Or this one:
A few key points on the accounts to help the debate along (2010 refers to the year to March 2010: 2009 to the year to March 2009)
- Turnover (ie sales) was broadly the same at £570.5m (2009 : £572.4m)
- There are various ways that accountants and analysts look at profit. I summarise the 3 most relevant ones which give the best picture of how the co has performed
- Operating profit from continuing operations is shown in the accounts at £8.2m (2009: £6.1m ) – a 34% increase. In fairness however this isn’t a true picture as 2009 had some very big “exceptional” costs relating to integration, aircraft impairment costs which reduced that years profit – which thus somewhat flatters 2010
- However most airline businesses use a measure called EBITDAR (earnings before interest, tax, depreciation , amortisation and aircraft rents payable – excluding exceptional items). This gives by far the best view of underlying performance In the flybe press release of 20th September 2010 this EBITDAR figure is quoted as being up 4.7% to £93.8m (2009 :: £89.6m). This indicates a very creditable performance in a difficult market BUT I really think it’s been calculated incorrectly (see below)
- Without wanting to get too much into accounting speak, I think the calculation of the “amortisation” bit has been cocked up for 2009. I reckon that the 2010 EBITDAR is c£93m, but that the 2009 EBITDAR is actually only £72m. If so this represents a fairly whopping 29% increase in underlying profit. I may be wrong on this: but I really really don’t think so.
- This increase in (the correctly calculated) EBITDAR is absolutely supported by the cash inflow from operations which is £50.9m compared to £31.4m in 2009. Cash is king and this in conjunction with EBITDAR is the best measure of what a good year flybe had.
- I suspect undoubtedly that the performance has been boosted by the Greek tie up, but details of the profit aren’t given.
- Total Directors pay went up by 28.5% (from £1.4m to £1.8m) on an unchanged Board off Directors (is it a coincidence that this is about the same % as the increase in the EBITDAR if my views on its calculation is correct?). Highest paid Directors pay went up from £0.5m to £0.6m – 20% increase.
- Average pay of all staff (note 7) went up 0.3% . This actually includes the Directors and if they’re taken out I reckon the average pay per person actually went down by c 3% (clearly people come and go – but it’s a clue
Hope this helps guys. Sorry if it’s a bit “accounting” but in summary 2010 was a much much better year than is apparent from a first view of the figures ! Also remember what a positive outlook was given in the press release for 2010-11