Leeds-based leisure and logistics firm Dart Group said its revenue rose 23% to £1.73 billion in the year to March 31 but profit before tax fell 14% to £90.1 million amid “considerable” investment to launch its two new Jet2.com operating bases at Birmingham and London Stansted Airports.
Dart Group is proposing a dividend of 5.272p per share for the year, an increase of 32%.
Nonetheless, Dart Group shares fell 14% as the firm’s executive chairman warned about the “unsettling” effect of “the 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.”
Dart shares fell 14% to 572p to give the firm a current stock market value of around £867 million, according to Bloomberg data.
Total revenue in the firm’s leisure travel division grew 24% to £1.56 billion.
Its distribution and logistics business, Fowler Welch, saw revenue growth of 14% to £163.5 million.
On the outlook for Dart Group, executive chairman Philip Meeson said: “Both our Leisure Travel and Distribution & Logistics businesses have made satisfactory starts to the new financial year.
“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.
“Looking further ahead, 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.
“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.
“Therefore, for the long-term, we remain confident in the resilience of our Leisure Travel business and we are encouraged by the increasing proportion of customers choosing our great value, real package holidays, which are not easily replicated by non-specialists, and have proven particularly popular in challenging economic times.”
