1st Quarter Results
Ryanair Holdings PLC
05 August 2003
RYANAIR ANNOUNCES PASSENGER
GROWTH OF 45% PROFITS INCREASE BY 12%
Ryanair, Europe's largest low fares airline today (5 August '03) announced
record traffic, and profit growth for the quarter ended 30 June '03.
Passenger traffic grew by 45% to 5.1m although both average load factors and
yields declined by 5 points to 78% and by 14% to €41.71, respectively. These
predicted reductions were due to the launch of 50 new routes and two new
bases; the weakness of Sterling to the Euro; the closure of Buzz for the
month of April and Ryanair's commitment to offer the lowest fares in every
market it serves. Total revenues rose by 26%, operating costs rose by 29%,
after tax margins declined from 20% to 18%, while Adjusted Net Profit
increased by 12% to a record €43.8m.
Summary Table of Results (Irish GAAP) - in Euro
Quarter ended June 30, 2002 June 30, 2003 % Increase
Passengers 3.5m 5.1m 45%
Revenue €194.3m €245.2m 26%
Adjusted Profit after €39.0m €43.8m 12%
tax Note 1
Adjusted EPS (Euro 5.16 cent 5.8 cent 12%
Cent) Note 1
Note 1 - Adjusted Profit after tax and EPS, excludes the exceptional costs
arising from the re-organisation of 'Buzz' in April'03 of €2.7m (net of tax)
and the Goodwill charge from the 'Buzz' acquisition of €0.6m
Ryanair's Chief Executive, Michael O'Leary said in London today;
'These record quarterly results reflect the continuing success right
across Europe of Ryanair's low fares formula. During what B.A. last week
described as the most testing period in aviation history, we continue to
drive down airfares, reduce costs, but at the same time deliver
increased profits and exceptional margins. Passenger volumes grew by 45%
to a record 5.1m thanks to the successful launch of 50 new routes, two
new bases at Milan-Bergamo and Stockholm-Skavsta, and the acquisition
and relaunch of Buzz in May. This strong performance continues, as
evidenced by the substantial increase in traffic and load factors for
July'03 (statistics were released yesterday). These recorded a 40%
growth in traffic over July'02 and a 6 point improvement in load factor
from 79% in June to 85% in July.
'Yields, as we predicted, were impacted by a combination of (1) the
launch of the 50 new routes and the 2 new bases, (2) the weakness of
Sterling to Euro, and (3) by our continuing policy of driving down
airfares. We believe that yields for the fiscal year will be lower than
last year by between 10% and 15% as we offer consumers lower fares
whilst dismaying our competitors who forlornly hope that yields and
fares will rise during this year. Of the 14% decline in yields during
the quarter, 6% was due to the weakness of Sterling (half of all our
sales are in sterling). This yield dilution will be partially offset by
sterling cost savings. Our margins have also been diluted by the
operation of the inefficient Buzz BAe146 aircraft on some routes, but
these will be replaced by larger and lower cost 737-800's in October
following our next set of deliveries from Boeing.
'Apart from offering our passengers even lower air fares, we are
tremendously proud of our outstanding customer service. The Association
of European Airlines (AEA) has begun publishing customer service
statistics since January, and these numbers prove that Ryanair is number
one among Europe's major airlines for punctuality, least cancellations
and fewest lost bags. As the recent British Airways strikes at Heathrow
confirmed, the service that high fares airlines provide when things go
wrong is no different to that provided by low fares carriers, despite
the fact that people flying B.A. are paying air fares that are 5 to 10
times higher than they pay Ryanair.
'Recently some competitor airports and airlines have initiated spurious
legal actions to try to restrict route development, competition and
lower fares at publicly owned airports. It is quite beyond our
comprehension how an administrative court in Strasbourg could recently
require the Strasbourg Chamber of Commerce to terminate our low cost
agreement within two months. Despite the fact that Ryanair is the only
airline operating the London-Strasbourg route, and delivering almost six
times the traffic previously delivered by Air France, we may now be
forced - against our wishes - to either increase air fares on the route,
or pull off the route in the short-term, until such time as we can
appeal and reverse this decision.
'It is ludicrous that Air France having withdrawn ten international
services from Strasbourg Airport over the last seven years (one of which
was the London route) can win a local legal action which prevents
200,000 European consumers benefiting from low fare services between
London and Strasbourg. We believe these passengers will not travel on a
high fare Air France service which forces them to go via Charles de
Gaulle to get to London or Strasbourg. This decision is wrong, it is bad
for the regional airports of France, it is bad for regional tourism in
France and could result in some 200 jobs being lost in the Strasbourg
and Alsace region. We will appeal it, and are confident that this appeal
will succeed and allow us to continue to develop low fare traffic at
Strasbourg and tourism in the Alsace region.
'The only grey cloud on our commercial horizon at present is the
continuing EU investigation of our low cost base at Brussels Charleroi
Airport. The European Commission, which has consistently promoted and
championed deregulation and competition in inter-EU air travel needs to
send a strong signal to the market that it will not allow political
lobbying or local court orders to prevent Ryanair (and other low fares
airlines) making air travel more affordable for consumers all over
Europe. Over the past twelve months our 18 million passengers will have
saved over €2.0bn compared to the air fares charged by our high fare
flag carrier competitors and this year more than 20,000 jobs will be
created as a result of Ryanair's traffic at secondary and regional
airports all over Europe. Many European consumers who weren't rich
enough to fly with the flag carriers can now afford to travel to visit
friends and families and/or go on holidays. We remain confident that
Commissioner de Palacio will support competition and low fare air travel
and will support the right of publicly owned airports to compete on an
equal basis with privately owned airports for this business.
'We welcome Minister Brennan's announcement that the Irish airport
monopoly will be split up enabling Dublin, Cork and Shannon to compete
against each other for traffic. Competition is good for consumers and
will be good for Irish tourism. We remain concerned about the lengthy
timescale for the implementation of the split and the mystifying lack of
progress in the development of competing Terminals at Dublin airport.
Why are we still waiting for the Irish Government to do something in
order to kick start Irish tourism and to create more badly needed jobs
in the Irish economy? Unless this competition is implemented by November
it will mean that yet another year of tourism growth will be lost to the
Irish economy. We therefore strongly urge Bertie Ahern's government to
stop dithering, take some decisions in the interest of consumers, and
urgently split up the Aer Rianta monopoly by introducing multiple
competing terminals at Dublin airport.
'As highlighted by the release of our July traffic statistics yesterday,
current trading continues to be in line with expectations and previous
guidance. In July Ryanair became the first low fares airline in Europe
to carry over 2m passengers in one month, which renews our confidence
that substantial traffic growth for the full year will be achieved. We
still continue to believe that yields will be between 10% to 15% lower
than last year, however, we expect profits to grow materially and that
we will (as previously predicted) maintain net margins in excess of 20%.
'This continuing profit growth separates Ryanair from almost all other
airlines in Europe, and re-emphasises the superiority of Ryanair's
low-cost, low fares business model, and disciplined way in which we are
rolling it out across Europe'.
ENDS Tuesday 5th August 2003
For results and further information please contact:
Howard Millar Pauline McAlester
Ryanair Holdings Plc Murray Consultants
Tel: 353-1-8121212 Tel: 353-1-4980300
Certain of the information included in this release is forward looking and
is subject to important risks and uncertainties that could cause actual
results to differ materially. It is not reasonably possible to itemise all
of the many factors and specific events that could affect the outlook and
results of an airline operating in the European economy. Among the factors
that are subject to change and could significantly impact Ryanair's expected
results are the airline pricing environment, fuel costs, competition from
new and existing carriers, market prices for replacement aircraft, costs
associated with environmental, safety and security measures, actions of the
Irish, U.K., European Union ('EU') and other governments and their
respective regulatory agencies, fluctuations in currency exchange rates and
interest rates, airport access and charges, labour relations, the economic
environment of the airline industry, the general economic environment in
Ireland, the UK and Continental Europe, the general willingness of
passengers to travel and other economics, social and political factors.
