Never been a big fan of airlines and companies especially since 9/11 but bookings are now well up and a recovery as taken place in the industry, in fact more people have decided to go abroad this year than the last few years and the alternative 'stay at home holiday is on the wane' as witnessed by a poor trading statement from Holidaybreak were the camping division as taken a big hit in paticular.
Dart carry out business in both the holiday, short haul and commercial divisions.

The company is very cheap with a P/E of only just over 7 and a forward P/E of just over 6.

It also pays a nice divi, and is a small cap capitalised at around circa of 48 million.

The cheapness as not gone unoticed as you will see from this report.


The smart investors' favourite budget airline

Published:
By Graeme Davies, Companies Correspondent
Email to a friend

A host of shrewd investors are backing budget airline and distribution business Dart Group with one top smaller companies team buying at the start of this month.

Dart (DTG), which operates fledgling budget airline jet2.com and also offers air distribution services using the same planes, has become a tempting destination after a slump in its share price in the second half of last year.


The latest buyers are the smaller companies team at Aberforth who bought 315,000 shares at the beginning of this month to increase the holding of the Aberforth UK Smaller Companies unit trust Aberforth UK Smaller Companies to just under 1.2 million shares.


Dart's share price surged to 224p in the first half of last year before falling back to 124p towards the end of the year. It has been as high as 162p in 2004 but today is unchanged at 132.5p.


At 132.5p the company is valued at just 7.25 times its expected earnings per share of 18p for this year, falling to 6.6 times next year's earnings. It also offers a healthy 4.7% dividend yield which is covered almost three times.


This valuation has attracted the likes of Framlington's AA-rated Roger Whiteoak who holds shares in both the Framlington UK Smaller Companies fund Framlington UK Smaller Companies Acc and Throgmorton investment trust (THRG). New Star's AAA-rated Patrick Evershed also holds 500,000 shares in the Select Opportunities unit trust New Star Select Opportunities and Rathbone's Carl Stick has 250,000 shares in the Rathbone Special Situations unit trust Rathbone Special Situations.


In the first half of the year Dart's pre-tax profits rose by 31% to 7.1 million from a 16% rise in turnover. However this was helped by the seasonal performance of jet2.com which is expected to be profitable in the summer months and loss-making in the winter.


Jet2 operates from Leeds/Bradford and Belfast with flights to 13 destinations once a Belfast-Prague service is launched at the end of this month.


When Dart's fleet of aircraft is not being used to transport holidaymakers they are utilised for distribution services, ferrying cargo, fresh produce and flowers. The company is also involved in freight forwarding at Manchester, Newcastle, east Midlands and London Heathrow.

The company will report its full-year results in June.

Looks a very sound value share to me and I think its a short to medium term investment.

Please DYOR you are responsible for the timing of your buying and selling actions.

cheers GF

StockMarketWire.com
Leisure airline, package holidays, and distribution and logistics group Dart expects to exceed current market forecasts for the year to 31 March 2013.

The group says Jet2.com has had a strong summer due to volumes underpinned by the continued successful growth of Jet2holidays and helped by the particularly poor British summer weather.

Jet2.com flew 3.6 million passengers in the six months to September, an increase of 14% over the corresponding period last year, with increases in both yields and load factors.

Jet2holidays, the group's ATOL protected holiday operation, also had a successful summer, having taken 312,000 passengers on holiday during the first six months of the year, an increase of 97% on last year.

The group says this significant growth has been achieved through further improvements to the Jet2holidays product range, and development of its online and high street distribution channels.

Dart says its distribution business, Fowler Welch, which specialises in the distribution of temperature-controlled and ambient products to retailers, importers and manufacturers throughout the UK, is trading in line with expectations in a sector that continues to experience tight margins.

It says that as previously noted, the group's leisure travel operations are becoming increasingly seasonal as it continues to grow the business.

This, coupled with strong summer trading, will result in the group's profit before taxation for the first half of the year being ahead of last year, with increased losses expected in the second half.

Dart adds: "otwithstanding the current economic climate, the board expects to exceed current market expectations for the year ending 31 March 2013."

The group intends to announce its interim results on 22 November.

Trade on just 6x forecast earnings, potential for further growth. They trade below net assets too.

A share that could have further upside. The multiple commanded by shares in budget airline and package holiday group Dart looks measly when compared with growth expectations and its strong financial position. Thats despite the recent strong share price run.
If the company's November half year results are anything to go by, brokers could be underestimating the growth potential. The first half saw a doubling in Jet2Holiday bookings, which helped drive a 23% rise in revenues for its Jet2.com budget airline. Costs have been rising, like all airlines, the oil price will have a major influence on the company performance in 2013.

They also have the well known haulier below in the group

x

Dart

Vying with Dewhurst for top position is Dart (DTG) - another portfolio success story. Dart is primarily an airline, Jet2.com, but it also operates a rapidly-growing package-holiday business, Jet2holidays, and Fowler Welch, an established distributor of fresh and frozen food to supermarkets. All three businesses are profitable.

Like Dewhurst, Dart has for a long time been managed by its biggest shareholder, who, as with Dewhurst's equivalent, has told shareholders to expect more profit next year than they, and he, expected, given the economic circumstances. Provided the holidays business offers good value and service, Dart is showing that people still travel. If last year is a guide to future years - ignoring the growth investors might confidently expect this year or speculatively expect in future years - Dart is undervalued.

http://www.barchart.com/opinions/stocks/DTG.LS

In this weeks Shares mag - Despite the strong run of late, the shares still trade on an undemanding price/earnings ratio of 7.3 times for 2014 with a token yield too. The next key catalyst for the shares is likely to be the renegotiation of an ongoing contract the group has with the Royal Mail, for whom the firm provides overnight delivery services. Its estimated the deal generates £6 million of earnings before interest and taxes per annum. There has been some concern in the market that the deal has been put out to tender. We are of the view Dart will retain this contract, albeit maybe on slightly less favourable terms, and the 'relief factor' on a successful renegotiation would more than compensate for the slightly reduced economics. In the meantime the group's holidays business is reportedly going 'gangbusters'.


Also used in conjunction with "like", to create "like gangbusters". This phrase can be used to describe something energetic or intense.

Sold my holding, in at 115p

Gone back long again.

Robbie Burns has aswel.........

'm a bit wary of airlines - probably silly as look how well Easyjet has done.

On the other hand Flybe has been a stinker but have you been on one of their planes? Scary! Never again! And they will do you for fifty quid if you're even a matchstick over an allowance.

However Dart Group (DTG) runs Jet 2 Com up north and apparently I am told they are brilliant - they don't mess their customers about with baggage allowances etc and treat them well - and so customers really like them.

Which shows in their recent figures which are excellent. Jet 2 Holidays is doing really well. As a feeble southerner I don't get to use them but my hard northern mates at seminars tell me they are the dog's, erm.. dangly bits.

Perhaps this shows if you don't try and cost cut too much passengers are prepared to pay more for a good service.

Anyhow despite good rises already I think the shares could take off further and I bought them as a spreadbet for tax reasons as they're aim and can't get them in my isa. Bit of a seller at the mo at 170 but once through that 200 at least looks likelier than not.

I'd be out if they fell much below 160.

Still in gf ?

Chugging along nicely.

Results are out.

Well done Dil!

Just lucky ... threw a dart :)

SUPREME COURT REJECTS APPLICATION TO APPEAL IN HUZAR v JET2.COM LTD
- PROVISION TO COVER POTENTIAL CLAIMS
Dart Group PLC, the Leisure Travel and Distribution & Logistics Group, announces that its wholly owned operating company Jet2.com has had its application to the Supreme Court to appeal the Court of Appeal's earlier decision of June 2014 rejected. Jet2.com maintained that in certain circumstances a technical defect was an "extraordinary circumstance" under EU regulation 261.

Previously the European National Enforcement Bodies (for example the UK Civil Aviation Authority) had agreed that unexpected technical defects, such as the one in this case, were outside of the control of airlines and would therefore be considered "extraordinary" for the purposes of customer compensation.

Safety has always been Jet2.com's first priority. Aircraft have duplicate and triplicate systems to ensure that flights may continue to their destination safely. However, certain technical issues can prevent or delay departures. For these the company has back up and contingency plans to minimise inconvenience to customers.

Dart will be making a provision of £17m in its current financial year in order to cover potential historical claims arising from the Supreme Court's decision. Going forward, the Board estimates that the legislation may cost the Group a further £3m-£5m per annum. The Board is currently further reviewing its options to mitigate the future financial impact on its air travel operations.

Dart (DTG), down 5.7% to 246.13p, will make a provision of £17m in its current financial year to cover potential claims against its wholly-owned subsidiary Jet2.com.

are you short here GF aswel as FLYB?

No, just FLYB, wanted to show how the new delay provisions are going to effect airlines.

StockMarketWire.com
Leisure travel and distribution & logistics group Dart expects underlying operating profit for the year ending 31 March will be ahead of current market forecasts.

It says the results will be broadly in line with last year (2014: £49.2m), as a result of lower than anticipated winter losses.

Looking ahead to the year ending 31 March 2016, forward bookings in the Leisure Travel business for summer 2015 are encouraging, with over 50% of the season having already been sold, which is ahead of where we were at this stage last year.

The distribution & logistics business, Fowler Welch, continues to focus on growing its revenue pipeline and developing existing and new business opportunities.

The group intends to further develop and grow its businesses and expects further progress in the year ending 31 March 2016.