Pre-tax turnaround at Dart Group

24/07/2008 Robert Tyerman

Bombed out aviation and distribution company Dart Group turned a £3.6 million loss into an £11.8 million pre-tax profit in the year to March.

However, the AIM-quoted company, which runs the Jet2.com low-cost airline and arranges the supply of chilled produce and other items to supermarkets through its Welch-Cool arm, says underlying pre-tax profit fell 72.3 per cent because of investment in Jet2.com’s expansion. Dart, whose debts rose by £3.2 million to 25 per cent of shareholders’ funds, is not paying a final dividend, despite an £80 million turnover increase to £429.3 million in the year to March, because of the underlying profits fall and current economic conditions (including rising oil costs).

Jet2.com delivered 98.6 per cent more items under its flagship Royal Mail contract, and aviation revenue per passenger rose 50 per cent to £9.10, despite price resistance in the market. Dorset-based Dart increased Jet2.com’s capacity by 35 per cent, with extra aircraft at Manchester and Leeds.

Steered by chairman and chief executive Philip Meeson, Dart has seen its shares crumble from 156.5p at the beginning of last year to 20.5p now. The appeal is speculative.

Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.