Half Yearly Report
November 19 2009 - 1:00AM
UK Regulatory
TIDMDTG
RNS Number : 7395C
Dart Group PLC
19 November 2009
DART GROUP PLC
Interim Results
Dart Group PLC (the "Group"), the aviation and distribution group, announces its
interim results for the half year ended 30 September 2009. These results are
presented under International Financial Reporting Standards (IFRS).
Highlights
* Turnover maintained at GBP272.7m (2008: GBP272.8m)
* Pre-tax profits down 23% to GBP28.1m (2008: GBP36.3m)
* Underlying pre-tax profits down 23% to GBP25.7m (2008: GBP33.5m)
* Aviation load factors increased to 81% (2008: 80%)
* GBP12.2m net cash generated from operating activities (2008: GBP20.3m)
* Interim dividend declared at 0.36p per share (2008: nil)
Chairman's Statement
I am pleased to report on the Group's trading for the six months ended 30
September 2009. The Group delivered a profit before tax of GBP28.1m, a decrease
of 23% on last year (2008: GBP36.3m).
On an underlying basis (excluding the specific IAS39 mark to market
adjustments), profit before tax amounted to GBP25.7m (2008: GBP33.5m). This
trading performance was in line with expectations and reflects the tougher
trading environment we are experiencing in the aviation business. Jet2.com, the
Group's leisure airline, was successful in maintaining load factors, but in part
at the expense of yields. Underlying EBITDA decreased by 23% to GBP40.0m (2008:
GBP51.6m).
Net cash flow from operations of GBP12.2m was generated in the period (2008:
GBP20.3m). Total capital expenditure in the first half amounted to GBP6.5m
(2008: GBP9.5m), primarily relating to the overhaul of the Group's aircraft
engines, in addition to a small acquisition by Fowler Welch-Coolchain.Net cash
amounted to GBP16.1m at the end of the period, a GBP23.3m improvement on the
previous year.
The Board has decided to pay an interim dividend of 0.36p per share, in
recognition of the Group's trading performance in the period. The dividend will
be paid on 29 January 2010 to shareholders on the register at 11 December 2009.
Jet2.com
Jet2.com has continued to focus on its core leisure routes from its bases in the
North (Belfast, Blackpool, Edinburgh, Leeds Bradford, Manchester and Newcastle),
whilst increasing its services to Eastern Mediterranean destinations. The
company operates 31 aircraft of which 29 (21 Boeing 737-300s and 8 Boeing
757-200s) are owned by the Group. The 235 seat Boeing 757-200 enables us to
serve popular Eastern Mediterranean, Red Sea and Canary Island destinations very
cost effectively whilst still offering competitive economics to traditional
Western Mediterranean resorts. It is also an ideal aircraft for our important
passenger charter market.
We flew 2.2m scheduled passengers in the six months to 30 September 2009 (2008:
2.3m) with the total number of routes served from all bases rising to 94 (2008:
75). We were able to increase load factors, partly at the expense of yields, by
focusing on flying popular routes at departure times convenient to our
customers.
Ancillary revenues are continually being developed with gross revenue per
passenger increasing to GBP20.70 during this half year (2008: GBP15.17). This
increase is principally driven by sales made possible by our proprietary
reservation system. Pre-ordered meals and advanced seat assignment have been
particularly successful on some of our longer routes. Further enhancements
continue to be introduced by our commercial and IT teams, including on-going
development of our travel trade interfaces which allow easy access to Jet2.com's
seat inventory for travel agents and tour operators. Jet2.com was recently
honoured at the Northern Ireland Travel and Tourism Awards, winning the award
for the Best Travel Internet Booking System.
After a very strong performance in the previous year, our freight and passenger
charter business experienced reduced revenues, reflecting a weaker market for
charter services. In total, charter revenues were down 18% in the first
half. Pleasingly, however, on 29 October 2009 Jet2.com was voted Passenger
Airline of the Year by the Baltic Air Charter Association.
