- Part 2: For the preceding part double click ID:nRSN1296Ea
Unaudited2016 Audited2015
Cash flows from operating activities: £m £m
Profit on ordinary activities before taxation 104.2 40.2
Finance income (2.4) (1.7)
Finance costs 1.9 1.1
Revaluation of derivative hedges - (1.6)
Net FX revaluation (losses)/gains 1.3 (4.8)
Depreciation 88.7 71.3
Equity settled share based payments 0.1 0.1
Operating cash flows before movements in working capital 193.8 104.6
Decrease in inventories 0.9 1.1
Increase in trade and other receivables (138.3) (79.4)
Increase / (decrease) in trade and other payables 16.6 (24.3)
Increase in deferred revenue 187.2 95.4
(Decrease) / increase in provisions (5.4) 26.3
Cash generated from operations 254.8 123.7
Interest received 2.4 1.7
Interest paid (1.9) (1.1)
Income taxes paid (11.4) (8.2)
Net cash from operating activities 243.9 116.1
Cash flows used in investing activities
Purchase of property, plant and equipment (213.5) (76.4)
Proceeds from sale of property, plant and equipment 0.2 -
Net increase in money market deposits (4.5) (13.0)
Net cash used in investing activities (217.8) (89.4)
Cash used in financing activities
Repayment of borrowings (0.9) (0.8)
New loans advanced 82.8 -
Proceeds on issue of shares 0.5 0.5
Equity dividends paid (4.6) (4.2)
Net cash from / (used in) financing activities 77.8 (4.5)
Effect of foreign exchange rate changes 0.8 3.9
Net increase in cash in the year 104.7 26.1
Cash and cash equivalents at beginning of year 237.3 211.2
Cash and cash equivalents at end of year 342.0 237.3
Cash and cash equivalents at end of year
342.0
237.3
Consolidated statement of changes in equity
for the year ended 31 March 2016
Share capital Share premium Cash flow hedging reserve Retained earnings Total shareholders' equity
£m £m £m £m £m
AuditedBalance 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
AuditedBalance at 31 March 2015 1.8 11.9 (80.4) 223.9 157.2
Total comprehensive income for the year - - 76.7 88.8 165.5
Issue of share capital - 0.5 - - 0.5
Dividends paid in the year - - - (4.6) (4.6)
Share based payments - - - 0.1 0.1
UnauditedBalance at 31 March 2016 1.8 12.4 (3.7) 308.2 318.7
Notes to the consolidated financial statements
for the year ended 31 March 2016
1. General information
The Group's financial statements consolidate the financial statements of Dart
Group PLC and its subsidiaries and 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 August 2016 (see note 9).
The Group utilises foreign exchange forward contracts and monthly fuel swaps
to hedge its exposure to movements in euro and US dollar exchange rates, and
its exposure to jet fuel price movements that arise through its Leisure Travel
activities. 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 2019.
For the purpose of assessing 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 sensitised forecasts of future trading through
to 31 March 2019, 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 2016.
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.
For management purposes, the Group is organised into two operating segments:
Leisure Travel and Distribution & Logistics. These operating segments are
consistent with how information is presented to the CODM for the purpose of
resource allocation and assessment of their performance and as such, they are
also deemed to be the reporting segments.
The Leisure Travel business specialises in scheduled flights by its airline
Jet2.com to holiday destinations in the Mediterranean, the Canary Islands and
to European Leisure Cities and the provision of ATOL licensed package holidays
by its tour operator Jet2holidays. Resource allocation decisions are based on
the business's entire route network and the deployment of its 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 the 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 2016:
· 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,
and profit before and after tax. Revenue from reportable segments is measured
on a basis consistent with the income statement. Revenue 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 10% of the Group's revenue.
LeisureTravel Distribution& Logistics Groupeliminations Total
UnauditedYear ended 31 March 2016 £m £m £m £m
Revenue 1,261.4 144.0 - 1,405.4
Operating profit 99.6 5.4 - 105.0
Finance income 2.4 - - 2.4
Finance costs (1.9) - - (1.9)
Net FX revaluation losses (1.3) - - (1.3)
Net financing income (0.8) - - (0.8)
Profit before taxation 98.8 5.4 - 104.2
Taxation (14.5) (0.9) - (15.4)
Profit after taxation 84.3 4.5 - 88.8
Assets and liabilities
Segment assets 1,331.6 82.2 (5.7) 1,408.1
Segment liabilities (1,065.0) (30.1) 5.7 (1,089.4)
Net assets 266.6 52.1 - 318.7
Other segment information
Property, plant and equipment additions 210.6 2.9 - 213.5
Depreciation, amortisation and impairment (86.4) (2.3) - (88.7)
Share based payments (0.1) - - (0.1)
LeisureTravel Distribution& Logistics Groupeliminations Total
AuditedYear ended 31 March 2015 £m £m £m £m
Revenue 1,101.5 151.7 - 1,253.2
Underlying operating profit 46.9 3.3 - 50.2
Finance income 1.7 - - 1.7
Finance costs (1.1) - - (1.1)
Revaluation of derivative hedges 1.6 - - 1.6
Net FX revaluation gains 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)
4. Net operating expenses
Unaudited2016 Audited2015
£m £m
Direct operating costs
Fuel 208.9 233.3
Landing, navigation and third party handling 132.8 137.7
Aircraft and vehicle rentals 38.5 33.7
Maintenance costs 62.4 58.0
Subcontractor charges 38.2 41.0
Accommodation costs 344.0 283.9
Agent commission 29.0 22.5
In-flight cost of sales 19.2 20.3
Other direct operating costs 45.6 42.7
Staff costs 204.4 190.6
Depreciation of property, plant and equipment includingaircraft and engines 88.7 71.3
Other operating charges 89.7 68.3
Other operating income (1.0) (0.3)
Net operating expenses before separately disclosed items 1,300.4 1,203.0
Separately disclosed items (note 7) - 17.0
Total net operating expenses 1,300.4 1,220.0
5. Net financing (costs) / income
Unaudited2016 Audited2015
£m £m
Finance income 2.4 1.7
Finance costs (1.9) (1.1)
Revaluation of derivative hedges (cash flow hedge ineffectiveness) - 1.6
Net FX revaluation (losses)/gains (1.3) 4.8
Net financing (costs) / income (0.8) 7.0
6. Earnings per share
Unaudited2016 Audited2015
No. No.
Basic weighted average number of shares in issue 147,454,373 146,278,585
Dilutive potential ordinary shares: employee share options 809,398 1,455,645
Diluted weighted average number of shares in issue 148,263,771 147,734,230
Basis of calculation - earnings (basic and diluted) Year to31 March 2016 Year to31 March 2015
Profit for the purposes of calculating basic and diluted earnings £88.8m £32.8m
Earnings per share - basic 60.22p 22.42p
Earnings per share - diluted 59.89p 22.20p
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 prior 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 2016 or 31 March 2015. The
financial information for 2015 is derived from the statutory accounts for the
year ended 31 March 2015, which have been delivered to the Registrar of
Companies. The auditor has reported on the year ended 31 March 2015 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 2016 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 2016 Annual Report and Accounts (together with the Auditor's Report) will
be made available to shareholders during the week ending 12 August 2016. The
Dart Group PLC Annual General Meeting will be held on 8 September 2016.
10. Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange