Positives.............11 Feb 2025 12:17
Hi all,
Well, another interesting reaction to what I believe and looking through the comments below, others believe were good results for Q3.
So here goes with thinking on the positives:
1. Record revenue at 13% yr on yr - remember that currently sitting in the city forecasts for FY25 is a 5% growth, so smashing that one already and I certainly expect a full year in excess of 10%
2. Underlying EBIT for the 1st quarter up 8 FOLD yr on yr and as mentioned previously, the only other UK company that makes a Q1 operating profit is IAG and we're onto a second year
3. Hotels and Cruises the best performing on EBIT in Q1 with an 82m increase yr on yr - as mentioned in my posts over the weekend, this is brilliant to see and indeed critical, as these are the areas where we get a JV dividend from at the end of each year and the company has already stated that in FY25, divi payments will return to pre pandemic levels - last year we got a 60m divi - in Q4 this year, we'll likely get 245m in divis, which matches that paid out to Group in 2019 - what's not to like?
4. Whilst Summer bookings are currently down 2% yr on yr - so what eh? Such a decline is easy to make up as and if we want to. So interestingly, the CEO this morning, has been touting the fact that the company has been doing less aggressive marketing and price reductions, which of course is great - I'd rather have better profit thank you very much, than sales for the sake of and actually for me, more of this please, as our margins really do need a boost and maybe the BOD have at last woken up to this fact!
Finally, some other bits to share - so as thought, delighted that we've now payed off the remaining KfW facility, which is the very last part of the covid monies from the German government - so nothing now standing in the way ref giving monies back to us investors and again, as mentioned in previous posts, whilst the company isn't paying a divi in 2025, but most certainly is in 2026, it doesn't stop a buyback at the end of this year and with all of the extra profit flowing is as above, you haver to think that this could seriously be on the cards, if not a special divi, which doesn't have to be tied to a dividend policy?
In addition to the extra and considerable increase in JV divis due in Q4 this year, on top of that, the company has announced today that in 2026, the current payments in to the UK Pension scheme will finish at the end of FY25, as it will be fully funded and as such, an additional 80m will be fed straight into the bottom line in 2026
As for debt, again many have stated and quite rightly that this is simply down to investments, like new hotels; new cruise ships and new aircraft - all of which I totally back and which over time will simply add even more to our profitability going forwards
So whatever and whichever investors are selling up today - good luck - for me, today is a great start to FY25 and I have no issues whatsoever
GLA
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