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under cover Form 20-F or Form 40-F.
Form
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Indicate
by check mark whether the registrant by furnishing the
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in this Form is also thereby furnishing the information to
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pursuant to Rule 12g3-2(b) under the Securities
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No ..X..
If
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in
connection with Rule 12g3-2(b): 82- ________
RYANAIR REPORTS FULL YEAR LOSS OF €815M AS TRAFFIC FALLS 81%
DUE TO COVID-19 TRAVEL RESTRICTIONS
Ryanair
Holdings plc today (17 May) reported a full year loss of
€815m (excl. hedge ineffectiveness), compared to a PY profit
of €1,002m. Features of FY21 included:
●
FY21 traffic fell
81% from 149m to 27.5m due to Covid-19 restrictions.
●
Liquidity
preservation prioritised with €3.15bn cash at year end (31
Mar.).
●
Cost reductions
implemented across all Group airlines.
●
Unprecedented
backlog of Covid customer requests/refunds processed.
●
Job losses
minimised via engagement with our people & unions.
●
B737-8200
“Gamechanger”
firm order increased to 210 aircraft (from 135).
●
CDP awarded very
strong (first time) “B-” climate protection
score.
●
Non-EU shareholder
voting rights were restricted post Brexit.
FY21
was the most challenging in Ryanair’s 35-year history.
Covid-19 saw traffic collapse, almost overnight, from 149m to just
27.5m as many European Govts. (with little notice or co-ordination)
imposed flight bans, travel restrictions and national lockdowns.
There was a partial recovery during summer 2020, as initial
lockdowns eased, however a second Covid-19 wave in Europe followed
quickly in the autumn with a third wave in spring. This created
enormous disruptions and uncertainty for both our customers and our
people, as they suffered constantly changing Govt. guidelines,
travel bans and restrictions. Ryanair responded promptly, and
effectively, to this crisis, by working hard to assist millions of
customers with flight changes, refunds and changed travel plans. We
minimised job losses through agreed pay cuts and participation in
Govt. job support schemes, while at the same time keeping our
pilots, cabin crew and aircraft current and ready to resume service
once normality returns.
The
Covid-19 crisis precipitated the collapse of a number of EU
airlines including Flybe, Norwegian, Germanwings and Level and
substantial capacity cuts at many others. It sparked a tsunami of
State Aid from EU Govts. to their insolvent flag carriers including
Alitalia, AirFrance/KLM, LOT, Lufthansa, SAS, TAP and others, which
will distort EU competition and prop up high cost, inefficient,
flag carriers for many years. We expect intra-European air travel
capacity to be materially lower for the foreseeable future. This
will create opportunities for Ryanair to extend airport growth
incentives, as the Group takes delivery of 210 new (lower cost)
Boeing 737s. We are encouraged by the recent release of multiple
Covid-19 vaccines and hope that their rollout will facilitate the
resumption of intra-Europe air travel and tourism this summer. If,
as is presently predicted, most European populations are vaccinated
by Sept., then we believe that we can look forward to a strong
recovery in air travel, jobs and tourism in H2 of the current
fiscal year (FY22). The recent strong increases in weekly bookings
since early April suggests that this recovery has already
begun.
THE ENVIRONMENT:
Ryanair
has shown that we can grow low fare traffic while reducing our
impact on the environment. Every passenger that switches to Ryanair
from one of Europe’s legacy airlines cuts their CO₂
emissions by almost 50% per flight. Over the next 5-years
Ryanair’s traffic will grow to 200m p.a. This will be
achieved in a manner that balances the desire for low fares with
the need for sustainable flying. Ryanair’s $20bn+ investment
in new technology aircraft will be pivotal in achieving this
ambition. The new B737-8200 “Gamechanger” aircraft
offers 4% more seats, but delivers a 16% lower fuel burn and 40%
lower noise emissions which will help Ryanair to lower its
CO₂ and noise footprint over the next decade.
The
Group continues to work actively with the EU, fuel suppliers and
aircraft manufacturers to incentivise sustainable aviation fuel
(SAF) use. We are working with A4E and the EU Commission to
accelerate reform to the Single European Sky, so that we can
minimize ATC delays and the resulting avoidable oil consumption and
CO₂ emissions. In 2020 Ryanair received a (first time)
“B-” climate protection rating from CDP1. While this is a strong inaugural
rating, highlighting Ryanair’s excellent environmental
performance and governance, the Group is committed to improving
this score over the next 2 years. In April, Ryanair established a
Sustainable Aviation Research Centre partnership with Trinity
College Dublin to help accelerate the development of SAF.
Ryanair’s goal is to power 12.5% of its flights with SAF by
2030. This, together with the Group’s investment in new
Gamechanger aircraft will help Ryanair achieve its target of
lowering CO₂ per passenger/km by 10% to just 60 grams by
2030.
FY21 BUSINESS REVIEW:
Revenue & Costs
FY21
revenue fell by 81% to €1.64bn, in line with the fall in
traffic to just 27.5m from 149m (pre Covid-19). Ancillary revenue
delivered a solid performance as more guests chose priority
boarding and reserved seating, resulting in an 11% increase in per
passenger spend to almost €22. FY21 cost performance was
strong, falling 66%. Due to an 81% reduction in traffic and
aircraft delivery delays, the Group recorded a €200m
ineffectiveness charge on fuel and currency hedges in
FY21.
During
the past year substantial work has been undertaken to right size
the Group’s long-term cost leadership. This process commenced
with significant cuts in senior management pay and the cancellation
of FY21 management bonus payments this year. Group airlines
negotiated modest pay cuts with our people and their unions that
minimised job losses but allow for pay restoration over years 3 to
5 under multi-year pay agreements. Our Route Development teams
continue to work with airport partners across Europe, and have
negotiated lower airport costs, traffic recovery incentives and the
extension of many low cost airport growth deals – incl., for
example, long term extensions of low-cost growth deals in London
Stansted (to 2028), Milan Bergamo (to 2028) & Brussels
Charleroi (to 2030). In Dec. the Group increased its firm order for
the B737-8200 Gamechanger from 135 to 210 aircraft while securing
further, modest, price discounts. Reasonable and fair compensation
was also agreed with Boeing for the 2-year delivery delays to these
aircraft. The Gamechanger will, we believe, further widen the cost
gap between Ryanair and all other European airlines for the next
decade. These new aircraft have 4% more seats, 16% lower fuel burn
and 40% lower noise emissions and will enable the Ryanair Group to
grow to 200m passengers p.a. over the next 5 years. Ryanair hopes
to take delivery of its first Gamechanger aircraft in late May and
hopes to have over 60 Gamechangers in the fleet before the peak
S.22.
