TIDMDTG
RNS Number : 5089X
Dart Group PLC
20 November 2014
DART GROUP PLC
Interim Results
Dart Group PLC, the Leisure Travel and Distribution &
Logistics Group ("the Group"), announces its interim results for
the half year ended 30 September 2014. These results are presented
under International Financial Reporting Standards ("IFRS").
Financial Highlights Half year ended Half year ended Change
30 September 30 September
2014 2013
(Unaudited) (Unaudited)
------------------------------------------- ---------------- ---------------- ----------
Group revenue GBP902.2m GBP787.1m +15%
------------------------------------------- ---------------- ---------------- ----------
Group operating profit (underlying(1) ) GBP89.4m GBP81.2m +10%
Operating profit margin (underlying(1) ) 9.9% 10.3% (0.4ppt)
------------------------------------------- ---------------- ---------------- ----------
Group operating profit GBP72.4m GBP81.2m (11%)
Operating profit margin 8.0% 10.3% (2.3ppts)
------------------------------------------- ---------------- ---------------- ----------
Profit before tax (underlying(1) ) GBP88.7m GBP78.1m +14%
Profit before tax GBP71.7m GBP78.1m (8%)
------------------------------------------- ---------------- ---------------- ----------
Basic earnings per share (underlying(1) ) 48.25p 41.51p +16%
Basic earnings per share 38.93p 41.51p (6%)
------------------------------------------- ---------------- ---------------- ----------
Interim dividend per share 0.75p 0.60p +25%
------------------------------------------- ---------------- ---------------- ----------
Note 1: Underlying profit references are stated excluding
Separately disclosed items (Note 6)
* Group revenue increased 15% to GBP902.2m (2013: GBP787.1m)
whilst underlying Group operating profit increased 10% to GBP89.4m
(2013: GBP81.2m) underpinned by continued growth in the Leisure
Travel business.
* Underlying profit before tax grew 14% to GBP88.7m (2013:
GBP78.1m). Interim dividend per share increased by 25% to 0.75p
(2013: 0.60p).
* As a result of a Supreme Court ruling delivered on 31 October
2014 on EU Regulation 261, the Group has made an exceptional
provision of GBP17.0m for possible passenger compensation claims,
which may be payable in certain circumstances, for historical
flight delays which occurred over the past six years due to
technical reasons. After accounting for this exceptional item,
overall profit before tax fell 8% to GBP71.7m.
* Leisure Travel revenue growth of 16% to GBP824.1m (2013:
GBP708.9m) reflects a 12% increase in total passengers flown, which
is marginally below the increased seat capacity of 13%, and
includes a 21% increase in package holiday customers.
* Distribution & Logistics contributed GBP78.1m of revenue (2013: GBP78.2m).
* With winter 14/15 Leisure Travel bookings continuing to
perform in line with expectations, the Board is optimistic that
current market expectations for full year operating profit, before
adjusting for the exceptional provision of GBP17.0m, will be
achieved.
Chairman's Statement
I am pleased to report on the Group's trading performance for
the half year ended 30 September 2014 in our two businesses,
Leisure Travel - incorporating Jet2.com, the North's leading
leisure airline and Jet2holidays, our ATOL protected package
holidays operator - and Distribution & Logistics, comprising
Fowler Welch, one of the UK's leading logistics providers.
Underlying Group operating profit increased 10% to GBP89.4m
(2013: GBP81.2m) and underlying profit before tax by 14%, to
GBP88.7m (2013: GBP78.1m). After accounting for an exceptional
provision of GBP17.0m, in relation to possible passenger
compensation claims, which may be payable in certain
circumstances,for historical flight delays under EU Regulation 261,
Group profit before tax, fell by 8% to GBP71.7m.
The increase in underlying Group operating profit reflects
improved trading in our Leisure Travel business in the later summer
months, which was in contrast to the challenging market conditions
experienced earlier in the season. However, increased losses are to
be expected in the second half of the year as our expanding Leisure
Travel operations, which concentrate on high volume leisure
destinations in the Mediterranean, the Canary Islands and European
Leisure Cities, invest in additional aircraft, advertising and
people in readiness for the summer 15 season.