Ryanair is Europe's largest low fares airline with 125 low fare routes
across 16 countries. Ryanair operates a fleet of 67 aircraft, with firm
orders for up to a further 117 new Boeing 737-800's which will be delivered
over the next 8 years. Ryanair currently employs a team of 2,100 people and
expects to carry in excess of 23 million scheduled passengers in the current
year.
Ryanair Holdings plc and Subsidiaries
Consolidated Profit and Loss Accounts in accordance
with UK and Irish GAAP(unaudited)
Quarter Quarter
ended ended
June 30, June 30,
2003 2002
Operating Revenues
Scheduled revenues 214,031 172,761
Ancillary revenues 31,125 21,501
-------- -------
Total operating revenues
-continuing operations 245,156 194,262
-------- -------
Operating expenses
Staff costs 29,902 23,425
Depreciation and amortisation 23,037 18,373
Other operating expenses
Fuel & Oil 40,658 33,645
Maintenance, materials and 11,184 9,449
repairs
Marketing and distribution 7,683 5,485
costs
Aircraft rentals 1,506 -
Route charges 25,149 16,491
Airport and Handling 34,517 28,163
charges
Other 18,446 13,876
-------- -------
Total operating expenses 192,082 148,907
-------- -------
Operating profit before exceptional items
and
goodwill 53,074 45,355
Buzz re-organisation costs (3,012) -
Amortisation of goodwill (584) -
-------- -------
(3,596) -
-------- -------
Operating profit after exceptional items
and
goodwill 49,478 45,355
-------- -------
Other income/(expenses)
Foreign exchange gains/(losses) 193 (2,581)
(Loss) on disposal of fixed assets - (22)
Interest receivable and similar 6,470 7,002
income
Interest payable and similar charges (11,076) (6,394)
-------- -------
Total other income/(expenses) (4,413) (1,995)
-------- -------
Profit before taxation 45,065 43,360
Tax on profit on ordinary activities (4,545) (4,396)
-------- -------
Profit for the period 40,520 38,964
======== =======
Earnings per ordinary share
-Basic(Euro cent) 5.37 5.16
-Diluted(Euro cent) 5.30 5.09
Adjusted Earnings per ordinary share*
-Basic(Euro cent) 5.80 5.16
-Diluted(Euro cent) 5.73 5.09
Number of ordinary shares(in 000's)
-Basic 755,204 755,031
-Diluted 764,469 765,996
* Calculated on Profit for period before exceptional items
(net of tax) and goodwill Page 1
Ryanair Holdings plc and Subsidiaries
Consolidated Balance Sheets in accordance with
UK and Irish GAAP(unaudited)
June 30 March 31,
2003 2003
€'000 €'000
------- -------
Fixed assets
Tangible assets 1,455,784 1,352,361
Aircraft deposits 0 0
Intangible Assets 46,166 -
--------- -----------
Total fixed assets 1,501,950 1,352,361
--------- -----------
Current Assets
Cash and liquid resources 1,077,478 1,060,218
Accounts receivable 10,173 14,970
Other assets 19,850 16,370
Inventories 23,610 22,788
--------- -----------
Total current assets 1,131,111 1,114,346
--------- -----------
Total assets 2,633,061 2,466,707
========= ===========
Current liabilities
Accounts payable 48,844 61,604
Accrued expenses and other 316,361 251,328
liabilities
Current maturities of long 68,999 63,291
term debt
Short term borrowings 1,531 1,316
--------- -----------
Total current liabilities 435,735 377,539
--------- -----------
Other liabilities
Provisions for liabilities and 86,379 67,833
charges
Accounts payable due after one 4,223 5,673
year
Long term debt 821,608 773,934
--------- -----------
912,210 847,440
--------- -----------
Shareholders' funds - equity
Called - up share capital 9,611 9,588
Share premium account 556,357 553,512
Profit and loss account 719,148 678,628
