Interim Results for the six months ended 30.06.14

RNS Number : 7996S

Fastjet PLC

29 September 2014

 

fastjet plc

("fastjet" or the "Company")

29^th September 2014

Interim Results for the six months ended 30 June 2014

Strong growth in first half passenger numbers

New international routes launched

Interim Results

fastjet, the low cost African airline, announces its unaudited interim results for the six months ended 30 June 2014 and operational highlights of 2014 to date.

Financial highlights

·      Tanzania first-half revenues grew 96% to $19.0 million, with a 41.5% increase in passenger numbers.

·      Tanzanian average revenue per passenger for the period grew 39.3% to $81.65.

·      First-half underlying EBIT loss of $30.5 million, including US$13.9 million trading losses in the Tanzanian operation.

·      Fly540 Ghana and Angola had a $13.5 million adverse effect on the first half financial results of which $6.4 million related to a foreign exchange revaluation adjustment of US Dollar liabilities, and during the period under review, less than $100,000 of fastjet Plc cash was utilised in legacy Fly540 operations.

Operational highlights

·      Flights successfully launched from Dar es Salaam (Tanzania) to Lusaka (Zambia) February 2014, from Dar es Salaam to Harare (Zimbabwe) August 2014 and from Dar es Salaam to Entebbe (Uganda) launched September 2014.

·      Fly540 Ghana and Fly540 Angola loss-making services remain suspended, with restructuring activity underway.

·      The Group disposed of its investment in Five Forty Aviation Limited (Kenya) in June 2014.

·      fastjet Tanzania aircraft utilisation increased from 5.5 hours to 7.9 hours per aircraft per day during the period and reached 9.9 hours per aircraft per day by the end of August, on track to achieve the target of 11.5 hours.

·      fastjet Tanzania punctuality averaged an excellent 90% (arrival within 15 minutes) during the period.

·      A variety of additional revenue streams were added to the business mix during the period - including car rentals, hotels and car parking.

fastjet's CEO and Interim Chairman, Ed Winter, commented:

"We are delighted to have seen a steady increase in the number of passengers travelling on core Tanzanian routes, with revenue growth of 96% against the same period last year.

"Strong underlying traffic growth in the first half of 2014 continues to demonstrate that fastjet's low-cost airline model works in the African market.

"This growth in traffic underpins our belief that people across Africa are increasingly embracing the travel opportunities offered by fastjet's safe, reliable, and great value product, with a high percentage of first time flyers.

"Additional services from our Tanzanian base in Dar es Salaam to Lusaka, Harare and Entebbe, linking these land-locked countries to the port of Dar es Salaam, have proven successful and are performing well.  Although these routes are in their infancy, there is every indication that these will develop into valuable routes for the fastjet Tanzania pan-African network.  Prior to these routes being launched there were no direct air services linking Dar es Salaam with either Harare or Entebbe.

"During the period, we added additional revenue streams to the business mix including car rentals, hotels and car parking and early indications suggest that these services are proving popular with our customers.

"fastjet continues on its path of expansion, leveraging our first mover advantage to the benefit of our customers and shareholders."

The full Group interim financial statements are available on the Company's website at www.fastjet.com

For further information, please contact:

fastjet Plc                                                                            Tel:  + 44 203 651 6307           

Ed Winter

Nick Caine

WH Ireland                                                                         Tel:  + 44 207 220 1666
James Joyce

Mark Leonard

Citigate Dewe Rogerson                                                 Tel:  + 44 207 638 9571

Angharad Couch

Eleni Menikou

Nick Hayns

Strategy

Overview

fastjet has created a low-cost pan-African airline to both promote and benefit from the increase in pan-African travel expected in the coming decades as a consequence of forecast GDP growth.  

The success of the low-cost model globally demonstrates its potential value. fastjet is uniquely positioned to capitalise on this  by utilising its first mover advantage in Africa and creating airlines in each jurisdiction, which benefit from distribution as single pan-African brand and from harmonised international standards of safety, reliability and customer service.

The table below is reflective of the currently identified potential opportunities for fastjet growth across Africa, showing the possible number of aircraft fastjet could operate in current and new markets.

