TIDMDTG
RNS Number : 2235G
Dart Group PLC
19 November 2015
DART GROUP PLC
Interim Results
Dart Group PLC, the Leisure Travel and Distribution &
Logistics Group ("the Group"), announces its unaudited interim
results for the half year ended 30 September 2015. These results
are presented under International Financial Reporting Standards
("IFRS").
Financial highlights Half year ended Half year ended Change
30 September 30 September
2015 2014
(Unaudited) (Unaudited)
------------------------------------------------ ------------------ ------------------ --------
Group revenue GBP1,024.0m GBP902.2m 14%
================================================ ================== ================== ========
Group operating profit (underlying(1) ) GBP147.1m GBP89.4m 65%
Operating profit margin (underlying(1) ) 14.4% 9.9% 4.5ppts
================================================ ================== ================== ========
Group operating profit GBP147.1m GBP72.4m 103%
Operating profit margin 14.4% 8.0% 6.4ppts
================================================ ================== ================== ========
Profit before tax (underlying(1) ) GBP146.8m GBP88.7m 66%
Profit before tax GBP146.8m GBP71.7m 105%
================================================ ================== ================== ========
Basic earnings per share (underlying(1) ) 79.82p 48.25p 65%
Basic earnings per share 79.82p 38.93p 105%
Interim dividend per share 0.90p 0.75p 20%
------------------------------------------------ ------------------ ------------------ --------
Note 1: Underlying profit references are stated excluding separately disclosed items (note
6)
* In order to meet the future anticipated growth of its Leisure
Travel business and for planned fleet replacement, in September
2015 the Group entered into an agreement with Boeing to purchase 27
new Boeing 737-800NG aircraft to be delivered between September
2016 and April 2018. At current list prices, the total value of
this transaction is approximately $2.6 billion although the Group
has negotiated significant discounts from the list price.
* An exceptional summer season saw Group revenue increase 14% to
GBP1,024.0m (2014: GBP902.2m) whilst Group operating profit
increased 65% to GBP147.1m (2014 underlying(1) : GBP89.4m)
underpinned by continued strong growth in the Leisure Travel
business.
* Profit before tax grew 66% to GBP146.8m (2014 underlying(1) :
GBP88.7m). Interim dividend per share increased by 20% to 0.90p
(2014: 0.75p).
* Leisure Travel revenue growth of 15% to GBP951.7m (2014:
GBP824.1m) reflects a 22% increase in the number of Jet2holidays
package holiday customers to 0.94m (2014: 0.77m), now representing
42% of overall flown customers (2014: 33%). Our important
flight-only product was enjoyed by 2.65m passengers (2014:
3.07m).
* As a result of careful seat capacity management and buoyant
customer demand, the business achieved a record average load factor
of 94.1% (2014: 91.8%) alongside a significant increase in
Jet2.com's average net ticket yield of 16%, which is also a result
of increased flying to Eastern Mediterranean sun destinations.
* Distribution & Logistics contributed GBP72.3m of revenue
(2014: GBP78.1m) and achieved an operating profit of GBP3.5m, a
growth of GBP1.9m on the prior period.
* With winter 2015/16 Leisure Travel bookings continuing to perform in line with expectations and notwithstanding the important post-Christmas booking period that is still to come, the Board is optimistic that current market expectations for the full year will be achieved.
Chairman's Statement
I am pleased to report on the Group's trading performance for
the half year ended 30 September 2015 in our two businesses,
"Leisure Travel" - incorporating Jet2holidays, our ATOL protected
package holidays operator and Jet2.com, the North's leading leisure
airline - and "Distribution & Logistics", comprising Fowler
Welch, one of the UK's leading logistics providers.
In what has proven to be an exceptional summer season, Group
operating profit increased 65% to GBP147.1m (2014 underlying:
GBP89.4m) and profit before tax by 66% to GBP146.8m (2014
underlying: GBP88.7m).
The increase in Group operating profit reflects consistently
strong summer trading in our Leisure Travel business coupled with
our Distribution & Logistics business performing ahead of last
year. However, increased losses are to be expected in the second
half of the year as our expanding Leisure Travel business invests
in additional aircraft, advertising and people in readiness for the
summer 2016 season.
