TIDMTT.
RNS Number : 0811M
TUI Travel PLC
10 August 2011
10 August 2011
TUI Travel PLC
("TUI Travel")
Interim management statement and results for
the third quarter and nine months ended 30 June 2011
(unaudited)
Key financials
Third quarter ended 30 June 2011
GBPm Q3 11 Q3 10(2) Change %
Revenue 3,776 3,349 +13%
Underlying operating profit(1) 88 56 +57%
Underlying operating margin % 2.3% 1.7% +0.6pp
-------------------------------- ------ --------- ---------
1 Underlying operating profit excludes separately disclosed
items, amortisation of business combination intangibles,
acquisition related expenses, predecessor accounting for Magic Life
and taxation of results of the Group's joint ventures and
associates
(2) Prior year figures have been re-presented to include Jet4You
which was previously reported as a discontinued operation
Highlights
-- On track to meet our full year expectations.
-- Underlying operating profit up GBP32m in the quarter:
- Improvement driven by good performance of Northern Region,
particularly the UK and Nordic businesses, by the later timing
of Easter and by the non-recurrence of volcanic ash
disruption.
- Events in North Africa, however, have continued to impact
significantly on trading for our French tour operators.
- Turnaround and cost savings programme on track.
-- Strong trading for Summer 2011 high season:
- Differentiated product has performed well, particularly in the
UK and Nordics;
- Selling prices and margins continue to develop in line with
expectations in all source markets except France; and
- Overall, volumes left to sell are in line with prior year.
-- Successfully refinanced our banking facilities with the signing of
new facilities totalling GBP1.155bn.
-- Continued focus on balance sheet and cash management has resulted
in cashflow improvement of GBP368m compared with the 9-month period
ended 30 June 2010.
Peter Long, Chief Executive of TUI Travel PLC, commented
"In the third quarter we achieved a strong performance in both
our UK and Nordic businesses while all regions benefited from
Easter falling in late April. This performance is particularly
pleasing in the UK against a background of weak consumer sentiment.
I believe that this is testament to our management team and our
focus on exclusive and differentiated product which offers our
customers quality, value holidays that are only available through
our brands and sold principally across our own distribution
channels.
"Having reacted quickly to the events in North Africa by moving
capacity mainly to the Western Mediterranean we have been able to
mitigate the impact of these events across all regions with the
exception of France where many consumers are choosing to holiday
within their own country.
"For the Summer, our overall volumes left to sell are in line
with the prior year and we are confident of meeting our
expectations for the full year in what is a challenging trading
environment."
Investor and Analyst Conference Call
A conference call for investors and analysts will take place
today at 8.15am (BST). The dial-in arrangements for the call are as
follows:
Telephone: +44 (0) 1452 555 566
Participant Code: 82524411#
A presentation to accompany the conference call will be made
available at 8.00 am (BST) via our corporate website:
http://www.tuitravelplc.com
A recording of the conference call will be available for one
month on:
Telephone: +44 (0) 1452 550 000
Participant Code: 82524411#
Enquiries:
Analysts & Investors
Will Waggott, Chief Financial Officer Tel: +44 (0)1582 645 334
Andy Long, Head of Strategy & Investor Relations Tel: +44 (0)1293 645 795
Press
Lesley Allan, Corporate Communications Director Tel: +44 (0)1293 645 774
Michael Sandler / Kate Hough (Hudson Sandler) Tel: +44 (0)20 7796 4133
CURRENT TRADING AND OUTLOOK
Summer 2011
YoY customer Cumulative Bookings since Cumulative
booking variation bookings at 1 previous trading bookings at 31
% May statement July
( )
UK Flat -2 -1
Nordic region +10 +16 +11
Germany +9 +2 +7
France tour
operators -6 +2 -3
Belgium +2 +15 +6
Netherlands +14 +11 +13
------------------- ------------------ ----------------- ------------------
Current Trading(1) Summer 2011
Total Total
YoY variation% Total ASP(2) Sales(2) Customers(2) Risk Only
Capacity(3)
MAINSTREAM
UK +4 +3 -1 +1
Nordic region Flat +11 +11 +11
Northern Region +3 +4 +1
Germany +2 +9 +7 +5
Austria +3 +2 -1
Switzerland -9 -19 -10
Poland +1 +50 +49