The Group generated increased net cash flow from operating
activities of GBP93.2m (2013: GBP89.5m), reflecting the improved
Leisure Travel trading performance. Total capital expenditure of
GBP25.5m (2013: GBP42.7m), included continued investment in the
long-term maintenance of our aircraft fleet. The business will be
adding a further four aircraft in the second half of the financial
year in readiness for summer 15, two of which will be leased.
Cash and money market deposits increased by GBP68.1m (2013:
GBP48.9m), resulting in total cash held at the reporting date of
GBP331.8m (2013: GBP269.8m), which included advance payments from
Leisure Travel customers of GBP145.0m (2013: GBP134.4m).
Underlying basic earnings per share increased to 48.25p from
41.51p. However, after accounting for the exceptional provision of
GBP17.0m, overall basic earnings per share fell to 38.93p. In view
of the outlook for the full year, the Board has decided to pay an
increased interim dividend of 0.75p per share (2013: 0.60p). The
dividend will be paid on 2 February 2015 to shareholders on the
register at 5 January 2015.
Leisure Travel
In the first half of the year, flight-only passengers grew by 8%
to 3.07m (2013: 2.84m), whilst Jet2holidays took 0.77m (2013:
0.64m) customers on holiday, an increase of 21%. This growth is a
reflection of the popularity of both our flight-only and package
holiday products with package holiday customers now making up 33%
of all passengers flown (2013: 31%).
Our leisure airline, Jet2.com, flew 5.0m sector seats at an
overall load factor of 91.8% equating to 4.6m flown passengers, an
increase of 12% over the same period last year. Overall net ticket
yield of GBP79.99 was 1.6% down as early season demand was slower
than expected, which was particularly pronounced in relation to our
Canary Islands and Eastern Mediterranean destinations. Retail
revenue (non-ticket revenue) per passenger increased by 5% to
GBP34.04 (2013: GBP32.32); a result of continued focus on
pre-departure, in-flight and ancillary product sales. The average
price of a package holiday grew 3%.
As a result, Leisure Travel revenue grew by 16% to GBP824.1m
(2013: GBP708.9m) at an underlying operating margin of 10.7% (2013:
11.2%). Underlying operating profit grew 10.6% to GBP87.8m (2013:
GBP79.4m).
During summer 2014 the Leisure Travel business operated 54
aircraft (2013: 49) from its eight Northern UK bases - Belfast
International, Blackpool, East Midlands, Edinburgh, Glasgow, Leeds
Bradford, Manchester and Newcastle airports. In early October 2014,
the owners of Blackpool Airport announced that the airport was to
close on 15 October 2014, ending a long-standing relationship
established in 2005. The two aircraft which were based at Blackpool
Airport have since been redeployed into other existing bases.
We will continue to develop our customer-focused flying
programme into summer 15, which will also include the addition of
four new destinations - Antalya in Turkey, Enfidha in Tunisia,
Kefalonia in Greece, and Malta.
EU Regulation 261
Subsequent to a judgment given on 11 June 2014, in which the
Court of Appeal held that a technical defect was not in itself an
extraordinary circumstance and that compensation for delay may be
payable, Jet2.com had its application to the Supreme Court, to
appeal the Court of Appeal's earlier decision, rejected.
Accordingly, the Consolidated Group Income Statement includes an
exceptional provision of GBP17.0m in relation to possible passenger
compensation claims, which may be payable in certain circumstances,
for historical flight delays over the past six years.
