TIDMDTG
RNS Number : 8272F
Dart Group PLC
21 June 2012
DART GROUP PLC
PRELIMINARY UNAUDITED RESULTS FOR YEAR ENDED 31 MARCH 2012
Dart Group PLC (the "Group"), the Leisure Airline, Package
Holidays and Distribution & Logistics Group, announces its
preliminary results for the year ended 31 March 2012. These results
are presented under International Financial Reporting Standards
("IFRS").
CHAIRMAN'S STATEMENT
I am pleased to report on the Group's trading for the year ended
31 March 2012. Turnover grew by 26% to GBP683m (2011: GBP543m) and
profit before tax amounted to GBP28.1m (2011: GBP26.2m). Earnings
per share increased 31% to 16.01p (2011: 12.20p).
In consideration of the Group's current trading performance, the
Board recommends a final dividend of 0.89p per share (2011: 0.83p).
If approved at the Annual General Meeting to be held on 6 September
2012, this dividend will be payable on 19 October 2012 to
shareholders on the register at the close of business on 14
September 2012. The associated ex dividend date will be 12
September 2012.
The significant growth in turnover reflects expansion in both
Jet2.com, the Group's leisure airline and Jet2holidays, our package
holiday business, which more than doubled its passenger numbers in
the year. Profits in Leisure Airline fell, despite capacity and
load factor growth, mainly due to increased jet fuel prices which
we were not able to pass on to our customers. Jet2holidays, which
goes from strength to strength, recorded a profit before tax of
GBP2.5m on the back of a 140% increase in turnover. Our important
and long-established Distribution & Logistics business, Fowler
Welch, improved operating margins after a year of investment and
restructuring in 2010/11 and returned a profit before tax of
GBP3.9m.
Capital expenditure for the year was GBP47.3m (2011: GBP68.0m),
which related principally to long term maintenance spend on
aircraft and engines, the acquisition of five 737-300 aircraft, and
investment in refrigerated trailers and site infrastructure at
Fowler Welch. Net cash flow from operating activities amounted to
GBP94.5m (2011: GBP113.8m), reflecting principally lower growth in
Jet2.com forward bookings in line with lower 2012 capacity
increases.
As at 31 March 2012, the Group's cash balance, including money
market deposits, was GBP152.0m (2011: GBP106.8m) at which point
Jet2.com had received circa GBP180m (2011: GBP135m) of advance
payments from customers in respect of future trips.
Leisure Airline and Package Holidays
Times are tough and money is short, but it seems that our
Northern UK customers are still keen to take their family holidays
and visit great leisure cities.
Over the past year we have carefully concentrated on building
our services to high volume leisure destinations, focussing on
commercial and political risk free Mediterranean and Canary Islands
resorts and leading leisure break cities. Over 60 summer routes are
now operated to Spain alone, the number one destination for UK
holiday makers.
In the year to 31 March 2012, Jet2.com operated 145 routes from
our eight Northern bases to 49 destinations. We flew 4.3 million
scheduled service passengers and sold over 200,000 package
holidays. We expect to increase our passenger numbers by
approximately 10% and to double the number of package holidays sold
in the current financial year. On 31 March 2011 we opened our
eighth base at Glasgow airport, flying 7 routes for that summer
which has now grown to 14 routes for summer 2012. We also added 1
additional aircraft to both our East Midlands and Newcastle bases
and our first two 189 seat 737-800's into Manchester, enabling
capacity growth.
Our high volume, seat-only business gives us a great platform on
which to develop our package holiday product. Jet2holidays packages
together the flight, transfer and hotel into one great value
product, with over 65% of these packages sold on an "all inclusive"
(which includes all meals and beverages) or "half board" basis. Our
average package holiday price is around GBP500 per person, a
relatively large family purchase for a sophisticated product which
engenders a connection with the customer and hopefully loyalty to
the brand.
The certainty of spend that a fully inclusive package holiday
gives is very attractive in these difficult times. Our product
continues to evolve with the introduction of new family friendly
hotels and free child places. We directly contract, and therefore
have a relationship with, over 1,200 hotels. We have holiday reps
in resorts - great service is an essential ingredient in growing
our customer focussed business.
Our flights offer "friendly low fares" with family friendly
departure times, allocated seating, a 22kg baggage allowance and
loyalty points for free flights - We want a flight with Jet2.com to
be a great start to the leisure break. Our research tells us that
whether a customer buys a seat only or takes a package holiday with
us they generally return very satisfied and are likely to recommend
us to their family and friends. This enables us to grow repeat
business from our existing customers as well as welcoming new
customers through recommendation.
We devote great effort to knowing and better understanding our
customers, their needs and their future travel intentions. Using a
bespoke data management system, we've created a single customer
view that enables us to target and personalise our direct marketing
campaigns and ensure they are timely and relevant. Using the latest
e-mail and print technology, as well as a programme of intelligent
data mining and modelling, we've enhanced all our direct customer
communications to ensure they resonate, and we've seen the success
of this investment with much improved conversion rates.