Whilst the management of costs has been a particular focus, a significant
proportion of the airline's cost base is foreign currency based and has suffered
from the weakness of Sterling. Our fuel efficiency programme continues to
deliver improved fuel utilisation; two of our Boeing 757 aircraft are now
equipped with aero-dynamically efficient winglets with two more aircraft to be
fitted this winter. In June 2009, the first Boeing 737 flight took place with
Pratt & Whitney manufactured parts fitted to its CFM engines. Jet2.com is the
lead customer for this programme, which delivers significant savings relative to
the cost of OEM components.
For Winter 09/10, Jet2.com has slightly reduced its overall scheduled capacity,
reflecting a prudent approach in the current economic environment. For next
summer we will be operating new scheduled services to seven sun destinations
from East Midlands Airport (which are also available as package holidays with
Jet2holidays.com). We have also expanded our operations from both Newcastle and
Manchester Airports and now operate more scheduled leisure routes than any other
airline at Manchester Airport. Overall, we have planned a 2% increase in
scheduled seat capacity for Summer 2010, with a higher proportion of Eastern
Mediterranean destinations. New destinations for next summer include Bergerac,
Gran Canaria, Kos, Madeira, Reus and Tunisia, and we have increased capacity to
Egypt, Greece and Turkey.
We continue to invest in the development of Jet2holidays.com, our ATOL protected
tour operator, which delivered over 47,000 package holidays in the half year to
September 2009, an 80% increase over the same period last year. It is expected
that Jet2holidays.com will make an increasingly significant contribution to the
airline's passenger numbers in the coming year. We believe that it will become
increasingly successful through offering our leisure customers good value
package holidays from their local airports, flying with Jet2.com.
Fowler Welch-Coolchain
The Group's logistics company, Fowler Welch-Coolchain, provides an integrated
supply chain solution for retailers, food manufacturers, growers and importers.
Services provided from its distribution centres in Spalding (Lincs), Teynham
(Kent), Washington (Tyne & Wear), Stockport (Cheshire) and Portsmouth
(Hampshire) include both chilled and ambient storage and distribution, together
with value adding pick-to-order warehousing operations. The company also has
port operations in Sheerness and Southampton and provides transport services for
imported container traffic entering the UK through the East Coast Port network.
There have been significant new business wins during the period and further
additional business wins from existing customers. Our Washington distribution
centre has seen increased Tesco Express deliveries, whilst our ambient
consolidation centre at Stockport has increased its volumes into Asda stores,
including the commencement of Asda George distribution. Like-for-like sales
have increased by 8% year on year although fuel surcharges levied have reduced
as a result of lower oil prices.
Operating margins have improved during the first six months of the year across
the business.Our own vehicle performance has benefited from a combination of
increased utilisation, more loaded miles and better networking of the combined
fleet, in part driven by a reduction in the ambient fleet.We have continued to
invest in driver training and have committed to introduce more 'best in class'
fuel efficient vehicles as part of our continuing fleet replacement programme.
This, together with a further expansion of our double-decker trailer fleet, will
not only generate fuel savings and additional operating efficiencies, but also
further reduce our carbon footprint. The Manhattan warehouse management system
implemented at Spalding is also now generating substantial operating
efficiencies and will be rolled out through all other chilled distribution
centres during the remainder of the financial year.
We continue to develop our container transport operations, which not only
enhances our ability to provide an end-to-end service to customers but also
reduces traditional periods of vehicle downtime in our chilled network. The
company increased its presence in this sector through the acquisition on 1
September 2009 of Bawdsey Haulage Limited, a company specialising in the
distribution of containers from its depot at the Port of Felixstowe. This
operation is expected to generate revenues of approximately GBP6m per annum. In
addition to this acquisition, an operation has commenced at Teesport to further
develop the container business.
Fowler Welch-Coolchain continues to exploit considerable growth opportunities
across all its core activities and is in a good position to capitalise on
further market consolidation.
