DTG.L Regulatory News (DTG)

17 Nov 2005 07:01

Dart Group PLC17 November 2005 DART GROUP PLCInterim Results for the Six Months Ended 30 September 2005 Dart Group PLC, the aviation and distribution group, announces its interimresults for the six months ended 30 September 2005. CHAIRMAN'S STATEMENT I am pleased to report on the Group's trading for the six months ended 30September 2005. Profit before tax, goodwill amortisation and exceptionalitems amounted to £14.8m (2004 restated : £11.9m) whilst profit before tax but after goodwill amortisation and exceptional items was £18.2m (2004 restated: £6.2m). The seasonal pattern of profitability seen in recent years islikely to be repeated this year, with Jet2.com being profitable in the summerand loss making in the winter. The exceptional credit of £3.7m relates to the surplus of disposal proceeds over the book value on the sale of the Benair companies, whose business is air and sea freight forwarding and which were considered non-core to the Group's main businesses. The restated prior year exceptional charge relates to the first half effect of the change in the accounting policies covering foreign exchangeand maintenance accounting and the impairment review which was analysed fully in the 2005 Annual Report and Accounts. Capital expenditure in the first half amounted to £22.7m (2004 : £22.8m) and related mainly to the acquisition of two Boeing 757 aircraft and ongoingmaintenance of the aircraft fleet. Net debt at 30 September was £7.7m (2004 : £14.4m), representing gearing of 13% (2004 : 30%). On 15 August 2005, the Company transferred its share listing from the main market to AIM. The Board is pleased to declare an increased interim dividend of 2.25p per share(2004 : 2.04p), an increase of 10%. The dividend will be paid on 5 January 2006to shareholders on the register as at 25 November 2005. Aviation During the past six months, Channel Express (Air Services) has operated 24 Boeing 737-300 aircraft (of which, 20 are owned) and three Airbus A300"Eurofreighters". The company flies seven Boeing 737-300 "Quick Change" aircraft nightly for Royal Mail in freight configuration. These are thenquickly re-configured into passenger aircraft to operate both charter flightsand Jet2.com 's low-cost services. The main customer for our Airbus A300's, United Parcel Service, recently advisedus that its aircraft needs had changed with the ongoing development of itsEuropean business. Consequently, we have taken the decision to cease operatingthe type and to dispose of the Group's two owned aircraft and return the thirdto its lessor. One aircraft has now been sold and there is encouraginginterest in the second. As far as possible, employees on this fleet are beingoffered other jobs within the company. Between 1 April and 30 September, Jet2.com has flown over 1.25 million passengers (2004: 570,000) from its main Leeds Bradford and Manchester bases. Operations were also commenced from Newcastle on 4 September and from Blackpoolon 29 September. In addition, new services have recently been announced fromBelfast and Edinburgh. The company's route structure is easily accessible atwww.jet2.com. Almost 97% of bookings are made over the internet, with ourcontracted call centre (now based in India) handling the remainder as well as flight enquiries. We plan to continue to grow Jet2.com's low-cost services from the North,primarily flying to leisure destinations from regional airports. As routes develop, 148-seat Boeing 737-300 aircraft will be replaced by 235-seat Boeing757-200s. The Boeing 757-200 offers both a competitive seat rate and greaterrange, widening our choice of destinations. The Group purchased two Boeing757-200s in May and the first of these is now in service from Leeds Bradford, with the second joining it this month. This winter, services to Tenerife, Faroand ski destinations are being flown with these aircraft. They will primarily fly to southern Spain next summer. The company will be operating these two aircraft types for the foreseeable future and both fleets will be expanded as the business grows. We believe thatthere is considerable potential for substantial growth in the low-cost sectorand that by offering a friendly product at the lowest possible price Jet2.comwill be a successful competitor in this exciting field. Distribution The Group's temperature-controlled distribution company, Fowler Welch-Coolchain,is one