Balance Sheet & Liquidity
The
balance sheet remains one of the strongest in the industry with a
BBB credit rating (S&P and Fitch), €3.15bn cash at 31
Mar. and over 85% of the B737 fleet being unencumbered. Since Mar.
2020, the Group has lowered cash burn by cutting costs,
participating in EU Govt. payroll support schemes, cancelling share
buybacks and deferring non-essential capex. Over the past year, the
Group successfully raised c.€1.95bn in new finance (incl.
€400m share placing, €850m eurobond and £600m
CCFF) and cash was further boosted by supplier reimbursements
during the year. This financial strength enables the Group to
capitalise on the many growth opportunities that will be available
post Covid-19.
EU OWNERSHIP & CONTROL POST-BREXIT:
As
previously advised, Ryanair has restricted voting rights of non-EU
shareholders (now including UK nationals) from 1 Jan. 2021 to
protect its EU airline licences post-Brexit. A long-standing
prohibition on non-EU citizens purchasing Ryanair’s ordinary
shares now also extends to UK nationals, which will ensure a steady
increase in the Company’s EU shareholding (currently approx.
1/3 of economic rights but 100% of voting rights). We expect these
restrictions will remain in place for the foreseeable future until
the balance in favour of EU shareholders is restored or the EU
& UK agree a less restrictive airline ownership and control
regime than the current 50%+ nationality rule which dates back to
the 1940s. Meanwhile, UK nationals and other non-EU investors may
continue to invest only in ADRs which are listed on
NASDAQ.
OUTLOOK:
FY22
continues to be challenging, with uncertainty around when and where
Covid lockdowns and travel restrictions will be eased. The Group
expects Q1 traffic to be heavily curtailed to between 5m and 6m
guests. With a very close-in booking curve, visibility for the
remainder of FY22 is close to zero although bookings have jumped
significantly from a very low base since week 1 of April. It is
therefore impossible to provide meaningful FY22 guidance at this
time. However, as recently announced, we think that FY22 traffic is
likely to be towards the lower end of our previously guided range
of 80m to 120m passengers. We also (cautiously) believe that the
likely outcome for FY22 is currently close to breakeven –
assuming that a successful rollout of vaccines this summer allows a
timely easing of European Govt. travel restrictions on
intra-European traffic in time for the peak travel period of
Jul./Aug./Sept.
As we
look beyond the Covid-19 crisis, and the successful completion of
vaccination roll outs, the Ryanair Group expects to have a much
improved cost base and a very strong balance sheet. We will also
benefit from a reduced fleet cost for the next decade as we take
more deliveries of our B737 “Gamechanger” aircraft
which will materially improve revenues with 4% more seats while
substantially reducing unit costs, especially fuel. This will
enable the Group to fund lower fares and capitalise on the many
growth and market share opportunities that are now available across
Europe, especially where competitor airlines have substantially cut
capacity or failed. The Group expects to benefit from a strong
rebound of pent up travel demand through the second half of 2021,
and looks forward to returning to pre-Covid growth in summer 2022
with the help of the Gamechanger aircraft and new bases (incl.
those recently announced in Billund, Riga, Stockholm, Zadar &
Zagreb). Ryanair is committed to delivering this growth in an
environmentally sustainable manner (which reduces both fuel
consumption and CO₂ emissions per passenger) while at the
same time improving its industry leading customer service and
customer experience.
1 CDP
– Carbon Disclosure Project is an independent, non-profit,
global environmental reporting organisation.
ENDS
For
further information
please
contact:
www.ryanair.com
Neil
Sorahan
Ryanair
Holdings plc
Tel: +353-1-9451212
Piaras
Kelly
Edelman
Tel: +353-1-6789333
Ryanair Holdings plc, Europe’s largest airline group, is the
parent company of Buzz, Lauda, Malta Air & Ryanair. Carrying
149m guests p.a. (pre Covid-19) on more than 2,500 daily flights
from over 80 bases, the Group connects over 225 destinations in 37
countries on a fleet of 450 aircraft, with a further 210 Boeing
737s on order, which will enable the Ryanair Group to lower fares
and grow traffic to 200m p.a. over the next 5 years. Ryanair has a
team of over 16,000 highly skilled aviation professionals
delivering Europe’s No.1 on-time performance, and an industry
leading 35-year safety record. Ryanair is Europe’s greenest
cleanest airline group and customers switching to fly Ryanair can
reduce their CO₂ emissions by up to 50% compared to the other
Big 4 European major airlines.