Central Europe +2 +8 +6
France tour
operators +2 Flat -3
Belgium -2 +4 +6
Netherlands +4 +17 +13
Western Europe +1 +7 +5
SPECIALIST &
ACTIVITY Flat -1 -1
A&D(4) +2 +23 +20
( )
(1 ) These statistics are up to 31 July 2011 and are shown on a
constant currency basis (2) These statistics relate to all
customers whether risk or non-risk (3) These statistics include all
risk capacity programmes
(4) These statistics refer to online accommodation businesses
only; Sales refer to total transaction value (TTV) and customers
refers to roomnights
In the UK, bookings have remained broadly stable since our last
update, in spite of the challenging trading environment. Load
factors and margins are ahead of last year for all remaining months
of the season. Average selling price has improved by 4% year on
year, driven by the higher proportion of differentiated product
sales, which are up 15% for Summer 2011. Shorter duration holidays
have proved more popular this year, with 10-11 night and 7 night
stays increasing by 24% and 4% respectively. Our all inclusive
holidays have continued to sell well, making up 46% of sales to
date, up 2 percentage points on last year. The proportion of
bookings made online has increased from 38% to 40% - this Summer,
around 1.3 million UK customers will have booked via our
websites.
The Nordic region continues to trade well and the business has
further reduced distribution costs by driving volumes in house,
leading to a 2 percentage point increase in controlled distribution
to 86%.
In Germany, the strong economic backdrop has continued to
support demand for holidays. Demand for the peak Summer period is
good and margins for the lates market to most destinations have
recovered following the dip last year as a result of the volcanic
ash cloud. Turkey, Greece, the Canaries and Balearics have proved
to be particularly popular this summer, with volumes up 18%, 11%,
20% and 14% respectively. Demand for our new differentiated hotel
concepts, Puravida and Sensimar, has been strong.
In Switzerland, the decrease in sales is driven by the strength
of the Swiss Franc, with customers choosing to book holidays with
Euro-based operators departing from other nearby countries.
Trading has remained very challenging for the French tour
operators as a result of the political unrest in the key North
African destinations earlier in the year. Compared with the other
major source markets, France is very reliant on destinations such
as Egypt, Tunisia and Morocco, and bookings to these countries are
down 28%. In addition, there is a prevailing trend to holiday in
France, rather than going abroad. Since the last trading update
bookings have improved by 2% compared with prior year. This has
been driven by price and a shift in mix from North Africa towards
Turkey, Spain, Greece and Italy. These destinations generate a
lower margin per customer, however, as they are more expensive
destinations for this source market. We do not believe that the
situation will change substantially in the foreseeable future and
have, therefore, initiated a project to consolidate the teams and
brands in France, with the aim of creating a single French business
with a long term viable future.
In Belgium, the slow start to summer trading has improved, with
volumes up 15% compared with the last trading update. This has been
partly driven by an increase in the proportion of seat-only sales,
which has resulted in a decrease in average selling price. In the
Netherlands, sales have continued to outperform the market, with
significantly less to sell than this time last year.
Specialist & Activity bookings are broadly flat compared
with prior year. We continue to experience good demand for our
Education products and the Specialist Holidays Group. Sales have
declined versus prior year in the Adventure division, partly as a
result of the continued strength of the Australian dollar and less
demand for trips in the Middle East and North Africa.
Accommodation & Destinations (A&D) has continued to
exhibit strong growth in its B2B (Accommodation Wholesaler) and B2C
(LateRooms and AsiaRooms) accommodation businesses - over the past
four years, total transaction values have more than doubled. Versus
this time last year, transaction values are currently up 23% and
roomnights are up 20%, with margins improving significantly in both
businesses.
Winter 2011/12
We have had a satisfactory start to the Winter 2011/12
season.
