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.

FINANCIAL HIGHLIGHTS

  • 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

OPERATIONAL HIGHLIGHTS

Flybe UK:

  • 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

Flybe Finland:

  • £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

MRO:

  • 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.”

 

-ENDS-

 

Full results: http://otp.investis.com/clients/uk/flybe/rns/regulatory-story.aspx?cid=59&newsid=419226

 

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