24th Apr 2020 10:50
(Alliance News) - Jet2-owner Dart Group PLC on Friday predicted a 49% year-on-year rise in adjusted pretax profit for financial 2020 and said that it has seen a "very promising" travel booking numbers despite the Covid-19 pandemic.
"Positively, and despite the considerable uncertainty, we are seeing customers still making bookings for late summer 20 and winter 20/21, with encouraging numbers choosing to rebook rather than cancel. In addition, and though very early, summer 21 bookings to date are very promising," the company said.
For the financial year that ended March 31, the company expects to report pre-exceptional pretax profit foreign exchange revaluation and taxation of between GBP265 million and GBP270 million. In financial 2019, the company recorded GBP180.1 million in pre-exceptional pretax profit before foreign exchange revaluation and taxation.
Dart estimates a net exceptional charge of GBP109 million relating to "ineffectiveness on a proportion of financial 2021 fuel and foreign currency hedges in the financial 2020 results" due to the Covid-19 travel restrictions.
The company said it Leisure Travel business achieved a 14% increase in numbers of passengers flown in financial 2020 to 14.6 million, despite Jet2.com being forced to suspended operations in mid-March due to travel restrictions imposed by governments across Europe. The number of Package Holiday customers increased by 19% to 3.8 million.
Dart said it is unable to determine the impact and duration of Covid-19 on the current financial year to March 31, 2021.
To preserve cash and maintain financial stability, the company has furloughed 80% of its UK colleagues, deferred non-critical capital expenditure and has frozen recruitment and discretionary spend.
The Leeds-based company also has suspended final dividend for financial 2020 and staff bonuses. Further, it has implemented a 30% cut to staff salaries, including directors, for six months until September 30.
The company has fully drawn down on its GBP100 million revolving credit facility and has also applied to the UK government's Covid Corporate Financing Facility.
Dart's distribution & logistics business, Fowler Welch, continues to perform strongly, however, providing distribution services to the UK food industry supply chain.
Shares in Dart were down 4.7% at 583.50 pence each in London on Friday morning.
By Tapan Panchal; [email protected]
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