easyJet sees 'considerably improved' results; to establish dividend payment formula
easyJet Chairman Sir Michael Rake stated at the carrier's AGM (17-Feb-2011), he is confident the company will increase its market share and improve its return on capital (BFN, 17-Feb-2011). He added that easyJet is strongly positioned to take advantage of the continuing profitable growth opportunities in European short haul. The carrier has delivered a "considerably improved" financial result in the past year "despite some significant challenges", Sir Michael stated. He stated that the Board "feels that the time is right to set in place a formula to trigger a dividend payment in years when the company is profitable whilst at the same time ensuring the company remains prudently financed with a strong, liquid balance sheet". The board also acknowledged the concern expressed by some at the retention arrangements made in respect of Andy Harrison. He noted that "these arrangements were a one-off and agreed in unusual and difficult circumstances". [more]
easyJet: "Whilst it is clear from the operational issues last summer that the business had lost focus on some of the basics, the financial results last year demonstrate that easyJet continues to make progress against its goal of delivering market share growth and improving returns, thus underlining that easyJet’s business model and strategy is sound. easyJet is strongly positioned to take advantage of the continuing profitable growth opportunities in European short haul. This growth combined with a focus on delivering a Return on Capital Employed of 12% through the cycle means that easyJet is poised to continue the strong operating cash generation of the past few years," Sir Michael Rake, Chairman. Source: Company Statement, 17-Feb-2011.