And, whilst a customer's previous travel history is always a
great indicator of what they may do next, we've gone a step further
by enriching our data with a robust insight programme. This
captures customer feedback on their booking, ground and in-flight
experience, as well as destinations, hotels and future travel
plans, all of which is used to help us further refine and enhance
our customer proposition.
Whilst the summer leisure business thrives, the winter has grown
progressively quieter as the economy has tightened. This has
resulted in 80% of our leisure travel turnover occurring in the 7
months from April - October. Ski destinations provide important
winter utilisation for our aircraft. However, volumes in this
sector have decreased, so our strategy of reducing our ski flight
frequencies and concentrating on weekend flights has proved
sensible. We are pleased to introduce Grenoble as our 4(th)
dedicated ski destination for this winter.
Our innovative passenger charter sales group makes an important
commercial contribution to winter aircraft utilisation. They
organise shopping trips to New York, fly pilgrims to Jeddah for the
Hajj and arrange flights for cruise, sports, ski and corporate
charter customers from across Europe. This year we operated
charters to destinations as far afield as Brazil, Canada, Florida
and Sri Lanka.
The Company has flown night mail flights for Royal Mail since
1980, helping them to ensure First Class mail achieves next day
delivery throughout the UK. Under our current contract, which
commenced in 2004, we have operated 16 night mail flights each
weekday night with our Boeing 737 "Quick Change" aircraft, which
have been specially converted to be able to carry mail in
containers, following the day's passenger flights. Our last flight
under the present contract is in October 2014. Royal Mail is
tendering the contract during this financial year, with the result
expected in the first quarter of 2013.
We take a careful and considered view of expansion in our
Leisure Airline business, especially in the current economic
climate. However, we are certainly optimistic for our continued
growth in the holiday market. We hope to renew our contract with
Royal Mail but, should that not be possible, we believe that
organic growth will compensate in terms of maintaining the current
level of employment and profitability.
Distribution & Logistics
In both good times and hard times Fowler Welch, our important
Distribution & Logistics business is always busy ensuring that
chilled and fresh foods are on supermarket shelves.
The business is one of the UK's leading, long established
companies in this field. It operates from approximately one million
square feet of owned temperature-controlled and ambient
distribution centres in Spalding, Lincolnshire; Teynham, Kent; and
Bury, Greater Manchester with smaller sites at Washington, Tyne and
Wear; Newton Abbot, Devon; Alconbury, Cambridgeshire and
Portsmouth, Hampshire. In Holland, our European operation is our
gateway for produce and flowers from around the world.
Fowler Welch is a specialist business with long term
relationships with leading supermarkets and their suppliers, for
whom we are proud to provide a dependable and flexible logistics
service.
Following a degree of reorganisation in the previous financial
year, I am pleased to say that turnover for the year to 31 March
2012 grew by 6%. Continuing operating efficiencies have led to an
improvement in operating margins, which is on-going in the current
year. Our container haulage operations have been successfully
downsized - the Felixstowe site was closed and let out, with the
business now being centred on a new site at Alconbury,
Cambridgeshire. These operations are now making a positive
contribution.
Our 50,000 pallet ambient consolidation centre ("the Hub") at
Heywood near Bury, Greater Manchester had a difficult period of
initial trading and operations when it was opened in 2010. The
operations at the site have now been streamlined resulting in a
considerable improvement in operational and financial performance
over the last 12 months. This successful turnaround culminated with
the award from ASDA of "carrier of the year" in February 2012. A
great achievement. Considerable new business has been secured and
in addition there is a strong pipeline of new clients for the
future.
A new, small distribution centre at Newton Abbot, Devon, was
opened in July for TESCO, replicating a similar operation performed
by Fowler Welch at its Washington, Tyne and Wear site. We transport
TESCO's products in double deck trailers to Newton Abbot, where
they are re-distributed in smaller loads for delivery to TESCO
express stores in the South West. This operation has consistently
delivered high service levels, although we need to build volumes to
achieve significant profitability. Encouragingly, we believe that
the region offers good potential for future further growth.
Our 25 acre Spalding distribution centre is the largest in our
business, with a long history of service in this key produce area.
The site specialises in the storing, picking and consolidation of
fresh produce on behalf of importers and packers as well as major
food processors and manufacturers. During the year there was a
substantial increase in warehouse capacity through re-development
and this is now fully occupied following both contract wins and
increased business from existing customers.
As a supplier to the fast moving consumer goods ("FMCG") sector,
Fowler Welch reacts to significant changing volumes constantly and
sometimes within lead times of just a few hours. The business has a
reputation for its ability to deliver in these circumstances and
its IT systems play a vital part in facilitating the necessary
speed of decision making. We are committed to continually investing
in and developing our operational IT systems to ensure they are
leading edge.
