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10 Dec 2008 13:00
Air Partner PLC
("Air Partner" or "the Group")
AGM and Interim Management Statement
Aubrey Adams, non-executive Chairman of Air Partner, the provider of private aviation services to industry, commerce, governments and private individuals worldwide, today made the following comments regarding the Group and its financial position, performance and prospects:
"Since last year's AGM Air Partner has experienced a polarisation of trading environments, from strong trading that generated the Group's third consecutive year of record results and a 50% increase in the core dividend, through the unprecedented global banking crisis, to today's well documented economic woes.
At the year end results in early October the board reported flat first quarter trading (1 August to 31 October 2008), but cautioned that "forward orders were significantly down, driven by poor visibility and recent economic turmoil." Since that announcement there has been a significant and well documented further deterioration in the global economic climate, and this has resulted in a poor start to the second quarter of trading (1 November to 31 January 2009). While Air Partner's diversification strategy has provided protection from falling markets, these are now truly exceptional times and Q2 trading is currently below internal targets.
Although Q2 is historically Air Partner's slowest sales period, the global economic climate has impacted demand, and also led to extremely aggressive pricing by vulnerable aviation companies. Subsequently, Q2 profitability is currently down 15% year on year, and our traditionally limited forward orders are 50% lower. Against this backdrop, the board is cautioning that trading may remain below current market expectations. However, it should be noted that forecasting is currently exceptionally difficult, and only one third of the Group's financial year has been traded.
The Group continues to have no debt and at 31st October the cash position was up 23% to £21 million. It is also worth reiterating that in previous downturns Air Partner has shown that while Group profits can be affected in the short term, tougher market conditions can present good opportunities to develop the business and increase market share.
The board of directors remains confident in the Group's strategy and believes the underlying diversity of the business, its strong client base and the quality of its people will allow Air Partner to seize new opportunities as they emerge, and continue the long term growth of the Group."
10th December 2008
ENQUIRIES:
Temple Bar Advisory Tel: 0207 002 1080
Tom Allison Tel: 0778 999 8020
Nicola Flynn
Notes to editors: please ensure "Air Partner" is written in its correct singular form, not in the plural.
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