KPIs
Half Year Half Year
Ended Ended Year Ended
30 Sept 30 Sept Half Year 31 Mar
14 13 End Change 14
----------------------------------------- ---------- ---------- ------------ -----------
Owned aircraft at 30 September 44 44 0% 44
----------------------------------------- ---------- ---------- ------------ -----------
Aircraft on operating leases at 30
September 10 5 100% 6
----------------------------------------- ---------- ---------- ------------ -----------
Total sector seats available (capacity) 5.03m 4.44m 13% 6.16m
----------------------------------------- ---------- ---------- ------------ -----------
Total sectors seats flown 4.62m 4.11m 12% 5.61m
----------------------------------------- ---------- ---------- ------------ -----------
Flight-only passenger sectors flown 3.07m 2.84m 8% 3.95m
----------------------------------------- ---------- ---------- ------------ -----------
Package holiday passenger sectors
flown 1.54m 1.27m 21% 1.66m
----------------------------------------- ---------- ---------- ------------ -----------
Package holiday customers 0.77m 0.64m 21% 0.83m
----------------------------------------- ---------- ---------- ------------ -----------
Overall load factor 91.8% 92.5% (0.7 ppt) 91.0%
----------------------------------------- ---------- ---------- ------------ -----------
Overall net ticket yield per passenger GBP79.99 GBP81.30 (2%) GBP78.39
sector (excl. taxes)
----------------------------------------- ---------- ---------- ------------ -----------
Retail revenue per passenger sector GBP34.04 GBP32.31 5% GBP32.14
----------------------------------------- ---------- ---------- ------------ -----------
Average package holiday price GBP593.26 GBP577.80 3% GBP571.53
----------------------------------------- ---------- ---------- ------------ -----------
Advance Leisure Travel sales as at GBP266.8m GBP224.7m 19% GBP484.9m
the reporting date
----------------------------------------- ---------- ---------- ------------ -----------
Distribution & Logistics
Fowler Welch is one of the UK's leading providers of
distribution and logistics to the food industry supply chain,
serving retailers, growers, importers and manufacturers through its
distribution network.
The Company operates from a number of UK distribution sites,
with major operations in the key produce growing and importing
areas of Spalding in Lincolnshire, Teynham in Kent and Hilsea near
Portsmouth. Fowler Welch also operates a 500,000 square foot
ambient (non-temperature controlled) consolidation and distribution
centre near Bury, Greater Manchester and a regional distribution
centre in Washington, Tyne and Wear. A full range of added value
services is provided including storage, case level picking, produce
packing and an award-winning national distribution network.
Fowler Welchreported a slight revenue reduction of GBP0.1m to
GBP78.1m (2013: GBP78.2m) whilst like-for-like operating profit of
GBP2.1m was in line with the previous half year, at an operating
margin of 2.7% (2013: 2.7%).
Overall operating profit fell 11% to GBP1.6m (2013: GBP1.8m) as
a result of expected start up losses at our new joint venture
operation in Teynham, Kent which commenced operation in May 2014
storing, ripening and packing stone-fruit and exotic and organic
fruits. Margins are encouraging in this business and with volumes
now committed for the remainder of the current and following year,
the operation is expected to generate a profit in the second half,
which will continue into the financial year ending 31 March
2016.
A major distribution contract for a Danish pork product
processor, which builds on existing business, was successfully
implemented at Spalding making them Fowler Welch's second largest
customer. At Heywood, the implementation of a substantial beverages
contract was impacted by lower than anticipated stock holdings,
however, the operation has now stabilised and further new revenues
are planned for the final quarter.
The focus on operational efficiency following the roll out of
our Enterprise transport planning system, has contributed to
improved gross margins due to better visibility of vehicle
performance, important in the context of increasing cost pressures
in the industry in general.
The Fowler Welch business will continue to focus on growing its
revenue pipeline and the successful development of existing and new
business opportunities.
KPIs
Half Year Half Year Year
Ended Ended Ended
30 Sept 30 Sept Half Year 31 Mar
14 13 End Change 14
-------------------------------------- ---------- ---------- ------------ --------
Warehouse space (square feet) 847,000 847,000 - 847,000
-------------------------------------- ---------- ---------- ------------ --------
Number of tractor units in operation 450 450 - 450
-------------------------------------- ---------- ---------- ------------ --------
Number of trailer units in operation 640 640 - 640
-------------------------------------- ---------- ---------- ------------ --------
Miles per gallon 9.4 9.0 4% 8.9
-------------------------------------- ---------- ---------- ------------ --------
Fleet mileage 21.4m 21.9m (2%) 42.6m
-------------------------------------- ---------- ---------- ------------ --------
Outlook
We have been encouraged by the Group's underlying operating
profit growth of 10%, particularly in light of the less than
buoyant consumer demand and weak market pricing experienced in the
early summer months. And, with winter 14/15 Leisure Travel bookings
performing in line with expectations, the Board is optimistic that
current market expectations for full year operating profit, before
adjusting for the exceptional provision of GBP17.0m, will be
achieved.
