer flexible duration
flight, transfers and hotel packages linked, primarily, to our scheduled
services. Whilst this is a highly competitive market, we believe that by
packaging attractive hotels with our low fares we can give our leisure customers
great value holidays. The concept is currently being marketed on a limited basis
whilst the mechanics of the process are developed. However, we are pleased that
customer feedback to date has been good and we look forward to putting full
promotional spend behind the product for the next year.
Jet2.com aims to expand its business by serving traditional leisure markets at
highly competitive prices and developing a range of longer distance low-cost
services that meet the aspirations of leisure travellers. Obviously routes take
time to develop and costs are incurred in building volumes and taking market
share. We will be continuing investment in new routes over the coming year so
profit growth in this area of our business is likely to be flat.
Fowler Welch-Coolchain
The Group's logistics company, Fowler Welch-Coolchain, made considerable
progress in the last financial year with new business wins, increased sales and
improved profits. The company primarily provides an integrated supply chain
solution to supermarkets and their suppliers as well as food manufacturers,
growers and importers. Capabilities include both chilled and ambient (non
temperature-controlled) distribution together with warehousing and pick-to-order
services. The company's warehousing and picking operations, which feed the
distribution network, continue to expand with substantial new business wins at
both Kent and Spalding sites during the year. Volume is important to the
business to increase the load fill of the distribution vehicles.
On 28 April 2006, Fowler Welch-Coolchain acquired the business and assets of R F
Fielding Cheshire Ltd (In Administration), for a de minimis sum. This business
specialises in ambient distribution from its base in North West England.
Employee numbers amounted to 226 and the business utilised 79 tractor units and
133 trailers. It is operated from a 187,500 sq.ft leased premises in Stockport.
Not only has this acquisition provided a foothold in this larger market, it has
also improved the utilisation of the transport fleet via network synergies.
A 40,000 sq.ft. freehold facility on an 8 acre site was acquired in Washington,
Tyne and Wear, on 4 September 2006 This facility replaced the company's existing
premises in Gateshead and is being fitted out for temperature-controlled storage
and distribution. It will provide the North East England platform for growth in
both the company's chilled and ambient business.
It is Fowler Welch-Coolchain's strategy to invest and grow its chilled and
ambient distribution businesses and warehousing by a combination of organic
growth and selective acquisition.
Our Staff
The relocation of Dart Group's and Jet2.com's operational and administrative
headquarters to Leeds Bradford International Airport has now been substantially
completed and I am extremely grateful to the majority of the key staff who have
made the move and ensured that the companies' operations have continued
seamlessly.
We will be sorry to lose our Group Finance Director, Mike Forder, in July and
thank him for his substantial contribution to the Group's development.
However, we are very pleased to welcome his successor, Andrew Merrick, FCMA, who
joins us on 2 July from Bradford and Bingley PLC where he was Director of
Finance. Before, from 1988 to 1997, Andrew had a successful career at Thomas
Cook Group where he undertook a number of operational finance roles. Prior to
this Andrew worked for the international division of Midland Bank Limited.
Andrew will bring valuable banking and travel industry experience to the Group.
It is important to acknowledge the dedication and hard work of each of the
Group's operational and administrative staff in both Fowler Welch-Coolchain and
Jet2.com. Both businesses are customer-focused and operationally demanding at
all hours of the day. We are grateful to all and look forward to continuing to
grow our business together.
Outlook
We expect to grow both our businesses organically in the year ahead, with also
the possibility of selective acquisitions in Fowler Welch-Coolchain when there
are sensibly priced opportunities.
In the competitive scheduled low-cost travel market, which is becoming
progressively later booking and therefore more difficult to predict, whilst our
235 seat Boeing 757s differentiate our product and capabilities from several of
our competitors, new routes take time and money to develop to profitability.
However, the consolidation of the major tour operators, who currently have large
capacity to many of the destinations we also serve, should give real
opportunities both for our scheduled business and Jet2holidays.com. Therefore,
overall, whilst I believe it is unlikely that the Group's profits will increase
this year, growth should resume thereafter.
