Dart Group is a business that emphasises its northern credentials. As the main division is a travel operation, this regional moniker may not be a good idea at the moment when 'up north' is likely to be much harder hit by public sector job cuts than 'down south'. So don't expect Dart's share rating to rise to the dizzy heights of a double digit PE ratio - but, on the basis of its latest results and prospects, it could be a lot nearer.
For starters, 2010-11 results were up to expectations, while during the year net assets jumped from 82p to 104p a share. Year-end net cash balances doubled to £112m, of which perhaps £17m was unrestricted cash not linked to forward bookings. Overall, a rise in net cash flow from £73.2m to £113.8m more than covered doubled capital spending of £68m.
In trading terms, the aviation division benefited from a significantly higher load factor and operating profits climbed from £12.0m to £23.8m. This was achieved despite losing £3m on the Icelandic volcanic ash disruptions when more than 400 flights were cancelled. In contrast, teething problems at the new 500,000 sq ft distribution 'Hub' sent distribution profits tumbling from £7.4m to £2.8m. So, what for 2011-12? Broker Arden forecasts sales of £650m and profits of £30m, thanks to a recovery in distribution, while aviation's results are little changed.
DART (DTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 90.375p | MARKET VALUE: | £128m | |
| TOUCH: | 90-90.75p | 12-MONTH HIGH: | 99p | LOW: 54.75p |
| DIVIDEND YIELD: | 1% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 104p | NET CASH: | £112m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 349 | -3.6 | 0.5 | 2.08 |
| 2008 | 429 | 11.8 | 6.2 | 0.65 |
| 2009 | 439 | 33.5 | 19.3 | 0.71 |
| 2010 | 435 | 22.2 | 11.1 | 1.11 |
| 2011 | 543 | 26.2 | 12.2 | 1.23 |
| % change | +25 | +18 | +10 | +11 |
Ex-div: 14 September Payment: 21 October Aim: Airlines and airports | ||||
