reports
- Paul Hill
fastjet: Cashflow breakeven seen in Q4'17
fastjet was launched in Tanzania in Nov 2012, and is currently in the process of being right-sized and turned-around by industry veteran CEO Nico Bezuidenhout (appointed Aug’16). After nearly 12 months of radical surgery we now feel sufficiently confident to reinstate our valuation - pitched at 24p/share, based on a blend of 2021 multiples and discounted back at 15%. Drivers are: improved revenue visibility, a dramatic realignment of costs, faith in the management team and perhaps most impo...
- Paul Hill
fastjet: Major turnaround taking shape
fastjet was launched in Tanzania in Nov 2012, and is currently in the process of being right-sized and turned-around by industry veteran CEO Nico Bezuidenhout. (appointed August 2016) . The firm utilises a small fleet of modern jet aircraft, and has a long-term strategy to become Africa’s first low-cost, pan-continental airline. Investing in airlines has always been a hazardous game, given the industry’s notoriously poor record of capital allocation, cyclicality and exposure to geopolitics...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
Turning the plane around
​fastjet is a low-cost carrier (LCC) that launched in Tanzania on 29th November 2012. The firm is presently in the process of being turned-around by newly appointed CEO Nico Bezuidenhout.The objective is to be profitable and cash generative as soon as possible, which we interpret to be sometime in 2018. Undoubtedly this is not an insignificant task given that yesterday the group reported an underlying EBIT loss and cash-burn of $31.0m and $25.6m respectively for the 6 months' ending June 2016 ...
Additional fund raise planned for July
​fastjet is a low-cost carrier (LCC) that launched in Tanzania on 29th November 2012. It operates a single type fleet of modern, fuel efficient, jets on a short haul, point to point network.Despite being operationally based >4,600 miles away in Tanzania, the company has also been buffeted by unexpected political headwinds over the past 9 months. Here, last October's Presidential Election triggered a precipitous decline in airline traffic across the whole industry, compounded by a 24% devaluati...
Headwinds continue for longer than expected
​fastjet (FJET) reported its Final Results for the year to December 2015 yesterday: revenue on continuing activities was up 21% in the year, to $65.1m, and passenger numbers were up 32% to 787,771. However, during H2'15 the Tanzanian economy fell off a cliff - negatively impacted by weaker consumer/government demand due to the presidential elections in October, a 24% fall in the currency (Shilling vs US dollar) and lower commodity/oil prices. Not surprisingly fastjet's profitability deteriorat...
Challenging conditions continue
​fastjet is a low-cost carrier (LCC) that launched in Tanzania on 29th November 2012. It operates a single type fleet of modern, fuel efficient, jets on a short haul, point to point network.Back in December we felt that, after being impacted by October's Tanzanian presidential elections, demand for fastjet's low-cost services would rebound in Q1'16. Unfortunately (in hindsight) it appears our timings were 6-9 months too early, with the Board saying yesterday that the "challenging conditions" h...
Buffeted by transient factors
​fastjet is a low-cost carrier (LCC) that launched in Tanzania on 29th November 2012. It operates a single type fleet of modern, fuel efficient, jets on a short haul, point to point network.In a trading update yesterday, the company said that it was being buffeted by a longer than expected period of 'disruption' caused by October's Tanzanian presidential election. We think that it might take another 3 months before normal conditions return, but the group is now on the verge of moving into the ...
The future of African air travel
​fastjet is a low-cost carrier (LCC) that launched in Tanzania on 29th November 2012. It operates a single type fleet of modern, fuel efficient, jets on a short haul, point to point network that currently involves servicing 9 routes to 9 destinations in 6 African countries. A great opportunity lies in the fact that Africa possesses 15% of the world's population and 20% of its land mass, yet generates only 3% of global air-travel. Fastjet is making visible progress to address that and since lau...
Flies into profit
fastjet is a low-cost carrier in Africa that launched in Tanzania on 29th Nov, 2012. It flies 5 domestic routes and 4 international services.The encouraging recent update shows that not only have yields, aircraft utilisation and volumes increased dramatically, but also lower fuel prices hepled fastjet Tanzania into the black in December - generating an estimated EBITA of at least $0.5m on revenues in excess of $7m. Looking ahead, Q1'15 is also shaping up to be much better than last year, particu...
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