of the country's largest providers of these specialist distribution services to supermarkets, importers and producers. Operating from its primary distribution centres in Spalding, Lincs, and Teynham, Kent, together with operations in Portsmouth, Southampton, Bristol and Gateshead, the company collects and distributes fresh produce and chilled foods throughout the UK and from The Netherlands. This is a growing sector increasingly dominated by thesupermarkets, therefore, the business is geared to offering the highest standard of service at the lowest possible price. The company works closely with its customers to maximise business opportunitiesand has won both additional business from existing customers and new distribution business from Somerfield Stores during the period. Since then further distribution business has also been won at both Gateshead and Teynham. The summer saw the start of significant warehousing and distribution contractswhich formed a basis for further opportunities for the company. The new operation from Teynham involves the picking and despatch of up to 150,000 casesof cheeses and pasta per week whilst in Spalding our chilled foods pick and despatch business has now reached 350,000 cases per week. In the short-term wehave incurred some start up costs as these new operations have been broughton-stream. However, we believe that the long-term opportunities for the division in this business are significant. Outlook We have made an encouraging start to the second half of the financial year and,therefore, remain optimistic for a successful outcome to the full year. Philip Meeson,Chairman 17 November 2005 www.dartgroup.co.uk Enquiries: Philip Meeson, ChairmanTel: 01202 597676 Mobile: 07785 258666 Mike Forder, Group Finance DirectorTel: 01202 597676 Mobile: 07721 865850 UNAUDITED INTERIM CONSOLIDATED RESULTSfor the half year to 30 September 2005 Half Year Half Year Half Year Half Year Half Year Half Year Year to Year to Year to to 30 to 30 to 30 to 30 to 30 to 30 31 March 31 March 31 March September September September September September September 2005 2005 2005 2005 2005 2005 2004 2004 2004 (audited) (audited) (audited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Before Except- Total Before Exceptional Total Before Exceptional Total except- tional (restated) exceptional items exceptional items (restated) ional items items items items (restated) (restated) Note £m £m £m £m £m £m £m £m £m --------- --------- -------- -------- -------- --------- -------- -------- -------- Turnover- continuing operations 174.8 - 174.8 129.0 - 129.0 246.0 - 246.0- discontinued operations 9.5 - 9.5 11.4 - 11.4 22.0 - 22.0 --------- -------- -------- -------- -------- -------- -------- -------- -------- 2 184.3 - 184.3 140.4 - 140.4 268.0 - 268.0 -------- -------- -------- -------- -------- -------- -------- -------- -------- Net operatingexpenses,excludingamortisationof goodwill (169.1) - (169.1) (128.6) (4.4) (133.0) (254.0) (8.2) (262.2) Amortisationof goodwill (0.3) - (0.3) (0.3) - (0.3) (0.5) - (0.5) Net operatingexpenses (169.4) - (169.4) (128.9) (4.4) (133.3) (254.5) (8.2) (262.7) -------- -------- -------- -------- -------- -------- -------- -------- -------- OperatingProfit- continuing operations 14.5 - 14.5 10.9 (4.4) 6.5 12.8 (8.2) 4.6- discontinued operations 0.4 - 0.4 0.6 - 0.6 0.7 - 0.7 -------- -------- -------- -------- -------- -------- -------- -------- -------- 14.9 - 14.9 11.5 (4.4) 7.1 13.5 (8.2) 5.3 -------- -------- -------- -------- -------- -------- -------- -------- -------- Profit ondisposal ofdiscontinuedoperations - 3.7 3.7 - - - - - - Profit ondisposal offixed assets - - - - - - - 0.8 0.8 Net interest(payable)/receivable 3 (0.4) - (0.4) 0.1 (1.0) (0.9) (0.1) 2.4 2.3 -------- -------- -------- -------- -------- -------- -------- -------- -------- Profit onordinaryactivitiesbeforetaxation 14.5 3.7 18.2 11.6 (5.4) 6.2 13.4 (5.0) 8.4 Taxation (4.7) - (4.7) (3.8) 1.6 (2.2) (4.3) 1.5 (2.8) -------- -------- -------- -------- -------- -------- -------- -------- --------Profit forthe period 9.8 3.7 13.5 7.8 (3.8) 4.0 9.1 (3.5) 5.6 -------- -------- -------- -------- -------- -------- -------- -------- -------- Half Year Half Year Half Year Half Year Year to Year to to 30 to 30 to 30 to 30 31 March 31 March September September September September 2005 2005 2005 2005 2004 2004 (audited) (audited) (unaudited) (unaudited) (unaudited) (unaudited) Before