Outlook
On an underlying basis, we expect full year trading to be in line with market
expectations. Jet2.com forward booking levels are encouraging and Fowler
Welch-Coolchain continues to perform strongly. However, we expect the current
challenging trading environment to remain for some time and we will continue to
manage the business prudently, whilst continuing to take advantage of market
opportunities.
Philip Meeson,
Chairman 19 November 2009
www.dartgroup.co.uk
Enquiries:
+-----------------------------------------+-----------------------------------------+
| Philip Meeson, Chairman | Mobile: 07785 258666 |
+-----------------------------------------+-----------------------------------------+
| Andrew Merrick, Group Finance Director | Mobile: 07788 565358 |
| | |
+-----------------------------------------+-----------------------------------------+
| Andy Pedrette, Smith & Williamson | 020 7131 4000 |
| Corporate Finance Limited | |
+-----------------------------------------+-----------------------------------------+
Consolidated Group Income Statement (unaudited)
For the half year ended 30 September 2009
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | Half year ended 30 | Half year ended 30 | Year ended 31 March 2009 - |
| | | September 2009 | September 2008 | Audited |
+----------------------------+------+-------------------------------------+-------------------------------------+-------------------------------------+
| | | Before | Specific | IFRS | Before | Specific | IFRS | Before | Specific | IFRS |
| | | Specific | IAS 39 | | Specific | IAS 39 | | Specific | IAS 39 | |
| | | IAS 39 | mark to | | IAS 39 | mark to | | IAS 39 | mark to | |
| | | mark to | market | | mark to | market | | mark to | market | |
| | | market | adjustments | | market | adjustments | | market | adjustments | |
| | | adjustments | | | adjustments | | | adjustments | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| |Note | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Turnover | 3 | 272.7 | - | 272.7 | 272.8 | - | 272.8 | 439.3 | - | 439.3 |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Net operating expenses | | (247.4) | 2.4 | (245.0) | (237.9) | 2.8 | (235.1) | (405.3) | 4.7 | (400.6) |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Other operating income | | - | - | - | 1.0 | - | 1.0 | 1.2 | - | 1.2 |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Operating profit | | 25.3 | 2.4 | 27.7 | 35.9 | 2.8 | 38.7 | 35.2 | 4.7 | 39.9 |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Finance income | | 2.2 | - | 2.2 | 2.4 | - | 2.4 | 0.9 | - | 0.9 |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Finance costs | | (1.8) | - | (1.8) | (4.8) | - | (4.8) | (7.3) | - | (7.3) |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Net financing costs | | 0.4 | - | 0.4 | (2.4) | - | (2.4) | (6.4) | - | (6.4) |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Profit on ordinary activities | 25.7 | 2.4 | 28.1 | 33.5 | 2.8 | 36.3 | 28.8 | 4.7 | 33.5 |
| before taxation | | | | | | | | | |
+-----------------------------------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Taxation | 6 | (7.2) | (0.7) | (7.9) | (10.3) | (0.8) | (11.1) | (5.1) | (1.3) | (6.4) |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Profit for the period (all | | 18.5 | 1.7 | 20.2 | 23.2 | 2.0 | 25.2 | 23.7 | 3.4 | 27.1 |
| attributable to equity | | | | | | | | | | |
| shareholders of the | | | | | | | | | | |
| parent) | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Earnings per share - total | 4 | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| - basic | | 13.10p | | 14.31p | 16.39p | | 17.81p | 16.87p | | 19.27p |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| - diluted | | 12.67p | | 13.83p | 16.39p | | 17.81p | 16.46p | | 18.80p |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| Earnings per share - continuing | | | | | | | | | |
| operations | | | | | | | | | |
+-----------------------------------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| - basic | | 13.10p | | 14.31p | 16.39p | | 17.81p | 16.87p | | 19.27p |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| - diluted | | 12.67p | | 13.83p | 16.39p | | 17.81p | 16.46p | | 18.80p |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
| | | | | | | | | | | |
+----------------------------+------+-------------+-------------+---------+-------------+-------------+---------+-------------+-------------+---------+
Consolidated Group Statement of Comprehensive Income (unaudited)
For the half year ended 30 September 2009
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | Half year | | Half year | | Year ended |
| | | ended 30 | | ended 30 | | 31 March |
| | | September | | September | | 2009 |
| | | 2009 | | 2008 | | Audited |
| | | GBPm | | GBPm | | GBPm |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Profit for the period | | 20.2 | | 25.2 | | 27.1 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Exchange differences on | | - | | (0.1) | | (0.2) |