Philip Meeson
Chairman 28 June 2007
For further information about Dart Group PLC and its subsidiary companies please
visit our website, www.dartgroup.co.uk
REVIEW OF OPERATIONS
Jet2.com
Jet2.com now operates 29 owned Boeing 737-300 and Boeing 757-200 aircraft with
additional capacity leased-in seasonally, as needed, to meet demand, from its
six airport bases in the North - Leeds Bradford, Manchester, Newcastle, Belfast,
Blackpool and Edinburgh. The company has a thriving passenger charter business
and a long-term contract with Royal Mail to fly its unique Boeing 737-300 "Quick
Change" aircraft on nightly mail flights throughout the UK. Following these
flights, the aircraft are reconfigured to make a full operational contribution
to the company's passenger flying programme.
The company has now substantially completed the move to Leeds Bradford
International Airport - even transporting its Portacabin "duplex" office
buildings from Bournemouth for occupation at the new airport site. Some
engineering administration functions, together with the management of the Royal
Mail operation, will remain in Bournemouth.
The company has significantly increased the number of city, sun and snow
destinations it serves from each of its bases this year. Five new routes were
opened from Leeds Bradford, eight from Manchester, seven from Newcastle, five
from Belfast and four from Blackpool. For further details, visit our website at
www.jet2.com.
The company believes that The Canary Islands, which have formerly mainly been
served by charter flights, will become an increasingly popular scheduled service
destination, ideally suited to the performance of our 235 seat Boeing 757
aircraft. After successful services last winter to Tenerife and Lanzarote we
will be operating up to 27 flights a week to the Islands this financial year.
The Canary Islands Tourist Authorities will actively promote the destinations
throughout our region and bookings to date are encouraging. The company plans to
further expand its longer distance services and winter sun routes to enhance our
overall offering to our customers.
Our ancillary revenues are a vital contributor to our income and allow the
company to offer the lowest possible fares. Ancillary revenue per passenger
increased by 39% in the year ended 31 March 2007 and it is anticipated further
growth will be achieved in the new financial year. Contributing to this are
charges for hold bags, extra leg room, seat allocation, internet check-in,
commissions on sales of insurance, hotel and car hire and profits from on-board
sales of food, beverages and gifts. The promotion of this sector of the business
is hugely important. Crews are highly incentivised to continually increase
on-board sales and great effort is made to introduce new products and find the
best and most competitive providers.
The company is also working hard to ensure that its aircraft are flown in the
most environmentally friendly and fuel efficient way. A full time project
General Manager is committed to continuous monitoring of our fuel and
environmental performance.
Jet2.com is committed to contracting out many of its support operations, such as
its call centre and purchase ledger functions, which are now handled extremely
capably in India. However, it was decided this year to undertake our own
check-in and handling of passengers and aircraft at Leeds Bradford and in
several airports in Spain. By bringing these operations in-house, we will offer
a better more efficient service at a competitive price. Our aim is to be
regarded as a friendly airline with good customer service. We know that our
staff will achieve this.
During the year the company acquired five Boeing 757-200 aircraft. The Boeing
757-200 is a versatile aircraft able to carry up to 235 passengers over 3,000
miles. Its overall performance is particularly suited to Leeds Bradford which is
a high airport with some operational constraints. The Boeing 757-200 allows the
company to offer a range of destinations from both Leeds Bradford and its other
bases that other aircraft cannot match. At the same time it is extremely
environmentally friendly in terms of noise, fuel efficiency and emissions. We
expect to increase our Boeing 757 fleet over the coming years and also to
operate similar, larger types which will allow our customers to explore an
expanding range of popular destinations at the lowest possible fares.
On 17 June 2007, we were pleased to sign a 15 year agreement with Pratt &
Whitney for the fixed-price maintenance of the CFM56-3 series engines which
power our Boeing 737-300 aircraft. Pratt & Whitney will also increasingly
supply various parts that they will manufacture for this engine under their
Global Material Solutions Programme. This agreement brings both price certainty
and cost reductions. We look forward to a long and successful association with
Pratt & Whitney.