In the UK, cumulative bookings are down 9%. Capacity has been
reduced by 7% as a result of reducing capacity in North Africa and
a change in aircraft fleet mix, including more capacity moving into
Canada. These actions will help to ensure that supply and demand
remain in balance. Load factors to date are in line with prior
year. Average selling price is up 5%, which partly reflects
increases in fuel and accommodation costs. Sales of differentiated
product are up 14% compared with this time last year.
Trading in Canada has been strong, with volumes significantly up
on prior year and an improvement in load factor and margins.
In the Nordic region, the season has started well, with
cumulative bookings up 1% and average selling price up 3%.
Trading in Germany has started well, although it is very early
in the booking cycle. In France, cumulative bookings for Nouvelles
Frontieres are down 10%, reflecting the continued impact of lower
bookings to North African destinations, which will be slow to
recover.
Fuel/Foreign exchange
The following table shows the percentage of our forecast
requirement that is currently hedged for Euros, US Dollars and jet
fuel. At current rates, and as previously announced, we estimate
that fuel costs will increase by circa 30% in 2012.
Summer 2011 Winter 2011/12 Summer 2012
Euro 97% 83% 56%
US Dollars 95% 91% 65%
Jet Fuel 96% 81% 53%
As at 4 August 2011
--------------------- ------------ --------------- ------------
With exchange rates at current levels we anticipate a
significant favourable impact on the full year result, primarily
due to the translation of peak season profits from Eurozone source
markets.
Cash and liquidity
The movement in cash net of debt for the 9-month period ended 30
June 2011 improved by GBP368m, to an outflow of GBP319m (9-month
period ended 30 June 2010: outflow of GBP687m). This was driven
by:
- Increased customer payments received in advance as a result of
improved trading; and
- Cash management initiatives, such as increased deposit levels
and earlier collection of final balances.
On 30 April 2011 we completed the final EUR160m repayment of our
shareholder loan with TUI AG. On 17 May 2011 we successfully
refinanced our banking facilities with the signing of new
facilities totalling GBP1.155bn. The new facilities have a four
year term and substantially extend our debt maturity profile.
Interest will be incurred at a margin above LIBOR dependent on the
proportion of the facility drawn and it is envisaged that the
average margin will be less than 2%. Our covenants remain unchanged
(net debt/EBITDA not to exceed 3 times, fixed charges cover to
exceed 1.5 times).
Outlook
For the current financial year, with the exception of France, we
are pleased with the development of trading since our last update.
Overall, load factors are in line with this time last year, and
margins are in line with our expectations. This, together with the
anticipated favourable impact from currency translation of peak
season Eurozone profits into sterling, will help to offset the
disappointing performance by the French tour operators. As a
result, we are confident of meeting our expectations for the full
year.
The travel and aviation industry is facing a number of
headwinds. These include the high cost of fuel, weakness of
sterling and the slower than anticipated recovery in the important
North African tourist destinations particularly for the French tour
operators. Like the rest of the industry we are not immune to these
pressures. Our market leading positions, together with our ability
to manage capacity due to the flexibility of our business model,
mean that we are able to focus on maintaining margins and
delivering operational efficiencies in these continuing challenging
times.
THIRD QUARTER BUSINESS AND FINANCIAL REVIEW
Group Performance
Third quarter ended 30 June 2011
GBPm Q3 11 Q3 10(2) Change %
Revenue 3,776 3,349 +13%
Underlying operating profit(1) 88 56 +57%
Underlying operating margin % 2.3% 1.7% +0.6pp
-------------------------------- ------ --------- ---------
9-month period ended 30 June 2011
9-month period
9-month period ended ended 30 June
GBPm 30 June 2011 2010(2) Change %
Revenue 8,981 8,318 +8%
Underlying operating
loss(1) (219) (266) n/a
Underlying operating
margin % -2.4% -3.2% +0.8pp
---------------------- --------------------- -------------------- ---------
1 Underlying operating profit / (loss) excludes separately
disclosed items, amortisation of business combination intangibles,
acquisition related expenses, predecessor accounting for Magic Life
and taxation of results of the Group's joint ventures and
associates
(2) Prior year figures have been re-presented to include Jet4You
which was previously reported as a discontinued operation
Group revenue has increased by 13% to GBP3,776m in Q3 11.
