14th Feb 2012 07:00
Journey Group plc
Trading Update
Journey Group plc (together with its subsidiaries the "Group"), a leading provider of catering services and in-flight products to the international airline and travel industries, today issues a trading update ahead of the Group's results for the year to 31 December 2011, which are expected to be released at the end of March 2012.
Both of the Group's divisions had a good final quarter. The Products division experienced a higher level of demand from customers than expected. The catering operations of the US division serving United Airlines also performed well in Los Angeles.
As a consequence, the results for 2011 are expected to be ahead of current market expectations. In respect of continuing operations, for 2011 the Group expects revenue to be £42.6 million (2010 £34.7 million), adjusted EBITDA* to be approximately £1.37 million (2010 £0.69 million) and adjusted profit before tax* to be approximately £0.36 million (2010 loss of £1.19 million).
Cash generation during the year was strong. At 31 December 2011 net funds were £2.11 million (2010 net debt of £0.19 million), comprising cash of £2.59 million offset by £0.48 million related to finance lease obligations. The Group has in place a borrowing facility of up to £2.45 million expiring in May 2013 with Royal Bank of Scotland.
Stephen Yapp, Executive Chairman said "The Group has finished the year in a good position both financially and operationally. The model has started to demonstrate its growth potential ahead of expectations and we are entering 2012 confident that we can continue the momentum".
*Adjusted EBITDA and adjusted profit before tax are calculated prior to share based payments and in 2010 before exceptional items.
For further information please contact:
Journey Group plc
Stephen Yapp
Tel: +44 (0) 20 8606 2000
Carl Fry
Tel: +44 (0) 20 8606 2000
Singer Capital Markets Limited (Nominated Advisor & Broker)
Jonathan Marren
Matt Thomas
Tel: +44 (0) 20 3205 7500
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