During the year, we both selected and implemented a new fleet
management software solution and upgraded our warehouse management
systems and associated hardware to ensure we have a robust and
dependable IT infrastructure.
Fowler Welch is a great logistics business in a demanding but
vital market place. Our ability to invest, together with its
excellent facilities and long industry experience, coupled with a
determined management team, puts the Company in good shape for
future profitable growth.
Outlook
We plan to grow each of our businesses in the year ahead. Fowler
Welch has a number of business development opportunities throughout
its network and is benefiting from recent wins in the North West.
Jet2holidays is set for further growth in the current year, with
forward bookings at encouraging levels. We have expanded Jet2.com's
flying programme by 10% for summer 2012, although margins remain
challenging in this sector.
We are encouraged both by these business opportunities and by
the start we have made to the current year but in the current
economic environment we are cautious in respect of profit
growth.
Philip Meeson
Chairman
21 June 2012
BUSINESS AND FINANCIAL REVIEW
The Group comprises three principal operating businesses,
Leisure Airline, Package Holidays and Distribution & Logistics.
The Package Holidays and Leisure Airline operations work closely
together to provide a range of leisure travel services to our
Northern customers.
2011/12 performance
The Group's financial performance for the year to 31 March 2012
is reported in line with International Financial Reporting
Standards ("IFRS"), as adopted by the EU, which were effective at
31 March 2012.
Overall Group turnover increased by 26% to GBP683m (2011:
GBP543m), with growth in all segments, including a 140% rise in
Package Holiday revenues. However, despite improved trading in both
Distribution & Logistics and Package Holidays, Group profit
before tax grew by only 7% to GBP28.1m (2011: GBP26.2m). This
decrease in the Group's profit margins was driven by reduced
profitability in the Leisure Airline business, principally as a
result of fuel cost rises. Group EBITDA was similarly impacted,
falling by 2% to GBP62.9m (2011: GBP64.2m).
The Group's effective tax rate of 19% (2011: 34%) was lower than
the headline figure, as the reduction in the corporation tax rate
decreased the Group's deferred tax liability.
The Group generated net cash inflows(1) of over GBP45m in the
year (2011: GBP54.6m), resulting in a positive net cash position,
including money market deposits, of GBP152.0m (2011: GBP106.8m) as
at 31 March 2012. Total cash received from Jet2holidays and
Jet2.com customers in advance of their trip amounted to GBP180m
(2011: GBP135m) at year end. The Group's cash generation was
principally driven by the Leisure Airline division which continues
to benefit from strong forward bookings, with Package Holidays also
generating strong early season cash flows. The working capital
related cash improvement reduced, year on year, in line with lower
growth in the summer 2012 flying programme - a 10% increase in
airline capacity relative to a 28% increase in summer 2011.
Capital expenditure reduced from GBP68.0m to GBP47.3m, the
previous year's expenditure having included the acquisition of the
Hub, Fowler Welch's North West distribution centre, and an above
average number of Boeing 757 engine overhauls. This year's capital
expenditure included the purchase of five Boeing 737-300s enabling
the fleet to be increased to 42 aircraft to meet the needs of the
summer 2012 programme, and further investment in Fowler Welch
infrastructure; three leased aircraft were returned during the
winter months.
The Group's balance sheet continues to strengthen, driven by
both profit performance in the year and cash generation from
advance bookings. The resulting increase in shareholders' equity,
the improved gross cash position and the increase in non-current
assets are the principal changes in the balance sheet from the
previous year end. The overall increase in shareholders' equity
does not equate to the Group's post tax profit for the year, due to
a reduction in the market value of outstanding fuel and currency
hedges at the year-end relative to the previous year. The business
continues to be funded in part by customer payments received in
advance of travel from our leisure customers. Deferred revenue grew
45% year on year, as the Group's leisure travel businesses continue
to enjoy strong forward bookings.
1 - Cash inflows are reported including money market deposits
(cash deposits with maturity of more than three months) to give
readers an understanding of total cash generation. The Consolidated
Group Cash Flow Statement reports the net cash flow excluding these
deposits
Segmental performance
Leisure Airline
The Leisure Airline division trades under the Jet2.com brand and
operates scheduled flights to a range of leisure destinations from
its home base of Leeds Bradford International Airport, and Belfast,
Blackpool, East Midlands, Edinburgh, Glasgow, Manchester and
Newcastle airports.
Total Leisure Airline turnover increased by 18% to GBP416m
(2011: GBP351m) as a result of a 27% growth in scheduled passengers
to 4.3 million, with retail revenue growth offsetting the per
passenger decline in ticket revenue. Charter revenues were down
year on year reflecting the decision not to undertake passenger
charter flights during the peak summer flying months.
Profitability declined by 10% to GBP21.7m (2010/11: GBP24.1m);
this reduced margin was principally a result of cost increases
which we were unable to pass on to our customers in the current
economic environment. Overall, costs grew by 21% as a result of a
24% per tonne increase in aviation fuel and volume driven
increases.
During the year, Jet2.com continued its careful expansion of the
scheduled airline network, adding Glasgow airport as a new base and
extending its flying programme at East Midlands, Newcastle and
Manchester airports, largely by adding flights to tried and trusted
Jet2.com destinations. We operated a total of 145 routes in the
year, adding the new destinations of Bodrum and Krakow.
Overall scheduled airline seat capacity was increased by 23% in
the year. Despite this significant expansion, careful route
scheduling and capacity management, coupled with some improvement
in customer demand, resulted in load factors increasing to 87%
(2011: 85%). Load factor performance was underpinned by further
development of the airline's yield management system and by the
sale of seats both to Jet2holidays and third party tour operators.
Seat sales to Jet2holidays represented 10% of total scheduled
flying in the year. Net ticket revenue reduced slightly to GBP51.47
from GBP52.42.
Retail revenue per passenger increased to GBP27.86 from
GBP25.84. This was generated from a number of sources including
hold baggage charges for a sector leading 22kg weight allowance,
online seat assignment, extra leg room seats, onboard sales and
commissions on car hire and insurance. New developments in the year
included a re-developed travel insurance product - the best value
in the market, and further development of dynamic pricing for
retail revenues.
Revenues inJet2.com's passenger and Royal Mail charter
operations were 6% down on the previous year. The passenger charter
activity provides flights for many different end users, including
tour operators, specialist holiday providers, the UK Government,
and in support of promotional, sporting and other events, enabling
the business to improve utilisation of aircraft outside peak
periods. We operated approximately 600 passenger charter flights
during the year including a series of regular flights during the
winter months for the Emirate of Ras al-Khaimah, flying German
holiday makers into this relatively new resort. We continue to
undertake significant flying for Royal Mail, for whom night mail
flights are undertaken every weekday from six UK airports,
performed with industry leading punctuality levels, enabling Royal
Mail to meet its universal service obligation.
Jet2.com continues to improve its fuel efficiency by means of
its wide-ranging "efficient flying" programme. This programme looks
at all aspects of the airline's operation which can influence or
directly impact upon the operational efficiency of its flying
activities. The combined effects of all the elements of this scheme
have led to a saving by the airline of over 34,000 tonnes of carbon
emissions in the year.
In order both to improve customer service and increase
efficiency, we brought passenger handling in-house at Blackpool
airport and Newcastle airport for summer 2011 with Faro airport
following for summer 2012, the fifth overseas base at which we self
handle.
Jet2.com now operates a fleet of 42 aircraft having acquired
five Boeing 737-300 aircraft and leased two Boeing 737-800s towards
the end of the financial year. Three leased 737-300 aircraft were
returned at the end of their leases during the year. Jet2.com will
continue to add to its owned and leased fleet in line with customer
demand from our Northern based seat only and package holiday
customers. Seat capacity has been increased by 10% for summer 2012,
with growth focused on tried and trusted, good value
destinations.
Package Holidays
Jet2holidays is the Group's package holiday operator; it is an
integral part of the Group's leisure travel activities, working
closely with Jet2.com to provide ATOL protected holidays to a wide
range of destinations from our eight Northern UK airports.
Jet2holidays revenue increased by 140% to GBP115m (2011:
GBP48m). This has been largely driven by growth in customer numbers
with over 216,000 customers travelling in the year (2011: 98,000).
Revenue growth has also been driven by a move to "all inclusive"
and higher-value holidays and increased retail revenues for
products sold through the Jet2holidays booking process, including
in-flight meals and extra leg-room seats.
The increasing scale of the business has enabled us to improve
both operating margins and profitability, with not all areas of the
cost base growing in line with volume. Despite the challenging
economic environment and competitive pressures, gross margins per
holiday have been maintained through careful management and further
enhancement of the Package Holidays yield management system.
Jet2holidays moved into profitability this financial year with
operating profit improving to GBP2.5m (2011: loss GBP0.5m).
This growth is substantially a reflection of the successful
further development of the Jet2holidays hotel product range and a
fully integrated approach with Jet2.com. During the year the range
of hotels on offer has increased to over 1,600 properties, 1,200 of
which have been directly contracted by our in-house team. The
product range is focused on "all inclusive" and "half board"
holidays, meeting our customers' demand for great value. Our
customers have also had the opportunity to select "5 star"
accommodation under our "Indulgent Escapes" brand.
Jet2holidays are sold over the internet, through high street and
online travel agents and from our UK based call centre. The
Jet2holidays.com website is being continuously developed to improve
the quality of both the customer and the trade booking experience.