Philip Meeson
Chairman
20 November 2014
For further information please contact:
Dart Group PLC Tel: 0113 239 7817
Philip Meeson, Group Chairman and Chief
Executive
Gary Brown, Group Chief Financial Officer
Smith & Williamson Corporate Finance Tel: 020 7131 4000
Limited
Nominated Adviser
David Jones
Canaccord Genuity - Joint Broker Tel: 020 7523 8000
Peter Stewart / Mark Whitmore
Arden Partners - Joint Broker Tel: 020 7614 5900
Christopher Hardie
Buchanan - Financial PR Tel: 020 7466 5000
Richard Oldworth
Consolidated Group Income Statement (Unaudited)
For the half year ended 30 September 2014
Description Note Half year Half year Year ended
ended ended 31 March
30 September 30 September 2014
2014 2013 Audited
Unaudited Unaudited
--------------------------- ----- ------------ ----------- -------------- -------------- -----------
Results Separately Total Total Total
before disclosed
separately items
disclosed
items GBPm GBPm GBPm GBPm
GBPm
--------------------------- ----- ------------ ----------- -------------- -------------- -----------
Turnover 4 902.2 - 902.2 787.1 1,120.2
4,
Net operating expenses 6 (812.8) (17.0) (829.8) (705.9) (1,071.0)
--------------------------- ----- ------------ ----------- -------------- -------------- -----------
4,
Operating profit 6 89.4 (17.0) 72.4 81.2 49.2
--------------------------- ----- ------------ ----------- -------------- -------------- -----------
Finance income 1.1 - 1.1 0.8 1.4
Finance costs (0.6) - (0.6) (0.7) (1.4)
Revaluation of derivative
hedges (1.8) - (1.8) (3.2) (3.3)
Revaluation of foreign
currency balances 0.6 - 0.6 - (3.8)
---------------------------------- ------------ ----------- -------------- -------------- -----------
Net financing costs 7 (0.7) - (0.7) (3.1) (7.1)
Profit before taxation 88.7 (17.0) 71.7 78.1 42.1
--------------------------- ----- ------------ ----------- -------------- -------------- -----------
Taxation 9 (18.3) 3.4 (14.9) (17.9) (6.2)
Profit for the period 70.4 (13.6) 56.8 60.2 35.9
All attributable to equity
shareholders
of the parent company
---------------------------------- ------------ ----------- -------------- -------------- -----------
Earnings per share 5
- basic 48.25p 38.93p 41.51p 24.68p
- diluted 47.56p 38.37p 40.75p 24.28p
Consolidated Group Statement of Comprehensive Income
(Unaudited)
For the half year ended 30 September 2014
Half year Half year Year ended
ended ended 31 March
30 September 30 September 2014
2014 2013 Audited
Unaudited Unaudited GBPm
GBPm GBPm
Profit for the period attributable
to equity holders of the
parent company 56.8 60.2 35.9
Effective portion of changes
in fair value movements in
cash flow hedges (19.5) (14.4) (33.8)
Net change in fair value
of effective cash flow hedges
transferred to profit 21.4 (24.7) (16.9)
Taxation on components of
other comprehensive income (0.4) 9.0 11.5
-------------- -------------- -------------
Other comprehensive income
& expense for the period,
net of taxation 1.5 (30.1) (39.2)
Total comprehensive income
for the period attributable
to equity holders of the
parent company 58.3 30.1 (3.3)
============== ============== =============
Consolidated Group Balance Sheet (Unaudited)
As at 30 September 2014
30 September 30 September 31 March
2014 2013 2014
Unaudited Unaudited Audited
GBPm GBPm GBPm
Non-current assets
Goodwill 6.8 6.8 6.8
Property, plant and
equipment 274.6 276.9 291.6
Derivative financial
instruments 2.3 1.5 0.4
283.7 285.2 298.8
------------- ------------- ---------
Current assets
Inventories 2.4 2.2 3.1
Trade and other receivables 185.0 140.7 285.9
Derivative financial
instruments 4.7 2.6 1.4
Money market deposits 29.5 19.0 52.5
Cash and cash equivalents 302.3 250.8 211.2
523.9 415.3 554.1
------------- ------------- ---------
Total assets 807.6 700.5 852.9
------------- ------------- ---------
Current liabilities
Trade and other payables 194.3 183.1 107.0
Deferred revenue 263.9 224.7 484.5
Borrowings 0.8 0.8 0.8
Provisions 24.4 2.4 2.4
