17 November 2011 – interim results
The half yearly results from the group have revealed an 8% increase in profits to £41.6m (2010: £38.7m) on turnover some 31% ahead at £445.7m (2010: £340.4m.) The improvement in profits reflects a better performance at the Jet2holidays operation, whilst Jet2.com’s profit margins were adversely affected by cost increases, notably jet fuel costs. Net cash at the end of the period was £97.7m, a £50m improvement over the position at 30 September 2010, with advance payments from Jet2.com customers representing about £48m of this. Earnings per share emerged at 21.82p (2010: 19.72p) and the interim dividend has been increased slightly to 0.43p (2010: 0.40p). The board has stated that it hopes to meet full year profit expectations but believes that there are limited opportunities to deliver profit growth in the short term. This statement has made us a little nervous and we therefore only rate the shares as a HOLD.