Certain of the information included in this release is forward
looking and is subject to important risks and uncertainties that
could cause actual results to differ materially. It is not
reasonably possible to itemise all of the many factors and specific
events that could affect the outlook and results of an airline
operating in the European economy. Among the factors that are
subject to change and could significantly impact Ryanair’s
expected results are the airline pricing environment, fuel costs,
competition from new and existing carriers, market prices for the
replacement of aircraft, costs associated with environmental,
safety and security measures, actions of the Irish, U.K., European
Union (“EU”) and other governments and their respective
regulatory agencies, post-Brexit uncertainties, weather related
disruptions, ATC strikes and staffing related disruptions, delays
in the delivery of contracted aircraft, fluctuations in currency
exchange rates and interest rates, airport access and charges,
labour relations, the economic environment of the airline industry,
the general economic environment in Ireland, the UK and Continental
Europe, the general willingness of passengers to travel and other
economics, social and political factors, global pandemics such as
Covid-19 and unforeseen security events.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Balance Sheet as at March 31,
2021 (unaudited)
At Mar 31,
At Mar 31,
2021
2020
Note
€M
€M
Non-current assets
Property,
plant and equipment
10
8,361.1
9,438.0
Right-of-use
asset
188.2
236.8
Intangible
assets
146.4
146.4
Derivative
financial instruments
13
111.3
378.5
Deferred
tax
14.0
53.6
Other
assets
48.7
-
Total non-current assets
8,869.7
10,253.3
Current assets
Inventories
3.6
3.3
Other
assets
179.8
178.7
Current
tax
-
44.5
Assets
held for sale
11
-
98.7
Trade
receivables
18.6
67.5
Derivative
financial instruments
13
106.0
293.2
Restricted
cash
34.1
34.4
Financial
assets: cash > 3 months
465.5
1,207.2
Cash
and cash equivalents
2,650.7
2,566.4
Total current assets
3,458.3
4,493.9
Total assets
12,328.0
14,747.2
Current liabilities
Provisions
10.3
43.3
Trade
payables
14
336.0
1,368.2
Accrued
expenses and other liabilities
1,274.9
2,589.4
Current
lease liability
52.5
75.0
Current
maturities of debt
1,725.9
382.3
Derivative
financial instruments
13
79.2
1,050.0
Current
tax
48.1
-
Total current liabilities
3,526.9
5,508.2
Non-current liabilities
Provisions
Trade
payables
14
47.4
179.9
36.6
-
Derivative
financial instruments
13
6.4
180.5
Deferred
tax
272.4
353.5
Non-current
lease liability
130.6
170.9
Non-current
maturities of debt
3,517.8
3,583.0
Total non-current liabilities
4,154.5
4,324.5
Shareholders' equity
Issued
share capital
15
6.7
6.5
Share
premium account
15
1,161.6
738.5
Other
undenominated capital
15
3.5
3.5
Retained
earnings
15
3,232.3
4,245.0
Other
reserves
242.5
(79.0)
Shareholders' equity
4,646.6
4,914.5
Total liabilities and shareholders' equity
12,328.0
14,747.2
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Income Statement for year ended
March 31, 2021 (unaudited)
Pre-Except.
Except.
IFRS
Year Ended
Mar 31, 2021
IFRS
Year Ended
Item Year Ended
Year Ended
Mar 31, 2021
Mar 31, 2021
Mar 31, 2020
Change
Note
%*
€M
€M
€M
€M
Operating revenues
Scheduled revenues
-81%
1,036.0
-
1,036.0
5,566.2
Ancillary revenues
-80%
599.8
-
599.8
2,928.6
Total operating revenues
-81%
1,635.8
-
1,635.8
8,494.8
Operating expenses
Depreciation
+24%
571.0
-
571.0
748.7
Fuel and oil
+80%
542.6
-
542.6
2,762.2
Staff costs
+57%
472.2
-
472.2
1,106.9
Airport and handling charges
+75%
287.2
-
287.2
1,140.2
Maintenance, materials and repairs
+19%
206.7
-
206.7
256.4
Marketing, distribution and other
+65%
201.5
-
201.5
578.8
Route charges
+75%
187.3
-
187.3
736.0
Aircraft rentals
+82%
6.7
-
6.7
38.2
Total operating expenses
+66%
2,475.2
-
2,475.2
7,367.4
Operating (loss)/profit
(839.4)
-
(839.4)
1,127.4
Other income/(expense)
Net finance expense
-4%
(53.8)
-
(53.8)
(51.5)
Foreign exchange / hedge Ineffectiveness
+47%
11.8
(227.3)
(215.5)
(405.6)
Total other expense
+41%
(42.0)
(227.3)
(269.3)
(457.1)
(Loss)/Profit before tax
(881.4)
(227.3)
(1,108.7)
670.3
Tax credit/(expense) on (loss)/profit
4
66.0
27.6
93.6
(21.6)
(Loss)/profit for the year - attributable to equity holders of
parent
(815.4)
(199.7)
(1,015.1)
648.7
(Loss) / Earnings per ordinary share (€)
Basic
9
(0.9142)
0.5824
Diluted
9
(0.9142)
0.5793
Weighted ave. no. of ord. shares (in Ms)
Basic
9
1,110.4
1,113.8
Diluted
9
1,110.4
1,119.8
*”+” is favourable and “-“ is adverse
year-on-year.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Comprehensive
Income for year ended March 31, 2021 (unaudited)
Year
Year
Ended
Ended
Mar 31,
Mar 31,
2021
2020
€M
€M
(Loss)/profit for the year
(1,015.1)
648.7
Other comprehensive income:
Items that are or may be reclassified to profit or
loss:
Cash flow hedge reserve movements:
Net movement in cash flow hedge reserve
322.6
(385.9)
Other comprehensive income/(loss) for the year, net of income tax
credit/charge
322.6
(385.9)
Total comprehensive (loss)/income for the year – attributable
to equity holders of parent
(692.5)
262.8
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Cash Flows for year
ended March 31, 2021 (unaudited)
Year
Year
Ended
Ended
Mar 31,
Mar 31,
2021
2020
Restated*
Note
€M
€M
Operating activities
(Loss)/profit after tax
(1,015.1)
648.7
Adjustments to reconcile profit after tax to net cash provided by
operating activities
Depreciation
571.0
748.7
(Increase) in inventories
(0.3)
(0.4)
Tax (credit)/expense on (loss)/profit
(93.6)
21.6
Share based payments
3.6
7.0
(Increase)/decrease in trade receivables
48.9
(8.1)
(Increase)/decrease in other assets
(3.5)
61.9
(Decrease)/increase in trade payables
1
(407.6)
15.2
Decrease in accrued expenses
(1,319.6)
(401.4)
Decrease in provisions
(21.9)
(55.7)
(Increase)/decrease in net finance expense
(3.7)
2.9
Hedge ineffectiveness/foreign exchange
(294.1)
407.2
Income tax refunded/(paid)
87.9
(120.5)
Net cash (used in)/provided by operating activities
(2,448.0)
1,327.1
Investing activities
Capital expenditure - purchase of property, plant and
equipment
1
(294.7)
(578.8)
Supplier reimbursements
10
377.6
-
Proceeds from sale of property, plant and equipment
112.1
-
Decrease in restricted cash
0.4
0.5
Decrease in financial assets: cash > 3 months
741.7
277.2
Net cash provided by/(used in) investing activities
937.1
(301.1)
Financing activities
Shareholder returns (net of tax)
15
-
(580.5)
Net proceeds from shares issued
421.0
19.1
Proceeds from long term borrowings
2,228.6
750.0
Repayments of long term borrowings
(950.3)
(408.1)
Lease liabilities paid
(76.8)
(67.5)
Net cash provided by/(used in) financing activities
1,622.5
(287.0)
Increase in cash and cash equivalents
111.6
739.0
Net foreign exchange differences
(27.3)
151.8
Cash and cash equivalents at beginning of the year
2,566.4
1,675.6
Cash and cash equivalents at end of the year
2,650.7
2,566.4
*Includes reclassification between trade payables and capital
expenditure. See note 1 for further detail.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Changes in
Shareholders’ Equity for year ended March 31, 2021
(unaudited)
Issued
Share
Other
Other
Ordinary
Share
Premium
Undenom.
