A jump in delayed flights over the last quarter couldn’t stop £8.6 million 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 50 per cent drop in flight cancellations, helped the firm book 11.7 per cent year-on-year growth in passenger revenue to £174 million.
A jump in delayed flights over the last quarter couldn’t stop £8.6 million being added to the value of budget airline Flybe yesterday on the back of a set of stellar results
And in a boost for new boss Christine Ourmieres-Widener, who has embarked on an overhaul, passenger revenue per seat rose 7.9 per cent to £51.73, while seat capacity was up 3.5 per cent to 3.5 million and total passengers grew 7.1 per cent to 2.4 million.
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 12 per cent year-on-year in Q2, with 52 per cent of seats already sold.
Liberum reiterated its ‘buy’ rating and 50p price target and shares rose 11.3 per cent, 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
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 0.24 per cent, 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 £397 million loss after tax over the period.
Cash flow at the Africa-focused firm came in at around £157 million, up from minus £534 million in the first half of 2016, while sales revenue came in at £603.9 million, up from £414 million.
STOCK WATCH: Bioquell
Bug killers Bioquell hit an all-time high, finally reporting a 19 per cent jump in revenues after what it described as ‘a number of years of little growth’.
Bioquell, which makes technology to kill bugs in the healthcare and food industries, put the jump down to an improvement in profit margins and cutting costs.
It saw profits more than treble to £1.4 million after restructuring its US arm, and developing its bio-decontamination business.
Shares rose 14.5 per cent, or 25.25p, to 199.75p.
The firm also said oil is now flowing in significant quantities at its two large West African fields. However, it suffered a near £500 million hit from weak oil prices and, despite a £770 million fund raise in April, debt is still around £2.9 billion.
Regardless, shares rose 7.9 per cent, 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 1.9 per cent, with growth of 2.4 per cent in the last 12 weeks, reflecting June’s warm weather. Shares fell 4.2 per cent, or 5.1p, to 116.3p.
Buy-to-let lender Paragon Group rose 4.9 per cent, 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 £1 billion worth of buy-to-let loans this year – with £458 million being issued in the third quarter alone – up from £989 million 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 £10 million to £43 million 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 8 per cent, or 14p, to 189.25p.
Venture capital firm Allied Minds fell after one of its companies – Signature Medical – raised around £1.9 million to help develop wearable devices which monitor patients with heart conditions. The firm fell 5.6 per cent, or 9.25p, to 156p.