A summary of today's pre-close statement (and September passenger statistics) from Hargreaves Lansdown: "Easyjet shares take off after upping H2 outlook and dividend Easyjet was flying high after reporting a strong finish to the year on Friday, with the group increasing its outlook for the second half after higher revenue per set led to an upbeat end of summer trading. The low cost flyer has upped its profit forecasts for the second half from between £545m and £570m to between £575m and £580m, after seeing around a 2% increase in revenue per seat and its unit fuel costs totalling around £2m in favourable terms compared to its previous expectations of an adverse £5m. The group has also benefitted from the Air France pilots' strike in September, which is expected to increase easyJet's revenue by around £5m. The group said its performance would lead to its largest ever ordinary dividend payment, as it was also proposing to increase the proportion of its profits after tax paid in dividends from 33% to 40%. Chief executive Carolyn McCall said: "easyJet has continued to execute its strategy, delivering another strong performance in the second half of the year. This has enabled easyJet to deliver record profits for the fourth year in a row. "We finished the year strongly. Our performance demonstrates our continued focus on cost and progress against all our strategic revenue priorities and further emphasises easyJet's structural advantage against both legacy and low-cost competition. The budget airline anticipates that at current fuel and exchange rates, its unit fuel bill for the first six months of financial year 2015 is likely to decrease by around £20m compared to the half year ended 31 March 2014. In addition, exchange rate movements are likely to have around a £10m favourable impact compared to the six month period. The airline also posted its September passenger numbers, which showed a 7.5% increase in year-on-year passenger numbers from 5.71m to 6.14m, while the load factor climbed from 89.7% to 92.2%. On a 12-month rolling basis, passenger numbers climbed 6.6% to 64.77m, while the load factor rose from 89.3% to 90.6%."
28 Sep '14
Passport Office shake-up
Passport Chief pays price for summer chaos: Her Majesty’s Passport Office is to be scrapped as a separate organisation and brought under the direct control of Theresa May after long delays in issuing travel documents this summer. Paul Pugh, the Chief Executive, will lose his £104,000-a-year job.
19 Sep '14
Obviously it's more stable with fewer shares with a higher price like NEXT with 153m shares at £69.3 giving a Market Cap of £10.6 bn. So splits 5 to 1 may introduce a lower share price and more volatility but APPL did a 7:1 split so who knows best? But surely you are better of with a £100 a share price with 1m shares rather than £1 per share price with 100 shares in issue. Why? Because the higher the share price goes (generally) the lower the volatility and thus more stability.
19 Sep '14
they should do a share spit or rights issue 5 for 1
19 Sep '14
Dividend is 5.5-6%
Hello Easyjet dividend payouts are decided at the AGM in February and it was 33.5p ordinary and 44.1p special making a total of 77p. Which at £14 per share is a 5.5% Yield. But the AGM in February 2015 with have a bigger pot because Easyjet made approx. £100million more in 2014 than in 2013. So if you buy today at £13.50 per share and the payout is 37p ordinary and 48.5p making 85p total. Which makes (13.50+0.85)/13.50 = 1.06 or a 6% dividend payout forecast for March 2015, with an ex dividend date of around 26-28 February with payment around 20 March. And you get the whole years worth of dividend one go, rather than per quarter or interim. Add to that Easyjet is growing at 11% per year and the newer Airbus a320 (2015-2017) and a320neo (from 2017) will increase capacity and lower costs. Also more and more people are flying year on year and Easyjet benefits from a low oil price makes Easyjet a great investment.
19 Sep '14
This is interesting
and so it's prompted me to do a few sums and it looks as though the forward PE just under 12, the forward EV/EBIT ratio to be about 10, the forward yield will be 3.3% (taking into account new dividend policy also) I have to admit that the PE and EV/EBIT ratios suggest this has been priced about right. But it's the dividend that makes it interesting because it'll be about 33% up, and that's a headline grabbing increase. In other words this looks to be reasonably priced but when they announce the full year results (which will be positive and show a 33% rise in the yield) there's good potential for an earnings surprise, the type that triggers a re-rate. 1600p would not be unreasonable - thus offering a 18.5% upside (excluding the dividend) Interesting...
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