Flybe shares take off as overhaul starts to deliver
A JUMP in delayed flights over the last quarter couldn’t stop £8.6m being added to the value of budget airline Flybe yesterday on the back of a set of stellar results.
In an update for the first quarter of its year, Flybe said it will focus on reducing its tardiness – as it reported a slight increase.
That said, this year’s late Easter, more routes from Heathrow, and a 50pc drop in flight cancellations, helped the firm book 11.7pc yearon-year growth in passenger revenue to £174m.
And in a boost for new boss Christine Ourmieres-Widener, who has embarked on an overhaul, passenger revenue per seat rose 7.9pc to £51.73, while seat capacity was up 3.5pc to 3.5m and total passengers grew 7.1pc to 2.4m.
The outlook is a stark contrast to many of its larger peers of late; on Monday, EasyJet, IAG and Ryanair fell after Ryanair warned of a fee war across the airline sector over the next few months. Analysts at Liberum said that, unlike many of its peers, Flybe’s revenue per seat seems set to keep improving. It is expected to rise 12pc year-on-year in Q2, with 52pc of seats already sold.
Liberum reiterated its ‘buy’ rating and 50p price target and shares rose 11.3pc, or 4p, to 39.5p, a two-month high.
The FTSE 100 spent the day in the black, after the pound was hit by UK GDP figures which showed economic growth edged higher in the second quarter. It finished up 0.24pc, or 17.50 points, to 7452.32. Punters piled into energy firm
Tullow Oil as positive cash levels and revenues over the first half offset any doubts over its £397m loss after tax over the period.
Cash flow at the Africa-focused firm came in at around £157m, up from minus £534m in the first half of 2016, while sales revenue came in at £603.9m, up from £414m.
The firm also said oil is now flowing in significant quantities at its two large West African fields. However, it suffered a near £500m hit from weak oil prices and, despite a £770m fund raise in April, debt is still around £2.9bn.
Regardless, shares rose 7.9pc, or 12.2p, to 165.9p. Pub operator and brewer
Marston’s sank as it became the latest bar chain to peg a recent jump in beer sales and pub attendance on the early heatwave.
Over the 42 weeks to July 22, like-for-like sales at its pubs rose 1.9pc, with growth of 2.4pc in the last 12 weeks, reflecting June’s warm weather. Shares fell 4.2pc, or 5.1p, to 116.3p.
Buy-to-let lender Paragon Group rose 4.9pc, or 20.1p, to 428.1p after reporting strong growth in new issued loans over the first three quarters of its financial year, despite a ‘subdued’ market.
The firm has made £1bn worth of buy-to-let loans this year – with £458m being issued in the third quarter alone – up from £989m over the same period in 2016. European doorstep lender International Personal Finance soared to a five-month high after reporting that year-on-year profits rose £10m to £43m over the first half despite ongoing regulatory problems in Poland.
The firm had no update on the Polish legislation to cap loan charges, which caused its shares to tank last year. IPF, which does not operate in the UK but is listed here and lends to people with little or no borrowing history, saw shares rise 8pc, or 14p, to 189.25p.
Venture capital firm Allied Minds fell after one of its companies – Signature Medical – raised around £1.9m to help develop wearable devices which monitor patients with heart conditions. The firm fell 5.6pc, or 9.25p, to 156p.