Retained
Reserves
Other
Shares
Capital
Account
Capital
Earnings
Hedging
Reserves
Total
M
€M
€M
€M
€M
€M
€M
€M
Balance at March 31, 2019
1,133.4
6.8
719.4
3.2
4,181.9
274.6
29.0
5,214.9
Adjustment on initial application of IFRS 16
-
-
-
-
(9.7)
-
-
(9.7)
Adj. balance at April 01, 2019
1,133.4
6.8
719.4
3.2
4,172.2
274.6
29.0
5,205.2
Profit for the year
-
-
-
-
648.7
-
-
648.7
Other comprehensive income
-
Net movements in cash-flow reserve
-
-
-
-
-
(385.9)
-
(385.9)
Total other comprehensive income
-
-
-
-
-
(385.9)
-
(385.9)
Total comprehensive income
-
-
-
-
648.7
(385.9)
-
262.8
Transactions with owners of the
-
Company recognised directly in equity
Issue of ordinary equity shares
3.0
-
19.1
-
-
-
-
19.1
Share-based payments
-
-
-
-
-
-
7.0
7.0
Repurchase of ordinary equity shares
-
-
-
-
(580.5)
-
-
(580.5)
Other
-
-
-
-
0.9
-
-
0.9
Cancellation of repurchased ordinary shares
(47.2)
(0.3)
-
0.3
-
-
-
-
Transfer of exercised and share based awards
-
-
-
-
3.7
-
(3.7)
-
Balance at March 31, 2020
1,089.2
6.5
738.5
3.5
4,245.0
(111.3)
32.3
4,914.5
Loss for the year
-
-
-
-
(1,015.1)
-
-
(1,015.1)
Other comprehensive income
-
-
Net movements in cash flow reserve
-
-
-
-
-
322.6
-
322.6
Total other comprehensive income
-
-
-
-
-
322.6
-
322.6
Total comprehensive income
-
-
-
-
(1,015.1)
322.6
-
(692.5)
Transactions with owners of the
Company recognised directly in equity
Issue of ordinary equity shares
38.9
0.2
423.1
-
(2.3)
-
-
421.0
Share-based payments
-
-
-
-
-
-
3.6
3.6
Transfer of exercised and expired share based awards
-
-
-
-
4.7
-
(4.7)
-
Balance at March 31, 2021
1,128.1
6.7
1,161.6
3.5
3,232.3
211.3
31.2
4,646.6
Ryanair Holdings plc and Subsidiaries
MD&A Year Ended March 31, 2021
Introduction
For the
purposes of the Management Discussion and Analysis
(“MD&A”) (with the exception of the balance sheet
commentary below) all figures and comments are by reference to the
adjusted results excluding the exceptional item referred to
below.
European
Government travel restrictions/lockdowns as a result of the
Covid-19 pandemic means that the Ryanair Group operated a
significantly reduced flying schedule in FY21. Therefore, the Group
recorded a hedge ineffectiveness charge of €192M (net of tax)
in relation to jet fuel hedges and an €8M charge (net of tax)
in relation to ineffective currency cashflow hedges arising from
delayed aircraft capital expenditure.
Income Statement
Scheduled revenues:
Scheduled
revenues decreased by 81% to
€1,036.0M due to an 81% decline in traffic to 27.5M
guests as European Governments imposed travel
restrictions/lockdowns due to the Covid-19 pandemic. This grounded
approx. 99% of the Group’s fleet for almost 4 months (from
mid-March to late June). The Group operated approximately 26% of
its normal twelve months schedule with a 71% load
factor.
Ancillary
revenues:
Ancillary
revenues decreased by 80% to
€599.8M due to an 81% decline in traffic to 27.5M
guests offset somewhat by a solid performance in priority boarding
and reserved seating.
Total revenues:
As a
result of the above, total revenues decreased by 81% to €1,635.8M.
Operating Expenses:
Depreciation:
Depreciation
was 24% lower at
€571.0M primarily due to lower amortisation
as a result of reduced aircraft utilisation.
Fuel
and
oil:
Fuel
and oil decreased by 80% to
€542.6M due to a 74% reduction in sectors flown,
arising from Covid-19 fleet groundings and lower fuel
burn.
Staff
costs:
Staff
costs decreased by 57% to
€472.2M due to reduced flight hours, Group wide pay
cuts and participation in European Government payroll support
schemes. Refer to Note 17 for further detail.
Airport and handling charges:
Airport
and handling charges decreased by 75% to €287.2M due to lower
sectors flown and reduced charges.
Maintenance,
materials and
repairs:
Maintenance,
materials and repairs decreased by 19% to €206.7M due to reduced
aircraft utilisation, offset by lease hand back
charges.
Marketing,
distribution an other:
Marketing,
distribution and other decreased by 65% to €201.5M due to lower
discretionary spending across the Group airlines and fewer flights
qualifying for EU261 compensation due to improved (96%) on-time
performance.
Route
charges:
Route
charges decreased by 75% to
€187.3M due to lower sectors arising from Covid-19
fleet groundings.
Aircraft rentals:
Aircraft
rentals fell by 82% to
€6.7M due to 11 fewer leased B737 aircraft in the
fleet.
Other
expense:
Net
finance expense increased by €2.3M to €53.8M primarily
due to increased debt and lower deposit interest rates, offset by
the maturity of more expensive secured debt.
Balance sheet
Gross
cash decreased by €657.7M to
€3,150.3M at March 31, 2021.