Derivative financial
instruments 31.6 22.1 35.0
515.0 433.1 629.7
------------- ------------- ---------
Non-current liabilities
Other non-current liabilities 12.7 8.9 10.7
Borrowings 8.6 9.4 9.0
Derivative financial
instruments 10.7 8.2 2.2
Deferred tax liabilities 20.3 23.5 19.7
------------- ------------- ---------
52.3 50.0 41.6
------------- ------------- ---------
Total liabilities 567.3 483.1 671.3
Net assets 240.3 217.4 181.6
============= ============= =========
Shareholders' equity
Share capital 1.8 1.8 1.8
Share premium 11.6 11.2 11.4
Cash flow hedging reserve (25.3) (17.7) (26.8)
Retained earnings 252.2 222.1 195.2
---------
Total shareholders'
equity 240.3 217.4 181.6
============= ============= =========
Consolidated Group Cash Flow Statement (Unaudited)
For the half year ended 30 September 2014
Half year Half year Year ended
ended 30 ended 30 31 March
September September 2014
2014 2013 Audited
Unaudited Unaudited GBPm
GBPm GBPm
Cash flows from operating activities
Profit on ordinary activities before
taxation 71.7 78.1 42.1
Adjustments for:
Finance income (1.1) (0.8) (1.4)
Finance costs 0.6 0.7 1.4
Revaluation of derivative hedges 1.8 3.2 3.3
Revaluation of foreign currency
balances (0.6) - 3.8
Depreciation 42.5 34.9 60.7
Equity settled share based payments 0.2 0.2 0.4
Operating cash flows before movements
in working capital 115.1 116.3 110.3
Decrease / (increase) in inventories 0.7 (0.9) (1.8)
Decrease / (increase) in trade and
other receivables 101.0 85.1 (59.7)
Increase in trade and other payables 77.9 73.5 10.3
(Decrease) / increase in deferred
revenue (218.2) (182.4) 77.5
Increase in provisions 22.0 0.4 0.3
Cash generated from operations 98.5 92.0 136.9
Interest received 1.1 0.7 1.4
Interest paid (0.6) (0.6) (1.4)
Income taxes paid (5.8) (2.6) (6.1)
Net cash from operating activities 93.2 89.5 130.8
----------- ----------- -----------
Cash flows from investing activities
Purchase of property, plant and
equipment (25.5) (42.7) (83.5)
Proceeds from sale of property,
plant and equipment - - 0.2
Net decrease / (increase) in money
market deposits 23.0 11.0 (22.5)
Net cash used in investing activities (2.5) (31.7) (105.8)
----------- ----------- -----------
Cash flows from financing activities
Repayment of borrowings (0.4) (8.3) (8.7)
New loans advanced - 10.0 10.0
Proceeds on issue of shares 0.2 0.5 0.7
Equity dividends paid - - (2.8)
Net cash (used in) / from financing
activities (0.2) 2.2 (0.8)
----------- ----------- -----------
Effect of foreign exchange rate
changes 0.6 (0.1) (3.9)
Net increase in cash in the period 91.1 59.9 20.3
Cash and cash equivalents at beginning
of period 211.2 190.9 190.9
Cash and cash equivalents at end
of period 302.3 250.8 211.2
=========== =========== ===========
Consolidated Group Statement of Changes in Equity
For the half year ended 30 September 2014
Share Share premium Cash flow Retained Total reserves
capital hedging reserve earnings
GBPm GBPm GBPm GBPm GBPm
--------- -------------- ----------------- ---------- ---------------
Balance at 1 April 2013
- Audited 1.8 10.7 12.4 161.7 186.6
Total comprehensive income
for the period - - (30.1) 60.2 30.1
Share based payments - - - 0.2 0.2
Issue of share capital - 0.5 - - 0.5
Balance at 30 September
2013 - Unaudited 1.8 11.2 (17.7) 222.1 217.4
Total comprehensive income
for the period - - (9.1) (24.3) (33.4)
Dividends paid in the period - - - (2.8) (2.8)
Share based payments - - - 0.2 0.2
Issue of share capital - 0.2 - - 0.2
Balance at 31 March 2014
- Audited 1.8 11.4 (26.8) 195.2 181.6
Total comprehensive income
for the period - - 1.5 56.8 58.3
Share based payments - - - 0.2 0.2
Issue of share capital - 0.2 - - 0.2
Balance at 30 September
2014 - Unaudited 1.8 11.6 (25.3) 252.2 240.3
========= ============== ================= ========== ===============
Notes to the consolidated financial statements
For the half year ended 30 September 2014 (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.
