Dart Group 2002 Results
RNS Number:4952X
Dart Group PLC
20 June 2002
FOR IMMEDIATE RELEASE 20 June 2002
DART GROUP PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31 MARCH 2002
Dart Group PLC, the distribution and aviation services group, announces its
preliminary results for the year ended 31 March 2002.
CHAIRMAN’S STATEMENT
I am pleased to report on the Group’s trading for the year ended 31 March 2002.
Profit before tax and before the amortisation of goodwill has risen to £10.0m
(2001 – £9.7m), on turnover of £194.2m (2001 – £190.9m). Earnings per share
before the amortisation of goodwill were 19.87p (2001 – 19.4p). The Board is
recommending a final dividend of 4.26p (2001 – 4.16p) taking the total dividend
for the year to 6.11p (2001 – 5.96p), an increase of 2.5%. The dividend, if
approved, will be payable on 23 August 2002 to shareholders on the register on
28 June 2002.
The last financial year has been a challenging one for the Group with less
buoyant trading conditions leading to lower than expected turnover in the
Distribution Division and markedly higher aviation, vehicle and general
insurance costs. Despite the challenges, the Group has progressed during the
year.
Capital expenditure amounted to £26.9m (2001 – £24.3m) and mainly related to
the purchase of the Group’s second Boeing 737-300QC aircraft, aircraft
maintenance, the purchase of land and buildings at its consolidation centres in
Kent, and a new computer system for the Distribution Division. Net borrowings
at 31 March 2002 stood at £22.5m (2001 – £2.3m), which represents gearing of 66%
(2001 – 8%). On 3 May 2002 the Group announced the acquisition of four
Boeing 737-300 aircraft which had previously been in service with Ansett
Australia Ltd.
The Group has two operating divisions – Aviation Services and Distribution, the
activities of which are also described in the more detailed Review of Operations
following this statement.
Aviation Services
In June and August of 2001, Channel Express (Air Services) commenced operating
two Boeing 737-300 Quick Change aircraft which the Group had purchased from
Lufthansa. The Quick Change concept allows the interiors of the aircraft to be
reconfigured between passenger and freighter roles in less than 45 minutes,
enhancing the aircraft’s earning potential.
The aircraft are currently based at Stansted and Edinburgh airports and each
operates night mail flights and day-time passenger charters. Whilst the Group
believes that there are a limited number of airports at which both day-time
passenger and night-time freight operations can be successfully combined in this
way, we also see potential for Boeing 737-300 aircraft that have been converted
to pure freighters to take over the operation of night freight services from
older, noisier aircraft that are currently being retired for environmental
reasons.
The Group has, therefore, purchased four additional Boeing 737-300s which had
been in passenger service with Ansett Australia Ltd since new. These aircraft
are being delivered in the first half of the current financial year. Two will
initially remain as passenger aircraft whilst two are converted to freighter or
Quick Change configuration. These will be re-delivered to us in 2003. The new
aircraft are expected to make a positive contribution to the profitability of
the Group in the 2003/04 financial year. The Group anticipates adding further
Boeing 737 series aircraft to its fleet in due course and Channel Express (Air
Services) aims to become one of the leading European providers of the type,
together with associated training and parts support services.
Channel Express (Air Services) also currently operates four Airbus A300 “
Eurofreighters”, seven Fokker F27s and one remaining Lockheed Electra cargo
aircraft which are contracted to operate cargo service