Gross
debt increased by €1,215.6M
to €5,426.8M, primarily due to a €850M Eurobond
issuance in September 2020 and the drawdown of £600M unsecured
debt under the HMT and Bank of England CCFF, offset by secured debt
and lease liability payments. Net debt, which includes current and
non-current maturities of debt and lease liabilities, less
restricted cash, financial assets > 3 months and cash and cash
equivalents was €2,276.5M at year
end.
Shareholders’
equity:
Shareholders’
equity decreased by €267.9M
to €4,646.6M in the year primarily due to a net loss
of €1,015.1M offset by a €400.0M equity placing in
September 2020, and an unrealised IFRS hedge accounting gain of
€322.6M.
Ryanair
Holdings plc and Subsidiaries
Notes
forming Part of the Condensed Consolidated
Preliminary Financial Statements
1. Basis
of preparation and significant accounting policies
Ryanair
Holdings plc (the “Company”) is a company domiciled in
Ireland. The unaudited condensed consolidated preliminary financial
statements of the Company for the year ended March 31, 2021
comprise the Company and its subsidiaries (together referred to as
the “Group”).
These
unaudited condensed consolidated preliminary financial statements
(“the preliminary financial statements”), which should
be read in conjunction with our 2020 Annual Report for the year
ended March 31, 2020, have been prepared to include information
equivalent to that required for condensed interim financial
statements in accordance with International Accounting Standard No.
34 “Interim Financial
Reporting” as adopted by the EU (“IAS
34”). They do not include all of the information required for
full annual financial statements, and should be read in conjunction
with the most recent published consolidated financial statements of
the Group. The consolidated financial statements of the Group as at
and for the year ended March 31, 2020, are available at
http://investor.ryanair.com/.
The
March 31, 2021 figures and the March 31, 2020 comparative figures
do not constitute statutory financial statements of the Group
within the meaning of the Companies Act, 2014. The consolidated
financial statements of the Group for the year ended March 31,
2020, together with the independent auditor’s report thereon,
were filed with the Irish Registrar of Companies following the
Company’s Annual General Meeting and are also available on
the Company’s Website. The auditor’s report on those
financial statements was unqualified.
The
Audit Committee, upon delegation of authority by the Board of
Directors, approved the condensed consolidated preliminary
financial statements for the year ended March 31, 2021 on May 14,
2021.
Except
as stated otherwise below, this year’s financial information
has been prepared in accordance with the accounting policies set
out in the Group’s most recent published consolidated
financial statements, which were prepared in accordance with IFRS
as adopted by the EU and also in compliance with IFRS as issued by
the International Accounting Standards Board (IASB).
Government grants
Grants
that compensate the Group for related expenses incurred are
recognized in the income statement on a systematic basis in the
periods in which the related expenses are recognized in staff
costs.
New IFRS standards and amendments adopted during the
year
The
following new and amended IFRS standards, amendments and IFRIC
interpretations, have been issued by the IASB, and have also been
endorsed by the EU. These standards are effective for the first
time for the Group’s financial year beginning on April 1,
2020 and therefore have been applied by the Group in these
condensed consolidated preliminary financial
statements:
●
Amendments to
References to the Conceptual Framework in IFRS Standards (effective
for fiscal periods beginning on or after January 1,
2020)
●
Amendments to IFRS
3 – Definition of a Business (effective for fiscal periods
beginning on or after January 1, 2020)
●
Amendments to IAS 1
and IAS 8 – Definition of Material (effective for fiscal
periods beginning on or after January 1, 2020)
●
Amendments to IFRS
9, IAS 39 and IFRS 7 – Interest Rate Benchmark Reform
(effective for fiscal periods beginning on or after January 1,
2020)
●
Amendment to IFRS
16 – Covid-19-Related Rent Concessions (effective for fiscal
periods beginning on or after June 1, 2020)
The
calculation methodology of EURIBOR changed during 2019. In July
2019, the Belgian Financial Services and Markets Authority granted
authorisation with respect to EURIBOR under the European Union
Benchmarks regulation. This allows market participants to continue
to use EURIBOR for both existing and new contracts and the Group
expects that EURIBOR will continue to exist as a benchmark for the
foreseeable future.
The
Group has evaluated the extent to which its cashflow hedging
relationships are subject to uncertainty driven by IBOR reform as
at March 31, 2021. The Group’s hedged items and hedging
instruments continue to be indexed to EURIBOR. These benchmark
rates are quoted each day and the IBOR cash flows are exchanged
with counterparties as usual.
The
adoption of these new or amended standards as listed above did not
have a material impact on the Group’s financial position or
results from operations in the year ended March 31,
2021.
New IFRS standards and amendments issued but not yet
effective
The
following new or revised IFRS standards and IFRIC interpretations
will be adopted for the purposes of the preparation of future
financial statements, where applicable. While under review, we do
not anticipate that the adoption of the other new or revised
standards and interpretations will have a material impact on our
financial position or results from operations:
●
IFRS 17 –
Insurance Contracts (effective for fiscal periods beginning on or
after January 1, 2023)*
●
Amendments to IAS 1
– Classification of Liabilities as Current or Non-Current
(effective for fiscal periods beginning on or after January 1,
2023)*
●
Amendments to IFRS
3 – Reference to the Conceptual Framework (effective for
fiscal periods beginning on or after January 1, 2022)*
●
Amendments to IAS
16 – Property, Plant and Equipment – Proceeds before
Intended Use (effective for fiscal periods beginning on or after
January 1, 2022)*
●
Amendments to IAS
37 – Onerous Contracts – Costs of Fulfilling a Contract
(effective for fiscal periods beginning on or after January 1,
2022)*
●
Annual Improvements
to IFRS Standards 2018-2020 (effective for fiscal periods beginning
on or after January 1, 2022)*
●
Amendments to IFRS
9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate
Benchmark Reform (effective for fiscal periods beginning on or
after January 1, 2021)
●
Amendments to IFRS
16 – Covid-19 Related Rent Concessions Beyond June 30, 2021
(effective for fiscal periods beginning or after April 1,
2021)*
●
Amendments to IAS 1
and IFRS Practice Statement 2 – Disclosure of Accounting
Policies (effective for fiscal periods beginning on or after
January 1, 2023)*
●
Amendments to IAS 8
– Definition of Accounting Estimates (effective for fiscal
periods beginning on or after January 1, 2023)*
* These
standards or amendments to standards are not as of yet EU
endorsed
Statement of Cash Flows restatement
Operating
cash inflows and investing cash outflows for the year ended March
31, 2020 have been reclassified. They both have been reduced by
€617M to address accrued supplier payables which had
previously been presented as a capital expenditure cash outflow in
investing activities and as a movement in working capital in
operating activities. As no actual cash flows arose and the payable
is not working capital related, both line items required
adjustments.
