EasyJet 2012 Annual Report Download - page 25

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Summary consolidated statement of financial position
2012
£ million
2011
£ million
Change
£ million
Goodwill 365 365 –
Property, plant and equipment 2,395 2,149 246
Net working capital (792) (765) (27)
Restricted cash 159 123 36
Net (debt) / cash (74) 100 (174)
Current and deferred taxation (227) (188) (39)
Other non-current assets and liabilities (32) (79) 47
1,794 1,705 89
Opening shareholders’ equity 1,705 1,501
Profit for the year 255 225
Ordinary dividend paid (46) –
Special dividend paid (150) –
Change in hedging reserve 28 (21)
Other movements 2–
1,794 1,705
Net assets increased by £89 million driven by the profit for the year
offset by dividends paid and a small net change in the hedging reserve.
The net book value of property plant and equipment increased by
£246 million driven principally by the acquisition of 19 A320 family
aircraft, and advance payments for aircraft due to be delivered over
the next two years.
Net working capital was broadly flat at a net negative £792 million.
Passengers pay for their flights in full when booking, therefore the
key component of this balance is unearned revenue, which
increased by £24 million to £496 million. This increase was rather
lower than that seen last year as flights for July and August 2013
didnot go on sale until shortly after year end.
Reconciliation of net cash flow to movement in net (debt) / cash
2012
£ million
2011
£ million
Change
£ million
Cash and cash equivalents 645 1,100 (455)
Money market deposits 238 300 (62)
883 1,400 (517)
Bank loans (752) (1,079) 327
Finance lease obligations (205) (221) 16
(957) (1,300) 343
Net (debt) / cash (74) 100 (174)
easyJet ends the year with £883 million in cash and money market
deposits; a decrease of £517 million compared with 30 September
2011. Net borrowings decreased by £343 million.
Net debt at 30 September 2012 was £74 million compared with net
cash of £100 million at 30 September 2011. At 30 September 2012
gearing was 29%, marginally higher than last year’s gearing of 28%.
Although the net position has changed relatively little, both cash
and debt balances have declined markedly during the year, due
topayment of the special dividend and accelerated repayment of
£162 million mortgage loans and a reduction in the number of
leased aircraft. These actions reduced excess liquidity, and we
ended the year with a cash and money market deposits balance in
line with our policy of holding £4million cash per aircraft in the fleet.
Cash flows and financial position
Summary consolidated statement of cash flows
2012
£ million
2011
£ million
Change
£ million
Net cash generated from operating
activities (excluding dividends) 457 424 33
Ordinary dividend paid (46) – (46)
Special dividend paid (150) – (150)
Net capital expenditure* (389) (478) 89
Net loan and lease finance
(repayment) / drawdown (314) 356 (670)
Net decrease / (increase)
in money market deposits 55 (38) 93
Other including the effect
of exchange rates (68) (76) 8
Net (decrease) / increase
in cash and cash equivalents (455) 188 (643)
Cash and cash equivalents
at beginning of year 1,100 912 188
Cash and cash equivalents
at end of year 645 1,100 (455)
Money market deposits
at end of year 238 300 (62)
Cash and money market deposits
at end of year 883 1,400 (517)
* Stated net of disposal proceeds of £75 million in 2011.
In line with prior years, easyJet generated strong operating cash
flow in the year principally driven by growth in forward bookings
andrevenue per seat. Operating cash flow exceeded capital
expenditure and the ordinary dividend paid in line with the ambition
to self-fund growth and fleet renewal.
Net capital expenditure principally comprises the acquisition of
19A320 aircraft and advance payments on aircraft due to be
delivered mainly over the next two years.
No new loan or lease finance was drawn down during the year, and
mortgage loans on 12 aircraft were fully repaid. Two of these loans had
reached their contractual end, however the other ten loans were
repaid early as part of our strategy to reduce excess liquidity.
Cash flow
£ million
1,200
600
2012
1,800
1,400
1,000
800
1,600
1,400
883
331 (196)
105
67 (71)
(364)
(389)
2011 Operating
profit
Dividends
paid
Depn &
Amort
Working
capital
Other Financing Capex 2012
Performance and risk
easyJet plc
Annual report and accounts 2012 23