The sale of two Bombardier Q400 aircraft and the first instalment from the sale of slots to easyJet at London Gatwick airport, helped the Flybe Group to record a £8.9 million ($10.9 million) operating profit and a pre-tax profit of £13.8 million for the first six months to 30 September 2013.
The two Q400s sold for £12.3 million ‘broadly in line with book values’ says Flybe Group in its interim results.
The group also received a £7.5 million during the six-months period towards the sale of slots. Another £10 million payment related is scheduled later this month while the final £2.5 million is due in June 2014.
Flybe recorded £10.5 million of operating cash flows during the half-year period but £6.9 million in restructuring costs and a £13.7 million increase in restricted cash meant the group used £10.1 million of operating cash flows during the six-month period.
The group recorded £23.2 million in capital expenditures after disposals. As at 30 September 2013, there were four aircraft pre-delivery deposits in place totalling £9.6 million against four contracted deliveries due in the second half.
Net repayment of borrowings were in relation to the repayment of £7.6 million of loans associated with the two Q400s disposed of during the period as well as £9 million of other aircraft financing payments.
Additional loans of £900,000 were drawn down and repayments of other bank loans amounted to £17.6 million were made during the period.
Cash and cash equivalents were £19.1 million at the end of period compared with £27.9 million a year ago.
At 30 September 2013, net debt stood £34 million compared with £66.3 million at 31 March 2013.