28 July 2016 – 3rd quarter results
The latest results announcement appears to have reassured investors. Overall the results for the third quarter were in line with expectations. Revenue was down 8%, reflecting problems with Turkey and Brussels. There was an underlying operating profit of £2m, down from £24m a year earlier but still relatively impressive given near term trading conditions. Airlines Germany has also faced challenges. Looking further ahead the company looks well positioned to recover. The market capitalisation of broadly £1bn is modest and leaves potential for a strong rebound in the share price, which was almost 100p higher than this level last year and reached an even higher level in 2014. We rate the shares as a BUY.