| translating foreign operations | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Effective portion of changes in | | (0.5) | | (1.9) | | (11.8) |
| fair value of cash flow hedges | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Taxation on components of other | | 0.1 | | 0.5 | | 3.7 |
| comprehensive income | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Other comprehensive income & | | (0.4) | | (1.5) | | (8.3) |
| expense for the period, net of | | | | | | |
| taxation | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Total comprehensive income for | | 19.8 | | 23.7 | | 18.8 |
| the period all attributable to | | | | | | |
| owners of the parent | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
Consolidated Group Balance Sheet (unaudited)
As at 30 September 2009
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | 30 September | | 30 September | | 31 March |
| | | 2009 | | 2008 | | 2009 |
| | | GBPm | | GBPm | | Audited |
| | | | | | | |
| | | | | | | GBPm |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Non-current assets | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Goodwill | | 7.0 | | 6.8 | | 6.8 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Property, plant and | | 183.4 | | 186.3 | | 190.5 |
| equipment | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Derivative | | 5.0 | | 6.0 | | 2.4 |
| financial | | | | | | |
| instruments | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | 195.4 | | 199.1 | | 199.7 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Current assets | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Inventories | | 1.0 | | 0.3 | | 0.4 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Trade and other | | 45.4 | | 47.9 | | 45.1 |
| receivables | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Derivative | | 6.3 | | 6.6 | | 32.7 |
| financial | | | | | | |
| instruments | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Cash and cash | | 16.5 | | 0.4 | | 11.8 |
| equivalents | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | 69.2 | | 55.2 | | 90.0 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Total assets | | 264.6 | | 254.3 | | 289.7 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Current liabilities | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Trade and other | | 114.5 | | 118.6 | | 139.9 |
| payables | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Borrowings | | 0.4 | | 7.6 | | - |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Derivative | | 2.0 | | 2.1 | | 30.8 |
| financial | | | | | | |
| instruments | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | 116.9 | | 128.3 | | 170.7 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Non-current liabilities | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Other non current | | 6.1 | | 6.2 | | 6.4 |
| liabilities | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Derivative | | 7.3 | | 4.1 | | 0.2 |
| financial | | | | | | |
| instruments | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Deferred tax | | 20.9 | | 17.5 | | 19.0 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | 34.3 | | 27.8 | | 25.6 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Total liabilities | | 151.2 | | 156.1 | | 196.3 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Net assets | | 113.4 | | 98.2 | | 93.4 |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Capital and reserves | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Called up share | | 1.8 | | 1.8 | | 1.8 |
| capital | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Share premium | | 9.3 | | 9.3 | | 9.3 |
| account | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Cash flow hedging | | 1.5 | | 8.6 | | 1.9 |
| reserve | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Profit and loss | | 100.8 | | 78.4 | | 80.4 |
| account | | | | | | |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Other reserves | | - | | 0.1 | | - |
+----------------------------------+------+---------------+--+--------------+--+------------+
| Total shareholders' equity | | 113.4 | | 98.2 | | 93.4 |
+----------------------------------+------+---------------+--+--------------+--+------------+
Consolidated Group Cash Flow Statement (unaudited)
For the half year ended 30 September 2009
+----------------------------------+------+------------+--+-----------+--+----------+
| | | Half year ended 30 | | Year |
| | | September | | ended 31 |
| | | | | March |
+----------------------------------+------+---------------------------+--+----------+
| | | 2009 | | 2008 | | 2009 |
| | | GBPm | | GBPm | | Audited |
| | | | | | | GBPm |
+----------------------------------+------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Cash flows from operating | | | | | | |
| activities | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Profit before taxation from continuing | 28.1 | | 36.3 | | 33.5 |
| operations | | | | | |
+-----------------------------------------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Adjustments for: | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Finance income | | (2.2) | | (2.4) | | (0.9) |
+----------------------------------+------+------------+--+-----------+--+----------+
| Finance costs | | 1.8 | | 4.8 | | 7.3 |
+----------------------------------+------+------------+--+-----------+--+----------+
| Depreciation | | 14.7 | | 16.6 | | 30.7 |
+----------------------------------+------+------------+--+-----------+--+----------+
| Financial | | 7.4 | | - | | - |
| derivative close | | | | | | |
| out costs | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Equity settled | | - | | 0.1 | | 0.2 |
| share based | | | | | | |
| payments | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Fair value | | (2.4) | | (2.6) | | (4.7) |
| adjustments | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Operating cash flows before | | 47.4 | | 52.8 | | 66.1 |
| movements in working capital | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| (Increase) in | | (0.6) | | - | | (0.1) |
| inventories | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Decrease / (increase) in | 0.6 | | 2.3 | | (5.3) |
| trade and other | | | | | |
| receivables | | | | | |
+-----------------------------------------+------------+--+-----------+--+----------+
| (Decrease) / increase in | (33.4) | | (33.9) | | 7.3 |
| trade and other payables | | | | | |
+-----------------------------------------+------------+--+-----------+--+----------+
| Financial derivative close | - | | - | | (6.5) |
| out costs | | | | | |
+-----------------------------------------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Cash generated from operations | | 14.0 | | 21.2 | | 61.5 |
+----------------------------------+------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Interest received | | - | | 1.0 | | 0.1 |
+----------------------------------+------+------------+--+-----------+--+----------+
| Interest paid | | (1.8) | | (2.3) | | (2.8) |
+----------------------------------+------+------------+--+-----------+--+----------+
| Tax received / | | - | | 0.4 | | (0.4) |
| (paid) | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Net cash generated from operating | 12.2 | | 20.3 | | 58.4 |
| activities | | | | | |
+-----------------------------------------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Cash flows from investing | | | | | | |
| activities | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Proceeds from sale of | - | | - | | 0.1 |
| property, plant and | | | | | |
| equipment | | | | | |
+-----------------------------------------+------------+--+-----------+--+----------+
| Business | | (0.7) | | - | | - |
| acquisition | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Purchase of | | (5.8) | | (9.5) | | (27.9) |
| property, plant and | | | | | | |
| equipment | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Net cash used in investing | | (6.5) | | (9.5) | | (27.8) |
| activities | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Cash flows from financing | | | | | | |
| activities | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Net repayments of proceeds | - | | (22.0) | | (22.0) |
| from borrowings | | | | | |
+-----------------------------------------+------------+--+-----------+--+----------+
| Interim dividend | | (1.0) | | - | | - |
| paid | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Transaction costs | | - | | - | | (0.9) |
| paid | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Net cash used in financing activities | (1.0) | | (22.0) | | (22.9) |
+-----------------------------------------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Effects of exchange | | - | | - | | 0.1 |
| rate changes | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Net increase / (decrease) in cash and | 4.7 | | (11.2) | | 7.8 |
| cash equivalents | | | | | |
+-----------------------------------------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Cash and cash equivalents at beginning | 11.8 | | 4.0 | | 4.0 |
| of period | | | | | |
+-----------------------------------------+------------+--+-----------+--+----------+
| | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
| Cash and cash equivalents at end | | 16.5 | | (7.2) | | 11.8 |
| of period | | | | | | |
+----------------------------------+------+------------+--+-----------+--+----------+
Consolidated Group Statement of Changes in Equity (unaudited)
For the half year ended 30 September 2009
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| | Share | Share | Cash Flow | Retained | Other | Total |
| | Capital | Premium | Hedging | Earnings | Reserves | Reserves |
