fastJet trading statement
28-Mar-2013 fastjet, Africa's low-cost airline, today announced its trading statement to coincide with Lonrho Plc's publication of its preliminary final results. This trading statement has been announced prior to the formal announcement of fastjet's preliminary final results for the 18 month period ended 31 December 2012 which are due to be released by the end of April 2013.
fastjet commenced operations under the fastjet brand in November 2012 in Tanzania and is continuing to develop the brand and model for operations across other African countries with the help of the recently announced Bergen funding. It is also operating the Fly540 brand that was subject of the acquisition of Lonrho Aviation and 530 Investments on 2 July 2012.
The Group completed the acquisition of Lonrho Aviation and a 49.98% economic interest in Five Forty Aviation Limited through the acquisition of 530 Investments Limited. As announced on 7 March 2013, the Company is currently seeking a UK High Court decision regarding the completion of that acquisition following a claim by Don Smith, a vendor of 530 Investments, firmly disputed by the Company, that the acquisition of 530 Investments has not completed. This trading statement is based on the completion of the acquisitions as set out in the Readmission Document regarding ownership and economic interest in Five Forty Aviation Limited. The 18-month period results include the operations and restructuring costs of these businesses from 2 July 2012. The first fastjet-branded flights commenced on 29 November 2012.
The Company has separately disclosed in its interim statements the results of Lonrho Aviation BVI Limited for the six months to June 2012 and those results do not form part of these figures.
For the 18-month period Group revenues are anticipated to be approximately $32 million and the company expects to report an operating loss before the write down of intangibles and goodwill, if any, of no more than $31 million. Net assets, prior to any write downs of intangibles or goodwill, are expected to be approximately $80 million at 31 December 2012. These are amounts are subject to audit.
fastjet Chief Executive Ed Winter said:
"These results cover an extended 18 month reporting period up until 31 December 2013 during which the Company has rapidly grown its operations in Africa in mainly Angola and Tanzania. We have expanded the Company's route network significantly over this period and brought on a larger fleet to service the increased passenger loads we have experienced during this time of growth."