The Group generated increased net cash flow from operating
activities of GBP199.8m (2014: GBP93.2m), reflecting the improved
Leisure Travel trading performance. Total capital expenditure of
GBP60.9m (2014: GBP25.5m) included the purchase of one Boeing
737-800, pre-delivery payments for new aircraft, the majority of
which have been financed, deposits for new aircraft and continued
investment in the long-term maintenance of our aircraft fleet.
Cash and money market deposits increased by GBP144.0m in the
half (2014: GBP68.1m), resulting in total cash held at the
reporting date of GBP446.8m (2014: GBP331.8m), which included
advance payments from Leisure Travel customers of GBP183.7m (2014:
GBP145.0m).
Basic earnings per share increased to 79.82p from an underlying
48.25p in 2014. In view of the outlook for the full year, the Board
has decided to pay an increased interim dividend of 0.90p per share
(2014: 0.75p). The dividend will be paid on 1 February 2016 to
shareholders on the register at 4 January 2016.
Leisure Travel
The Group's Leisure Travel business specialises in the provision
of ATOL licensed package holidays by its tour operator Jet2holidays
and scheduled leisure flights by its airline Jet2.com, to high
volume leisure destinations in the Mediterranean, the Canary
Islands and to European Leisure Cities.
Leisure Travel revenue grew by 15% to GBP951.7m (2014:
GBP824.1m) at an operating profit margin of 15% (2014 underlying:
11%), resulting in operating profit growth of 64% to GBP143.6m
(2014 underlying: GBP87.8m).
Summer 2015 trading has been strong with demand for our package
holidays continuing to grow as Jet2holidays took 0.94m (2014:
0.77m) customers on holiday, an increase of 22%, representing 42%
(2014: 33%) of overall flown customers. Our important flight-only
product was enjoyed by 2.65m passengers in the period (2014:
3.07m). All of our customers flew with Jet2.com, enabling us to
provide a seamless holiday experience.
Jet2.com flew a total of 4.53m passengers in the six months to
30 September 2015 (2014: 4.62m), a slight decrease of 2% over the
same period last year against a backdrop of careful seat capacity
management. As a result of this and buoyant customer demand, the
business achieved a record average load factor of 94.1% (2014:
91.8%) alongside a significant increase in average net ticket yield
of 16%. The average price of a package holiday grew 5%.
Non-ticket revenue per passenger grew 4% to GBP32.55 (2014:
GBP31.35). We continue to optimise this revenue stream through our
customer contact programme, which focusses on pre-departure online
sales of hold bags, advanced seat assignment, pre-ordered meals,
travel insurance and car hire, and through in-flight sales of
meals, drinks, snacks, cosmetics, perfumes and duty free
products.
The Leisure Travel business expanded its fleet to 59 aircraft
for summer 2015 (summer 2014: 55) with commensurate increases in
pilots, engineers and cabin crew. We will continue to develop our
customer-focused flying programme into summer 2016, which will
include the addition of two new destinations - Girona and
Naples.
KPIs Half Half
year year Half Year
ended ended year ended
30 Sept 30 Sept end 31 Mar
15 14 change 15
---------------------------------- ---------- ---------- -------- ----------
Owned aircraft at the reporting
date 45 44 2% 44
================================== ========== ========== ======== ==========
Aircraft on operating leases
at the reporting date 12 10 20% 11
================================== ========== ========== ======== ==========
Leisure Travel sector seats
available (capacity) 4.81m 5.03m (4%) 6.63m
================================== ========== ========== ======== ==========
Leisure Travel passenger
sectors flown 4.53m 4.62m (2%) 6.05m
================================== ========== ========== ======== ==========
Leisure Travel load factor 94.1% 91.8% 2.3ppts 91.2%
================================== ========== ========== ======== ==========
Flight-only passenger sectors
flown 2.65m 3.07m (14%) 4.05m
================================== ========== ========== ======== ==========
Package holiday passenger
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sectors flown 1.88m 1.54m 22% 2.00m
================================== ========== ========== ======== ==========
Package holiday customers 0.94m 0.77m 22% 1.00m
================================== ========== ========== ======== ==========
Net ticket yield per passenger GBP93.09 GBP79.99 16% GBP79.87
sector (excl. taxes)
================================== ========== ========== ======== ==========
Average package holiday price GBP625.78 GBP593.26 5% GBP590.69
================================== ========== ========== ======== ==========
Non-ticket revenue per passenger GBP32.55 GBP31.35 4% GBP30.91
sector
================================== ========== ========== ======== ==========
Advance sales made as at GBP376.3m GBP266.8m 41% GBP580.3m
the reporting date
---------------------------------- ---------- ---------- -------- ----------
Distribution & Logistics
Our distribution business, Fowler Welch, is one of the UK's
leading providers of distribution and logistics services to the
food industry supply chain, serving retailers, processors, growers
and importers through its distribution network.