--------- -----------
Shareholders' funds - equity 1,285,116 1,241,728
--------- -----------
Total liabilities and 2,633,061 2,466,707
shareholders' funds ========= ===========
Page 2
Ryanair Holdings plc and Subsidiaries
Consolidated Cashflow Statements
in accordance with UK and Irish
GAAP (unaudited)
Ryanair Ryanair
Holdings plc Holdings plc
Quarter Quarter
ended ended
June 30, June 30,
2003 2002
€'000 €'000
------- -------
Net cash inflow from operating 113,486 113,570
activities
Returns on investments and servicing (3,842) 220
of finance
Taxation - (591)
Capital expenditure(including aircraft (128,145) (74,149)
deposits)
Acquisitions and disposals (20,704) -
------- -------
Aircraft deposits 0 0
------- -------
Net cash (outflow)/inflow before
financing
and management of liquid resources (39,205) 39,050
Financing 56,250 46,442
(Increase) in liquid resources (66,371) (126,749)
------- -------
(Decrease) in cash (49,326) (41,257)
======= =======
Analysis of movement in liquid
resources
At beginning of year 982,352 816,023
Increase in period 66,371 126,749
------- -------
At end of period 1,048,723 942,772
======= =======
Analysis of movement in cash
At beginning of year 76,550 77,747
Net cash (outflow) (49,326) (41,257)
------- -------
At end of period 27,224 36,490
======= =======
Page 3
Ryanair Holdings plc and Subsidiaries
Consolidated Statement of Changes in Shareholders' Funds - Equity
in accordance with UK and Irish GAAP (unaudited)
Share Profit
Ordinary premium and loss
shares account account Total
€'000 €'000 €'000 €'000
------- ------- ------- -------
Balance at April 1, 9,588 553,512 678,628 1,241,728
2003
Prior year adjustment 0 0 0 0
Issue of ordinary equity 23 2,845 - 2,868
shares
Profit for the financial - - 40,520 40,520
period ------- ------- ------ -------
Balance at June 30, 9,611 556,357 719,148 1,285,116
2003 ======= ======= ====== =======
Page 4
Ryanair Holdings plc and Subsidiaries
Consolidated Profit and Loss Accounts in accordance
with US GAAP (unaudited)
Quarter Quarter
ended ended
June 30, June 30,
2003 2002
€'000 €'000
Operating Revenues
Scheduled revenues 214,031 172,761
Ancillary revenues 31,125 21,501
-------- -------
Total operating revenues
-continuing operations 245,156 194,262
-------- -------
Operating expenses
Staff costs 29,682 23,186
Depreciation and amortisation 23,037 18,373
Other operating expenses
Fuel & Oil 40,658 33,645
Maintenance, materials and repairs 11,184 9,449
Marketing and distribution costs 7,683 5,485
Aircraft rentals 1,506 -
Route charges 25,149 16,491
Airport and Handling charges 34,517 28,163
Other 18,424 13,854
-------- -------
Total operating expenses 191,840 148,646
-------- -------
Operating profit before exceptional 53,316 45,616
items
Buzz re-organisation costs (3,012) -
-------- -------
Operating profit after exceptional 50,304 45,616
items
Other income/(expenses)
Foreign exchange gains/(losses) 193 (2,581)
(Loss) on disposal of fixed assets - (22)
Interest receivable and similar 6,470 7,002
income
Interest payable and similar (9,253) (5,387)
charges -------- -------
Total other income/(expenses) (2,590) (988)
-------- -------
Profit on ordinary
activities
before taxation 47,714 44,628
Tax on profit on ordinary (4,800) (4,537)
activities -------- -------
Net Income 42,914 40,091
======== =======
Net Income per ADS
-Basic(Euro cent) 28.41 26.55
-Diluted(Euro cent) 28.07 26.17
Adjusted Net Income per ADS *
-Basic(Euro cent) 30.20 26.55
-Diluted(Euro cent) 29.84 26.17