The company now operates seven Boeing 737 Quick Change and one Freighter for the
Royal Mail nightly. These are based at Newcastle, Belfast, Edinburgh, Stansted
and Exeter. The Northern based aircraft fly Jet2.com passenger services during
the day before their 40 minute transformation into mail aircraft, during which
the seats are removed and mail loaded in containers. The Stansted based aircraft
also flies a very busy charter programme both for tour operators, specialist
holiday providers, and in support of promotional and sporting events. This is a
business in which the company has a long history of success and which we expect
to further develop in the future alongside our low-cost services.
Fowler Welch-Coolchain
Fowler Welch-Coolchain has distribution centres strategically located in
Spalding, Lincs, Teynham, Kent, Stockport, Cheshire, and Washington, Tyne and
Wear, and is one of the UK's leading temperature-controlled distribution
businesses, specialising in the distribution of fresh produce and chilled foods
on behalf of UK supermarkets, other multiple retailers and their suppliers. In
addition the business has substantial pick-to-order and warehousing
capabilities, together with a growing ambient (non temperature-controlled)
distribution business. It is the company's strategy to grow and invest in each
of these business areas. During the year considerable investment has been
made in the development of the company's IT systems to ensure the most cost-
effective and efficient service is delivered to our customers.
The distribution market place is, of course, very competitive and cost-
conscious. Nevertheless despite these challenges the company grew its business
this year with increased sales in both chilled distribution, pick-to-order and
warehousing operations, as well as building its new revenue stream in ambient
distribution.
On 28 April 2006, the Group acquired the business and assets of R F Fielding
Cheshire Ltd (In Administration), a business specialising in ambient
distribution to major retailers and other wholesalers. Sales in this area are
expected to grow in 2007/08 due to a new business win from a major supermarket
group. As a result of its strategic location in Stockport, Cheshire, more
efficient fleet synergy and utilisation for the whole distribution business has
been achieved through the new flows of product for distribution from the North
West.
On 3 July 2006, the Group sold its Channel Islands' transport and distribution
business to a third party specialising in this sector of the market. In the
light of the decline in the Channel Islands' horticultural industry, the Board
considered this business was no longer core, and that management time should be
freed up to concentrate on growing the mainland UK logistics operations.
Pick-to-order operations have been an important area of growth in recent years
and this trend continued in 2006/07. In a typical week Fowler Welch-Coolchain
picks and delivers approximately 1 million cases of prepared meats, cheeses,
ready meals and pasta. An ambient goods picking operation is also carried out in
Stockport providing important volumes which feed into the distribution network.
The new computer system to support the growth in this market segment is also
currently being implemented.
The lack of warehouse space and associated facilities for vehicles at the
Gateshead site had become a constraint on growth in this region. It was,
therefore, necessary to find bigger premises to enable the company to tender for
larger contracts in this area. During the year a new 8 acre freehold site was
purchased in Washington, Tyne and Wear. The 40,000 sq.ft. warehouse facility,
which is currently being converted for the company's operations, will
be the first multi-purpose ambient and chilled warehouse in the business, thus
enabling both ambient and chilled distribution customers to be serviced from the
same depot. Although the premises are currently operational, further coldstores
and seven loading bays are presently being built. When complete, the new
building, costing in the region of #5.5m, will provide a first-class facility
for customers in this important region.
Fowler Welch-Coolchain offers a quality logistics solution to supermarkets,
growers and food manufacturers based both in the UK and mainland Europe. With
the recent investments in new premises in the North East of England, together
with the ambient business in the North West the business offers a truly national
solution to its customers' supply chain needs.
The ongoing need to be cost competitive remains a key business driver and the
company believes that as volumes grow it will increase its competitiveness in
the marketplace. Looking forward, the business anticipates a further year of
growth in 2007/08 and is confident that it is competitively placed to take full
advantage of the opportunities in this sector in the future.