	2015	2016	2017	2018
Tanzania	7	7	7	7
Kenya	1	3	4	7
South Africa	-	3	6	9
Uganda	-	2	2	4
Zambia	3	3	3	3
Zimbabwe	2	2	3	4
Total	up to 13	up to 20	up to 25	up to 34

fastjet continues to execute its development plan and, in particular, to expand its existing route network, creating a business of considerable value, to the benefit of shareholders, African economies and passengers alike.

Progress to date

fastjet has clearly demonstrated that the low-cost model works in Africa, with increasing passenger numbers stimulated by low fares, including a significant number of first time fliers.

fastjet will become profitable by achieving a positive contribution from its operations, sufficient to fund both central costs and further growth.

During the period under review, and immediately following, fastjet has successfully operated three Airbus 319 aircraft on a mix of domestic and international routes.  A strong emphasis has been placed upon maximising aircraft utilisation with an increase from 5.5 hours to 7.9 hours per aircraft per day during the period, reaching 9.9 hours per aircraft per day by the end of August, on track to achieve the target of 11.5 hours.

Organic growth

fastjet's key focus is on extending its network through further route additions, and deriving a greater contribution from the routes it already operates.

Tanzania - domestic

In the period under review, and immediately following this, fastjet has added additional frequencies on existing domestic routes. The result of this is that fastjet now enjoys the largest market share on its three domestic routes in Tanzania, offering the highest number of rotations and seats in the market.

This strong strategic position was achieved by adding capacity and reducing yield to not only attract passengers from competitor airlines but also stimulate the aviation market on these routes.

Tanzania - international

During the period, and immediately following this, fastjet introduced additional services from its Tanzanian base in Dar es Salaam to Lusaka, Harare and Entebbe.  Linking these land-locked countries to the port of Dar es Salaam has proven to be attractive to the markets in both Tanzania and the destination countries.  Prior to these routes being launched, there were no direct air services linking Dar es Salaam with either Harare or Entebbe.

Regional growth

fastjet continues to pursue a vigorous regional growth plan including to Kenya, Uganda, Rwanda, South Africa, Zimbabwe, Zambia and Malawi, with a number of additional regional destinations currently under consideration.

Air travel in Africa is highly regulated and in many ways similar to the European aviation market of the 1970s and 1980s.  As such, fastjet has, unsurprisingly, encountered delays in achieving the necessary licences and permits to operate into some of these countries.

Nevertheless, during the period, fastjet commenced flying to Zambia and, since that period, to both Zimbabwe and Uganda.  fastjet is pleased to report that all three routes are performing well.

Zambia

fastjet Zambia Ltd has been created. Discussions with the Government and aviation authorities of Zambia are ongoing with a view to commencing operations from a base in Lusaka.

Kenya

fastjet Kenya Ltd has been created and has applied for an air services licence with a view to commencing operation in Kenya.  fastjet Tanzania is awaiting the necessary permission from Kenya to commence flights between the two countries.

Ancillary Revenue

fastjet has added a variety of additional revenue streams to its business mix during the period. Through industry partnerships, the Company introduced a number of services including car rentals, hotels, and car parking and fastjet has subsequently added two more ancillary revenue options specifically for the African market. 

Freighty, which encourages traders from our international destinations to transport  goods home by fastjet aircraft as opposed to road, and Smartclass, in response to feedback from African business travellers requesting a more flexible product. 

In-flight retail and the carriage of cargo continued to grow during the period and in line with other low cost carriers, ancillary revenues, including charges for itinerary changes, baggage, and credit card fees, are in place and highly profitable. 

Distribution

fastjet has adapted traditional low-cost airline distribution to suit the African market with a focus on mobile phone technologies such as mobile payment.

fastjet seats now feature on most of the world's Global Distribution Systems (GDS) allowing international passengers the opportunity to book through a travel agent.  Additionally, fastjet seats can be purchased through Expedia, Skyscanner and a variety of on-line travel agents and consolidators.

Fly540 operations

The Company is pleased to report the disposal or suspension of all three loss-making Fly540 businesses.

Fly540 Kenya

The Company disposed of its investment in Fly540 Kenya in June 2014. As a result of this disposal, all legal, financial and reputational ties between Fly540 Kenya and the fastjet Group have now been removed. The fastjet Group has been fully indemnified by Don Smith, Fly540 Kenya, and all members of that group against any and all liabilities relating to Fly540 Kenya.

