- Part 2: For the preceding part double click ID:nRSM9201Ka
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 2017.
2. 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 holiday flights by its
airline Jet2.com to 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 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 appropriate
to aggregate the operating segments for reporting purposes and, therefore,
both are disclosed as reportable segments for the year ended 31 March 2017:
· 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 taxation. Revenue from reportable segments is
measured on a basis consistent with the Consolidated 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
Unaudited Year ended 31 March 2017 £m £m £m £m
Revenue 1,565.8 163.5 - 1,729.3
Operating profit 98.5 4.5 - 103.0
Finance income 3.0 0.1 - 3.1
Finance costs (5.0) (0.1) - (5.1)
Net FX revaluation losses (10.9) - - (10.9)
Net financing costs (12.9) - - (12.9)
Profit before taxation 85.6 4.5 - 90.1
Taxation (12.5) (0.9) - (13.4)
Profit after taxation 73.1 3.6 - 76.7
Assets and liabilities
Segment assets 2,214.2 86.1 (5.0) 2,295.3
Segment liabilities (1,838.6) (30.3) 5.0 (1,863.9)
Net assets 375.6 55.8 - 431.4
Other segment information
Property, plant and equipmentAdditions 468.7 5.2 - 473.9
Depreciation, amortisationand impairment (84.5) (2.5) - (87.0)
Share basedPayments (0.3) (0.1) - (0.4)
LeisureTravel Distribution& Logistics Groupeliminations Total
AuditedYear 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 costs (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 equipmentAdditions 210.6 2.9 - 213.5
Depreciation, amortisationand impairment (86.4) (2.3) - (88.7)
Share basedPayments (0.1) - - (0.1)
3. Net operating expenses
Unaudited Audited
2017 2016
£m £m
Direct operating costs
Accommodation costs 512.9 344.0
Fuel 203.4 208.9
Landing, navigation and third party handling 141.2 132.8
Maintenance costs 63.1 62.4
Other direct operating costs 56.7 45.6
Aircraft and vehicle rentals 54.7 38.5
Subcontractor charges 44.2 38.2
Agent commission 37.5 29.0
In-flight cost of sales 25.1 19.2
Staff costs 257.2 204.4
Depreciation of property, plant & equipment incl. aircraft and engines 87.0 88.7
Other operating charges 144.9 89.7
Other operating income (1.6) (1.0)
Total net operating expenses 1,626.3 1,300.4
4. Net financing costs
Unaudited2017 Audited2016
£m £m
Finance income 3.1 2.4
Interest payable on aircraft and other loans (4.3) (1.9)
Interest payable on obligations under finance leases (0.8) -
Net FX revaluation losses (10.9) (1.3)
Net financing costs (12.9) (0.8)
5. Earnings per share
Unaudited2017 Audited2016
No. No.
Basic weighted average number of shares in issue 148,079,465 147,454,373
Dilutive potential ordinary shares: employee share options 896,191 809,398
Diluted weighted average number of shares in issue 148,975,656 148,263,771
Basis of calculation - earnings (basic and diluted) UnauditedYear to31 March 2017 AuditedYear to31 March 2016
Profit for the purposes of calculating basic and diluted earnings £76.7m £88.8m
Earnings per share - basic 51.80p 60.22p
Earnings per share - diluted 51.48p 59.89p
6. Financial information
The financial information set out above does not constitute Dart Group PLC's
statutory accounts for the years ended 31 March 2017 or 31 March 2016. The
financial information for 2016 is derived from the statutory accounts for the
year ended 31 March 2016, which have been delivered to the Registrar of
Companies. The Auditor has reported on the year ended 31 March 2016 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 2017 will be finalised on
the basis of the financial information presented by the Board of Directors in
this preliminary announcement and will be delivered to the Registrar of
Companies in due course.
7. Annual report and accounts
The 2017 Annual Report and Accounts (including the Auditor's Report) will be
made available to shareholders during the week commencing 14 August 2017. The
Dart Group PLC Annual General Meeting will be held on 7 September 2017.
8. 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