12 November 2014 – interim results
Disappointing results for the six months to 30 September have hit the company’s share price. A loss after tax of £15.4m (2013: profit of £13.6m) was reported. This reduction was caused by mostly external costs related to surplus capacity, a loss on revaluation of aircraft loans, the net impairment of assets related to Flybe Finland and a provision related to flight delay claims under EU 261 (£6.0m). Adjusted profit before tax, restructuring and surplus capacity costs fell by 87.7%, from £12.2m last year to £1.5m. Although exceptional costs have had a significant impact, there is little to be enthusiastic about at this stage and the shares may drift lower in the coming months. For now we downgrade to HOLD.
At 30 September 2014, the Group’s balance sheet remained strong with net assets of £173.1m, including total cash of £171.0m and net funds (i.e. total borrowings less total cash) of £72.0m.