Total Before Total Before Total except- (restated) exceptional exceptional (restated) ional items items items (restated) (restated) ----------------------------------------------------------------------------------------------------- Earnings per share- total - basic 28.53p 39.18p 22.77p 11.73p 26.52p 16.32p- basic, excluding the amortisation of goodwill 29.24p 39.89p 23.49p 12.45p 27.96p 17.76p- diluted 28.27p 38.83p 22.69p 11.69p 26.34p 16.21p Earnings per share- continuingoperations - basic 27.60p 27.60p 21.48p 10.44p 24.96p 14.76p- basic, excluding the amortisation of goodwill 28.31p 28.31p 22.20p 11.16p 26.40p 16.20p- diluted 27.36p 27.36p 21.41p 10.41p 24.79p 14.66p Earnings per share- discontinuedoperations - basic 0.93p 11.58p 1.29p 1.29p 1.56p 1.56p- basic, excluding the amortisation of goodwill 0.93p 11.58p 1.29p 1.29p 1.56p 1.56p- diluted 0.91p 11.47p 1.28p 1.28p 1.55p 1.55p STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESfor the half year to 30 September 2005 Half Year Half Year Year to to 30 to 30 31 March September September 2005 2005 2004 (audited) (unaudited) (unaudited) Total Total Total (restated) £m £m £m ----------------------------------------Profit for the period 13.5 4.0 5.6 Exchange gain on foreignequity investment - - 0.1 ----------------------------------------Total recognised gains and lossesrelating to the period 13.5 4.0 5.7 ======== =======Prior year adjustment - FRS 21 Proposed dividends (note 1) 1.6 ------- Total recognised gains andlosses since previous annual report 15.1 ======= CONSOLIDATED BALANCE SHEETat 30 September 2005 Note 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) (restated) (restated) £m £m £m --------- ---------- -------- Fixed assetsIntangible assets 7.0 7.5 7.3Tangible assets 112.7 86.6 99.3 --------- ---------- -------- 119.7 94.1 106.6 --------- ---------- --------Current assets Stock 5.8 1.6 4.6Debtors 25.5 34.1 25.5Cash at bank and in hand 13.2 18.4 27.4 --------- ---------- -------- 44.5 54.1 57.5 Current liabilities Creditors: amounts fallingdue within one year (78.0) (63.8) (88.6) --------- ---------- --------Net current liabilities (33.5) (9.7) (31.1) --------- ---------- --------Total assets less currentliabilities 86.2 84.4 75.5 Creditors: amounts fallingdue after more than one year (18.1) (29.6) (19.4) Provisions for liabilities andcharges (6.2) (6.2) (6.2) --------- ---------- -------- (24.3) (35.8) (25.6) --------- ---------- --------Net assets 61.9 48.6 49.9 --------- ---------- -------- Capital and reserves Called up share capital 1.7 1.7 1.7Share premium account 8.1 7.7 8.0Profit and loss account 5 52.1 39.2 40.2 --------- ---------- --------Shareholders' funds - equityinterests 6 61.9 48.6 49.9 --------- ---------- -------- CONSOLIDATED CASH FLOW STATEMENTfor the half year to 30 September 2005 Note Half year to Half year to Year to 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) (restated) £m £m £m ---------- --------- --------- Net cash inflow from operatingactivities 7 16.4 24.4 68.3 ---------- --------- ---------Returns on investment andservicing of finance Interest paid: bank and otherloans (0.6) (0.3) (0.8) Interest received: bank 0.2 0.3 0.7 ---------- --------- --------- (0.4) - (0.1) ---------- --------- ---------Taxation Corporation and overseas taxpaid (5.6) (0.5) (1.4) ---------- --------- --------- Capital expenditure andfinancial investment Purchase of tangible fixedassets (22.7) (22.8) (51.6)Disposal of tangible fixedassets - 1.9 2.5 ---------- --------- --------- (22.7) (20.9) (49.1) ---------- --------- --------- Acquisitions and disposals 4Proceeds from disposal ofdiscontinued operations (net ofdisposal costs) 4.9 - -Net cash balances leaving theGroup with disposal ofdiscontinued operations (0.9) - - ---------- --------- --------- 4.0 - - ---------- --------- --------- Equity dividends paid (1.6) (1.5) (2.2) ---------- --------- ---------Cash (outflow)/ inflow beforefinancing (9.9) 1.5 15.5 ---------- --------- ---------Financing Ordinary share capital issued 0.1 - 0.3Other loans repaid (4.4) (4.8) (31.9)Other loans advanced - 8.8 29.4 ---------- --------- --------- (4.3) 4.0 (2.2) ---------- --------- ---------(Decrease) / Increase in cashin the period (14.2) 5.5 13.3 ---------- --------- --------- NOTES TO THE INTERIM RESULTSat 30 September 2005 1. Accounting Policies The accounting policies adopted by the Group are consistent