Journey Group plc (AIM:JNY) – profit sharply higher, cash rich and looking cheap?
The leading provider of catering services and in-flight products to the international airline and travel industries announced encouraging results for the year ending 31st December 2014 with profit and earnings sharply higher. As this is a US dollar based operation the exchange rate has a big impact on £ Sterling earnings with management wisely concluding to report in US dollar in future.
Revenue of £39.1m saw 2% growth in US dollar terms to $64.3m with profit before tax from continuing operations up 10% to £2.02m and basic earnings per share from continuing operations up materially to 11.54p (2013: 8.29p). The final dividend was increased 10% to 1.65p per share, resulting in a total dividend for the year of 3.025p per share equating to a yield of 2.4p at the current share price. The results drew attention to the continued growth trend for the global airline industry which generated net profits of $19.9bn exceeding the initial forecasts from IATA (which represents some 240…