Results round-up
Low-cost carrier easyJet swung to a loss in its half-year numbers on Tuesday, reporting a loss before tax of £24m for the six months to 31 March, against a £7m profit a year earlier.
The Luton-based FTSE 100 firm saw total revenue grow 0.3% over the same period, to £1.771bn from £1.767bn.
EasyJet's loss before tax beat consensus estimates of a profit before tax of £26m and if excluding foreign exchange effects it made a profit before tax of £5m. EasyJet’s loss per share was 5.1p, against earnings per share of 1.3p in the first half of 2015.
The airline did have more capacity - 34.5 million seats against 32.2 million - and carried more passengers - up to 31 million, from 28.9 million - but load factor remained stagnant, at 89.7%.
But following a 4.2% decline in the first half, easyJet warned it expected revenue per seat to decline by 7% year-on-year at constant currency in the third quarter.
"EasyJet has delivered a robust financial performance during the half year despite the well-publicised external events,” said chief executive Carolyn McCall, referring to terror attacks in France, Egypt and Belgium which have hampered the airline and leisure industries.
"Underlying consumer demand has been strong with UK beach traffic providing a healthy start to the half and easyJet's biggest-ever ski season helping to deliver increased passenger numbers and higher revenue during the first half,” she explained.
McCall said consumers have enjoyed lower fares for the second consecutive year, decreasing by 6% year-on-year, with the benefits of lower fuel costs passed on to passengers while active cost control has protected the airline’s margins.
Specialist insurer Hiscox increased its gross written premiums by 10% in local currency to £640.5m in its first quarter, it reported on Tuesday.
The FTSE 250 firm said the strong performance came from almost all market segments, with the business continuing “to benefit from a long-standing strategy of balance and diversity”.
Hiscox Retail’s gross written premiums grew 9.7% during the period, with the US market the outstanding performer at 30.1% growth in local currency.
The UK grew 5.8% and Europe 4.9%, while Special Risks and DirectAsia were the losers within the retail branch, with gross written premiums declining 12.1% and 5.1% respectively.
“Investment in brand and infrastructure are driving growth in Hiscox Retail gross written premiums,” the group’s board said in a statement.
Hiscox Re also reached into the double digits during the quarter, with 16.2% growth, while the Hiscox London Market saw gross written premiums improve 5.3% at local currency.
The board said Hiscox Re was continuing to grow its casualty and specialty businesses including cyber, terrorism and business written on behalf of Kiskadee Investment Managers, while new teams and product lines blew steam into the Hiscox London Market.