Dart Group PLC Trading Update (6769G)
March 18 2020 - 11:56AM
UK Regulatory
TIDMDTG
RNS Number : 6769G
Dart Group PLC
18 March 2020
18 March 2020
Dart Group PLC ("the Group")
Trading Update
Dart Group PLC, the Leisure Travel and Distribution &
Logistics group, today issues the following update.
Year ending 31 March 2020 (FY20)
Further to last week's Trading Update made by the Company on 11
March 2020, unprecedented and unforeseen levels of travel
restrictions have been imposed by governments across Europe in
response to the Covid-19 pandemic. This has resulted in Jet2.com
having to suspend its flying programme until at least 1 May 2020.
Over the past week we have conducted an extensive repatriation
programme to bring our valued Customers safely home, and we are
proud that the Company and all of our colleagues have gone the
"extra mile" to ensure that everyone has been looked after.
Given the current situation and the wide range of intangibles
with which we are now faced, including concern for our hotel
partners with whom we have placed deposits to secure hotel rooms
for the Summer 2020 season, we now have reduced visibility on the
financial implications for our Company.
In light of these rapidly changing exceptional events, plus the
uncertainty around deposits recovery, the Board has today decided
to withdraw its previous profit guidance issued on 11 March 2020
and will provide a further update in relation to the FY20 profit
outturn once circumstances become clearer.
Year ending 31 March 2021 (FY21)
The impact and duration of Covid-19 is, at this time, impossible
to determine, and the Board has no clarity as to how this will
affect Group profit before foreign exchange revaluation and
taxation for the financial year ending 31 March 2021.
Although we have a strong and prudent balance sheet with a
GBP1.5bn cash balance at 18 March 2020 and long-term structured
debt in relation to aircraft financing, given the escalating
situation we have accelerated actions to underpin the stability of
our business and improve cash flows. This includes a reduced flying
programme beyond 1 May 2020, freezing recruitment and discretionary
spending and deferring all non-regulatory capital expenditure. In
addition, we are in ongoing discussions with existing liquidity
providers who recognise the strength of our business model.
Whilst, we are encouraged by the UK Chancellor's pledge 'to do
whatever it takes', together with his announcement of a package of
Government backed and guaranteed loans, we look forward to seeing
further details of the proposed support for airlines and airports
in due course.
Further announcements will be made by the Board as circumstances
evolve.
For further information, please contact:
Dart Group plc Tel: 0113 239 7817
Philip Meeson, Executive Chairman
Gary Brown, Group Chief Financial
Officer
Cenkos Securities plc Tel: 020 7397 8900
Nominated Adviser
Katy Birkin/Russell Cook
Canaccord Genuity - Joint Broker Tel: 020 7523 8000
Adam James
Arden Partners - Joint Broker Tel: 020 7614 5900
Paul Shackleton/Daniel Gee-Summons
Buchanan - Financial PR Tel: 020 7466 5000
Richard Oldworth
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
This information is provided by RNS, the news service of the
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END
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