Foreign currency translation contributed to a 3% increase, with the
remainder driven by organic growth.
The Group's underlying operating profit was GBP88m (Q3 10:
GBP56m). The increase of GBP32m was driven by a good performance by
Northern Region, the later timing of Easter and the non-recurrence
of volcanic ash disruption, partly offset by the events earlier
this year in North Africa which have continued to impact
significantly on trading for our French tour operators.
A reconciliation of prior year pro forma underlying operating
profit as previously presented in the segmental analysis to
underlying operating profit as shown above is as follows:
30 June
2010
Three months ended GBPm
Pro forma underlying operating profit as previously
presented 103
Impact of the re-presentation of Jet4You (9)
--------
Pro forma underlying operating profit re-presented
to include Jet4You 94
Pro forma impact of volcanic ash (38)
--------
Underlying operating profit as reported 56
----------------------------------------------------- --------
The main drivers of the year on year change from Q3 10 pro forma
underlying operating profit are:
GBPm
Q3 10 pro forma underlying operating profit 94
Easter +17
Turnaround +4
Cost savings +3
Trading -2
France tour operators -29
FX translation +1
-----
Q3 11 underlying operating profit 88
-----
Segmental Performance
Specialist
Northern Central Western Total Emerging & Total
Region Europe Europe M'stream Markets Activity A&D Group Group
Customers ('000)
Q3 11 1,993 2,186 1,638 5,817 - 454 - - -
Q3 10 1,905 1,965 1,580 5,450 - 459 - - -
Change % +5% +11% +4% +7% - -1% - - -
Revenue (GBPm)
Q3 11 1,234 1,268 782 3,284 - 308 184 - 3,776
Q3 10(2) 1,199 1,048 746 2,993 - 323 158 - 3,474
Change % +3% +21% +5% +10% - -5% +16% - +9%
Underlying operating profit / (loss) (GBPm)(1)
Q3 11 80 26 (37) 69 (4) 11 18 (6) 88
Q3 10(2) 50 32 (12) 70 (2) 13 19 (6) 94
Change % +60% -19% n/a -1% n/a -15% -5% - -6%
Underlying operating margin%
Q3 11 6.5% 2.1% -4.7% 2.1% n/a 3.6% 9.8% n/a 2.3%
Q3 10(2) 4.2% 3.1% -1.6% 2.3% n/a 4.0% 12.0% n/a 2.7%
Change % +2.3pp -1.0pp -3.1pp -0.2pp n/a -0.4pp -2.2pp n/a -0.4pp
1 Underlying operating profit / (loss) excludes separately
disclosed items, amortisation of business combination intangibles,
acquisition related expenses, predecessor accounting for Magic Life
and taxation of results of the Group's joint ventures and
associates
(2) Pro forma revenue and underlying operating profit / (loss)
for the prior year are financial measures before the estimated
financial impact of the closures of Northern European airspace as a
result of volcanic ash. In addition, these figures have been
re-presented to include Jet4You which was previously reported as a
discontinued operation.
Northern Region
The Northern Region increased profit by GBP30m to GBP80m. This
was mainly due to a good performance by the UK and Nordic region,
driven by increased sales of differentiated product. This
demonstrates the strength of our business model, in particular in
the UK, where consumer confidence remains weak. In addition, we
have delivered a further GBP3m of cost savings in the UK, bringing
the total incremental savings for the year to date to GBP11m. The
turnaround programme in Ireland delivered an improvement of GBP2m
in the quarter. In Canada, a new transatlantic programme was
launched as part of a strategy to improve product offering during
the summer months.
Central Europe
Central Europe reported a profit of GBP26m in Q3 11 (Q3 10:
GBP32m). In Germany, although bookings for Summer 2011 are
progressing well, May was particularly difficult. However, trading
for the high season is strong. The result for the other source
markets is in line with last year.
Western Europe
Western Europe reported a loss of GBP37m in Q3 11 (Q3 10: loss
of GBP12m). The French tour operators continue to experience
adverse trading conditions as a result of events in North Africa.
