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
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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

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.

Canaccord Genuity reiterates buy on Dart Group, target raised from 285p to 415p.

Dart Group (AIM:DTG) – shares continue to soar on growing demand, is there more to go for? - See more at: http://tinyurl.com/ncnro6u

StockMarketWire.com
Leisure travel and distribution & logistics group Dart posts operating profits of £147.1m for the six months to the end of September - 103% up on last time.

Group revenues rose by 14% to £1,024.0m and underlying operating profits were up 67%.

Pre-tax profits rose to £146.8m - up 105% (66% on an underlying basis).

The interim dividend of 0.90p is up 20%.

Chairman Philip Meeson said: "The increase in Group operating profit reflects consistently strong summer trading in our Leisure Travel business coupled with our Distribution & Logistics business performing ahead of last year. However, increased losses are to be expected in the second half of the year as our expanding Leisure Travel business invests in additional aircraft, advertising and people in readiness for the summer 2016 season.

"The Group generated increased net cash flow from operating activities of £199.8m (2014: £93.2m), reflecting the improved Leisure Travel trading performance. Total capital expenditure of £60.9m (2014: £25.5m) included the purchase of one Boeing 737-800, pre-delivery payments for new aircraft, the majority of which have been financed, deposits for new aircraft and continued investment in the long-term maintenance of our aircraft fleet.

"Cash and money market deposits increased by £144.0m in the half (2014: £68.1m), resulting in total cash held at the reporting date of £446.8m (2014: £331.8m), which included advance payments from Leisure Travel customers of £183.7m (2014: £145.0m).

"Basic earnings per share increased to 79.82p from an underlying 48.25p in 2014. In view of the outlook for the full year, the Board has decided to pay an increased interim dividend of 0.90p per share (2014: 0.75p). The dividend will be paid on 1 February 2016 to shareholders on the register at 4 January 2016."

StockMarketWire.com
Dart Group posts a pre-tax profit of £163.7m for the six months to the end of September - 12% up on a year ago.

A strong summer season saw group revenue increase 21% to £1,240.8m (2015: £1,024.0m) while operating profit, which was underpinned by continued growth in its leisure travel business, increased 14% to £167.5m (2015: £147.1m).

Basic earnings per share rose by 14% to 90.65p and the interim dividend of 1.375p per share is up 53%.

The group said: "Whilst we recognise the likely upward pressures on market pricing following the weakening of sterling post Brexit; for the long term, we have confidence in the resilience of our Leisure Travel business and are encouraged by the increasing proportion of customers taking our great value, real package holidays.

"With winter 2016/17 Leisure Travel bookings continuing to perform in line with expectations, the Board is currently optimistic that market expectations for the full year will be slightly exceeded."