Fly540 Angola

Fly540 Angola operations were suspended in February 2014 pending completion of the restructuring.  Despite opportunities presented by the country's strong GDP growth, competitive restrictions and logistical hurdles continue to make this a poor investment choice at the current time.  Fly540 Angola had a $5.0 million adverse effect on the financial results of the Group in the first half of 2014. 

Fly540 Ghana

Fly540 Ghana operations were suspended in May 2014 pending completion of the restructuring.  Adverse economic conditions continue to affect Ghana with the Ghana Cedi / US Dollar exchange rate deterioration adversely impacting Fly540 Ghana's results in the first half of 2014. A $6.4 million foreign exchange revaluation adjustment has been made to reflect the revaluation of US Dollar liabilities.  Fly540 Ghana had an $8.5 million adverse impact on the financial results of the Group in the first half of 2014.

In the period under review, less than $100,000 of fastjet Plc cash was utilised in legacy Fly540 operations.

Placing and Open Offer

In April and May 2014 fastjet raised $24.8 million (£14.9 million) before expenses through a placing and an open offer. 

$18.2 million (£11.0 million) was contributed principally by institutional investors. Following this, it is particularly encouraging to have high profile institutional investors including Standard Life Investments, Henderson Global Investors and Majedie Asset Management holding prominent positions on our shareholder list. The Company was also delighted that Sir Stelios Haji-Ioannou, through easyGroup IP Licensing Ltd., reiterated his faith in the Company with a further $1.7 million (£1.0 million) investment.

It was also encouraging to see existing shareholders and staff contribute $6.6 million (£3.9 million) in aggregate, including $1.6 million (£1.0 million) from the fastjet management team.

Commentary on the results

The financial outlook for the Tanzanian operation remains broadly in line with management's previous long-term projections. Although the Company had expected to be operational in Kenya by this time, due to the delays in bringing Kenya online, focus was diverted to launching international flights to Uganda and Zimbabwe and fastjet is pleased to have brought these into operation successfully. However, delays and a change in strategy have had an impact on the reported numbers for the period.

Future funding strategy

Until the contribution from operations exceeds central costs, there will be a requirement for additional funding for the Group.  Furthermore, additional funding will be required for each significant phase of expansion.

fastjet's strategy makes it an appealing investment for a variety of funds focusing on Africa.

The Board continues working to attract such investors at Group level and expect that they will be key in funding the further development of the Group.  Additionally, as fastjet expands, the Board expects that interest will grow at Group level for investment from larger airlines keen to establish a foothold in Sub Saharan Africa with code-sharing deals.  At local level, the Board is working to establish funding arrangements with local partners on a country-to-country basis, which will also have the advantage of closer business and political ties with the countries in which fastjet businesses operate.  

The Board's task is to match the growth of the business with the financial resources available.

Board

During the period and immediately following this, the fastjet Plc Board has been strengthened considerably.

Executive team

Krista Bates

On 1 June 2014, Krista Bates was appointed as Executive Director and General Counsel. Krista had already been providing legal services to fastjet for the previous 20 months through her role as a corporate consultant at a leading Nairobi law firm. 

Her appointment deepens fastjet's legal and strategic capabilities across Africa and in the UK as the Company expands its operations and continues to develop strategies against Africa's complex legal and political background.  Having Krista as a part of the team will be a huge advantage, given her experience in the UK and wealth of experience of Africa's complex legal and political situation.

Richard Bodin

On 1 June 2014, Richard Bodin, Chief Commercial Officer, was appointed as Executive Director.

Richard was a part of the team that developed the original fastjet business plan, and as Chief Commercial Officer he played a vital role proving the low cost model can be successful in Africa.  His input will be invaluable at Board level.

Nick Caine

On 11 August 2014, Nick Caine was appointed as Chief Financial Officer in place of Angus Saunders who leaves the company on 30 September 2014. On 18 September 2014 Nick was appointed as Executive Director.

Nick joined Fiji Airways in 2010 as Chief Financial Officer and during his time there was instrumental in returning the airline to profitability, securing financing for the new wide-body fleet and delivering significant cost savings. Nick's aviation career has spanned both traditional airlines, including British Airways, Swissair and South African Airways, and low-cost airlines Jetstar Australia, Jetstar Pacific, as CFO based in Vietnam, and easyjet, as Head of Financial Planning from 2002 to 2006.

Non-executive

Clive Carver

On 1 June 2014, Clive Carver was appointed as Non-Executive Director.

