Return To Profitability And Strong Operational Performance
Wednesday, 11 June 2014
Flybe announces a return to profitability, following a successful turnaround programme, and its confidence for the future with a focused strategy and a considerably strengthened balance sheet.
- 11.1% growth in Revenue under management to £868.4m (2012/13: £781.5m) driven by significant growth in white label revenue in Finland
- £620.5m of Group revenue, up by 1.0% (2012/13: £614.3m)
- Record passenger numbers and load factors in UK business
- 3.3% decrease in Group operating costs (excluding restructuring) at £619.5m (2012/13: £640.9m)
- Adjusted profit before tax, net restructuring and surplus capacity costs* of £1.7m (2012/13: loss of £23.6m), with profit improvement across all areas of the business
- £8.1m of profit before tax (2012/13: loss before tax £41.1m)
- Operating cash inflow before restructuring of £7.3m (2012/13: cash outflow of £1.6m)
- Total cash of £218.4m at 31 March 2014 (2013: £54.7m), and net assets of £194.1m (2013: £48.1m)
- £150.1m net equity fund raise in March 2014 reflecting investor confidence in Flybe’s future
- 6.9% increase in passenger numbers in UK scheduled airline at 7.7 million (2012/13: 7.2 million) despite 1.4% reduction in seat capacity
- Load factor of 69.5% (2012/13: 64.1%)
- 1.8% improvement in passenger revenue per seat at £49.70 (2012/13: £48.84)
- 55.1% sector share of UK regional market (2012/13: 52.4%)
- Operating from 7 UK bases and serving 64 airports in total throughout the UK and Europe**
- Major expansion announced at London City
- £247.9m of revenue in first full year of expanded Finnair joint venture operations (2012/13: £167.2m)
- Service standards and punctuality on and above target
- Profit before tax and restructuring £2.2m (2012/13: £0.7m)
- Operating costs down £6.6m to £33.2m (2012/13: £39.8m)
* Adjusted loss before tax, revaluation gain/(loss) on USD aircraft loans, net restructuring and surplus capacity costs. Surplus capacity costs represent the costs incurred in the Winter 2012/13 flying season relating to capacity that is considered by management to be surplus as a result of the restructuring decisions taken in 2012/13
**Includes our franchise partner, Loganair
Commenting, Saad Hammad, Flybe's Chief Executive Officer, stated: "2013/14 marks the rebirth of Flybe!
“We implemented a turnaround plan to stabilise the business and then successfully raised over £150m net to strengthen our balance sheet and drive sustainable profitable growth. The return to profitability is a great step forwards. This enables us to start implementing our twin-engine strategy of growing our UK branded business and our white label operations across Europe.
“We have made a good start to FY15, in line with our expectations.
“We are moving to build on our early success. We have a plan and we have the firepower. The Group is now well-placed to become Europe’s best local airline.”