For further information contact:
Dart Group PLC Tel: 01202 597676
Philip Meeson, Mobile: 07785 258666
Group Chairman and Chief Executive
Mike Forder, Mobile: 07721 865850
Group Finance Director
Group Profit And Loss Account
for the year ended 31 March 2007
Notes 2007 2007 2007 2006 2006 2006
Before Exceptional Before
exceptional items exceptional Exceptional
items (note 5) Total items items Total
(restated) (note 5) (restated)
#m #m #m #m #m #m
Turnover 1
Continuing
operations 349.0 - 349.0 289.6 - 289.6
Discontinued
operations 3.0 - 3.0 21.0 - 21.0
-------- -------- ------ -------- -------- -------
352.0 - 352.0 310.6 - 310.6
-------- -------- ------ -------- -------- --------
Net operating
expenses
Excluding goodwill
amortisation (332.8) (0.1) (332.9) (296.6) (6.2) (302.8)
Goodwill
amortisation (0.5) - (0.5) (0.5) - (0.5)
-------- -------- ------ -------- -------- --------
Net operating
expenses (333.3) (0.1) (333.4) (297.1) (6.2) (303.3)
-------- -------- ------ -------- -------- --------
Operating profit
Continuing
operations 18.5 (0.1) 18.4 12.4 (6.2) 6.2
Discontinued
operations 0.2 - 0.2 1.1 - 1.1
-------- -------- ------ -------- -------- --------
18.7 (0.1) 18.6 13.5 (6.2) 7.3
Profit on
disposal of
discontinued
operations - 2.2 2.2 - 3.7 3.7
(Loss)/profit
on disposal of
fixed assets - (0.1) (0.1) - 3.3 3.3
Net interest
(including
exchange
(loss)/gains) (2.6) - (2.6) 0.5 - 0.5
-------- -------- ------ -------- -------- --------
Profit on
ordinary
activities
before
taxation 16.1 2.0 18.1 14.0 0.8 14.8
Taxation (4.3) (0.2) (4.5) (4.7) 0.9 (3.8)
-------- -------- ------ -------- -------- --------
Profit for the
year 11.8 1.8 13.6 9.3 1.7 11.0
-------- -------- ------ -------- -------- --------
Earnings per share - total
- basic 8.42p 9.73p 6.75p 7.95p
- diluted 8.36p 9.66p 6.70p 7.89p
Earnings per share
- continuing operations
- basic 8.10p 7.98p 6.19p 4.74p
- diluted 8.04p 7.92p 6.15p 4.70p
Earnings per
share - discontinued
operations
- basic 0.32p 1.75p 0.56p 3.21p
- diluted 0.32p 1.74p 0.55p 3.19p
Statement of Total Recognised Gains and Losses
for the year ended 31 March 2007
2007 2006
(restated)
#m #m
------------ --------
Profit on ordinary activities after taxation 13.6 11.0
------------ --------
Total recognised gains and losses relating to the 13.6 11.0
period ------------ --------
Prior year adjustment
FRS20 share based payment expense (note 6) (0.3) -
------------ --------
Total recognised gains and losses since previous 13.3 11.0
annual report ------------ --------
Balance Sheet
at 31 March 2007
Group
2007 2006
Notes #m #m
--------- ---------
Fixed assets
Intangible assets 6.3 6.8
Tangible assets 179.1 131.5
--------- ---------
185.4 138.3
Current assets
Stock 8.2 7.5
Debtors 44.0 23.8
Cash at bank and in hand 3.9 26.0
--------- ---------
56.1 57.3
Current liabilities
Creditors: amounts falling due (138.1) (98.6)
within one year
--------- ---------
Net current liabilities (82.0) (41.3)
--------- ---------
Total assets less current liabilities 103.4 97.0
Creditors: amounts falling due after (18.0) (28.0)
more than one year
Provisions for liabilities (14.3) (9.7)
--------- ---------
Net assets 71.1 59.3
--------- ---------
Capital and reserves
Called up share capital 1.8 1.7
Share premium account 9.2 8.6
Profit and loss account 60.1 49.0
--------- ---------
Shareholders' funds - equity interests 2 71.1 59.3
--------- ---------
Group Cash Flow Statement
for the year ended 31 March 2007