There
is no impact on the Group’s net cash flows, consolidated
balance sheet, consolidated income and basic and diluted earnings
per share for the year ended March 31, 2020.
2. Judgements
and estimates
The
preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from
these estimates.
In
preparing these condensed consolidated interim financial
statements, the significant judgements and key sources of
estimation uncertainty were the same as those that applied in the
most recent published consolidated financial
statements.
Derivative financial instruments
The
Group uses various derivative financial instruments to manage its
exposure to market risks, including the risks relating to
fluctuations in commodity prices and currency exchange rates.
Ryanair uses forward contracts for the purchase of its jet fuel
requirements to reduce its exposure to commodity price risk. It
also uses foreign currency forward contracts to reduce its exposure
to risks related to foreign currencies, principally the U.S. dollar
exposure associated with the purchase of new Boeing 737-8200
aircraft and the U.S. dollar exposure associated with the purchase
of jet fuel.
The
Group recognises all derivative instruments as either assets or
liabilities in its consolidated balance sheet and measures them at
fair value. At March 31, 2021, a net liability of €46M (2020:
net liability €1,228M) was recognised on-balance sheet in
respect of the Group’s jet fuel derivative instruments and a
net asset of €171M (2020: net asset €486M) was
recognised in respect of its foreign currency derivative
instruments associated with future aircraft purchases.
In
determining the hedge effectiveness of derivative instruments used
to hedge Ryanair’s fuel requirements, there is significant
judgement involved in assessing whether the volumes of jet fuel
hedged are still expected to be highly probable forecast
transactions. Specifically, significant judgement is required in
respect of the assumptions related to the timing of the full
removal of flight restrictions imposed by European Governments
relating to the Covid-19 pandemic, the expected recovery of
passenger demand and the subsequent flight schedules. All of these
assumptions impact upon forecast fuel consumption, and minor
changes to these assumptions could have a significant effect on the
assessment of hedge effectiveness.
In
respect of foreign currency hedge effectiveness for future aircraft
purchases, there is a high degree of judgement involved in
assessing whether the future aircraft payments are still considered
highly probable of occurring, and the timing of these future
payments for aircraft. The timing of future payments for aircraft
is dependent on the aircraft manufacturer’s ability to meet
forecast aircraft delivery schedules.
The
Boeing 737-MAX was grounded in 2019. In November 2020 the Federal
Aviation Administration (FAA) rescinded the order that grounded the
Boeing-MAX aircraft in the U.S.A. The European Union Aviation
Safety Agency (EASA) similarly ungrounded the Boeing-MAX aircraft
in Europe in late January 2021. In April 2021, both the FAA and
EASA certified the Boeing 737-8200 aircraft.
3. Seasonality
of operations
The
Group’s results of operations have varied significantly from
quarter to quarter, and management expects these variations to
continue. Among the factors causing these variations are the
airline industry’s sensitivity to general economic conditions
and the seasonal nature of air travel. Accordingly, the first
half-year typically results in higher revenues and
results.
4. Income
tax expense
The
Group’s consolidated effective tax rate in respect of
operations for the year ended March 31, 2021 was a credit of
8.4% (March 31, 2020: a
charge of 3.2%). The tax credit for the year ended March 31, 2021
of €93.6M (March 31, 2020: charge of €21.6M) comprises
a deferred tax credit of €99.1M primarily relating to net
operating losses and the temporary differences for property, plant
and equipment, offset by a current tax charge of
€5.5M.
5. Share
based payments
The
terms and conditions of the Group’s share based remuneration
programmes are disclosed in the most recent, published,
consolidated financial statements. The charge of
€3.6M in the year
ended March 31, 2021 (March 31, 2020: €7.0M) is the fair
value of share options granted in prior periods, which is being
recognised within the income statement in accordance with employee
services rendered. During the year ended March 31, 2021, 3.6M
ordinary shares were issued at a strike price between €6.25
and €11.38 per share following the exercise of vested share
options.
6. Contingencies
The
Group is engaged in litigation arising in the ordinary course of
its business. The Group does not believe that any such litigation
will individually, or in aggregate, have a material adverse effect
on the financial condition of the Group. Should the Group be
unsuccessful in these litigation actions, management believes the
possible liabilities then arising cannot be determined but are not
expected to materially adversely affect the Group’s results
of operations or financial position.
8. Capital
commitments
At
March 31, 2021 the Group had an operating fleet of 422 (2020:
440) Boeing 737 and 29
(2020: 26) Airbus A320 aircraft.
In
September 2014, the Group agreed to purchase up to 200 (100 firm
and 100 options) Boeing 737-8200 aircraft, subsequently increased
to 210 (135 firm and 75 options). In December 2020, the Group
increased its firm orders from 135 to 210 Boeing 737-8200 aircraft.
The Ryanair Group hopes to take delivery of its first aircraft in
advance of peak summer 2021.
9. Analysis
of operating segment
The
Group determines and presents operating segments based on the
information that internally is provided to the Group CEO, who is
the Company’s Chief Operating Decision Maker
(CODM).
8. Analysis
of operating segment – continued
The
CODM assesses the performance of the business based on the
profit/(loss) after tax of each airline for the reporting period.
Resource allocation decisions for all airlines are based on airline
performance for the relevant period, with the objective in making
these resource allocation decisions being to optimize consolidated
financial results.
Ryanair
DAC and Malta Air are reportable segments for financial reporting
purposes. Buzz and Lauda do not exceed the quantitative thresholds
for reporting purposes and accordingly have been presented on an
aggregate basis in the table below.
