Dart Group PLC Preliminary Results For Year Ended 31 March 2003
RNS Number:5091M
Dart Group PLC
19 June 2003
For Immediate Release 19 June 2003
DART GROUP PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31 MARCH 2003
Dart Group PLC, the aviation services and distribution group, announces its
preliminary results for the year ended 31 March 2003.
CHAIRMAN’S STATEMENT
I am pleased to report on the Group’s trading for the year ended 31 March 2003.
Profit before tax, excluding Jet2 operations and goodwill amortisation, amounted
to #10.0m (2002 – #10.0m). Total turnover was #198.2m (2002 – #194.2m).
Jet2, the Group’s low cost airline, operating from Leeds Bradford International
Airport, did not commence flying until 12 February. As a result, minimal
chargeable revenue accrued in the 2003 financial year, whilst the initial set up
costs resulted in an operating loss in Jet2 of #2.0m (2002 – #Nil). This is in
line with our statement released on 23 October 2002. Earnings per share before
the amortisation of goodwill were 15.78p (2002 – 19.87p). The Board is
recommending an unchanged final dividend of 4.26p, taking the total dividend
for the year to 6.11p (2002 – 6.11p). The dividend, if approved, will be
payable on 22 August 2003 to shareholders on the register on 27 June 2003.
Capital expenditure amounted to #36.4m (2002 – #26.9m) and mainly related to the
expansion of the Group’s Boeing 737-300 aircraft fleet. Net borrowings at 31
March 2003 amounted to #28.2m (2002 – #22.5m), which represented gearing of 76%
(2002 – 66%). The majority of the Group’s debt is denominated in US Dollars
reflecting the Group’s policy of matching long-term US Dollar assets, namely
Boeing 737-300 aircraft, with US Dollar liabilities. Interest cover remained a
healthy 8.5 times.
During the financial year the Group purchased six Boeing 737-300 aircraft (the
sixth aircraft being delivered post year end), four for use by Jet2, and two
for conversion to a Freighter and a Quick Change (allowing the aircraft to be
rapidly converted between passenger and freighter roles). On 4 June 2003, the
Group announced that it had entered into an agreement with receivers appointed
by HSBC Bank Plc (Sydney Branch) to purchase a further six Boeing 737-300
aircraft, two of which have now been delivered. The remainder will also be
delivered during the first half of the current financial year and will be used
to both expand Jet2 and to be converted to Freighter or Quick Change
configuration in order to service the Group’s contract freighter and passenger
operations.
The Group is committed to building its business-to-business services, providing
air transportation on behalf of express parcel companies, postal authorities,
freight forwarders and passenger charterers in the Aviation Division and
temperature-controlled road distribution services primarily on behalf of UK
supermarkets in our Distribution Division. We believe, however, that the Jet2
retail scheduled passenger business may offer more opportunity for profitable
growth in the foreseeable future. The low cost passenger market is, however,
very competitive and much hard work lies ahead in order to be successful in this
new business.
Aviation Services
Following the recent agreement to acquire six further Boeing 737-300 aircraft,
the Group will own 14 of the type. Channel Express (Air Services) currently
operates two Quick Change aircraft which fly for Royal Mail at night and operate
passenger charters during the day. The Quick Change concept gives higher
aircraft utilisation, facilitating the provision of cost-effective services to
both passenger charterers and to overnight express parcel and mail operators.
Two further aircraft will shortly be converted, one to a Freighter and one to
Quick Change. We see a considerable future demand for the Boeing 737-300 in
the European express parcel and mail
