REG - Dart Group PLC - Final Results <Origin Href="QuoteRef">DTG.L</Origin> - Part 2
16/07/2015 15:35
- Part 2: For the preceding part double click ID:nRSP1829Ta
Operating cash flows before movements in working capital 105.0 110.3
Decrease / (increase) in inventories 1.1 (1.8)
Increase in trade and other receivables (79.4) (59.7)
(Decrease) / increase in trade and other payables (24.7) 10.3
Increase in deferred revenue 95.4 77.5
Increase in provisions 26.3 0.3
Cash generated from operations 123.7 136.9
Interest received 1.7 1.4
Interest paid (1.1) (1.4)
Income taxes paid (8.2) (6.1)
Net cash from operating activities 116.1 130.8
Cash flows used in investing activities
Purchase of property, plant and equipment (76.4) (83.5)
Proceeds from sale of property, plant and equipment - 0.2
Net increase in money market deposits (13.0) (22.5)
Net cash used in investing activities (89.4) (105.8)
Cash used in financing activities
Repayment of borrowings (0.8) (8.7)
New loans advanced - 10.0
Proceeds on issue of shares 0.5 0.7
Equity dividends paid (4.2) (2.8)
Net cash used in financing activities (4.5) (0.8)
Effect of foreign exchange rate changes 3.9 (3.9)
Net increase in cash in the year 26.1 20.3
Cash and cash equivalents at beginning of year 211.2 190.9
Cash and cash equivalents at end of year 237.3 211.2
Cash and cash equivalents at end of year
237.3
211.2
Consolidated statement of changes in equity
for the year ended 31 March 2015
Share capital Share premium Cash flow hedging reserve Retained earnings Total shareholders' equity
£m £m £m £m £m
Audited as at 31 March 2013 1.8 10.7 12.4 161.7 186.6
Total comprehensive income for the year - - (39.2) 35.9 (3.3)
Issue of share capital - 0.7 - - 0.7
Dividends paid in the year - - - (2.8) (2.8)
Share based payments - - - 0.4 0.4
Audited as at 31 March 2014 1.8 11.4 (26.8) 195.2 181.6
Total comprehensive income for the year - - (53.6) 32.8 (20.8)
Issue of share capital - 0.5 - - 0.5
Dividends paid in the year - - - (4.2) (4.2)
Share based payments - - - 0.1 0.1
Unaudited as at 31 March 2015 1.8 11.9 (80.4) 223.9 157.2
Notes to the consolidated financial statements
for the year ended 31 March 2015
1. General information
The Group's financial statements consolidate the financial statements of Dart
Group PLC and its subsidiaries. The Group's financial statements have been
prepared and approved by the Directors in accordance with International
Financial Reporting Standards ("IFRS"), as adopted by the European Union
("Adopted IFRS").
2. Basis of preparation
The financial statements have been prepared under the historical cost
convention except for all derivative financial instruments, which have been
stated at fair value.
Whilst the information included in this preliminary announcement has been
computed in accordance with Adopted IFRS, this announcement does not itself
contain sufficient information to comply with Adopted IFRS. Dart Group PLC
expects to publish full financial statements in early August 2015.
The Group uses forward foreign currency contracts and aviation fuel swaps to
hedge exposure to foreign exchange rates and aviation fuel price volatility.
The Group also uses forward EU Allowance contracts and forward Certified
Emissions Reduction contracts to hedge exposure to Carbon Emissions Allowance
price volatility. Such derivative financial instruments are stated at fair
value.
Going concern
The Directors have prepared financial forecasts for the Group, comprising
operating profit, balance sheets and cash flows through to 31 March 2018.
For the purposes of their assessment of the appropriateness of the preparation
of the Group's accounts on a going concern basis, the Directors have
considered the current cash position, the availability of banking facilities,
the Group's net current liability position, and forecasts of future trading
through to 31 March 2018, including performance against financial covenants
and the assessment of principal areas of uncertainty and risk.
Having considered the points outlined above, the Directors have a reasonable
expectation that the Company and the Group will be able to operate within the
levels of available banking facilities and cash for the foreseeable future.