Clive's appointment adds another dimension to the Board.  Clive adds essential and extensive city experience to the Board as the Company moves forward in this next phase of development. His experience and reputation, gained working in the financial markets and his experience as a board member on a range of AIM-listed companies will be a real asset to the Board.

Outlook

Based upon strengthening performance in recent trading since the period end, the Board remains confident in its strategy and now has the optimum team in place to build a successful and profitable future for our shareholders. There is now clear evidence that the business model is working and going forward the company will continue to expand the network and execute the business plan.

The Board would like to take this opportunity to thank its staff and our shareholders for their continued support.

Ed Winter

Interim Chairman and Chief Executive Officer

NOTES TO EDITORS

About fastjet plc

fastjet plc is the holding company of the low-cost airline fastjet which commenced flight operations in Tanzania in November 2012. The airline operates a fleet of distinctively branded Airbus A319s and since its launch has grown to encompass the key domestic routes within Tanzania and a rapidly increasing number of international destinations. By adhering to international standards of safety, quality, security and reliability, fastjet has brought a new flying experience to the African market at unprecedented low prices.

fastjet is implementing the low-cost carrier model across Africa and its long-term strategy is to become the continent's first low-cost, pan-African airline.

By offering one way fares from as low as $20, fastjet has stimulated a new customer base; the results of a customer survey showed that 38% of fastjet passengers had never flown before. This democratisation of air travel is expected to gather momentum across the final continent to experience the low-cost airline revolution.

fastjet is committed to communicating effectively with its existing and potential customers and has, to date, won a number of marketing awards.  With over 290,000 social media followers, it occupies a unique position in African aviation.

fastjet plc is quoted on the London Stock Exchange's AIM market.

For more information see www.fastjet.com 

Consolidated INCOME statement

		6 months ended 30 June 2014	6 months ended 30 June 2013	12 months ended 31 December 2013
		US$'000	US$'000	US$'000
	Note	(Unaudited)	(Unaudited)	(Audited)

Revenue		23,291		25,457		53,422
Operating charges		(56,293)		(64,921)		(132,501)
Operating loss		(33,002)		(39,464)		(79,079)
Operating loss before exceptionals		(30,498)		(24,993)		(47,567)
Impairment of goodwill		-		(3,758)		(7,235)
Impairment of intangibles		-		(1,935)		(8,081)
Impairment of aircraft		-		-		(4,259)
Impairment of investments		-		(8,772)		(19,248)
Termination of management agreement	4	(2,504)		-		-
Reversal of impairment (Impairment) of receivables from related parties		-		(6)		7,311
Operating loss after exceptionals		(33,002)		(39,464)		(79,079)
Finance charges		(1,471)		(2,456)		(3,272)
Loss for the period before tax		(34,473)		(41,920)		(82,351)
Tax credit		-		-		1,467
Loss for the period		(34,473)		(41,920)		(80,884)
Attributable to: Shareholders of the parent company Non-controlling interests		(30,834) (3,639)		(38,988) (2,932)		(74,372) (6,512)
Total		(34,473)		(41,920)		(80,884)
Loss per share (basic and diluted) (US cents)	2
				restated
From continuing activities		(3.14)		(17.99)		(24.56)

Consolidated statement of comprehensive income

		6 months ended 30 June 2014		6 months ended 30 June 2013		12 months ended 31 December 2013
		US$'000		US$'000		US$'000
		(Unaudited)		(Unaudited)		(Audited)
Loss for the period		(34,473)		(41,920)		(80,884)
Foreign exchange translation differences		6,680		1,323		2,160
Other investment impairment		-		(8,772)		(19,248)
Other investment reclassified to the profit or loss		-		8,772		19,248
Available for sale financial assets -  net change in fair value		(2,133)		-		-
Total other comprehensive income for the period		4,547		1,323		2,160
Total comprehensive expense		(29,926)		(40,597)		(78,724)
Attributable to :
Shareholders of the parent company		(26,287)		(37,665)		(72,212)
Non-controlling interests		(3,639)		(2,932)		(6,512)
Total comprehensive expense		(29,926)		(40,597)		(78,724)
All items in the consolidated statement of comprehensive income will be re-classified to the consolidated income statement

