Last checked at 21 Feb 2013 10:00
21 February 2013
easyJet Annual General Meeting 2013 Chairman's Statement
Speaking at the Company's Annual General Meeting in Luton today (21 February 2013), Sir Michael Rake, Chairman of easyJet plc, said:
"Since the last AGM, easyJet has gone from strength to strength and has delivered total shareholder return of 125%1 through a combination of share price appreciation and the payment of £196 million in ordinary and special dividends. In the 2012 financial year, profit after tax grew by 13% to £255 million and due to the strength of this performance and outlook for sustainable growth and returns the Board has increased the level of ordinary dividend paid annually from a ratio of five times cover to three times cover. Consequently, subject to your approval today, a dividend of 21.5 pence per share will be paid in respect of the financial year ending 30 September 2012.
In a difficult market for all consumer-facing businesses, easyJet is structurally well positioned against both unprofitable legacy and low cost aviation competition - through its low cost and simple operating model, combined with significant market shares in key European airports (including a 25% share of the top 100 European short haul routes), supported by one of the strongest balance sheets in European aviation.
The Board and management team have also put in place actions to ensure that easyJet will continue to be a strong company in the future and to deliver sustainable returns and growth for its shareholders.
The Company has a very focused strategy centred around clear capital allocation principles. As a consequence we closed our base in Madrid and reduced capacity in Liverpool, markets where we view the potential for shareholder value creation as limited. We have redeployed the capacity released to more profitable opportunities in France, Switzerland, the UK and Italy. To ensure we remain competitive on cost and aircraft performance over the longer term, we are well advanced in our technical and commercial evaluation of the next generation narrow body aircraft and engine technology. We continue to make significant progress through our easyJet lean programme to deliver cost efficiencies. Importantly, we have stepped up investment in leadership development and succession planning in order to have the capabilities necessary to deliver superior returns in the future against a challenging environment. We have also consulted extensively with shareholders to structure a Remuneration policy that aligns their interests to management's incentives, and we would like to thank shareholders for their input into this process.
Finally the hard work and commitment of all of easyJet's people has been instrumental to its success this year and I would like to thank them for making 2012 such a successful year."
[1] Total Shareholder Return from close on 22 February 2012 (AGM 2012) to close on 20 Feb 2013 (AGM 2013) (including special dividend)
End
21 February 2013
For further details please contact easyJet plc:
Investor:
Rachel Kentleton, Investor Relations +44 (0) 7961 754 468
Will MacLaren, Investor Relations +44 (0) 7961 763 879
Media:
Paul Moore, Corporate Communications +44 (0) 1582 525 973
+44 (0) 7860 794 444
Edward Simpkins, RLM Finsbury +44 (0) 20 7251 3801
+44 (0) 7947 740 551