Dart Group hikes dividend on expectations for above-consensus profits
StockMarketWire.com - Dart Group said Thursday it expected annual profit before foreign exchange revaluations and taxation would 'substantially' exceed current market expectations supported by stronger demand for its leisure travel product.
For the year to 31 March, the group said it expects pre-tax profit to rise 49% to £134.6, driven by a the a £20m tailwind from favourable foreign exchange movements. Pre-tax profit excluding the impact of FX improved by 13% to £114.6m, well above of market expectations.
Group revenue is expected at £2,391.8m for the year, up 38% from £1,729.3m.
The increased profits was supported by continuing strong demand for the company's Leisure Travel products, Jet2.com and Jet2holidays, both of which delivered passenger growth for the year.
Results were held back, however, as the distribution & logistics division saw profit before tax decrease by £0.1m to £4.4m.
The company proposed a 53% hike in the final dividend to 6.0p per share from 3.897p, taking the proposed total dividend for the year to 7.5p per share, up 92% to 5.272p.
Dart Group said it remained unclear how demand would develop in the medium term amid an uncertain UK economic backdrop, brought on by Brexit.
At 9:47am: (LON:DTG) Dart Group PLC share price was +253.25p at 993.25p
Story provided by StockMarketWire.com