Weighted Average number of shares
-Basic 755,204 755,031
-Diluted 764,469 765,996
* Calculated on Net Income before exceptional items (net of tax)
Page 5
Ryanair Holdings plc and Subsidiaries
Summary of significant differences between UK, Irish and US generally
accepted accounting principles(unaudited)
(A) Net income under US GAAP
<---Quarter ended--->
June 30, June 30,
2003 2002
€'000 €'000
------- -------
Profit as reported in the consolidated profit
and
loss accounts in accordance with UK and Irish 40,520 38,964
GAAP
Adjustments
Pension 220 122
Amortisation of goodwill 584 -
Employment grants - 117
Capitalised interest re aircraft acquisition 1,823 1,007
programme
Darley Investments Limited 22 22
Tax effect of adjustments (255) (141)
------- -------
Net income under US GAAP 42,914 40,091
======= =======
<---Quarter ended--->
June 30, June 30,
2003 2002
€'000 €'000
------- -------
Cash inflow from operating activities 109,644 113,199
Cash inflow/(outflow) from investing 96,891 (241,106)
activities
Cash inflow from financial activities 56,465 48,310
------- -------
Increase/(decrease)in cash and cash 263,000 (79,597)
equivalents
Cash and cash equivalents at beginning of 658,366 482,492
year ------- -------
Cash and cash equivalents at end of period 921,366 402,895
======= =======
Cash and cash equivalents under US GAAP 921,366 402,895
Deposits with a maturity of between three and 156,112 583,740
six months ------- -------
Cash and liquid resources under UK and Irish 1,077,478 986,635
GAAP ======= =======
Page 6
Ryanair Holdings plc and Subsidiaries
Summary of significant differences between UK, Irish and US generally
accepted accounting principles(unaudited)
(C) Shareholders' funds - equity
June 30, June 30,
2003 2002
€'000 €'000
------- -------
Shareholders' equity as reported in the
consolidated balance
sheets (UK and Irish GAAP) 1,285,116 1,041,238
Adjustments:
Pension 3,331 2,536
Unrealised gains on forward exchange - 4,189
contracts
Employment grants - (352)
Goodwill 584 -
Capitalised interest re aircraft 12,112 6,034
acquisition programme
Darley Investments Limited (217) (305)
Investments - -
Unrealised Pension deficit(net of tax) (2,656) -
Derivative financial instruments(net (95,505) (17,401)
of tax)
Tax effect of adjustments (1,930) (1,901)
------- -------
Cumulative effect of change in accounting 0 0
policies ------- -------
Shareholders' equity as adjusted to accord 1,200,835 1,034,038
with US GAAP ======= =======
Opening shareholders' equity under US 1,177,187 1,019,607
GAAP
Comprehensive Income adjustments
Investments - -
Unrealised Pension deficit(net of tax) - -
Unrealised (losses) on derivative financial (22,134) (25,660)
instruments(net of tax) ------- -------
(22,134) (25,660)
Net income in accordance with US 42,914 40,091
GAAP
Stock issued for cash 2,868 -
------- -------
Closing shareholders' equity under US 1,200,835 1,034,038
GAAP ======= =======
Page 7
Ryanair Holdings plc
Management Discussion and Analysis of Results
For the quarter ended June 30, 2003
Introduction
Profit after tax increased by 4% to €40.5m including the exceptional costs and
goodwill arising from the 'Buzz' acquisition. Adjusted Profit after tax
(excluding exceptional costs of €2.7m (net of tax) and goodwill of €0.6m arising
from the 'Buzz' acquisition), increased by 12% to €43.8m For the purposes of the
MD&A all discussion below is by reference to the adjusted Profit and Loss
excluding the exceptional costs and goodwill arising from the 'Buzz'
acquisition.