| | | | Reserve | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Balance at 1 April 2008 | 1.8 | 9.3 | 10.0 | 53.1 | 0.2 | 74.4 |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Total comprehensive income | - | - | (1.4) | 25.2 | (0.1) | 23.7 |
| for the period | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Share based payments | - | - | - | 0.1 | - | 0.1 |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Balance at 30 September 2008 | 1.8 | 9.3 | 8.6 | 78.4 | 0.1 | 98.2 |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Total comprehensive income | - | - | (6.7) | 1.9 | (0.1) | (4.9) |
| for the period | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Share based payments | - | - | - | 0.1 | - | 0.1 |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Balance at 31 March 2009 | 1.8 | 9.3 | 1.9 | 80.4 | - | 93.4 |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Total comprehensive income | - | - | (0.4) | 20.2 | - | 19.8 |
| for the period | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Share based payments | - | - | - | 0.2 | - | 0.2 |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| | | | | | | |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
| Balance at 30 September 2009 | 1.8 | 9.3 | 1.5 | 100.8 | - | 113.4 |
+-------------------------------+--------------+------------+--------------+-------------+-------------+----------+
Notes to the consolidated financial statements
For the half year ended 30 September 2009 (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.
The interim report for the six months ended 30 September 2009 was approved by
the Board of Directors on 18 November 2009.
2. Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention, except for
all derivative financial instruments which have been measured at fair value. In
addition this interim financial report does not comply with IAS 34, Interim
Financial Reporting, which is not currently required to be applied under AIM
rules.
Except as described below the accounting policies, presentation and methods of
computation are consistent with those described in the Group's accounts for the
year ended 31 March 2009.
The following new standards and amendments to standards are mandatory for the
first time for the financial year beginning 1 April 2009:
* IAS1 (revised), "Presentation of Financial Statements" requires a statement of
comprehensive income setting out all items of income and expense relating to
non-owner changes in equity. There is a choice between presenting comprehensive
income in one statement or two statements comprising an income statement and a
separate statement of comprehensive income. The Group has elected to present two
statements. In addition IAS1 (revised) requires the statement of changes in
shareholders' equity to be presented as a primary statement. The other revisions
to IAS1 have not had a significant impact on the presentation of the Group's
financial information.
* Amendment to IFRS2 (Share Based Payments) clarifies, amongst other matters, the
treatment of cancelled options. The impact is insignificant.
* IFRS8, "Operating Segments" replaces IAS14, "Segment Reporting" and requires the
disclosure of segment information on the same basis as the management
information provided to the Chief Operating decision maker. The adoption of this
standard has not resulted in a change in the Group's reportable segments, being
aviation services and distribution.
* IAS23 (revised) requires an entity to capitalise borrowing costs directly
attributable to the acquisition, construction and production of a qualifying
asset, as part of the cost of that asset. A qualifying asset is one that takes a
substantial period of time to get ready for use or sale. The impact is not
expected to be material to the Group.
The interim financial information for the 6 months ended 30 September 2009 has
not been audited or reviewed by the auditors. The comparative figures for the
financial year ended 31 March 2009 are not the Group's statutory accounts for
that financial year. Those accounts, which were prepared under IFRS, have been
reported on by the Company's auditors and delivered to the Registrar of
Companies. The report of the auditors was (i) unqualified, (ii) did not include
a reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report, and (iii) did not contain a statement
under section 237(2) or (3) of the Companies Act 1985.
The Group's accounts are presented in pounds sterling and all values are rounded
to the nearest GBP100,000 except where indicated otherwise.
3. Segmental information
For management purposes the Group is divided into two main segments, Aviation
Services and Distribution. These divisions are the basis on which the Group
reports its primary segmental information in the day-to-day management of the
business. The following is an analysis of the Group's revenue by operating
segment. All of the segmental revenue reported is from external customers.
