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Due diligence announcement to-morrow I reckon.
Flight booked for January - Check -
Virgin Miles - Check
Shares tucked away nicely - Check
Keep the faith
Its all starting to feel a bit different - hopefully I can remove the snorkel and get the lilo out soon.
I read a little about that over the weekend. It's farcical the way that country operates at times - Municipalities owe millions upon millions to Eskon, Eskom disrupts supply and the courts award in favour of the municipality for non continuity of supply.
And the amount of greed that has taken place in Eksom is breathtaking. One after the other being shown the door.
It's being shaken up but they need to get a move on.
Even Christmas day if thats how it falls. I cant even begin to think of the emotions/anxiety travelling through DRT's mind at this moment in time. Largest fund raise - credibility out there for all to see - seeing your dream realised.
Exciting stuff.
To be fair of that £70million - £16.4 is restricted cash (Card securit) Net Cash position is actually £54.2
"Flybe had total cash of £70.6m, and free cash of £54.2m, at 30th September 2018 and has met all its operating lease commitments and debt repayments as they have fallen due during the period."
I would guess based on the statement below and in view of the announcement to sell - The additional funds are required by various suppliers as security.
"There is a risk that card acquirers may seek greater protection and thus more cash collateral in the future or terminate with notice. Existing card acquirer contracts enable them to call for up to 100% cash collateral and additional card acquirers are actively being sought.
I'm in the same position - after the duster - that wasn't a complete duster - I lost all confidence and refused to average down any further. Great sleuthing.
I have to be honest; I'm truly staggered by some of the huge holdings on here by PI's.
Roughly speaking you're £50k 'in' now for 100k shares.
My young son bought his first £1k worth at .50 last week. I've had to agree to underwrite it for him :-)
I get reminded daily how it's going.
So in a nutshell - CardSecurity , bad decisions relating to onerous contracts/leases and expensive fuel are holding this operation by the b4lls. New planes incoming wont help either.
Over and out.
Correction - £19m still noted on the books for planes and £5.2 provision this yr.
Jeez, another :
...and £5.6m relating to an onerous IT contract (31st March 2018: £5.2m).
Thats £24m between E195's & I T ....
Clowns!!
So I needed to get to the bottom of these onerous lease provisions so here we are for the Annuals last year:
The Sustainable Business Improvement Plan ('SBIP') presented to the Board in March 2017 contained a detailed network strategy and review of the fleet which gave the recommendation to exit the E195 fleet as there were unavoidable losses despite the mitigating actions (i.e. airport agreements) in place. In prior years, the entire fleet had been categorised as one CGU as decisions were made to generate cashflows when working the fleet collectively (as the aircraft were considered to be interchangeable) in order to fulfil network obligations. The new three-year plan developed in 2017/18 continues to support the March 2017 findings confirming that an error had been made in the previous financial year as an onerous contract on the E195 leases should have been recognised as the unavoidable costs of meeting the lease obligations exceeded the economic benefits expected to be received.
A prior period adjustment has therefore been made to retrospectively reflect the non-cash E195 onerous lease and impairment of the related assets in accordance with IAS 8. The onerous lease provision will be released over the next three years to 2020/21 until the E195 leases expire and all aircraft have been handed back. As a result of this adjustment, we have therefore restated 2016/17 which is reflected throughout the comparative period 2016/17 in the Annual report and financial statements. Â
So the report wasn't half bad apart from a legacy onerous lease....
Adjusted profit before tax increased to £14.0m (H1 2017/18: £9.4m). Excluding the impact of the E195 onerous lease, the adjusted profit before tax of £9.9m (H1 2017/18: £9.2m) is slightly ahead of guidance given in the October trading update.
Q3 is showing a positive improvement with 63% of seats sold (Q3 2017/18: 59%).
7.9% improvement in passenger revenue per seat to £60.18 (H1 2017/18: £55.75).
Passenger volumes increased by 0.6% to 5,241 thousand (H1 2017/18: 5,210 thousand).