20 Apr 2010 12:50
Dart Group PLC ("the Group")
Pre-close trading update
Dart Group PLC, the aviation and distribution Group, announces a pre-close trading update in respect of the financial year ended 31 March 2010 and an update on current trading.
Since the announcement of its interim results in November 2009, the Group continued to trade in line with expectations over the second half of that financial year.
Jet2.com, the Group's leisure airline, has benefited from a continued cautious approach to its scheduled flying, supplemented by its charter trading performance. The Group purchased a further Boeing 757-200 aircraft in January 2010 to support the Group's expansion into East Midlands.
Fowler Welch-Coolchain, the Group's chilled and ambient distribution and logistics business, continues to perform in line with expectations. The Board is pleased to announce that Fowler Welch-Coolchain has contracted to purchase a 55,000 pallet capacity Distribution Centre and warehouse at Heywood, near Manchester, to support its continued expansion in the North West. This purchase will double the size of Fowler Welch-Coolchain's national Distribution Centre footprint to over one million sq ft.
Overall, as a result of continued satisfactory trading performance in challenging market conditions, the Board expects the Group's full year results for the financial year ended 31 March 2010 to be in line with market expectations. Cash flow generation remains strong.
The Board can report that the profit impact in the 2010/11 financial year due to the disruption caused by volcano Eyjafjallajoekull is currently estimated as approximately £2.8m for the period to 21 April 2010 as a result of the cancellation of over 400 flights to date and the additional costs associated with providing alternative transportation to repatriate our Jet2.com and Jet2holidays.com passengers. Should the disruption continue, the subsequent profit impact is estimated at approximately £0.35m per day. The Board is comfortable that the Group has sufficient financial resources available to withstand a considerable period of disruption to Jet2.com's flying programme.
Notwithstanding the current impact of the volcanic disruption, Jet2.com scheduled booking volumes for Summer 2010 are currently ahead of both market expectations and the prior year.
The Group expects to announce its preliminary results for the year ended 31 March 2010 on 24 June 2010.
20 April 2010
For further information, please contact:
Andrew Merrick
Group Finance Director
07788 565358
0113 238 7444
Andy Pedrette
Smith & Williamson Corporate Finance Limited
020 7131 4000