Reportable segment information is presented as
follows:
Ryanair DAC
Malta Air
Other Airlines
Total
Ryanair DAC
Malta Air
Other Airlines
Total
Year ended
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2021
2021
2021
2021
2020
2020
2020
2020
€M
€M
€M
€M
€M
€M
€M
€M
Segment revenue
1,620.0
-
15.8
1,635.8
8,122.5
-
372.3
8,494.8
Segment (loss)/PAT (i)
(641.6)
(18.7)
(155.1)
(815.4)
1,097.8
(3.2)
(92.4)
1,002.2
Other segment information:
Depreciation
(506.6)
-
(64.4)
(571.0)
(693.7)
-
(55.0)
(748.7)
Capex Additions
(343.0)
-
(33.6)
(376.6)
(1,195.8)
-
-
(1,195.8)
Ryanair DAC
Malta Air
Other Airlines
Total
Ryanair DAC
Malta Air
Other Airlines
Total
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2021
2021
2021
2021
2020
2020
2020
2020
€M
€M
€M
€M
€M
€M
€M
€M
Segment assets
11,898.7
86.7
342.6
12,328.0
14,194.5
64.4
488.3
14,747.2
Segment liabilities
6,830.8
108.3
742.3
7,681.4
8,995.2
67.9
769.6
9,832.7
(i)
Adjusted loss after
tax in the financial year ended March 31, 2021, excludes a charge
of €200M (March 31,2020: €353M), attributable to a
hedge ineffectiveness charge on jet fuel derivative instruments,
foreign currency derivative instruments related to jet fuel, and
aircraft delivery delays.
9.
Earnings
per share
Year
Year
Ended
Ended
Mar 31,
Mar 31,
2021
2020
Basic
(Loss)/earnings per ordinary share (€)
(0.9142)
0.5824
Diluted
(Loss)/earnings per ordinary share (€)
(0.9142)
0.5793
Weighted
average number of ordinary shares (in M’s) –
basic
1,110.4
1,113.8
Weighted
average number of ordinary shares (in M’s) –
diluted
1,110.4
1,119.8
10. Property,
plant and equipment
Acquisitions and disposals
Net
capital additions for the year ended March 31, 2021 amounted to a
credit of approximately €575M, principally reflecting the
reversal of certain aircraft pre-delivery trade payables, supplier
reimbursements of just under €380M offset by capital
expenditure of approximately €300M.
11. Assets
held for sale
In
August 2019, the Company entered into an agreement to sell 10
Boeing 737NG aircraft for delivery in FY20 and FY21. 3 of these
aircraft were sold in the year ended March 31, 2020. The remaining
7 aircraft were sold during the year ended March 31, 2021. The
gains on disposal are disclosed in net finance expense on the
condensed consolidated preliminary Income Statement.
12. Derivative
financial instruments
As a
result of the widespread grounding of aircraft due to the Covid-19
pandemic, the Group operated a significantly reduced flying
schedule for the year ended March 31, 2021 compared to what was
originally expected. Accordingly, during the year ended March 31,
2021, the Group’s exposures for jet fuel and foreign currency
were significantly reduced, causing a proportion of derivative
financial instruments which previously qualified for hedge
accounting to become ineffective, resulting in the discontinuance
of certain cash-flow hedge arrangements. A net expense of
€200M (net of tax) was recognised within the income statement
for the year ended March 31, 2021 (2020: €353M), comprising a
charge of €192M (net of tax) in respect of jet fuel exposures
(2020: €392M) and a charge of €8M (net of tax),
primarily associated with ineffective currency cash-flow hedges for
FY21 jet fuel and delayed aircraft deliveries (2020: gain of
€39M).
As of
March 31 2021, a €109M gain is recognised in the cash flow
reserve in respect of continuing hedges and €102M gain in
respect of hedging relationships for which hedge accounting is no
longer applied. The balance on the hedging reserve as of March 31,
2021 is a gain of €211M.
13. Financial
instruments and financial risk management
The
Group is exposed to various financial risks arising in the normal
course of business. The Group’s financial risk exposures are
predominantly related to commodity price, foreign exchange and
interest rate risks. The Group uses financial instruments to manage
exposures arising from these risks.
These
preliminary financial statements do not include all financial risk
management information and disclosures required in the annual
financial statements and should be read in conjunction with the
2020 Annual Report. There have been no changes in our risk
management policies in the year.
Fair value hierarchy
Financial
instruments measured at fair value in the balance sheet are
categorised by the type of valuation method used. The different
valuation levels are defined as follows:
●
Level 1: quoted
prices (unadjusted) in active markets for identical assets or
liabilities that the Group can access at the measurement
date.
●
Level 2: inputs
other than quoted prices included within Level 1 that are
observable for that asset or liability, either directly or
indirectly.
●
Level 3:
significant unobservable inputs for the asset or
liability.
Fair value estimation
Fair
value is the price that would be received to sell an asset, or paid
to transfer a liability, in an orderly transaction between market
participants at the measurement date. The following methods and
assumptions were used to estimate the fair value of each material
class of the Group’s financial instruments:
Financial instruments measured at fair value
● Derivatives – interest rate swaps:
Discounted cash flow analyses have been used to determine the fair
value, taking into account current market inputs and rates. (Level
2)
● Derivatives – currency forwards, aircraft
fuel contracts and EUA contracts: A comparison of the
contracted rate to the market rate for contracts providing a
similar risk profile at March 31, 2021 has been used to establish
fair value. (Level 2)
The
Group policy is to recognise any transfers between levels of the
fair value hierarchy as of the end of the reporting period during
which the transfer occurred. During the year ended March 31, 2021,
there were no reclassifications of financial instruments and no
transfers between levels of the fair value hierarchy used in
measuring the fair value of financial instruments.
Financial instruments not measured at fair value
● Long-term debt: The repayments which the
Group is committed to make have been discounted at the relevant
market rates of interest applicable (including credit spreads) at
March 31, 2021 to arrive at a fair value representing the amount
payable to a third party to assume the obligations.
While
there have been significant changes in business and economic
circumstances during fiscal year 2021, the future outlook for the
business is such that there has been no material change to the fair
values of financial assets and financial liabilities.
The
fair value of financial assets and financial liabilities, together
with the carrying amounts in the condensed consolidated financial
balance sheet, are as follows:
13.