Consequently, they continue to adopt the going concern basis in preparing the
financial statements for the year ended 31 March 2015.
3. Segmental reporting
Business segments
The Chief Operating Decision Maker ("CODM") is responsible for the overall
resource allocation and performance assessment of the Group. The Board of
Directors approves major capital expenditure, assesses the performance of the
Group and also determines key financing decisions. Consequently, the Board of
Directors is considered to be the CODM.
The Group's operating segments have been identified based on the internal
reporting information provided to the CODM in order for the CODM to formulate
allocation of resources to segments and assess their performance. Previously,
the Leisure Airline, Package Holidays and Distribution & Logistics businesses
were determined to represent operating segments. However, the Leisure Airline
and Package Holidays businesses have been working progressively closer
together as one Leisure Travel business and, following on from changes in the
operational structure of the business, internal financial reporting to the
CODM now represents one Leisure Travel operating segment. Consequently, the
Group now has two operating segments: Leisure Travel and Distribution &
Logistics.
The Leisure Travel business serves its customers' demand for package holidays
in, and flights to, high volume leisure destinations in the Mediterranean and
the Canary Islands and to popular European Leisure Cities. Resource
allocation decisions are based on the entire route network and the deployment
of the entire aircraft fleet.
The Distribution & Logistics business is run on the basis of the evaluation of
distribution centre-level performance data. However, resource allocation
decisions are made based on the entire distribution network. The objective in
making resource allocation decisions is to maximise the segment results rather
than the results of individual distribution centres within the network.
Group eliminations include the removal of inter-segment asset and liability
balances.
Following the identification of the operating segments, the Group has assessed
the similarity of their characteristics. Given the different performance
targets, customer bases and operating markets of each, it is not currently
appropriate to aggregate the operating segments for reporting purposes and,
therefore, both are disclosed as reportable segments for the year ended 31
March 2015:
· Leisure Travel, which incorporates the Group's ATOL licensed package
holidays operator, Jet2holidays and its leisure airline, Jet2.com; and
· Distribution & Logistics, incorporating the Group's logistics company,
Fowler Welch.
The Board assesses the performance of each segment based on operating profit,
profit before and after tax, and EBITDA. Turnover from reportable segments is
measured on a basis consistent with the income statement. Turnover is
principally generated from within the UK, the Group's country of domicile.
Segment results, assets and liabilities include items directly attributable to
a segment, as well as those that can be allocated on a reasonable basis. No
customer represents more than ten percent of the Group's turnover.
LeisureTravel Distribution& Logistics Groupeliminations Total
£m £m £m £m
UnauditedYear ended 31 March 2015
Turnover 1,101.5 151.7 - 1,253.2
Inter-segment turnover - - - -
Turnover 1,101.5 151.7 - 1,253.2
Underlying EBITDA 116.0 5.9 - 121.9
Underlying operating profit 46.9 3.7 - 50.6
Share of loss in joint ventures - (0.4) - (0.4)
Finance income 1.7 - - 1.7
Finance costs (1.1) - - (1.1)
Revaluation of derivative hedges 1.6 - - 1.6
Revaluation of foreign currency balances 4.8 - - 4.8
Net financing income 7.0 - - 7.0
Underlying profit before taxation 53.9 3.3 - 57.2
Separately disclosed items (17.0) - - (17.0)
Profit before taxation 36.9 3.3 - 40.2
Taxation (6.7) (0.7) - (7.4)
Profit after taxation 30.2 2.6 - 32.8
Assets and liabilities
Segment assets 923.3 84.2 (6.5) 1,001.0
Segment liabilities (813.7) (36.6) 6.5 (843.8)
Net assets 109.6 47.6 - 157.2
Other segment information
Property, plant and equipment additions 74.4 2.0 - 76.4
Depreciation, amortisation and impairment (69.1) (2.2) - (71.3)
Share based payments (0.1) - - (0.1)