2007 2006
Note #m #m
---------- --------
Net cash inflow from operating activities 3 62.2 41.0
Returns on investment and servicing of finance (1.1) (1.6)
Taxation (1.0) (5.2)
Capital expenditure and financial investment (69.0) (45.5)
Disposal of subsidiary undertakings 3.8 4.0
Equity dividends paid (2.7) (2.4)
---------- --------
Cash outflow before financing (7.8) (9.7)
Financing (12.8) 6.8
---------- --------
Decrease in cash in the year (20.6) (2.9)
---------- --------
Reconciliation of net cash flow to movement in net debt
2007 2006
#m #m
---------- --------
Decrease in cash in the year (20.6) (2.9)
Cash outflow/(inflow) from the decrease/(increase) in
debt in the year 13.5 (6.2)
---------- --------
Change in net debt resulting from cash flows (7.1) (9.1)
Exchange differences (1.5) 1.2
Net debt at 1 April (5.5) 2.4
---------- --------
Net debt at 31 March (14.1) (5.5)
---------- --------
NOTES
1. Turnover
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.
2007 2006
(restated)
#m #m
Distribution
- continuing operations 110.0 95.2
- discontinued operations 3.0 11.5
Aviation Services
- continuing operations 239.0 194.4
- discontinued operations - 9.5
-------- --------
352.0 310.6
-------- --------
2007 2006
(restated)
#m #m
Turnover arising :
- Continuing operations
Within the United Kingdom and the Channel Islands 156.2 164.3
Between the United Kingdom and Mainland Europe 192.8 125.3
- Discontinued operations
Within the United Kingdom and the Channel Islands 3.0 20.6
Within the Far East - 0.4
-------- --------
352.0 310.6
-------- --------
On 28 April 2006 Fowler Welch-Coolchain Limited acquired the trade and assets of
R F Fielding Cheshire Limited (In Administration) for a de minimis sum. No
goodwill arose on the acquisition and there have been no fair value adjustments
in respect of the assets acquired. The turnover reflected in the Group Profit
and Loss Account in respect of this business amounted to #14.5m during the year.
There were no material profits arising in respect of this business in the year.
2. Reconciliation of movements in equity shareholders' funds
Group
2007 2006
(restated)
#m #m
Profit for the year 13.6 11.0
Dividends paid in the year (2.7) (2.4)
Reserves movement arising from share based
payment charge 0.2 0.2
--------- ---------
11.1 8.8
Issue of shares under share option schemes 0.7 0.6
--------- ---------
Net addition to shareholders' funds 11.8 9.4
Opening equity shareholders' funds 59.3 49.9
--------- ---------
Closing equity shareholders' funds 71.1 59.3
--------- ---------
3. Reconciliation of operating profit to net cash flow from operating activities
2007 2006
(restated)
#m #m
Operating profit 18.6 7.5
Depreciation and impairment 20.9 16.6
Amortisation of goodwill 0.5 0.5
Increase in stock (0.7) (2.9)
(Increase)/decrease in debtors (21.5) 1.7
Increase in creditors 44.2 17.4
Share based payments charge 0.2 0.2
--------- --------
Net cash inflow from operating activities 62.2 41.0
--------- --------
4. Earnings per share
The calculation of basic earnings per share is based on earnings for the year
ended 31 March 2007 of #13,627,637 (2006 as re-stated : #11,009,520). The
calculation of basic earnings per share before exceptional items is based on
earnings for the year ended 31 March 2007 of #11,795,637 (2006 as restated :
#9,349,144). Both calculations are based on 140,073,882 shares (2006 -
138,469,604) being the weighted average number of shares in issue for the year.