Both visits and conversion levels are significantly higher than the
previous year. Sales through travel agents remain an important
element of the business and Jet2holidays can now be booked through
most major travel agent consortia, multiples, homeworker companies
and key independents in the UK. Further investment was made in our
UK based call centre to enable it to handle call volume growth,
which has continued into the summer 2012 booking season.
Looking forward to the year ending 31 March 2013, the business
expects further substantial growth in customer numbers. The product
offering, which now includes free child places at hundreds of
hotels, is very attractive in the current environment. We continue
to invest significant sums in marketing, focusing in particular on
TV and online media to increase brand and product awareness. This
continued investment in the product, together with the opportunity
to cross sell to Jet2.com scheduled service customers means that we
remain confident of delivering continued growth. Our direct
relationships with our hotels and the focus on Jet2holidays as part
of Jet2.com's overall capacity planning will ensure that we have
the product and capability to meet our predicted increases in
demand.
Distribution & Logistics
The Group's distribution business, Fowler Welch is one of the
UK's leading logistics providers serving UK retailers, importers
and manufacturers. The business operates from 13 regional
distribution centres and offers a range of logistics solutions
including storage, case pick-to-order and national distribution of
both temperature-controlled and ambient products.
The business successfully completed a number of significant
changes in the year, while maintaining growth in revenue of 6% to
GBP152.4m. Operating profit increased by GBP1.5m to GBP4.3m despite
what was broadly recognised as a difficult trading environment. The
business faced a number of cost challenges in the year in
particular related to energy and insurance rates, as well as
continued price pressure from customers.
Key network developments included the successful streamlining of
the operations at the Hub in Heywood (Greater Manchester) from a
challenging implementation in the previous year; the successful
start-up of the Newton Abbot (Devon) site; and the rationalisation
of the Container operations as a result of choosing to cease
trading at Felixstowe. These changes, together with continued,
customer focused, quality service at the established sites, give
Fowler Welch the platform for a period of continued organic
growth.
Our key Spalding site achieved lower gross margins this year due
to lower revenues and reduced sub-contractor availability. However
the outlook for the site is very positive for the coming year.
Investment in the site has increased our capacity by 250,000 cases
per week all of which has already been sold to existing and new
customers.
The successful implementation in July 2011 of a new site in
Newton Abbot, to extend the TESCO express store distribution model,
added a 15,000 sq ft cross-dock, which will act as a platform for
growth in the South West region in the coming year. Washington,
Kent and the South Coast all enjoyed good gross margins, with
operations experiencing high utilisation throughout the year, on
the back of strong revenues.
The Ambient operation at the Hub in Heywood saw slower than
planned revenue growth, but gross margin performance improved
significantly year-on-year. Emphasis on service has been a high
priority following the site's challenging implementation in 2010;
the growing reputation of Fowler Welch in the Ambient sector will
see continued growth in the coming years. This success was
underlined by being awarded the ASDA "carrier of the year" award
for 2011.
In June 2011, Fowler Welch reduced the scale of its container
business, closing the Felixstowe operation. Key customers were,
however, retained and these are now serviced from a new site
located at Alconbury on the A1 in Cambridgeshire.
The new business model for distributing containers contributed
to the overall improvements in miles per truck and an overall
reduction in tractor unit numbers. This has also been a tactical
approach, to ensure that increased fleet flexibility is maintained
in this difficult trading environment.
Investment in both IT and management infrastructure continues as
a high priority. A new transport management system has been
selected for implementation in the current financial year and the
management team has been strengthened with a number of key
appointments. These investments are focussed on improving
operational efficiency in order to improve gross margins.
Fowler Welch is looking forward to a successful year, with a
number of new contracts across a variety of temperature-controlled
and ambient customers already underway. This includes Winterbotham
Darby in Teynham (Kent) and new volume awarded to an existing Blue
Chip client at the Desborough (Northamptonshire) operation. Growth
will be carefully managed to ensure all synergies with our existing
customers and operations are fully exploited.
www.dartgroup.co.uk
Enquiries:
Philip Meeson, Chairman Mobile: 07785 258666
Andrew Merrick, Group Finance Director Tel: 0113 238 7444
Mobile: 07788 565358
Andy Pedrette / Siobhan Sergeant Tel: 020 7131 4000
Smith & Williamson Corporate Finance
Limited
For further media enquiries:
Contact the Press Office on 0113 243 1355 or email
pressoffice@jet2.com
Consolidated group income statement
for the year ended 31 March 2012
Unaudited Audited
results for results for
the year the year
ended ended
31 March 31 March
2012 2011
Continuing operations GBPm GBPm
Turnover 683.0 542.9
Net operating expenses (654.5) (516.0)
--------------- ---------------
Operating profit 28.5 26.9
Finance income 1.4 1.3
Finance costs (1.8) (2.0)
--------------- ---------------
Net financing costs (0.4) (0.7)
Profit on disposal of fixed - -
assets
--------------- ---------------
Profit before taxation 28.1 26.2
Taxation (5.4) (8.9)
--------------- ---------------
Profit for the year
(all attributable to equity
shareholders of the parent) 22.7 17.3
=============== ===============
Earnings per share
--------------- ---------------
* basic 16.01p 12.20p
* diluted 15.48p 11.68p
--------------- ---------------
Consolidated group statement of comprehensive income
for the year ended 31 March 2012
Year ended Year ended
31 March 31 March
2012 2011
Unaudited Audited
GBPm GBPm
Profit for the year 22.7 17.3
Effective portion of fair value movements
in cash flow hedges (14.3) 23.0
Net change in fair value of effective
cash flow hedges transferred to profit - (1.8)
Taxation on components of other comprehensive
income 3.8 (5.2)
----------- -------------
Other comprehensive income and expense
for the period, net of taxation (10.5) 16.0
Total comprehensive income for the
period all attributable to owners of
the parent 12.2 33.3
=========== =============
Consolidated balance sheet
at 31 March 2012
Unaudited Audited
2012 2011
GBPm GBPm
Non-current assets
Goodwill 6.8 6.8
Property, plant and equipment 234.9 222.2
Derivative financial instruments 3.6 19.7
245.3 248.7
----------- -----------
Current assets
Inventories 1.4 0.8
Trade and other receivables (due over 1
yr GBP6.6m (2011: GBP6.4m)) 117.4 74.1
Derivative financial instruments 25.8 39.7
Money market deposits 77.0 8.5
Cash and cash equivalents 75.0 98.3
----------- -----------
296.6 221.4
----------- -----------
Total assets 541.9 470.1
----------- -----------
Current liabilities
Trade and other payables 318.0 239.9
Borrowings 0.8 0.7
Provisions 1.7 3.9
Derivative financial instruments 7.8 24.7
----------- -----------
328.3 269.2
----------- -----------
Non-current liabilities
Other non-current liabilities 11.9 9.9
Borrowings 8.5 8.7
Derivative financial instruments 1.4 -
Deferred tax liabilities 32.9 34.4
----------- -----------
54.7 53.0
Total liabilities 383.0 322.2
Net assets 158.9 147.9
=========== ===========
Shareholders' equity
Share capital 1.8 1.8
Share premium 9.8 9.6
Cash flow hedging reserve 15.1 25.6
Retained earnings 132.2 110.9
Total shareholders' equity 158.9 147.9
=========== ===========
consolidated group cash flow statement
for the year ended 31 March 2012
Unaudited Audited
2012 2011
GBPm GBPm
Cash flows from operating activities
Profit on ordinary activities before
taxation 28.1 26.2
Adjustments for:
Finance income (1.4) (1.3)
Finance costs 1.8 2.0
Profit on disposal of property, plant - -
and equipment
Depreciation 34.4 37.1
Impairment of goodwill - 0.2
Equity settled share based payments 0.4 0.4
Net financial derivative close out
costs - (1.8)
Operating cash flows before movements
in working capital 63.3 62.8
Increase in inventories (0.6) (0.5)
Increase in trade and other receivables (43.3) (7.3)
Increase in trade and other payables 2.7 6.7
Increase in deferred revenue 79.7 55.7
(Decrease) / increase in provisions (2.2) 1.2
Cash generated from operations 99.6 118.6
Interest received 0.5 0.1
Interest paid (1.8) (1.6)
Income taxes paid (3.8) (3.3)
Net cash from operating activities 94.5 113.8
---------- ---------
Cash flows used in investing activities
Purchase of property, plant and equipment (47.3) (68.0)
Proceeds from sale of property, plant
and equipment 0.3 0.1
Net increase in money market deposits (68.5) (8.5)
Net cash used in investing activities (115.5) (76.4)
---------- ---------
Cash flows from financing activities
Repayment of borrowings (1.9) (0.6)
New loans advanced 0.6 9.4
Proceeds on issue of shares 0.2 0.3
Equity dividends paid (1.8) (1.6)
Net cash (used in) / from financing
activities (2.9) 7.5
---------- ---------
Effect of foreign exchange rate changes 0.6 1.2
Net (decrease) / increase in cash
in the year (23.3) 46.1
Cash and cash equivalents at beginning
of year 98.3 52.2
Cash and cash equivalents at end
of year 75.0 98.3
========== =========
Consolidated group statement of changes in equity
(unaudited)
for the year ended 31 March 2012
Share Share Cash flow Retained Total
capital premium hedging earnings reserves
reserve
GBPm GBPm GBPm GBPm GBPm
--------- --------- ---------- ---------- ----------
Balance at 1 April
2010 1.8 9.3 9.6 94.8 115.5
Total comprehensive
income for the year - - 16.0 17.3 33.3
Issue of share capital - 0.3 - - 0.3
Dividends paid in
the year - - - (1.6) (1.6)
Share based payments - - - 0.4 0.4
Balance at 31 March
2011 1.8 9.6 25.6 110.9 147.9
Total comprehensive
income for the year - - (10.5) 22.7 12.2
Issue of share capital - 0.2 - - 0.2
Dividends paid in
the year - - - (1.8) (1.8)
Share based payments - - - 0.4 0.4
Balance at 31 March
2012 1.8 9.8 15.1 132.2 158.9
========= ========= ========== ========== ==========
Notes to the consolidated financial statements
for the year ended 31 March 2012
1. General information
The Group's Financial Statements consolidate the Financial
Statements of Dart Group PLC and its subsidiaries. The Group's
Financial Statements have been prepared and approved by the
Directors in accordance with International Financial Reporting
Standards ('IFRSs') as adopted by the European Union ('Adopted
IFRSs').