The business operates from eight prime UK distribution sites,
with major temperature-controlled operations in the key produce
growing and importing areas of Spalding in Lincolnshire, Teynham
and Paddock Wood in Kent and Hilsea near Portsmouth. Ambient
(non-temperature-controlled) consolidation and distribution
services are provided at Desborough, Northamptonshire and at
Heywood near Bury, Greater Manchester. It also operates two
regional distribution sites at Washington, Tyne and Wear and at
Newton Abbott, Devon.
Fowler Welch revenue reduced by 7% to GBP72.3m (2014: GBP78.1m)
primarily due to lower fuel costs which are passed on to customers.
However, operating profit increased by GBP1.9m to GBP3.5m (2014:
GBP1.6m), as operating margins improved by 2.8ppts to 4.8%.
Fowler Welch and its partner have continued to develop their
joint venture operation, Integrated Service Solutions ("ISS"),
which provides a full range of fruit ripening and packing services
to the produce sector for locally grown and imported fruits at
Fowler Welch's Teynham facility. Throughput and revenue are
increasing as the mix of product and the productivity of the
various packing lines improves.
KPIs Half
year Half year Half Year
ended ended year ended
30 Sept 30 Sept end 31 Mar
15 14 change 15
------------------------- --------- ---------- -------- --------
Warehouse space (square
feet) 847,000 847,000 - 847,000
========================= ========= ========== ======== ========
Number of tractor units
in operation 420 450 (7%) 467
========================= ========= ========== ======== ========
Number of trailer units
in operation 637 640 - 655
========================= ========= ========== ======== ========
Miles per gallon 9.2 9.4 (2%) 9.2
========================= ========= ========== ======== ========
Fleet mileage 19.5m 21.4m (9%) 41.5m
------------------------- --------- ---------- -------- --------
Outlook
With winter 2015/16 Leisure Travel bookings continuing to
perform in line with expectations and notwithstanding the important
post-Christmas booking period that is still to come, the Board is
optimistic that current market expectations for the full year will
be achieved.
Philip Meeson
Chairman
19 November 2015
For further information please contact:
Dart Group PLC Tel: 0113 239
Philip Meeson, Group Chairman 7817
and Chief Executive
Gary Brown, Group Chief Financial
Officer
Smith & Williamson Corporate Tel: 020 7131
Finance Limited 4000
Nominated Adviser
David Jones
Canaccord Genuity - Joint Tel: 020 7523
Broker 8000
Guy Marks / Mark Whitmore
Arden Partners - Joint Broker Tel: 020 7614
Christopher Hardie 5900
Buchanan - Financial PR Tel: 020 7466
Richard Oldworth 5000
Dart Group PLC
Consolidated Income Statement (Unaudited)
For the half year ended 30 September 2015
Description Note Half Half year Restated year
year ended ended
ended 30 September 31 March
30 2014 2015
September Unaudited Audited
2015
Unaudited
---------------- ----- ---------- ---------------------------------- ------------------------------------
Results Results
Total before Separately Total before Separately Total
separately disclosed separately disclosed
disclosed items disclosed items
items items
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---------------- ----- ---------- ----------- ----------- -------- ----------- ----------- ----------
Turnover 4 1,024.0 902.2 - 902.2 1,253.2 - 1,253.2
Net operating 4,
expenses 6 (876.9) (812.8) (17.0) (829.8) (1,203.0) (17.0) (1,220.0)
---------------- ----- ---------- ----------- ----------- -------- ----------- ----------- ----------
Operating 4,
profit 6 147.1 89.4 (17.0) 72.4 50.2 (17.0) 33.2
Finance income 1.3 1.1 - 1.1 1.7 - 1.7
Finance costs (1.6) (0.6) - (0.6) (1.1) - (1.1)
Revaluation of
derivative hedges - (1.8) - (1.8) 1.6 - 1.6
Revaluation of
foreign currency
balances - 0.6 - 0.6 4.8 - 4.8
----------------------- ----------- ----------- -------- ----------- ----------- ----------
