Dart Group – positive trading update and shares look interesting
The Leisure Airline (Jet2.com), Package Holidays and Distribution & Logistics Group (a bizarre combination of businesses!) has issued a very positive trading update announcing that pre-tax profit for the year ending 31st March 2013 will be ahead of current market expectations (Pre-tax £34.79m) as a result of lower than anticipated Winter losses - a positive negative!
Looking forward to the year ending 31 March 2014, overall forward booking levels for Jet2.com, the Group’s Leisure Airline, remain in line with its 13% increase in capacity for Summer 2013. Trading volumes are also developing satisfactorily at Fowler Welch, one of the UK’s leading distribution and logistics providers. Broker Arden has increased March 2013 PBT forecast from £35m to £38m (moving eps to 20.2p) and has also increased March 2014 PBT forecasts from £36m to £40m and eps to 21.5p. At the current share price this results in a current year PER of only 8x. Arden has also arrived…