+---------------------------------+------------+--+------------+--+------------+
| Segmental Revenues | Half year | | Half year | | Year to |
| | to | | to | | 31 March |
| | 30 | | 30 | | 2009 |
| | September | | September | | Audited |
| | 2009 | | 2008 | | GBPm |
| | GBPm | | GBPm | | |
+---------------------------------+------------+--+------------+--+------------+
| | | | | | |
+---------------------------------+------------+--+------------+--+------------+
| Aviation services | 215.4 | | 215.6 | | 326.4 |
+---------------------------------+------------+--+------------+--+------------+
| Distribution | 57.3 | | 57.2 | | 112.9 |
+---------------------------------+------------+--+------------+--+------------+
| | 272.7 | | 272.8 | | 439.3 |
+---------------------------------+------------+--+------------+--+------------+
4. Earnings per share
The calculation of earnings per share is based on the following:
+----------------------------------+-------------+--+-------------+--+-------------+
| | Half year | | Half year | | Year to |
| | to | | to | | 31 March |
| | 30 | | 30 | | 2009 |
| | September | | September | | Audited |
| | 2009 | | 2008 | | |
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Profit for the period (GBPm) | 20.2 | | 25.2 | | 27.2 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Weighted average number of | 141,089,854 | | 141,065,694 | | 141,065,694 |
| ordinary shares in issue during | | | | | |
| the period used to calculate | | | | | |
| basic earnings per share | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Weighted average number of | 145,906,222 | | 141,065,694 | | 144,590,658 |
| ordinary shares in issue during | | | | | |
| the period used to calculate | | | | | |
| diluted earnings per share | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
5. Dividends
An interim dividend has been proposed during the six month period to 30
September 2009 of 0.36p per share (2008: nil).
6. Taxation
The tax charge for the period of GBP7.9 million is calculated by applying an
estimated effective tax rate of 28% for the year to 31 March 2010 to the profit
for the period (2008: 30.6%).
7. Reconciliation of net cash flow to movement in net cash / (debt)
+---------------------------------+-------------+--+------------+--+----------+
| | Half year | | Half year | | Year to |
| | to | | to | | 31 March |
| | 30 | | 30 | | 2009 |
| | September | | September | | Audited |
| | 2009 | | 2008 | | GBPm |
| | GBPm | | GBPm | | |
+---------------------------------+-------------+--+------------+--+----------+
| | | | | | |
+---------------------------------+-------------+--+------------+--+----------+
| Increase / (decrease) in cash | 4.7 | | (11.2) | | 7.9 |
| in the period | | | | | |
+---------------------------------+-------------+--+------------+--+----------+
| Movement in net debt in the | (0.4) | | 22.0 | | 21.2 |
| period | | | | | |
+---------------------------------+-------------+--+------------+--+----------+
| Change in net debt resulting | 4.3 | | 10.8 | | 29.1 |
| from cash flows in the period | | | | | |
+---------------------------------+-------------+--+------------+--+----------+
| Other non cash changes | - | | (0.8) | | (0.1) |
+---------------------------------+-------------+--+------------+--+----------+
| Net cash / (debt) at beginning | 11.8 | | (17.2) | | (17.2) |
| of period | | | | | |
+---------------------------------+-------------+--+------------+--+----------+
| | | | | | |
+---------------------------------+-------------+--+------------+--+----------+
| Net cash / (debt) at end of | 16.1 | | (7.2) | | 11.8 |
| period | | | | | |
+---------------------------------+-------------+--+------------+--+----------+
8. Contingent liabilities
The Group is in litigation in the US against Sutra Inc and Novak Niketic, who
provided use of the reservation system operated by Jet2.com until February 2008,
in relation to the termination of the use of this system. An unspecified
counterclaim has been lodged which is being vigorously defended by the Group in
respect of which the Directors estimate approximately $2.5m liability in the
unlikely event that the counterclaim is successful.
9. Other matters
This report will be posted on the Company's website, www.dartgroup.co.uk and
copies are available from the Company Secretary at the registered office of the
Company, 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 CKFKBCBDDADD
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