18th Sep 2013 11:38
LONDON (Alliance News) - Catering services provider Journey Group PLC Wednesday reported an increase in pretax profit and revenue for the first half, reflecting a strong performance across its in-flight catering and products divisions.
The company which supplies airlines with catering services posted pretax profit of GBP937,000 for the period ended 30 June, up from GBP254,000 a year earlier, while revenue increased slightly to GBP22.1 million from GBP20.1 million in 2012.
Journey attributed the rise in profit and revenue to a strong performance from its two divisions, catering and products.
It said its catering division, which is US-focused, was boosted by deals with Continental Airlines and JetBlue Airways that commenced in the fourth quarter of 2012. Revenue jumped to GBP12.4 million, from GBP8.4 million last year.
Despite a fall in revenue, Journey said, the products division performed better due to the strengthening of gross margins in its two brands Watermark and MNH Sustainable Cabin Services, which renewed key contracts with Delta Airlines and Qantas Airways.
Net cash stood at GBP2.54 million, down from GBP4.0 million last year, while adjusted basic earnings per share was 4.32 pence, up from 2.27 pence in 2012.
The board declared an interim dividend of 1.2 pence per share, representing a change in plan to only pay a single final dividend. Chairman Stephen Yapp attributed the decision to the group's "significant progress" during the half.
Journey shares were trading at 137.00 pence Wednesday morning, up 10.00 pence or 7.9%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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