2. Basis of preparation
The financial statements have been prepared under the historical
cost convention except for all derivative financial instruments
that have been measured at fair value.
Whilst the financial information included in this preliminary
announcement has been computed in accordance with IFRS as adopted
by the European Union, this announcement does not itself contain
sufficient information to comply with IFRS. The Company expects to
publish full financial statements in July 2012.
The Group uses forward foreign currency contracts, currency
option products and aviation fuel swaps to hedge exposure to
foreign exchange rates and aviation fuel price volatility. The
Group also uses forward EU Allowance contracts and forward
Certified Emissions Reduction contracts to hedge exposure to Carbon
Emissions Allowance volatility following the need for the Group to
join the EU Emissions Trading Scheme from 1 January 2012. Such
derivative financial instruments are stated at fair value.
Going concern
The Directors have prepared financial forecasts for the Group,
comprising operating profit, balance sheet and cash flows through
to 31 March 2015.
For the purposes of their assessment of the appropriateness of
the preparation of the Group's accounts on a going concern basis,
the Directors have considered the current cash position, the
availability of bank facilities, the Group's net current liability
position, which is driven principally by continued deferred revenue
growth, and forecasts of future trading. The Directors have
assessed the current level of forward bookings for the Leisure
Airline and Package Holidays businesses, the underlying assumptions
and principal areas of uncertainty within future forecasts, in
particular those related to market and customer risks which impact
on future bookings, cost management, working capital management and
treasury risks. A number of these are subject to market uncertainty
and impact financial covenants. Recognising the potential
uncertainty, the Directors have considered a range of actions
available to mitigate the impact of these potential risks should
they crystallise and have also reviewed the key strategies which
underpin the forecast and the Group's ability to implement them
successfully.
On the basis of the current liquidity position, the current
Leisure Airline and Package Holidays forward booking profiles, the
forecasts and these considerations, the Directors have assessed
future covenant compliance and headroom for the foreseeable future
and concluded that it is appropriate for the financial statements
for the year ended 31 March 2012 to be prepared on a going concern
basis.
3. Earnings per share
Unaudited Audited
2012 2011
No. No.
Basic weighted average number of shares
in issue 142,129,972 141,558,080
Dilutive potential ordinary shares: employee
share options 4,872,314 6,260,822
Diluted weighted average number of shares
in issue 147,002,286 147,818,902
============ ============
Basis of calculation - earnings (basic GBPm GBPm
and diluted)
------------ ------------
Profit for the purposes of calculating
basic and diluted earnings 22.7 17.3
------------ ------------
Unaudited Audited
Year to Year to
31 March 31 March
Earnings per share - Total 2012 2011
- basic 16.01p 12.20p
- diluted 15.48p 11.68p
4. Segmental reporting
Business segments
The Chief Operating Decision Maker ("CODM") is responsible for
the overall resource allocation and performance assessment of the
Group. The Board approves major capital expenditure, assesses the
performance of the Group and also determines key financing
decisions. As such the Group considers that the Board is the
CODM.
The Group's operating segments have been identified based on the
internal reporting information provided to the CODM in order for
the CODM to formulate allocation of resources to segments and
assess their performance. From such information, the Leisure
Airline, Package Holidays and Distribution & Logistics
businesses have been determined to represent operating
segments.
The Leisure Airline and Package Holidays businesses are run on
the basis of the evaluation of route revenue, yield and margin
data. However resource allocation decisions are made based on the
entire route network and, in the case of Leisure Airline, the
deployment of the entire aircraft fleet. The objective in making
resource allocation decisions is to maximise the segment results
rather than individual routes within the network.
The Distribution & Logistics business is run on the basis of
the evaluation of distribution centre-level performance data.
However resource allocation decisions are made based on the entire
distribution network. The objective in making resource allocation
decisions is to maximise the segment results rather than individual
distribution centres within the network.