Summary
Profit after tax increased by 12% to €43.8m compared to €39.0m in the previous
quarter ended June 30, 2002 driven by continued strong growth in passenger
volumes and tight cost control. Operating margins declined by 1 point to 22%,
which resulted in Operating Profit increasing by 17% to €53.1m.
Total Operating Revenues grew by 26% to €245.2m whilst passenger numbers grew by
45% to 5.1m.
Scheduled Passenger revenues increased by 24% to €214.0m, which is lower than
the growth in passenger volume, and reflects a decline in average fares of 14%
during the quarter. The 14% decline in average fares is due to a combination of
the, launch of new routes and new bases, the weakness of sterling to euro (which
accounted for 6% of the decline), and Ryanair's policy of driving down airfares.
Ancillary Revenue grew by 45% to €31.1m, and reflects strong growth in
non-flight scheduled revenue, car hire, and on-board sales. There were no
Charter revenues arising during the quarter due to the termination of the
programme.
Total Operating Expenses increased by 29% to €192.1m due to the increased costs
associated with the higher level of activity, primarily, staff, fuel,
depreciation, route charges and airport & handling costs. Operating costs
continue to rise at a slower rate than the growth in passenger volumes
reflecting the increased operational efficiencies arising from the higher
proportion of 737-800 aircraft operated.
Other Income/Expenses declined significantly by €2.4m primarily due to higher
interest charges payable arising from the increased level of debt.
Net margins as a result declined by 2 points to 18% whilst Net Profit increased
by 12% to €43.8m.
Earnings per share increased by 12% to 5.8 euro cent, which is in line with the
growth in Net Profit.
Balance Sheet
Cash and Liquid Resources increased from €1,060.2m at March 31, 2003 to
€1,077.5m at June 30, 2003, reflecting the increased cash flows from the
profitable trading performance during the period offset by capital expenditure
in respect of the aircraft acquisition programme. Three additional aircraft were
delivered during the quarter, which in addition to aircraft deposits accounted
for the majority of the €120.5m incurred in capital expenditure. Advance
delivery deposits amounted to €289.7m at the quarter end. This increase was part
funded by the draw down of long-term debt, which increased, (net of repayments)
by €53.4m during the quarter. The cost of the Buzz acquisition amounting to
€20.7m was also funded from internal cash resources during the period.
Shareholders' Funds at June 30, 2003 have increased to €1,285.1m, compared to
€1,241.7m at March 31, 2003.
Detailed Discussion and Analysis - Quarter ended June 30, 2003
Profit after tax has increased by 12% to €43.8m driven by strong growth in
passenger volumes at lower average fares and continued tight cost control.
Operating Margin declined by just 1 point to 22% whilst, Net Margin declined by
2 points to 18% compared to the previous quarter due to the lower average fares
achieved during the quarter and the impact of the increased interest charges
arising from the higher level of debt.
Total Operating Revenues increased by 26% to €245.2m whilst passenger volumes
increased by 45% to 5.1m.
Scheduled Passenger Revenues increased by 24% to €214.0m primarily due to a 45%
increase in passenger volumes on new and existing routes, partly offset by a 14%
decline in average fares. The decline in average fares is due to the launch of
new routes and new bases, the weakness of sterling to the euro (which accounted
for 6% of the decline), and Ryanair's policy of reducing airfares.
Ancillary Revenues increased by 45% to €31.1m, which is in line with the growth
in passenger volumes, and reflects increases in, non-flight scheduled revenues,
car hire revenues, and other ancillary product revenues. There were no Charter
revenues arising, due to the cessation of the programme. Ancillary revenues
increased to 13% of total revenues compared to 11% in the previous quarter.
Total Operating Expenses increased by 29% to €192.1m due to the increased level
of activity, and the increased costs primarily staff, depreciation, fuel, route
charges and airport & handling costs associated with the expansion of the
airline.
