easyJet (#EZJ) – FY LBT £1bn, net debt though emphasises £4.4bn of liquidity
- 2021-11-30 07:28:48
UK 20:35 Saturday, 3 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
I have been an easyJet (EZJ) fan for a while and, whilst holding some shares going into the COVID-19 crisis hurt, doubling up on the shares just under eighteen months ago has worked out well. So today’s complex update is of interest at many levels...especially as the shares today are down by more than 10% to only just over a 7 quid price following news of a (turned down) takeover approach and a decision to raise money. What is going on?
In a few weeks time it will be eighteen months since I have been on a plane. No great hassle and progressively the world is coming back towards its historic norm. Given my historic preferences, I would imagine easyJet (EZJ) may get a booking from me over the next few months. As for its shares though - as I discussed here last month - I more than doubled my holding at the peak of COVID-19 concerns last year, and whilst they remain volatile I still hope for another run closer to a twelve quid share price over the next year.
The reality about the investment world is that thinking about realities for the next six to eighteen months matter a lot more than many people (even brokers and investment analysts) think. And that brings us to easyJet (EZJ) this morning publishing its nine months numbers. I know it makes sense for most companies to use the end of December as their full year point. Meanwhile some old-school corporations use the end of the UK tax year at the end of March/start of April. However many travel companies use the end of September, especially if they have a big summer holiday focus, often maxing out their revenue flow in the months leading up to that time. Nevertheless, you would expect some interesting comments - and guidance - at the nine month numbers published in July. And this brings us to easyJet today.
The last time I was on a plane was in January 2020 and - as it happened - it was an easyJet (EZJ) flight. Over the years it is probably the airline I have travelled on the most, so certainly I am a bit of a fan. It also meant that I bought some stock during the dog days of last year. But what do I do now?
This year has all been about Covid- related stocks and anything with even a vague association with that, but over the next year or two the biggest profits will be made from companies that have been hit by the virus but have had the strength to survive and will reap the benefits as things begin to return to some semblance of normality.
Well good luck to Kenton Jarvis who will be joining easyJet (EZJ) at some point in the next few months as its new CFO. The budget airline may have raised money recently to strengthen their balance sheet, but you do not need to be an investing geek to know life is just a bit uncertain for any operator in this sector. I talked about this with Tom W yesterday in a video that will go live later today. And certainly my conclusion is that whilst easyJet is a company with a strong offering and a real link with consumer demand/preferences, it can only buck the cycle for so long. But...
