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Dart Group shares tumble after drop in profit and amid concerns over Brexit negotiations uncertainty

Last updated: 11:25 13 Jul 2017 BST, First published: 09:17 13 Jul 2017 BST

Jet2.com aircraft
Dart said both its leisure travel and distribution & logistics businesses made satisfactory starts to the new financial year

Dart Group PLC (LON:DTG) shares tumbled this morning after it reported a drop in annual profits and warned that its longer term outlook is clouded by the "unsettling" uncertainty brought on by Brexit negotiations.

In late morning trading, shares in Dart Group - which operates the budget Jet2.com airline - were down 71.5p at 593p, a drop of 10.76%.

READ: Dart Group expects full year profit to beat current market forecasts

In a statement accompanying today's full-year results, Dart's executive chairman, Philip Meeson said."There remains considerable uncertainty around "Brexit" negotiations and the effect these could have, both on our freedom to fly and on our customers' ability to travel to our leisure destinations." 

He added: "This is unsettling; however, we believe that the UK Government recognises the importance of aviation services, and similarly, European countries appreciate the value that British tourists bring to their respective economies."

Dart reported a 14% drop in pretax profit for the year ended March 31 to  £90.1mln, down from £104.2mln a year earlier, although  operating profit increased by 2% to £103.0mln as revenues rose 23% to £1.729bn.

The group said both its leisure travel and distribution & logistics businesses made satisfactory starts to the new financial year. 

It added: "Given visibility on current forward bookings and the recent successful launch of our new operating bases at Birmingham and London Stansted Airports, the Board expects to meet current market expectations of underlying profit before taxation for the year ending 31 March 2018."

AJ Bell investment director Russ Mould. said:  “Leisure travel and distribution and logistics group Dart’s shares fell as Brexit uncertainty cast a cloud over its long-term outlook. The group’s revenues for the year to the end of March were up 23% at £1,729.3m and both its businesses are on track. But there are longer terms concerns over Brexit talks and the effect these could have, both on its freedom to fly and on its customers' ability to travel to its leisure destinations." 

 

 

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