Consolidated BALANCE SHEET		30 June 2014		30 June 2013		31 December 2013
		US$'000		US$'000		US$'000
	Note	(Unaudited)		(Unaudited)		(Audited)
Non-current assets
Goodwill		11,324		14,828		11,324
Other intangible assets		11,760		19,975		12,515
Property, plant and equipment		1,458		36,394		30,246
Other investments		-		10,476		-
Other non-current trade and other receivables		2,030		4,932		10,981
		26,572		86,605		65,066
Current assets
Inventories		898		802		931
Cash and cash equivalents		17,954		6,437		7,580
Trade and other receivables		7,878		7,885		5,768
Assets held for sale		20,691		-		-
		47,421		15,124		14,279
Total assets		73,993		101,729		79,345
Equity
Called up equity share capital	3	69,850		43,916		51,097
Share premium account		108,366		87,377		97,392
Retained earnings		(162,324)		(88,857)		(123,962)
Translation reserve		9,354		1,839		2,674
Equity attributable to shareholders of the Parent Company		25,246		44,275		27,201
Non-controlling interests		(20,463)		(18,923)		(22,503)
Total equity		4,783		25,352		4,698
Liabilities
Non-current liabilities
Obligations under finance leases		-		22,503		21,291
Deferred tax		80		1,547		80
Trade and other payables		2,104		10,088		10,152
		2,184		34,138		31,523
Current liabilities
Bank overdrafts		5,146		2,020		3,870
Loans and borrowings		-		1,999		-
Obligations under finance leases		23,540		2,236		3,529
Trade and other payables		38,340		35,852		35,725
Other financial liabilities		-		132		-
		67,026		42,239		43,124
Total liabilities		69,210		76,377		74,647
Total liabilities and equity		73,993		101,729		79,345

Consolidated CASH FLOW statement

		6 months ended 30 June 2014		6 months ended 30 June 2013		12 months ended 31 December 2013
		US$'000		US$'000		US$'000
		(Unaudited)		(Unaudited)		(Audited)
Operating activities
Result for the period		(34,473)		(41,920)		(80,884)
Tax credit		-		-		(1,467)
Loss on disposal of fixed assets		-		-		(2)
Impairment of intangible assets		-		1,935		8,081
Impairment of aircraft		-		-		4,259
Impairment of goodwill		-		3,758		7,235
Impairment of investments		-		8,772		19,248
Depreciation and amortisation		1,533		3,058		6,386
Finance charges		1,471		-		3,272
(Increase) in inventories		(33)		(20)		(147)
(Increase)/decrease in trade and other receivables		5,857		2,372		(1,560)
Increase in trade and other payables		8,462		810		3,929
Share option charges		284		272		548
Net cash flow from operating activities		(16,899)		(20,963)		(31,102)
Investing activities
Purchase of intangibles		(53)		-		(120)
Proceeds on sale of property, plant and equipment		-		31		48
Purchase of property, plant and equipment		(49)		(282)		(325)
Net cash flow from in investing activities		(102)		(251)		(397)
Financing activities
Proceeds from the issue of shares		27,223		21,022		36,550
Loan advanced/(repaid)		-		4		(1,995)
Interest paid		(1,250)		-		(2,915)
Finance lease payments		(1,231)		(2,120)		(2,040)
Net cash flow from financing activities		24,742		18,906		29,600
Net movement in cash and cash equivalents		7,741		(2,308)		(1,899)
Foreign currency difference		1,357		1,255		139
Opening net cash		3,710		5,470		5,470
Closing net cash		12,808		4,417		3,710

Classified on the balance sheet as: Cash and cash equivalents		17,954		6,437		7,580
Bank overdrafts		(5,146)		(2,020)		(3,870)
Closing net cash		12,808		4,417		3,710

Consolidated statement of changes in equity

	Share Capital	Share Premium	Translation Reserve	Retained Earnings	Non-controlling Interests	Total Equity
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000