This interim financial report does not fully comply with IAS 34
"Interim Financial Reporting", which is not currently required to
be applied by AIM companies.
The interim report for the half year ended 30 September 2014 was
approved by the Board of Directors on 19 November 2014.
2. Accounting policies
Basis of preparation of the interim report
The unaudited consolidated interim financial report for the half
year ended 30 September 2014 does not constitute statutory accounts
as defined in s435 of the Companies Act 2006. The accounts for the
year ended 31 March 2014 were prepared in accordance with IFRS and
have been delivered to the Registrar of Companies. The report of
the auditor on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under s495(2) nor (3) of the Companies Act 2006. In this report,
the comparative figures for the year ended 31 March 2014 have been
audited, with the exception of the revised segmental disclosure in
Note 4. The comparative figures for the half year ended 30
September 2013 are unaudited.
The financial statements have been prepared under the historical
cost convention except for derivative financial instruments, which
have been measured at fair value.
The Group uses forward foreign currency contracts 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 price volatility. Such
derivative financial instruments are stated at fair value.
Ineffectiveness in qualifying cash flow hedges under IAS 39 can
arise as a result of the difference between the contractual profile
of a hedge and the profile of transactions defined as the hedged
item. IAS 39 requires ineffectiveness in qualifying cash flow
hedges to be recorded in the income statement.
The Group's accounts are presented in pounds sterling and all
values are rounded to the nearest GBP100,000 except where indicated
otherwise.
Going concern
The Directors have prepared financial forecasts for the Group,
comprising operating profit, balance sheet and cash flows through
to 31 March 2017.
For the purposes of their assessment of the appropriateness of
the preparation of the Group's unaudited interim accounts on a
going concern basis, the Directors have considered the current cash
position, the availability of bank facilities, forecasts of future
trading through to 31 March 2017, including performance against
financial covenants, and the assessment of principal risks and
uncertainties.
Having considered the points outlined above, the Directors have
a reasonable expectation that the Company and the Group will be
able to operate within the considered levels of available
facilities and cash for the foreseeable future. Consequently, they
continue to adopt the going concern basis in preparing the
financial statements for the half year ended 30 September 2014.
3. Adoption of new and revised standards
The following new or revised International Financial Reporting
Standards and IFRIC interpretations will be adopted, where
applicable, for the purpose of preparing future financial
statements. The Group does not anticipate that the adoption of
these new or revised standards and interpretations will have a
material impact on its financial position or results from
operations.
International Financial Applies to
Reporting Standards periods
beginning after
-------------------------------------------- -----------------
IAS 27 - Separate Financial Statements January 2016
Annual Improvements to IFRS - 2012-14 cycle January 2016
IFRS 9 - Financial Instruments January 2018
4. Segmental information
Business Segments
The Chief Operating Decision Maker ("CODM") is responsible for
the overall resource allocation and performance assessment of the
Group. The Board of Directors approves major capital expenditure,
assesses the performance of the Group and also determines key
financing decisions. Consequently, the Board of Directors is
considered to be 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. Previously, the Leisure Airline, Package
Holidays and Distribution & Logistics businesses were
determined to represent operating segments. However, the Leisure
Airline and Package Holidays businesses have been working
progressively closer together as one Leisure Travel business and,
following on from changes in the operational structure of the
business, internal financial reporting to the CODM now represents
one Leisure Travel operating segment. Consequently, the Group now
has two operating segments: Leisure Travel and Distribution &
Logistics.