Following the identification of the operating segments the Group
has assessed the similarity of the characteristics of the operating
segments. Given the different performance targets, customer bases
and operating markets of each of the operating segments it is not
appropriate to aggregate the operating segments for reporting
purposes and therefore all three of the identified operating
segments are disclosed as reportable segments:
-- Leisure Airline, comprising the Group's scheduled and charter airline, Jet2.com;
-- Package Holidays, comprising the Group's ATOL protected tour operator, Jet2holidays; and
-- Distribution & Logistics, comprising the Group's logistics company, Fowler Welch.
The Board assesses the performance of each segment based on
profit, before and after tax, and EBITDA. Revenue from reportable
segments is measured on a basis consistent with the income
statement. Revenue is principally generated from within the UK, the
Group's country of domicile.
Segment results, assets and liabilities include items directly
attributable to a segment as well as those that can be allocated on
a reasonable basis. No customer represents more than ten percent of
the Group's revenue.
The split of comparative segmental results, net assets and other
segment information has been updated to reflect the inclusion of
Package Holidays as both a separate operating, and reportable,
segment.
Distribution Leisure Package Group Total
& Logistics Airline Holidays Eliminations
GBPm GBPm GBPm GBPm GBPm
Year ended 31 March 2012
Turnover 152.4 461.3 114.5 - 728.2
Inter-segment turnover - (45.2) - - (45.2)
------------- ------------- ----------- -------------- --------
Turnover 152.4 416.1 114.5 - 683.0
EBITDA 6.4 53.7 2.8 - 62.9
Operating profit 4.3 21.7 2.5 - 28.5
Finance income - 1.4 - - 1.4
Finance costs (0.4) (1.4) - - (1.8)
Profit before taxation 3.9 21.7 2.5 - 28.1
Taxation (1.1) (3.6) (0.7) - (5.4)
------------- ------------- ----------- -------------- --------
Profit after taxation 2.8 18.1 1.8 - 22.7
============= ============= =========== ============== ========
Assets and liabilities
Segment assets 71.5 443.2 227.3 (200.1) 541.9
Segment liabilities (39.2) (321.6) (222.3) 200.1 (383.0)
------------- ------------- ----------- --------------
Net assets 32.3 121.6 5.0 - 158.9
============= ============= =========== ============== ========
Other segment information
Property, plant and
equipment additions 6.2 40.8 0.3 - 47.3
Depreciation, amortisation
and impairment (2.1) (32.0) (0.3) - (34.4)
Share based payments (0.1) (0.3) - - (0.4)
Distribution Leisure Package Group Total
& Logistics Airline Holidays Eliminations
GBPm GBPm GBPm GBPm GBPm
Year ended 31 March
2011
Revenues 144.2 369.5 47.7 - 561.4
Inter-segment revenues - (18.5) - - (18.5)
------------------ --------- ---------- -------------- --------
Revenue 144.2 351.0 47.7 - 542.9
EBITDA 4.6 59.8 (0.2) - 64.2
Operating profit 2.8 24.6 (0.5) - 26.9
Finance income - 1.3 - - 1.3
Finance costs (0.2) (1.8) - - (2.0)
Profit/(loss) before
taxation 2.6 24.1 (0.5) - 26.2
Taxation (4.1) (4.9) 0.1 - (8.9)
------------------ --------- ---------- -------------- --------
(Loss)/profit after
taxation (1.5) 19.2 (0.4) - 17.3
================== ========= ========== ============== ========
Assets and liabilities
Segment assets 66.5 512.5 48.6 (157.5) 470.1
Segment liabilities (37.0) (397.2) (45.5) 157.5 (322.2)
Net assets 29.5 115.3 3.1 - 147.9
================== ========= ========== ============== ========
Other segment information
Property, plant and
equipment additions 17.8 50.1 0.1 - 68.0
Depreciation, amortisation
and impairment (1.8) (35.2) (0.3) - (37.3)
Share based payments (0.1) (0.3) - - (0.4)
5. Financial information
The financial information set out above does not constitute the
Company's consolidated statutory accounts for the periods ended 31
March 2012 or 31 March 2011. Statutory accounts for the period
ended 31 March 2011 have been delivered to the Registrar of
Companies, and those for the period ended 31 March 2012 will be
delivered following the Company's Annual General Meeting. The
auditor, KPMG Audit Plc, have reported on the accounts for the year
ended 31 March 2011; their reports were unqualified and did not
contain statements under section 498(2) or (3) of the Companies Act
2006 or equivalent preceding legislation. The statutory accounts
for 2012 will be finalised on the basis of the financial
information presented by the Directors in this preliminary
announcement and will be delivered to the registrar of companies in
due course.
6. Annual report and accounts
The 2012 Annual Report and Accounts (together with the Auditor's
Report) will be posted to shareholders no later than 31 July 2012.
The Annual General Meeting will be held on 6 September 2012.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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