Rns25 Mar 2014 07:24
GREAT RNS
Journey Group plc (the "Group"), a leading provider of catering services and in-flight products to the international airline and travel industries, today announces its results for the year ended 31 December 2013.
Positioned for growth
Strategic:
· US Division focusing on identified significant growth opportunities within its existing customer base
· Disposal of MNH for a headline consideration of £900,000
· Group now comprises two businesses, Air Fayre (the US Division) and Watermark Products (the Products Division)
· Re-positioning Watermark Products to focus on up coming opportunities in Asia Pacific, North America and the Middle East
· Reorganisation of Group Board and Watermark Products' senior management leading to annualised cost savings of approximately £700,000 by early H2 2014 after a one-off cost of £430,000, with £114,000 already incurred during 2013 and £316,000 to be incurred during 2014
Operational:
· US Division operating profit increased by 72% boosted by successful transition of the former Continental Airlines traffic at Los Angeles International Airport ("LAX") and the JetBlue Airways traffic at Long Beach Airport
· Post year end the US Division won second contract with JetBlue Airways at LAX and during the year new contracts with Federal Express and North American Airlines also at LAX and has become a multiple client business
· Watermark Products renewed two key contracts with Delta Air Lines and British Airways
Financial:
· Adjusted profit before tax from continuing operations stepped up 77% to £1,828,000 (2012: £1,035,000)
· Adjusted basic earnings per share from continuing operations up 65% to 8.29 pence versus 5.01 pence last year
· Loss from discontinued operations of £941,000 after exceptional loss of £1,064,000
· Net cash increased by £1,299,000 to £4,410,000
· Interim dividend paid of 1.25 pence per share with a proposed final dividend of 1.5 pence per share, making a total of 2.75 pence for the year and representing a 10% increase over the previous year
Stephen Yapp, Executive Chairman commented
"2013 was the second successive year during which the Group grew substantially its profit before tax and net cash position establishing an increasingly strong financial position.
The disposal of MNH left the Group focused on two distinct activities. Watermark Products is being re-positioned to focus more effectively on up coming growth opportunities primarily in the Asia Pacific, North American and Middle East regions. Most importantly, Air Fayre is focusing on growth opportunities available in the next two years where it can replicate its successful business model with new facilities. It has identified
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