Following the identification of the operating segments, the
Group has assessed the similarity of their characteristics. Given
the different performance targets, customer bases and operating
markets of each of the operating segments, it is not currently
appropriate to aggregate the operating segments for reporting
purposes. Accordingly, both of the identified operating segments
are disclosed as reportable segments for the half year ended 30
September 2014.
Group eliminations include the removal of intercompany assets
and liabilities. Revenue from reportable segments is measured on a
basis consistent with the income statement and is principally
generated from within the UK, the Group's country of domicile.
Distribution Leisure Group Consolidated
& Logistics Travel Eliminations Total
GBPm GBPm GBPm GBPm
Half year to 30 September 2014 (Unaudited)
Turnover 78.1 824.1 - 902.2
EBITDA 2.7 129.2 - 131.9
------- -------- -------------- -------------
Underlying operating
profit 1.6 87.8 - 89.4
------- -------- -------------- -------------
Finance income - 1.1 - 1.1
Finance costs - (0.6) - (0.6)
Revaluation of derivative
hedges - (1.8) - (1.8)
Revaluation of foreign
currency balances - 0.6 - 0.6
Underlying profit
before taxation 1.6 87.1 - 88.7
Separately disclosed
items - (17.0) - (17.0)
------- -------- -------------- -------------
Profit before taxation 1.6 70.1 - 71.7
------- -------- -------------- -------------
Taxation (0.3) (14.6) - (14.9)
------- -------- -------------- -------------
Profit after taxation 1.3 55.5 - 56.8
======= ======== ============== =============
Assets and liabilities
Segment assets 76.7 737.3 (6.4) 807.6
Segment liabilities (32.9) (540.8) 6.4 (567.3)
Net assets 43.8 196.5 - 240.3
======= ======== ============== =============
Other segment information
Property, plant and
equipment additions 1.3 24.2 - 25.5
Depreciation and amortisation (1.1) (41.4) - (42.5)
Share based payments - (0.2) - (0.2)
Half year to 30 September 2013 (Unaudited)
Turnover 78.2 708.9 - 787.1
EBITDA 2.8 113.3 - 116.1
------- -------- -------------- -------------
Operating profit 1.8 79.4 - 81.2
------- -------- -------------- -------------
Finance income - 0.8 - 0.8
Finance costs (0.1) (0.6) - (0.7)
Revaluation of derivative
hedges - (3.2) - (3.2)
Revaluation of foreign
currency balances - - - -
Profit before taxation 1.7 76.4 - 78.1
Taxation (0.3) (17.6) - (17.9)
------- -------- -------------- -------------
Profit after taxation 1.4 58.8 - 60.2
======= ======== ============== =============
Assets and liabilities
Segment assets 74.2 633.0 (6.7) 700.5
Segment liabilities (34.6) (455.2) 6.7 (483.1)
------- -------- --------------
Net assets 39.6 177.8 - 217.4
======= ======== ============== =============
Other segment information
Property, plant and
equipment additions 0.6 42.1 - 42.7
Depreciation and amortisation (1.0) (33.9) - (34.9)
Share based payments - (0.2) - (0.2)
Year to 31 March 2014 (Unaudited)
Turnover 153.2 967.0 - 1,120.2
EBITDA 5.7 104.2 - 109.9
------- -------- -------------- -------------
Operating profit 3.6 45.6 - 49.2
------- -------- -------------- -------------
Finance income - 1.4 - 1.4
Finance costs (0.3) (1.1) - (1.4)
Revaluation of derivative
hedges - (3.3) - (3.3)
Revaluation of foreign
currency balances - (3.8) - (3.8)
Profit before taxation 3.3 38.8 - 42.1
Taxation (0.6) (5.6) - (6.2)
------- -------- -------------- -------------
Profit after taxation 2.7 33.2 - 35.9
======= ======== ============== =============
Assets and liabilities
Segment assets 71.0 789.8 (7.9) 852.9
Segment liabilities (32.7) (646.5) 7.9 (671.3)
------- -------- --------------
Net assets 38.3 143.3 - 181.6
======= ======== ============== =============
Other segment information
Property, plant and
equipment additions 1.0 82.5 - 83.5
Depreciation and amortisation (2.1) (58.6) - (60.7)
Share based payments (0.1) (0.3) - (0.4)
5. Earnings per share