Balance at 31 December 2012	29,284		80,986		516		(50,140)		(15,991)		44,655
Shares issued	14,632		6,391		-		-		-		21,023
Share based payments	-		-		-		271		-		271
Transactions with owners	14,632		6,391		-		271		-		21,294
Foreign exchange difference	-		-		1,323		-		-		1,323
Comprehensive loss	-		-		-		(38,988)		(2,932)		(41,920)
Balance at 30 June 2013	43,916		87,377		1,839		(88,857)		(18,923)		25,352
Shares issued	7,181		10,015		-		-		-		17,196
Share based payments	-		-		-		277		-		277
Transactions with owners	7,181		10,015		-		277		-		17,473
Foreign exchange difference	-		-		835		2		-		837
Comprehensive loss	-		-		-		(35,384)		(3,580)		(38,964)
Balance at 31 December 2013	51,097		97,392		2,674		(123,962)		(22,503)		4,698
Shares issued	18,753		10,974		-		-		-		29,727
Share based payments	-		-		-		284		-		284
Transactions with owners	18,753		10,974		-		284		-		30,011
Change in non-controlling interests	-		-		-		(5,679)		5,679		-
Foreign exchange difference	-		-		6,680		-		-		6,680
Available for sale financial assets -  net change in fair value	-		-		-		(2,133)		-		(2,133)
Comprehensive loss	-		-		-		(30,834)		(3,639)		(34,473)
Balance at 30 June 2014	69,850		108,366		9,354		(162,324)		(20,463)		4,783

On 15 May 2014 the Group's shareholding in Fastjet Airlines Limited effectively increased to 100% following the forfeiture of unpaid share capital. There is therefore a change in non-controlling interests in retained earnings at that date. 

NOTES TO THE INTERIM RESULTS

1.            Basis of preparation and accounting policies

The financial information set out in this interim results statement is for the six months to 30 June 2014.  The interim financial information has not been audited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.  The comparatives for the 12 month period ended 31 December 2013 are not the Group's full financial statements for that period.  A copy of the financial statements for that period has been delivered to the Registrar of Companies.

The Directors have considered the appropriateness of the going concern basis of preparation in view of their plans for the Group.  In common with many businesses at the early stages of their development the Directors acknowledge that further funding will be required. To the extent this is yet to be committed this represents a material uncertainty.

Having fully considered the situation, the Directors have concluded they have a reasonable expectation that the Group will be able to access sufficient finance to continue operating as a going concern for the foreseeable future.  Accordingly, the Directors are satisfied that the going concern basis of preparation is appropriate for these interim financial statements.

The accounting policies applied are consistent with those of the last annual financial statements for the 12 months ended 31 December 2013.  The financial statements for the year ended 31 December 2013 were prepared in accordance with IFRS as adopted for use in the European Union, and the auditors gave a qualified opinion on the comparative information for the period ended 31 December 2012 in respect of the assets and liabilities in 540 Tanzania at acquisition and the expenses for the six months from acquisition to 31 December 2012.  The auditors also drew attention by way of an emphasis of matter in respect of a material uncertainty over Going Concern without qualifying their report.  The audit report did not contain a statement under either Section 498(2) or (3) of the Companies Act 2006 in respect of those financial statements.  Those financial statements have been filed with the Registrar of Companies.

Fastjet plc is incorporated in England & Wales.  fastjet's shares are listed on the AIM Market of the London Stock Exchange.

2.            Loss per share

The loss per share is calculated using the loss figures as stated in the statement of comprehensive income divided by the weighted average number of shares in issue. The weighted average number of shares in issue during the six months to 30 June 2014 was 983,448,263. The comparative figures for previous period have been adjusted to reflect the share consolidation on 22 August 2013. In view of the losses from continuing activities, the share options in issue have no dilutive effect.

3.            Share capital

1,035,871,879 shares were issued for cash during the period. 94,287,227 shares were issued in respect of the termination of the management consultancy fee agreement under the Brand Licence with easyGroup Holdings Limited.

4.            Related parties

fastjet licences the fastjet brand from easyGroup Holdings Limited ("easyGroup"). An entity in which Sir Stelios Haji-Ioannou holds a beneficial interest and owns 5.7% of the issued share capital of the Company.

The brand licence with easyGroup dated 3 May 2012 provides for an annual royalty of 0.5% of revenue to be paid for 10 years.

The brand licence requires a minimum royalty payment to be paid of $500,000 per annum indexed annually in accordance with US CPI. The present value of the minimum royalty payments was capitalised as a component of brand licence costs.

The brand licence also provides for fees for management assistance for aviation advisory services of Euro 600,000 per annum indexed annually in accordance with French CPI. This agreement was terminated on 15 April 2014 by the issue of 94,287,227 shares at 1.6p per share. Total cost $2,504,000  

Copies of this interim report will be available shortly on the company's website: www.fastjet.com

 

END

 

 

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