Staff costs have increased by 28% to €29.9m, which reflects a 26% increase in
employees to 2,135 and the impact of the 3% pay increases granted during the
quarter.
Depreciation and Amortisation increased by 25% to €23.0m primarily due to the
increase in the number of aircraft owned and the amortisation of capitalised
maintenance costs.
Fuel costs rose by 21% to €40.7m due to a 56% increase in the number of hours
flown, offset by a lower average US$ cost per gallon, an improvement in the fuel
burn rate due to a higher proportion of 737-800 aircraft operated, and the
positive impact of the strengthening of the euro to the dollar.
Maintenance costs increased by 18% to €11.2m reflecting an increase in the size
of the fleet operated, and an increase in the number of flight hours, offset by,
increased reliability in the fleet due to the higher proportion of 737-800
aircraft operated, and a reduction in the level of unscheduled engine
maintenance during the quarter.
Marketing and Distribution Costs rose by 40% to €7.7m due to a higher spend on
the promotion of the new routes launched, and the additional marketing costs
associated with the launch of the two new bases at Milan-Bergamo and
Stockholm-Skavsta.
Aircraft Rental Costs of €1.5m arose during the quarter reflecting the lease
rental costs associated with the acquired 'Buzz' aircraft.
Route Charges increased by 53% to €25.1m due to an increase in the number of
sectors flown, an increase in the average sector length and an increase in the
size of aircraft operated which incur a higher charge offset by the impact by a
weaker Sterling to Euro exchange rate.
Airport and Handling Charges increased by 23% to €34.5m due to an increase in
the number of passengers flown, and the impact of increased airport and handling
charges on some existing routes, offset by lower charges on our new European
routes and at our new bases.
Other Expenses increased by 33% to €18.4m, which is less than the growth in
ancillary revenues due to improved margins on some products, and cost reductions
achieved on other indirect costs.
Operating margin has declined by 1 point to 22% due to the reasons outlined
above and this in turn has resulted in Operating Profits increasing by 17% to
€53.1m during the quarter.
Interest Receivable declined by 8% to €6.5m reflecting the increase in cash
resources, offset by reductions in deposit rates during the period. Interest
Payable increased by €4.4m to €11.1m due to the increased level of debt arising
from the acquisition of new aircraft.
Taxation has increased by 10% to €4.9m, which is less than the growth in pre-tax
profits and primarily reflects the continued decline in the headline rate of
Corporation Tax in Ireland.
The Company's Balance Sheet continues to benefit from the profitable trading
performance during the period. Tangible fixed assets increased to €1,455.8m from
€1,352.4m principally as a result of the delivery of three additional aircraft
since March 31, 2003 and the payment of deposits for future deliveries. Advance
delivery deposits amounted to €289.7m at the quarter end. The Company generated
cash from operating activities of €105.9m, which funded all advance payments on
future deliveries whilst the balance is reflected in the higher cash and liquid
resources figure of €1,077.5m. Total Debt has increased by a further €53.4m, net
of repayments, since March 31, 2003 to €890.6m. Shareholder's Funds at June 30,
2003 have increased to €1,285.1m compared to €1,241.7m at March 31, 2003.
Cash Flow from operating activities amounted to €113.5m, which incorporates the
exceptional items arising from the Buzz acquisition of €3.0m, was in line with
the previous quarter and reflects the increase in Operating Profits including
exceptionals augmented by non cash items offset by an adverse movement in
working capital.
Notes to the Financial Statements
1. Accounting Policies
The accounting policies followed in the preparation of these
consolidated financial statements for the quarter ended June 30, 2003
are consistent with those set out in the previous fiscal year ended
March 31, 2003.
2. Approval of the Financial Statements
The Audit Committee approved the consolidated financial statements for
the quarter ended June 30, 2003 on July 29, 2003.
3. Generally Accepted Accounting Policies
The Management Discussion and Analysis of Results for the Quarter ended
June 30, 2003 are based on the results reported under Irish and UK GAAP.
This information is provided by RNS
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