LeisureTravel Distribution& Logistics Groupeliminations Total
£m £m £m £m
UnauditedYear ended 31 March 2014
Turnover 967.0 153.2 - 1,120.2
Inter-segment turnover - - - -
Turnover 967.0 153.2 - 1,120.2
EBITDA 104.2 5.7 - 109.9
Operating profit 45.6 3.6 - 49.2
Finance income 1.4 - - 1.4
Finance costs (1.1) (0.3) - (1.4)
Revaluation of derivative hedges (3.3) - - (3.3)
Revaluation of foreign currency balances (3.8) - - (3.8)
Net financing costs (6.8) (0.3) - (7.1)
Profit before taxation 38.8 3.3 - 42.1
Taxation (5.6) (0.6) - (6.2)
Profit after taxation 33.2 2.7 - 35.9
Assets and liabilities
Segment assets 775.8 84.4 (7.3) 852.9
Segment liabilities (639.2) (39.4) 7.3 (671.3)
Net assets 136.6 45.0 - 181.6
Other segment information
Property, plant and equipment additions 82.5 1.0 - 83.5
Depreciation, amortisation and impairment (58.6) (2.1) - (60.7)
Share based payments (0.3) (0.1) - (0.4)
4. Net operating expenses
Unaudited2015 Audited2014
£m £m
Direct operating costs:
Fuel 233.3 222.7
Landing, navigation & third party handling 137.7 119.3
Aircraft and vehicle rentals 33.7 37.9
Maintenance costs 58.0 46.8
Subcontractor charges 41.0 40.4
Accommodation costs 283.9 227.3
Agent commission 22.5 19.0
In-flight cost of sales 20.3 16.9
Other direct operating costs 42.7 39.8
Staff costs 190.6 168.0
Depreciation of property, plant and equipment incl. aircraft and engines 71.3 60.7
Other operating charges 68.3 72.7
Other operating income (0.7) (0.5)
Net operating expenses before separately disclosed items 1,202.6 1,071.0
Separately disclosed items 17.0 -
Total net operating expenses 1,219.6 1,071.0
5. Net financing income / (costs)
Unaudited 2015 Audited2014
£m £m
Finance income - interest receivable 1.7 1.4
Finance costs - borrowings (1.1) (1.4)
Revaluation of derivative hedges:
- Derivatives ineligible for cash flow hedge accounting - (1.4)
- Changes in fair value of ineffective cash flow hedges 1.6 (1.9)
1.6 (3.3)
Revaluation of foreign currency balances 4.8 (3.8)
Net finance income / (costs) 7.0 (7.1)
6. Earnings per share
Unaudited2015 Audited2014
Basic weighted average number of shares in issue (No.) 146,278,585 145,300,720
Dilutive potential ordinary shares: employee share options (No.) 1,455,645 2,402,809
Diluted weighted average number of shares in issue (No.) 147,734,230 147,703,529
Basis of calculation - earnings (basic and diluted)
Profit for the purposes of calculating basic and diluted earnings £32.8m £35.9m
Earnings per share - basic 22.42p 24.68p
Earnings per share - diluted 22.20p 24.28p
7. Separately disclosed items
Separately disclosed items are presented in the middle column of the year
ended 31 March 2015 Consolidated Income Statement in order to assist the
reader's understanding of underlying business performance and to provide a
more meaningful presentation. The right hand column presents the results for
the year showing all gains and losses recorded in the Consolidated Income
Statement.
EU Regulation 261
The full year results include a separately disclosed exceptional provision of
£17.0m, in relation to possible passenger compensation claims for historical
flight delays under Regulation (EC) No 261/2004.
8. Financial information
The financial information set out above does not constitute Dart Group PLC's
statutory accounts for the years ended 31 March 2015 or 31 March 2014. The
financial information for 2014 is derived from the statutory accounts for the
year ended 31 March 2014, which have been delivered to the Registrar of
Companies. The auditor has reported on the year ended 31 March 2014 accounts;
their report:
i. was unqualified;
ii. did not include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report; and
iii. did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
The statutory accounts for the year ended 31 March 2015 will be finalised on
the basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
in due course.
9. Annual report and accounts
The 2015 Annual Report and Accounts (together with the Auditor's Report) will
be made available to shareholders no later than 10 August 2015. The Dart
Group PLC Annual General Meeting will be held on 3 September 2015.
This information is provided by RNS
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