The calculation of diluted earnings per share is based on earnings for the year
ended 31 March 2007 of #13,627,637 (2006 as restated : #11,009,520). The diluted
earnings per share before exceptional items is based on earnings for the year
ended 31 March 2007 of #11,795,637 (2006 as restated : #9,349,144). Both
calculations are based on 141,122,024 ordinary shares (2006 - 139,488,044)
calculated as follows:
2007 2006
Basic weighted average number of shares 140,073,882 138,469,604
Dilutive potential ordinary shares:
Employee share options 1,048,142 1,018,440
------------ ------------
141,122,024 139,488,044
------------ ------------
5. Exceptional items
2007 2006
#m #m
Operating items (continuing operations)
Re-organisation costs (0.1) (2.2)
A300 closure costs - (0.7)
Impairment of fixed assets - (3.3)
Profit on disposal of fixed assets and investments
(Loss)/gain on disposal of A300 (continuing operations) (0.1) 3.3
Profit on disposal of discontinued operations 2.2 3.7
--------- ------------
Net exceptional items before taxation 2.0 0.8
--------- ------------
All of the exceptional items in both the current and previous year are
chargeable to corporation tax at a rate of 30%, with the exception of the
profits on disposal of discontinued operations. The 2007 profit on disposal of
discontinued operations of #2.2m (2006: #3.7m) attracted a tax charge of #0.2m
(2006:#nil).
The reorganisation costs in both years relate to the move of the Jet2.com
operational departments from Bournemouth International Airport to Leeds Bradford
International Airport. A decision to withdraw from Airbus A300 airfreight
operations in the prior year resulted in redundancy and other closure costs. One
of the remaining Airbus A300 aircraft was sold prior to 31 March 2006 at a
profit of #3.3m. Whilst an exchange of contracts had taken place for the sale of
the last Airbus A300, the 2006 impairment charge of #3.3m relates to this
aircraft. The impairment was necessary as neither the value in use nor the
anticipated sale proceeds supported the unimpaired book value. The sale of this
aircraft was completed on 22 June 2006 giving rise to a loss on disposal of
#0.1m.
On 3 July 2006 the Group completed the sale of the trade, assets and liabilities
of Channel Express (CI) Limited to a third party specialising in Channel
Islands' distribution.
6. Accounting policy changes
FRS20: Share-based Payments
The fair value of employee share option plans is measured at the date of grant
of the option using the binomial valuation model. The resulting cost, as
adjusted for the expected and actual level of vesting of the options, is charged
to income over the period in which the options vest. At each balance sheet date
before vesting the cumulative expense is calculated, representing the extent to
which the vesting period has expired and management's best estimate of the
achievement or otherwise of non-market conditions, of the number of equity
instruments that will ultimately vest. Cumulative expense since the previous
balance sheet date is recognised in the income statement with a corresponding
entry in reserves. The Group has taken advantage of the transitional provisions
of FRS20 in respect of the fair value of equity- settled awards so as to apply
FRS20 only to those equity-settled awards granted after 7 November 2002 that had
not vested before 31 March 2006. The cost of these share options reflected in
the results of the Group for the year is #0.2m (2006 restated - #0.2m).
7. The financial information set out in the announcement does not constitute the
Group's statutory accounts for the financial years ended 31 March 2007 or 2006.
The financial information for the year ended 31 March 2006 is derived from the
statutory accounts for that year, which have been delivered to the Registrar of
Companies and those for 2007 will be delivered following the Company's Annual
General Meeting. The auditors have reported on those accounts; their reports
were unqualified and did not contain statements under Section 237 (2) of the
Companies Act 1985.
8. The proposed final dividend of 1.430p per share will, if approved, be payable
on 24 August 2007 to shareholders on the Company's register at the close of
business on 6 July 2007.
9. The 2007 Annual Report and Accounts (together with the Auditors Report) will
be posted to shareholders no later than 17 July 2007. The Annual General Meeting
will be held on 9 August 2007.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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