Summer bookings for Egypt, Tunisia and Morocco are down 28% in
total. Bookings have improved by 2% since our last trading
announcement, but this is driven by price and a change in mix
towards lower margin destinations. Overall, the other source
markets performed in line with prior year.
Emerging Markets
Emerging Markets reported a loss of GBP4m in Q3 11 (Q3 10: loss
of GBP2m). The result reflects our continued investment in brand
and distribution.
Specialist & Activity
The sector delivered a profit of GBP11m in Q3 11, down GBP2m (Q3
10: GBP13m). The prior year result included sales of packages by
the Sports division for the 2010 FIFA World Cup. In addition, sales
by the Adventure division have been affected by the strong
Australian dollar and events earlier in the year in the Middle East
and North Africa.
Accommodation & Destinations (A&D)
A&D reported a profit of GBP18m in Q3 11 (Q3 10: GBP19m).
The result has been affected by softer demand for North African
destinations, in particular in our destination services businesses
in Egypt and Tunisia. However, summer bookings are strong in both
the B2B (Accommodation Wholesaler, +22%) and the B2C (LateRooms and
AsiaRooms, +15%) businesses, with the former benefiting from
increased demand for Spain.
Separately Disclosed Items (SDIs)
SDIs amounted to GBP30m in the quarter. The most significant
items were: GBP8m of impairment in the UK on the cruise ship the
'Island Escape'; GBP8m of further restructuring costs in the UK as
redundancy and shop lease provisions have been revised upwards as
well as fees being incurred on the pension project; GBP5m
additional costs in Turkey from the write-off of irrecoverable VAT
receivables as a consequence of completing the restructuring of
operations in that country; GBP7m of restructuring costs and fees
incurred at the Group centre.
TUI Travel PLC Interim results for the nine months ended 30 June
2011 (unaudited)
Condensed consolidated income statement for the 9-month period
ended 30 June 2011
9-month
9-month period ended Year ended
period ended 30 June 30 September
30 June 2010 2010
2011 (restated) (restated)
----------------------- ----- -------------- -------------- --------------
Note GBPm GBPm GBPm
----------------------- ----- -------------- -------------- --------------
Revenue 8,981 8,318 13,561
Cost of sales (8,486) (7,937) (12,390)
----------------------- ----- -------------- -------------- --------------
Gross profit 495 381 1,171
----------------------- ----- -------------- -------------- --------------
Administrative
expenses (774) (860) (1,124)
Share of profit /
(losses) of joint
ventures and
associates 15 (4) (3)
----------------------- ----- -------------- -------------- --------------
Operating (loss) /
profit (264) (483) 44
----------------------- ----- -------------- -------------- --------------
Analysed as:
Underlying operating
(loss) / profit (219) (266) 399
Separately disclosed
items 2 28 (140) (255)
Predecessor accounting
for Magic Life 1 (17) (30) (19)
Acquisition related
expenses (55) (44) (63)
Impairment of goodwill - - (12)
Taxation on results of
joint ventures and
associates (1) (3) (6)
----------------------- ----- -------------- -------------- --------------
(264) (483) 44
----------------------- ----- -------------- -------------- --------------
Financial income 76 62 69
Financial expenses (167) (142) (186)
----------------------- ----- -------------- -------------- --------------
Net financial expenses (91) (80) (117)
----------------------- ----- -------------- -------------- --------------
Loss before tax (355) (563) (73)
Taxation 91 153 (50)
----------------------- ----- -------------- -------------- --------------
Loss for the period /
year (264) (410) (123)
----------------------- ----- -------------- -------------- --------------
Attributable to
Ordinary shareholders (264) (410) (123)
Non-controlling
interests - - -
----------------------- ----- -------------- -------------- --------------
Loss for the period /
year (264) (410) (123)
----------------------- ----- -------------- -------------- --------------
Notes to the interim results for the nine months to 30 June
2011
1. Basis of preparation
The financial information in this report relating to the 9-month
periods ended 30 June 2011 and 30 June 2010 is unaudited. The
unaudited financial information relating to the income statement
for the 9-month periods ended 30 June 2011 and 30 June 2010 has
been prepared on the basis of the Company's adopted IFRS accounting
policies.
