6th Jul 2023 11:42
(Alliance News) - Jet2 PLC on Thursday said it will bid farewell to a long-serving executive who oversaw its transformation from an obscure cargo handler to a well-known UK holiday travel provider.
The Leeds-based company also Thursday reported solid annual results, demonstrating a robust recovery from the Covid-19 pandemic. However, its shares came under selling pressure as it announced its executive chair, Philip Meeson, plans to step down from the board.
Shares in Jet2 were down 11% to 1,123.00 pence in London on Thursday near midday. However, the stock remains up 26% over the past 12 months.
"One way to measure the respect for a leader of a company is to look at what happens to the share price on news of their departure. A big fall in Jet2, with [Meeson] announcing he plans to step down from the board, is therefore revealing," said AJ Bell investment director Russ Mould.
Meeson bought the firm back in 1983, when it was just a small cargo airline and distribution company serving the Channel Islands, the company said. Jet2 then expanded into the passenger airline industry.
"It subsequently sold the freight distribution operations and focused on Jet2, which today is one of the UK's most popular choices for flights and package holidays," Mould noted.
Meeson was the "captain" of Jet2's success, Mould considered, as he built up a "greatly admired" British business, and showed "it was possible to disrupt the airline industry".
In the 12 months that ended March 31, Jet2 said revenue multiplied to GBP5.03 billion from GBP1.2 billion, and also was 40% ahead of financial 2020.
Jet2 swung to a pretax profit of GBP371.0 million in financial 2023 from a loss of GBP388.8 million in financial 2022, also more than doubling profit from financial 2020.
Net financing expenses were reduced to GBP25.6 million from GBP66.0 million the year before.
Jet2 declared a final dividend of 8.0 pence, having paid nothing a year before.
"The key question now is when will Meeson start selling down his 18.3% stake in the business? He is the largest shareholder in Jet2 by a mile and it is natural to expect someone stepping down, and at his age (75), to want to crystallise some of the gains he's made over the years," AJ Bell's Mould wondered.
By Elizabeth Winter, Alliance News senior markets reporter
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