Net financing
(costs)/income 7 (0.3) (0.7) - (0.7) 7.0 - 7.0
Profit before
taxation 146.8 88.7 (17.0) 71.7 57.2 (17.0) 40.2
Taxation 9 (29.3) (18.3) 3.4 (14.9) (10.8) 3.4 (7.4)
Profit for
the period
All
attributable
to equity
shareholders
of the parent 117.5 70.4 (13.6) 56.8 46.4 (13.6) 32.8
---------------- ----- ---------- ----------- ----------- -------- ----------- ----------- ----------
Earnings per
share 5
- basic 79.82p 48.25p (9.32)p 38.93p 31.72p (9.30)p 22.42p
- diluted 79.23p 47.56p (9.19)p 38.37p 31.40p (9.20)p 22.20p
Dart Group PLC
Consolidated Statement of Comprehensive Income (Unaudited)
For the half year ended 30 September 2015
Half year Half year Year ended
ended ended 31 March
30 September 30 September 2015
2015 2014 Audited
Unaudited Unaudited GBPm
GBPm GBPm
Profit for the period
attributable to equity
holders of the parent
company 117.5 56.8 32.8
Effective portion of
changes in fair value
movements in cash flow
hedges (10.6) (19.5) (98.7)
Net change in fair
value of effective
cash flow hedges transferred
to profit 62.0 21.4 32.0
Taxation on components
of other comprehensive
income (10.7) (0.4) 13.1
-------------- -------------- -----------
Other comprehensive
income & expense for
the period, net of
taxation 40.7 1.5 (53.6)
Total comprehensive
income for the period
attributable to equity
holders of the parent
company 158.2 58.3 (20.8)
============== ============== ===========
Dart Group PLC
Consolidated Group Balance Sheet (Unaudited)
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As at 30 September 2015
Restated
30 September 30 September 31 March
2015 2014 2015
Unaudited Unaudited Audited
GBPm GBPm GBPm
Non-current assets
Goodwill 6.8 6.8 6.8
Property, plant
and equipment 301.4 274.6 295.3
Derivative financial
instruments 4.1 2.3 1.5
312.3 283.7 303.6
--------------- --------------- ----------
Current assets
Inventories 1.7 2.4 2.0
Trade and other
receivables 257.8 185.0 365.6
Derivative financial
instruments 8.9 4.7 27.0
Money market deposits 98.5 29.5 65.5
Cash and cash equivalents 348.3 302.3 237.3
715.2 523.9 697.4
--------------- --------------- ----------
Total assets 1,027.5 807.6 1,001.0
--------------- --------------- ----------
Current liabilities
Trade and other
payables 204.4 194.3 85.7
Deferred revenue 371.9 263.9 579.6
Borrowings 0.8 0.8 0.8
Provisions 33.5 24.4 28.7
Derivative financial
instruments 61.6 31.6 103.8
672.2 515.0 798.6
--------------- --------------- ----------
Non-current liabilities
Other non-current
liabilities 0.2 9.8 0.5
Deferred revenue 4.4 2.9 0.7
Borrowings 13.0 8.6 8.2
Derivative financial
instruments 0.4 10.7 25.1
Deferred tax liabilities 21.6 20.3 10.7
--------------- --------------- ----------
39.6 52.3 45.2
--------------- --------------- ----------
Total liabilities 711.8 567.3 843.8
Net assets 315.7 240.3 157.2
=============== =============== ==========
Shareholders' equity
Share capital 1.8 1.8 1.8
Share premium 12.2 11.6 11.9
Cash flow hedging
reserve (39.7) (25.3) (80.4)
Retained earnings 341.4 252.2 223.9
----------
Total shareholders'
equity 315.7 240.3 157.2
=============== =============== ==========
Dart Group PLC
Consolidated Cash Flow Statement (Unaudited)
For the half year ended 30 September 2015
Half year Half year Restated
ended ended year
30 September 30 September ended
2015 2014 31 March
Unaudited Unaudited 2015
GBPm GBPm Audited
GBPm
Cash flows from operating
activities
Profit on ordinary activities
before taxation 146.8 71.7 40.2
Adjustments for:
Finance income (1.3) (1.1) (1.7)
Finance costs 1.6 0.6 1.1
Revaluation of derivative
hedges - 1.8 (1.6)
Revaluation of foreign
currency balances - (0.6) (4.8)
Depreciation 54.8 42.5 71.3
Equity settled share based
payments - 0.2 0.1
Operating cash flows before
movements in working capital 201.9 115.1 104.6
Decrease in inventories 0.3 0.7 1.1
Decrease / (increase) in
trade and other receivables 107.9 101.0 (79.4)
