LONDON (ShareCast) - (ShareCast News) - Dart Group reported better than expected interim results and was optimistic it will slightly exceed full year forecasts, as strong growth in its Jet2 package holiday business offset lower profits from its distribution and logistics arm.
On revenue 21% higher at £1.24bn i the six months to 30 September profits before tax rose 12% to £163.7m and adjusted fully diluted earnings per share increased 18% to 93.3p.

There was a strong rise in the number and proportion of package holiday customers, and resilient ticket yields despite double-digit capacity growth, lifting travel revenue 22% and operating profits 15%.

The board is optimistic that it will slightly exceed market expectations for the full year and increased the interim dividend by 53% to 1.375p share.

After expanding the leisure travel aircraft fleet to 64 for summer 2016, management plan to continue developing the customer-focused flying programme into summer 2017, which will include a combined 36 new routes out of Birmingham and London Stansted Airports and the addition of two new destinations - Costa de Almeria in Spain and Halkidiki in Greece.

The distribution business completed the extension of a facility and agreed a contract with Dairy Crest to take over its Nuneaton UK distribution.

Revenue grew by 11% but operating profit fell by just over a third as margins were hit by later than planned delivery of new ambient contracts and a £0.4m bad debt write-off in relation to a customer that went into administration.

Broker Canaccord raised its EPS estimate by 6.5% to 48.3p for 2017 and by 23% to 40.1p for 2018, and it dividend forecast to assume a 37% increase for the current year and 20% a year thereafter.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE