/Images/Dart-Group-IR2018.jpg "Interim Results 2018")
Chairman's Statement
I am pleased to report on
the Group's trading performance for the half year ended 30 September 2018 in
our two businesses, “Leisure Travel” - incorporating Jet2.com, our award-winning airline and Jet2holidays, our acclaimed ATOL licensed package holidays
operator - together with “Distribution & Logistics”, comprising Fowler Welch, one of the UK's leading logistics providers.
Summer 2018 has
proven to be a particularly strong season for
our Leisure Travel business, as demand for both our
flight-only offering from Jet2.com
and our higher
margin package holiday product from Jet2holidays proved buoyant
throughout.
Revenue in our Distribution
& Logistics business also grew by 7% to £88.9m (2017: £83.0m), as
management continued to focus on developing existing and new business
opportunities.
As a result,
Group operating profit increased by 68% to £350.1m (2017: £208.6m) and Group profit before foreign exchange
revaluation and taxation increased by 68% to £339.4m (2017: £201.9m).
However, increased losses
are to be expected in the second half of the year as we continue to invest in
additional aircraft and marketing, together with the increasing cost of
retaining and attracting wonderful colleagues in readiness for further flying
programme expansion at all our operating bases in the summer 2019 season.
In the first half, the Group generated increased net cash
flow from operating activities of £423.8m (2017:
£257.2m), driven
by the Leisure Travel trading performance.
Total capital expenditure of £132.1m (2017: £90.4m) included the purchase
of further new Boeing 737-800NG aircraft, investment in the long-term
maintenance of our existing fleet, the purchase of a 5th flight
simulator for our training centre in Bradford and infrastructure projects at Fowler
Welch.
New loans totalling
£132.7m (2017: £109.0m) were drawn
down, as the Group secured commercial debt funding for the purchase of its new
aircraft. As a result, the
Group’s cash and money market deposit balances increased in the first half by £389.0m (2017: £242.1m) to £1,397.6m (2017: £931.1m), which included
advance payments from Leisure Travel customers of £520.7m (2017: £376.8m) in respect of their
future flights and holidays. Net cash, stated after borrowings of £937.4m (2017:
£574.2m), was £460.2m (2017: £356.9m), an increase of 29%.
Basic earnings per share
increased to 186.15p (2017: 119.47p). In view of the outlook for the full year,
the Board has decided to pay an increased interim dividend of 2.8p per share
(2017: 1.5p). The dividend will be paid
on 4 February 2019 to shareholders on the register at 28 December 2018.
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