Increase / (decrease) in
trade and other payables 90.0 77.9 (24.3)
(Decrease) / increase in
deferred revenue (204.1) (218.2) 95.4
Increase in provisions 4.8 22.0 26.3
Cash generated from operations 200.8 98.5 123.7
Interest received 1.3 1.1 1.7
Interest paid (1.6) (0.6) (1.1)
Income taxes paid (0.7) (5.8) (8.2)
Net cash from operating
activities 199.8 93.2 116.1
-------------- ---------------- ----------
Cash flows from investing
activities
Purchase of property, plant
and equipment (60.9) (25.5) (76.4)
Proceeds from sale of - - -
property, plant and equipment
Net (increase) / decrease
in money market deposits (33.0) 23.0 (13.0)
Net cash used in investing
activities (93.9) (2.5) (89.4)
-------------- ---------------- ----------
Cash flows from financing
activities
Repayment of borrowings (0.4) (0.4) (0.8)
New loans advanced 5.2 - -
Proceeds on issue of shares 0.3 0.2 0.5
Equity dividends paid - - (4.2)
Net cash from / (used in)
financing activities 5.1 (0.2) (4.5)
-------------- ---------------- ----------
Effect of foreign exchange
rate changes - 0.6 3.9
Net increase in cash in
the period 111.0 91.1 26.1
Cash and cash equivalents
at beginning of period 237.3 211.2 211.2
Cash and cash equivalents
at end of period 348.3 302.3 237.3
============== ================ ==========
Dart Group PLC
Consolidated Statement of Changes in Equity
For the half year ended 30 September 2015
Share Share Cash flow Retained Total reserves
capital premium hedging earnings
reserve
GBPm GBPm GBPm GBPm GBPm
--------- --------- ---------- ---------- ---------------
Balance at 1 April 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
Total comprehensive income
for the period - - (55.1) (24.0) (79.1)
Dividends paid in the period - - - (4.2) (4.2)
Share based payments - - - (0.1) (0.1)
Issue of share capital - 0.3 - - 0.3
Balance at 31 March 2015
- Audited 1.8 11.9 (80.4) 223.9 157.2
Total comprehensive income
for the period - - 40.7 117.5 158.2
Share based payments - - - - -
Issue of share capital - 0.3 - - 0.3
Balance at 30 September
2015 - Unaudited 1.8 12.2 (39.7) 341.4 315.7
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========= ========= ========== ========== ===============
Dart Group PLC
Notes to the consolidated financial statements
For the half year ended 30 September 2015 (Unaudited)
1. General information
The Group's financial statements 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 financial statements consolidate the
financial statements 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.
2. Accounting policies
Basis of preparation of the interim report
The unaudited consolidated interim financial report for the half
year ended 30 September 2015 does not constitute statutory accounts
as defined in s435 of the Companies Act 2006. The financial
statements for the year ended 31 March 2015 were prepared in
accordance with IFRS and have been delivered to the Registrar of
Companies. The report of the auditor on those financial statements
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 2015 have been audited. The comparative figures
for the half year ended 30 September 2014 are unaudited.
The financial statements have been prepared under the historical
cost convention except for all derivative financial instruments,
which have been measured at fair value.
The Group's financial statements are presented in pounds
sterling and all values are rounded to the nearest GBP100,000
except where indicated otherwise.
Derivative financial instruments and hedging
The Group uses forward foreign currency contracts and monthly
aviation fuel swaps to hedge its exposure to foreign exchange rates
and aviation fuel price volatility. It also uses forward EU
Allowance contracts and Certified Emissions Reduction contracts to
hedge exposure to Carbon Emissions Allowance price volatility. Such
derivative financial instruments are stated at fair value.
Where a derivative financial instrument is designated as a hedge
of the variability in cash flows of a recognised asset or
liability, or a highly probable forecast transaction, the effective
portion of the gain or loss on the hedging instrument from the
inception of the hedging relationship is recognised directly in the
cash flow hedging reserve within equity. Any ineffective portion is
recognised within the Consolidated Income Statement. For all other
cash flow hedges, the recycling of the cash flow hedge is taken to
the Consolidated Income Statement in the same period in which the
hedged transaction begins to affect profit or loss.
Going concern
The Directors have prepared financial forecasts for the Group,
comprising operating profit, balance sheet and cash flows through
to 31 March 2018.
For the purposes of their assessment of the appropriateness of
the preparation of the Group's unaudited interim financial
statements on a going concern basis, the Directors have considered
the current cash position, the availability of banking facilities,
forecasts of future trading through to 31 March 2018, including
performance against financial covenants, and the assessment of
principal areas of uncertainty and risk.
Having considered the points outlined above, the Directors have
a reasonable expectation that the Group will be able to operate
within the 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 2015.
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
-------------------------------------------- -------------
Disclosure Initiative (Amendments January 2016
to IAS 1)
IFRS 15 Revenue from Contracts January 2018
with Customers
IFRS 15 prescribes a new model of revenue recognition
in relation to contracts with customers so
that revenue reflects the consideration to
which an entity expects to be entitled given
an exchange for contracted goods or services.
This is a converged standard on revenue recognition
which replaces IAS 18 'Revenue', IAS 11 'Construction
contracts' and related interpretations. The
Group is currently assessing the impact of
the new standard.
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. The Group has two operating segments:
Leisure Travel and Distribution & Logistics.
The Leisure Travel business serves its customers' demand for
package holidays in, and flights to, high volume leisure
destinations in the Mediterranean, the Canary Islands and European
Leisure Cities. Resource allocation decisions are based on our
entire route network and the deployment of the entire aircraft
fleet.
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 the
results of the individual distribution centres within the
network.
Group eliminations include the removal of inter-segment assets
and liabilities.
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, it is not currently appropriate to aggregate the
operating segments for reporting purposes and therefore both of the
identified operating segments are disclosed as reportable segments
for the half year ended 30 September 2015.
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.
Leisure Distribution Group Total
Travel & Logistics eliminations
GBPm GBPm GBPm GBPm
Half year to
30 September
2015 (Unaudited)
Turnover 951.7 72.3 - 1024.0
EBITDA 197.3 4.6 - 201.9
Operating profit 143.6 3.5 - 147.1
Finance income 1.3 - - 1.3
Finance costs (1.6) - - (1.6)
Revaluation of -
derivative hedges - - -
Revaluation of -
foreign currency
balances - - -
-------- ------------- ------------------- --------
Net financing
costs (0.3) - - (0.3)
Profit before
taxation 143.3 3.5 - 146.8
Taxation (28.7) (0.6) - (29.3)
-------- ------------- ------------------- --------
Profit after
taxation 114.6 2.9 - 117.5
======== ============= =================== ========
Assets and liabilities
Segment assets 952.9 80.3 (5.7) 1,027.5
Segment liabilities (687.7) (29.8) 5.7 (711.8)
-------- ------------- ------------------- --------
Net assets 265.2 50.5 - 315.7
======== ============= =================== ========
Other segment
information
Property, plant
and equipment
additions 60.7 0.2 - 60.9
Depreciation,
amortisation
and impairment (53.7) (1.1) - (54.8)
Share based payments - - - -
Leisure Distribution Group Total
Travel & Logistics eliminations
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GBPm GBPm GBPm GBPm
Half year to
30 September
2014 (Unaudited)
Turnover 824.1 78.1 - 902.2
Underlying EBITDA 129.2 2.7 - 131.9
Underlying operating
profit 87.8 1.6 - 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
-------------- ------------------- ------------------- ----------------
Net financing
costs (0.7) - - (0.7)
Underlying profit
before taxation 87.1 1.6 - 88.7
Separately disclosed
items (17.0) - - (17.0)
Profit before
taxation 70.1 1.6 - 71.7
Taxation (14.6) (0.3) - (14.9)
-------------- ------------------- ------------------- ----------------
Profit after
taxation 55.5 1.3 - 56.8
============== =================== =================== ================
Assets and liabilities
Segment assets 737.3 76.7 (6.4) 807.6
Segment liabilities (540.8) (32.9) 6.4 (567.3)
-------------- ------------------- ------------------- ----------------
Net assets 196.5 43.8 - 240.3
============== =================== =================== ================
Other segment
information
Property, plant
and equipment
additions 24.2 1.3 - 25.5
Depreciation,
amortisation
and impairment (41.4) (1.1) - (42.5)
Share based payments (0.2) - - (0.2)
Leisure Distribution Group Total
Travel & Logistics eliminations
GBPm GBPm GBPm GBPm
Restated year
ended 31 March
2015 (Audited)
Turnover 1,101.5 151.7 - 1,253.2
Underlying EBITDA 116.0 5.5 - 121.5
Underlying operating
profit 46.9 3.3 - 50.2
Finance income 1.7 - - 1.7
Finance costs (1.1) - - (1.1)
Revaluation of
derivative hedges 1.6 - - 1.6
Revaluation of
foreign currency
balances 4.8 - - 4.8
-------------- ------------------- ------------------- ----------------
Net financing
income 7.0 - - 7.0
Underlying profit
before taxation 53.9 3.3 - 57.2
Separately disclosed
items (17.0) - - (17.0)
Profit before
taxation 36.9 3.3 - 40.2
Taxation (6.7) (0.7) - (7.4)
-------------- ------------------- ------------------- ----------------
Profit after
taxation 30.2 2.6 - 32.8
============== =================== =================== ================
Assets and liabilities
Segment assets 923.3 84.2 (6.5) 1,001.0
Segment liabilities (813.7) (36.6) 6.5 (843.8)
-------------- ------------------- ------------------- ----------------
Net assets 109.6 47.6 - 157.2
============== =================== =================== ================
Other segment
information
Property, plant
and equipment
additions 74.4 2.0 - 76.4
Depreciation,
amortisation
and impairment (69.1) (2.2) - (71.3)
Share based payments (0.1) - - (0.1)
5. 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 September 30 September 2015 Audited
2015 2014
Unaudited Unaudited
Underlying profit for
the period (GBPm) 117.5 70.4 46.4
Profit for the period
(GBPm) 117.5 56.8 32.8
-------------- -------------- --------------
Weighted average number
of ordinary shares:
in issue during the
period used to calculate
basic earnings per
share 147,181,935 145,907,224 146,278,585
in issue during the
period used to calculate
diluted earnings per
share 148,281,860 148,032,833 147,734,230
6. Separately disclosed items
Separately disclosed items are presented in the middle column of
the half year ended 30 September 2014 and year ended 31 March 2015
Consolidated Income Statement in order to assist the reader's
understanding of the underlying business performance and to provide
a more meaningful presentation. In each case, the right hand column
presents the results for the period showing all gains and losses
recorded in the Consolidated Income Statement.
EU Regulation 261
Both the half year ended 30 September 2014 and the year ended 31
March 2015 Consolidated Income Statements include a separately
disclosed, exceptional provision of GBP17.0m, in relation to
possible passenger compensation claims for historical flight delays
under Regulation (EC) No 261/2004.
7. Net financing (costs) / income
Half year Half year Year to
to to 31 March
30 September 30 September 2015
2015 2014 Audited
Unaudited Unaudited
Finance income - interest
receivable 1.3 1.1 1.7
Finance costs - borrowings (1.6) (0.6) (1.1)
Revaluation of derivative
hedges - change in fair
value of ineffective
cash flow hedges - (1.8) 1.6
Revaluation of foreign
currency balances - 0.6 4.8
Net financing (costs)
/ income (0.3) (0.7) 7.0
============== ============== ==========
8. Dividends
The declared interim dividend of 0.90p per share (2014: 0.75p)
will be paid, out of the Company's available distributable
reserves, on 1 February 2016, to shareholders on the register at 4
January 2016. 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 GBP29.3m (2014: GBP14.9m)
reflects an estimated effective tax rate of approximately 20%
(2014: 21%).
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