with those disclosedin the Group's financial statements for the year ended 31 March 2005 except forthe adoption and impact of FRS 21 and FRS 22. FRS 21: Post Balance Sheet EventsThis standard requires that dividends declared after the period end should notbe recognised as a liability at the balance sheet date. The comparative profitand loss accounts and the balance sheets for the periods ended 30 September 2004and 31 March 2005 have been restated in accordance with FRS21. The impact ofthese changes on the profit and loss reserve and shareholders' funds can be seenin notes 5 and 6. FRS 22: Earnings per ShareThis standard has had no impact on the calculation of earnings per share.However, it requires the Group to present earnings per share from continuingoperations on the face of the profit and loss account and to disclose earningsper share for discontinued operations. Previous changes in accounting policiesIn addition the comparatives for the half year ended 30 September 2004 have beenrestated in order to be consistent with the accounting policies disclosed in theGroup's financial statements for the year ended 31 March 2005 as follows: Half year to 30 September 2004 Net Operating Net Interest Profit before Taxation Profit after Expenses taxation taxation £m £m £m £m £m As originallystated (129.6) 0.1 10.9 (3.5) 7.4 Foreigncurrencybranch (4.7) (1.0) (5.7) 1.6 (4.1) Aircraftmaintenancecosts 1.0 - 1.0 (0.3) 0.7 --------- -------- -------- ------- ---------As restated (133.3) (0.9) 6.2 (2.2) 4.0 --------- -------- -------- ------- --------- At 30 September 2004 Tangible Fixed Creditors due Provisions for Net Assets Assets within one year liabilities and charges £m £m £m £m As originallystated 86.4 (61.1) (10.1) 47.2 Foreigncurrencybranch (4.7) (2.3) 3.7 (3.3) Aircraftmaintenancecosts 4.9 (1.1 ) 0.2 4.0 Proposeddividend - 0.7 - 0.7 --------- --------- ---------- ----------As restated 86.6 (63.8) (6.2) 48.6 --------- --------- ---------- ---------- 2. Turnover Half year to Half year to Year to 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) £m £m £m ---------- ---------- ----------Distribution- continuing operations 55.2 51.0 100.1Aviation Services- continuing operations 119.6 78.0 145.9- discontinued operations 9.5 11.4 22.0(see note 4) ---------- ---------- ---------- 184.3 140.4 268.0 ---------- ---------- ---------- Turnover arising within:Continuing operationsUnited Kingdom and theChannel Islands 170.7 126.2 240.4Mainland Europe 4.1 2.8 5.6 Discontinued operationsUnited Kingdom and theChannel Islands 9.1 10.9 21.0Far East 0.4 0.5 1.0 ---------- ---------- ---------- 184.3 140.4 268.0 ---------- ---------- ---------- Analyses of profit before taxation and net assets between the different segmentsof the Group are not given as, in the opinion of the directors, such analyseswould be seriously prejudicial to the commercial interests of the Group. 3. Net interest (payable) / receivable Half year to Half year to Year to 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) £m £m £m ---------- ---------- ---------- On other loans (0.6) (0.2) (0.5)Other interest payable - - (0.3) ---------- ---------- ---------- (0.6) (0.2) (0.8)Interest receivable 0.2 0.3 0.7Realised foreign exchange(loss) / gain - (1.0) 2.4 ---------- ---------- ---------- (0.4) (0.9) 2.3 ---------- ---------- ---------- 4. Exceptional items Half year to Half year to Year to 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) £m £m £m Operating itemsImpairment of fixed assets - (4.4) (8.2) Profit on disposal of investmentsand fixed assetsProfit on disposal ofdiscontinued operations 3.7 - -Gain on disposal of F27fleet - - 0.8 Net interestincluding exchange(losses)/gains - (1.0) 2.4 --------- --------- --------- Net exceptional items beforetaxation 3.7 (5.4) (5.0) --------- --------- --------- On 31st August 2005, the Group completed the sale of Benair FreightInternational Limited and Benair Freight Pte Limited, representing the entirefreight forwarding activities of the Group. The disposal is analysed as follows: £m Net Assets disposed of:Fixed Assets 0.3Debtors 4.0Cash at bank 0.9Creditors (4.0) --------- 1.2Costs ofdisposal 0.2Profit ondisposal 3.7 --------- 5.1 =========Satisfied by:Cash 5.1 ========= The profit attributable to members of the parent company for the half year to 30September 2005 includes profits of £0.5m earned by Benair Freight InternationalLimited and Benair Freight Pte Limited up to the date of disposal. During the half year to 30 September 2005 Benair Freight International Limitedand Benair Freight Pte Limited utilised £0.1m of the Group's net operatingcashflows, received £nil in respect of net returns on investments and servicingof finance, paid £0.1m in respect of taxation and utilised £nil for capitalexpenditure and financial investment. 5. Profit and loss account reserve Half year to Half year to Year to 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) (restated) (restated) £m £m £m Balance at the beginning ofthe period as previouslyreported 38.6 31.2 31.2Prior period adjustments 1.6 5.5 5.5 --------- --------- --------- Balance at the beginning ofthe period as restated 40.2 36.7 36.7Profit for the period 13.5 4.0 5.6Dividends paid in the period (1.6) (1.5) (2.2)Currency translationdifferences - - 0.1 --------- --------- --------- 52.1 39.2 40.2 --------- --------- --------- Half year Half year Year to to 30 September to 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) £m £m £mPrior period adjustments - Foreign currency branch - 0.7 0.7- Aircraft maintenance cost - 3.3 3.3- FRS 21 Proposed dividends(note 1) 1.6 1.5 1.5 --------- --------- --------- 1.6 5.5 5.5 --------- --------- --------- 6. Reconciliation of movements in shareholders' funds Half year to Half year to Year to 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) (restated) (restated) £m £m £m Profit for the period 13.5 4.0 5.6Dividends paid in the period (1.6) (1.5) (2.2) --------- -------- -------- 11.9 2.5 3.4Currency translationdifferences - - 0.1Issue of shares under shareoption schemes 0.1 - 0.3 --------- -------- --------Net addition toshareholders' funds 12.0 2.5 3.8 --------- -------- -------- Opening shareholders' fundsas previously reported 48.3 40.6 40.6Prior period adjustments(note 5) 1.6 5.5 5.5 --------- -------- --------Opening shareholders' fundsas restated 49.9 46.1 46.1 --------- -------- --------Closing shareholders' funds 61.9 48.6 49.9 --------- -------- -------- 7. Reconciliation of operating profit to net cash flow from operating activities Half year to Half year to Year to 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) (restated) £m £m £m ---------- --------- --------Operating profit 14.9 7.1 5.3Depreciation 9.1 14.8 31.2Amortisation of goodwill 0.3 0.3 0.5Profit on disposal of fixed assets - - (0.1)(Increase) / Decrease in stock (1.2) 0.6 (2.4)(Increase) / Decrease in debtors - (2.9) 5.7(Decrease) / Increase in creditors (6.7) 4.5 28.1 ---------- --------- --------Net cash flow from operatingactivities 16.4 24.4 68.3 ---------- --------- -------- 8. Reconciliation of net cash flow to movement in net debt Half year to Half year to Year to 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) (restated) £m £m £m ---------- --------- --------(Decrease) / Increase in cash in theperiod (14.2) 5.5 13.3Cash outflow / (inflow) from decrease/(increase) in net debt in the period 4.4 (4.0) 2.5 ---------- --------- --------Change in net debt resulting fromcashflows in the period (9.8) 1.5 15.8Exchange differences (0.3) (0.9) 1.6Net funds / (debt) at beginning ofperiod 2.4 (15.0) (15.0) ---------- --------- --------Net (debt) / funds at end of period (7.7) (14.4) 2.4 ---------- --------- -------- 9. Other matters The financial information for the year ended 31 March 2005 does not constitutestatutory accounts, as defined in Section 240 of the Companies Act 1985, but isbased on the statutory accounts for the year then ended. Those accounts, uponwhich the auditors issued an unqualified opinion, have been delivered to theRegistrar of Companies. The calculation of basic earnings per share is based on earnings for the periodended 30 September 2005 of £13.5m (2004 restated - £4.0m). The calculation ofbasic earnings per share before exceptional items is based on earnings beforeexceptional items for the period ended 30 September 2005 of £9.8m (2004 restated- £7.8m). Both calculations are based on 34,551,299 shares (2004 - 34,358,217)being the weighted average number of shares in issue for the period.This report is being sent to all shareholders and copies are available from theCompany Secretary at the registered office of the Company, Building 470,Bournemouth International Airport, Christchurch, Dorset, BH23 6SE. This information is provided by RNS The company news service from the London Stock Exchange