Financial
instruments and financial risk management (continued)
At Mar 31,
At Mar 31,
At Mar 31,
At Mar 31,
2021
2021
2020
2020
Carrying
Fair
Carrying
Fair
Amount
Value
Amount
Value
Non-current financial assets
€M
€M
€M
€M
Derivative financial instruments:
- U.S. dollar currency forward contracts
109.4
109.4
372.5
372.5
- Interest rate swaps
1.9
1.9
6.0
6.0
111.3
111.3
378.5
378.5
Current financial assets
Derivative financial instruments:
- U.S. dollar currency forward contracts
99.5
99.5
291.2
291.2
- GBP currency swap
5.4
5.4
-
-
- Interest rate swaps
1.1
1.1
2.0
2.0
106.0
106.0
293.2
293.2
Trade receivables*
18.6
67.5
Cash and cash equivalents*
2,650.7
2,566.4
Financial asset: cash > 3 months*
465.5
1,207.2
Restricted cash*
34.1
34.4
Other assets*
-
2.3
3,274.9
106.0
4,171.0
293.2
Total financial assets
3,386.2
217.3
4,549.5
671.7
At Mar 31,
At Mar 31,
At Mar 31,
At Mar 31,
2021
2021
2020
2020
Carrying
Fair
Carrying
Fair
Non-current financial liabilities
Amount
Value
Amount
Value
Derivative financial instruments:
- U.S. dollar currency forward contracts
6.4
6.4
-
-
- Jet fuel contracts
-
-
180.5
180.5
6.4
6.4
180.5
180.5
Long-term debt
1,077.5
1,083.2
1,138.9
1,148.5
Bonds
2,440.3
2,545.5
2,444.1
1,965.0
Trade payables
179.9
179.9
-
-
3,704.1
3,815.0
3,763.5
3,294.0
Current financial liabilities
Derivative financial instruments:
- Jet fuel & carbon derivative contracts
19.8
19.8
1,047.8
1,047.8
- U.S. dollar currency forward contracts
59.4
59.4
2.2
2.2
79.2
79.2
1,050.0
1,050.0
Current maturities of debt
875.1
875.1
382.3
382.3
Bonds
850.8
852.6
-
-
Trade payables*
336.0
1,368.2
Accrued expenses*
888.2
1,553.1
3,029.3
1,806.9
4,353.6
1,432.3
Total financial liabilities
6,733.4
5,621.9
8,117.1
4,726.3
*The fair value of these financial instruments approximate their
carrying values due to the short-term nature of the
instruments.
13.
Financial
instruments and financial risk management (continued)
In
April 2020, the Group raised £600M unsecured debt for general
corporate purposes under the HMT and Bank of England CCFF. This was
subsequently extended in March 2021 for a further 12 months. Refer
to Note 17 for further information.
The
Group issued senior, unsecured bonds with a face value of
€850M in September 2020. The bond has a coupon rate of 2.875%
and a maturity date of September 2025.
14. Trade
payables
In
December 2020, the Group increased its firm order for Boeing
737-8200 aircraft by 75 (from 135 to 210 units). Taking account of
the revised aircraft delivery schedule and changes in the
contracted timing of aircraft pre-delivery payments, certain
aircraft pre-delivery payables were reduced with an offset in
Property, plant and equipment. In accordance with the revised
delivery schedule, €179.9M of trade payables are now due
after 1 year.
15. Shareholders
equity and shareholder returns
In
September 2020, 35.2M ordinary shares were issued via an ordinary
share placing at a price of €11.35 per share generating
€400M proceeds.
During
the period 3.6M ordinary shares were issued at a strike price
between €6.25 and €11.38 per share following the
exercise of vested share options.
There
were no shareholder returns during the year ended March 31,
2021.
In FY20
the Company bought back 47.2M shares at a total cost of
€580.5M. This buyback was equivalent to approximately 4.2% of
the Company’s issued share capital at March 31, 2020. All of
these repurchased ordinary shares were cancelled at March 31,
2020.
As a
result of the share buybacks in the year ended March 31, 2020,
share capital decreased by 47.2M ordinary shares with a nominal
value of €580.5M and the other undenominated capital reserve
increased by a corresponding €0.3M. The other undenominated
capital reserve is required to be created under Irish law to
preserve permanent capital in the Parent Company.
16. Related
party transactions
The Company’s related parties comprise its
subsidiaries, Directors and senior key management personnel.
All transactions with subsidiaries eliminate on
consolidation and are not disclosed.
There
were no related party transactions in the year ended March 31, 2021
that materially affected the financial position or the performance
of the Company during that period and there were no changes in the
related party transactions described in the 2020 Annual Report that
could have a material effect on the financial position or
performance of the Company in the same period.
17. Government
grants and assistance
During
the year ended March 31, 2021, many European countries in which the
Ryanair Group operates made available payroll support schemes. The
Group utilised a number of these employment retention schemes to
protect jobs within the Group. These schemes were a mix of short
term Covid-19 specific programmes and long term schemes linked to
social security that existed pre Covid-19. The total amount of
payroll supports received by the Group under the various schemes
amounted to approximately €84M and are offset against staff
costs in the Consolidated Income Statement.
In
April 2020, the Group raised £600M unsecured debt for general
corporate purposes under the HMT and Bank of England CCFF. The
0.44% interest rate was the prevailing rate for strong BBB rated
companies. This debt was subsequently extended in March 2021 for a
further 12 months at a 0.46% interest rate.
There
are no unfulfilled conditions attaching to government assistance at
March 31, 2021.
18. Post
balance sheet events
There
were no significant post balance sheet events.
19. Going
concern
The
Board are satisfied that it remains appropriate to adopt the going
concern concept. In arriving at this decision, the Board
considered, among other things:
1.
The Ryanair
Group’s liquidity with over €3.15bn cash at March 31
2021 and the Group’s continued focus on cash
management;
2.
The Group’s
solid BBB credit ratings (from both S&P and Fitch
Ratings);
3.
The Group’s
strong balance sheet with over 85% of its B737 fleet
unencumbered;
4.
Ongoing cost
reductions across the Group;
5.
The widespread
rollout of Covid-19 vaccines in Europe, with it widely reported
that 80% of the adult population will be vaccinated in Europe
before the end of June 2021; and
6.
The Group’s
flexibility to react quickly to improved customer demand following
vaccine rollouts and the gradual easing of European Governments
travel restrictions/lockdowns over the course of the next 12
months.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.