Re-presentation of prior periods' results
Jet4You
The results of the Group's business of Societe d'Investissement
Aerien S.A. (Jet4You) were previously separately classified as a
discontinued operation for the comparative periods ended 30 June
2010 and year ended 30 September 2010. As a result of the cessation
of negotiations for the sale of this business in the first half of
the year, this business ceases to qualify as held-for-sale.
In accordance with IFRS 5, the results of Jet4You are presented
in the consolidated income statement as continuing in both the
current and comparative periods.
Magic Life
On 26 May 2011, the Group announced that it had reached
agreement with TUI AG and its subsidiary undertaking, Magic Life
GMBH & Co KG ("Magic Life"), for the Group to acquire six
separate operating companies (the "ML Companies") through which
Magic Life leases and manages 13 holiday clubs in Turkey, Tunisia,
Egypt, Greece and Spain.
The acquisition is classified under the UK Listing Rules as a
"related party transaction" as TUI AG is classified as a "related
party" as a substantial shareholder of TUI Travel. Consequently,
the acquisition meets the conditions of a business combination
between entities under common control, as defined by IFRS 3. The
Group's accounting policy for business combinations under common
control is to incorporate the results of Magic Life as if both the
Group and Magic Life had always been combined (known as
"predecessor accounting"). Control passed from TUI AG to the Group
on 22 June 2011, following approval at the Company's General
Meeting on that date. The results of Magic Life have therefore been
fully included in the income statement for all periods, including
the comparative pre-control periods. The results of Magic Life for
the pre-control period have been separately disclosed on the
predecessor accounting line on the face of the income statement.
The inclusion of Magic Life's results under predecessor accounting
has no impact on the Group's cash or distributable reserves for the
pre-control periods.
Non-recoverable balances
Included with the interim results for the 9-month period ended
30 June 2010 was a separately disclosed expense of GBP29m in
respect of legacy receivable balances. This balance was
subsequently included within the Group's restatement of its results
for the year ended 30 September 2010. As such, this GBP29m charge
is no longer required in the comparative period results for the
9-month period ended 30 June 2010 and is added back to the results
within separately disclosed items. Further information can be found
in the 'Basis of Preparation' section of Note 1 of the consolidated
financial statements within the 2010 Annual Report &
Accounts.
The above changes have resulted in the re-statement of the
comparative periods as follows:
9-month
period 9-month 9-month
ended 30 9-month Non impact of period
June 2010 impact of recoverable predecessor ended 30
as the re- balances as accounting June 2010
previously presentation previously for Magic as
reported of Jet4You reported Life re-stated
GBPm GBPm GBPm GBPm GBPm
---------------- ----------- ------------- ------------ ------------ ----------
Revenue 8,224 54 - 40 8,318
Cost of sales (7,818) (61) - (58) (7,937)
---------------- ----------- ------------- ------------ ------------ ----------
Gross
profit/(loss) 406 (7) - (18) 381
Administrative
expenses (862) (15) 29 (12) (860)
Share of
(losses) /
profit of
joint ventures
and
associates (4) - - - (4)
---------------- ----------- ------------- ------------ ------------ ----------
Operating
(loss) /
profit (460) (22) 29 (30) (483)
---------------- ----------- ------------- ------------ ------------ ----------
Analysed as:
Underlying
operating
loss (249) (17) - - (266)
Separately
disclosed
items (164) (5) 29 - (140)
Predecessor
accounting for
Magic Life - - - (30) (30)
Acquisition
related
expenses (44) - - - (44)
Taxation on
results of
joint ventures
and
associates (3) - - - (3)
---------------- ----------- ------------- ------------ ------------ ----------
(460) (22) 29 (30) (483)
---------------- ----------- ------------- ------------ ------------ ----------
Year ended Impact of
30 September Impact of the predecessor Year ended 30
2010 as re- accounting September
previously presentation for Magic 2010 as
reported of Jet4You Life re-presented
GBPm GBPm GBPm GBPm
---------------- ------------- -------------- ------------- --------------