The calculation of earnings per share is based on the
following:
Half year Half year Year to
to to
30 September 30 September 31 March
2014 2013 2014
(Unaudited) (Unaudited) (Audited)
Underlying profit for the
period (GBPm) 70.4 60.2 35.9
Profit for the period (GBPm) 56.8 60.2 35.9
-------------- -------------- ------------
Weighted average number
of ordinary shares in issue
during the period used to
calculate basic earnings
per share 145,907,224 145,021,355 145,300,720
Weighted average number
of ordinary shares in issue
during the period used to
calculate diluted earnings
per share 148,032,833 147,727,104 147,703,529
6. Separately disclosed items
Separately disclosed items are presented in the middle column of
the half year ended 30 September 2014 Consolidated Group Income
Statement in order to assist the reader's understanding of
underlying business performance and to provide a more meaningful
presentation. The right hand column presents the results for the
half year showing all gains and losses recorded in the Consolidated
Group Income Statement.
EU Regulation 261
Subsequent to a judgment given on 11 June 2014, in which the
Court of Appeal held that a technical defect was not in itself an
extraordinary circumstance and that compensation for delay may be
payable, Jet2.com had its application to the Supreme Court, to
appeal the Court of Appeal's earlier decision, rejected.
Accordingly, the Consolidated Group Income Statement includes an
exceptional provision of GBP17.0m in relation to possible passenger
compensation claims, which may be payable in certain circumstances,
for historical flight delays over the past six years.
7. Net financing costs
Half year Half year Year to
to to 31 March
30 September 30 September 2014
2014 2013 Audited
Unaudited Unaudited
Finance income - interest receivable 1.1 0.8 1.4
Finance costs - borrowings (0.6) (0.7) (1.4)
Revaluation of derivative hedges:
-------------- -------------- ----------
- ineligible for cash flow
hedge accounting - (1.3) (1.4)
- change in fair value of ineffective
cash flow hedges (1.8) (1.9) (1.9)
-------------- -------------- ----------
(1.8) (3.2) (3.3)
Revaluation of foreign currency
balances 0.6 - (3.8)
Net financing costs (0.7) (3.1) (7.1)
============== ============== ==========
8. Dividends
The declared interim dividend of 0.75p per share (2013: 0.60p)
will be paid, out of the Company's available distributable
reserves, on 2 February 2015, to shareholders on the register at 5
January 2015. In accordance with IAS 1, dividends are recorded only
when paid and are shown as a movement in equity rather than as a
charge to the Income Statement.
9. Taxation
The tax charge for the period of GBP14.9m (2013: GBP17.9m)
reflects an estimated effective tax rate of approximately 21%
(2013: 23%). The Government has enacted a further reduction in the
headline rate of corporation tax to 20% from 1 April 2015.
10. Reconciliation of net cash flow to movement in net cash
Half year Half year Year to
to to 31 March
30 September 30 September 2014
2014 2013 Audited
Unaudited Unaudited
GBPm
GBPm GBPm
Increase in cash in the
period 91.1 59.9 20.3
Decrease / (increase)
in net debt in the period 0.4 (1.7) (1.3)
-------------- -------------- ----------
Change in net cash resulting
from cash flows in the
period 91.5 58.2 19.0
Net cash at beginning
of period 201.4 182.4 182.4
Net cash at end of period 292.9 240.6 201.4
============== ============== ==========
11. Contingent liabilities
The Group has issued various guarantees in the ordinary course
of business, none of which are expected to lead to a financial gain
or loss.
12. Other matters
This report will be posted on the Group's website,
www.dartgroup.co.uk and copies are available from the Group Company
Secretary at the registered office address: 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
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