9 November 2011 – interim results
Group revenue growth in the six months to 30 September 2011 was 6.4%, rising to £341.6m (2010: £321.0m). Flybe Finland, a new joint venture with Finnair, generated revenues of £8.6m in September 2011, its first month of trading. This means that total revenues under Flybe’s management in the first half were £350.2m. Profit before tax was £14.3m versus an adjusted £8.2m in 2010. The operating cash inflow was £13.0m versus an outflow of £4.2m a year earlier.
The balance sheet remains in good shape with net assets of £112.5m as at 30 September 2011 including total cash of £88.4m. Clearly this is not an easy sector to operate in but the company is seeking to minimise risk wherever possible. Fuel has been hedged at $918 per tonne for 90% of forecast burn in the second half and at $1,006 per tonne for 44% of forecast burn in the first half of the next financial year. There is scope for strong capital growth over the medium term so we keep Flybe as a SPECULATIVE BUY.