Revenue 13,400 91 70 13,561
Cost of sales (12,217) (92) (81) (12,390)
---------------- ------------- -------------- ------------- --------------
Gross
profit/(loss) 1,183 (1) (11) 1,171
Administrative
expenses (1,099) (17) (8) (1,124)
Share of
(losses) /
profit of
joint ventures
and
associates (3) - - (3)
---------------- ------------- -------------- ------------- --------------
Operating
profit/(loss) 81 (18) (19) 44
---------------- ------------- -------------- ------------- --------------
Analysed as:
Underlying
operating
profit /
(loss) 412 (13) - 399
Separately
disclosed
items (250) (5) - (255)
Predecessor
accounting for
Magic Life - - (19) (19)
Acquisition
related
expenses (63) - - (63)
Impairment of
goodwill (12) - - (12)
Taxation on
results of
joint ventures
and
associates (6) - - (6)
---------------- ------------- -------------- ------------- --------------
81 (18) (19) 44
---------------- ------------- -------------- ------------- --------------
2. Separately disclosed items
Separately disclosed items are those significant items which in
management's judgement are highlighted by virtue of their size or
incidence to enable a full understanding of the Group's financial
performance. Such items are included within the income statement
caption to which they relate.
9-month
9-month period ended Year ended
period ended 30 June 2010 30 September 2010
30 June 2011 (restated) (restated)
GBPm GBPm GBPm
------------------------- -------------- -------------- -------------------
Separately disclosed
items in operating
(loss) / profit
Merger related
integration costs - 76 116
Restructuring and other
separately disclosed
items (28) 41 63
Aircraft and other
assets 7 (44) 7
Incremental costs caused
by volcanic ash
disruption (7) 67 69
------------------------- -------------- -------------- -------------------
Total (28) 140 255
------------------------- -------------- -------------- -------------------
Separately disclosed
financial expenses 6 2 7
------------------------- -------------- -------------- -------------------
Restructuring and other separately disclosed items
As previously reported, during the 6-month period ended 31 March
2011, the Company engaged in a consultation process with the
members of its defined benefit pension schemes which resulted in a
restriction to salary increases used under the rules of the pension
schemes to calculate benefits to a maximum of 2.5% in any one year.
This change resulted in a reduction in accrued pension liabilities
measured under IAS 19 of GBP63m, which under IAS 19 is recognised
fully as a credit to the Income Statement in the period in which it
occurs.
Also included in the 9-month period ended 30 June 2011 are
restructuring costs of GBP35m. Within Mainstream the principal
items relate to the ongoing restructure of Corsair, the scheduled
French airline and the retail network of Nouvelles Frontieres in
France (GBP10m cost in total); the UK (GBP9m) and Turkey (GBP5m).
Outside of Mainstream the principal items are GBP14m of
restructuring costs incurred in Group head office companies, offset
by a GBP12m credit on the change in value of unhedged foreign
currency derivative instruments.
Aircraft and other assets
During the 9-month period ended 30 June 2011, the principal
charge is GBP12m in relation to a further impairment of the cruise
ship, the 'Island Escape', after its dry-dock costs were more
expensive than previously anticipated and the assessment of the
recoverable value of the ship through value-in-use has been reduced
as a consequence of lower margins than anticipated being achieved
in the current summer season. This charge is partially offset by
GBP5m profit on the sale and leaseback of aircraft and the disposal
of aircraft engines previously held for sale.
Impact of volcanic ash
There has been a release of GBP7m of accruals in the 9-month
period ended 30 June 2011 as costs in relation to the disruption in
2010 have been finalised with third party suppliers.
Separately disclosed financial expenses
The separately disclosed financial expenses in the 9-month
period ended 30 June 2011 relate to interest charges on the late
settlement of tax liabilities in Spain.
This information is provided by RNS
The company news service from the London Stock Exchange
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Grafico Azioni TUI Travel (LSE:TT.)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni TUI Travel (LSE:TT.)
Storico
Da Lug 2023 a Lug 2024
