14 Jun 2011 07:00
Air Partner plc
("Air Partner", "the Group" or "the Company")
INTERIM MANAGEMENT STATEMENT
Air Partner, a leading provider of private aviation services to industry, commerce, governments and private individuals worldwide, today issues its second interim management statement for the financial year to 31 July 2011, the Company's 50th anniversary year.
In March 2011, Air Partner released half year results and reported on significant work emerging from repatriation flights out of North Africa. At that time the work was ongoing and it was too early to judge any long-term impact. The emergency evacuations were followed by humanitarian aid deliveries to New Zealand and Japan following the devastating earthquake and tsunami. In total, over 70 emergency flights were organised over a four week period by Air Partner offices in Europe, the Middle East and the US.
The Group's largest operating division, Commercial Jet broking, is currently performing ahead of management expectations, though the market remains highly competitive. The division's trading levels have been higher as a consequence of one-off emergency flights and a particular shortage of capacity which has strengthened demand for sub-chartering and short term leases of aircraft, together with new commercial client wins.
Within the Private Jet broking division pricing remains weak and margins are expected to remain under pressure during the current year. However, looking ahead, the Company is entering the traditionally busier summer period and there are some early signs of improvement in the financial sector, although it is still too early to assess the potential impact from these. The Group has also recruited experienced private jet brokers to help grow existing products into newer territories, such as Eastern Europe and is strengthening the sales team in the UK and in Monaco.
Recruitment of additional broking expertise is also hoped to be a driver for growth in the freight division, particularly in the US, where trading levels have increased since the beginning of the calendar year. In Europe, France and Germany are beginning to see stronger trading levels but the division's challenge remains to widen its client mix.
Within Air Partner's smaller business units, strong co-operation between international offices has produced good contract wins for the supply of fuel to large aviation and transport clients. The fuel broking division has been encouraged by signing a contract with British Airways for provision of fuel to 255 locations for the airline's ad hoc and diverted flights. Continuing political unrest in the Middle East is still generating higher levels of queries for the emergency planning division.
The Group continues to invest for further growth, and has invested in both people and infrastructure. New country managers have been appointed in Germany and Sweden and research into building the Group's presence in BRIC countries continues apace.
The Group cash position is currently £11.5 million (at 1 June 2011). As detailed at the half year results, provision has been made for the closing out of a historic accrual before the year end. While this exercise has not yet been completed, no impact on profit is anticipated and resolution of this issue will not affect continuing business, or the Group's investment plans. Air Partner remains debt-free, providing the financial headroom and flexibility to continue to invest over the coming year in building market share and extending Air Partner's global presence.
The theme of this financial year to date has been that of unexpected requests for emergency or aid charters requiring a fast response. Such situations do play to Air Partner's strengths - its international scope and the ability of its brokers to work as a team. Air Partner's forward visibility is normally limited and this is further shortened when dealing with emergency responses. At this stage, however, the Board believes that the Group's performance for the full year is firmly on track.
Air Partner's financial year will close on 31 July 2011 and the Group expects to announce its full year results on Thursday 13 October 2011.
14 June 2011
Enquiries
Air Partner: Mark Briffa, CEO 01293 844788
Gavin Charles, CFO
Temple Bar Advisory: Tom Allison 0778 999 8020
Joanna Crawford 0207 002 1080
About Air Partner
Air Partner is an international provider of aviation services to industry, commerce, governments and individuals worldwide. The company has earned global recognition as a leading aircraft charter broker and organises ad hoc charters of aircraft of every size for any reason. Its three main divisions, supported by a host of support teams, comprise Air Partner Commercial Jet Broking, Air Partner Private Jet Broking and Air Partner Freight Broking. The Commercial Jet Broking division charters large airliners with 20 to 500 seats for groups of every size. Private Jet Broking offers ad-hoc charter and the company's unique pre-paid JetCard scheme. Air Partner Freight Broking charters aircraft of every size to fly any cargo anywhere, at any time. With its headquarters in the UK, Air Partner has offices spanning Europe, Asia, the Middle East and North America and operates a 24/7 year-round Flight Support centre from its London Gatwick base. The Group was formed in 1961 and is fully listed on the London Stock Exchange. Air Partner's expertise at providing unsurpassed private flying experiences at the best price is recognised by the honour that it is the only company in the aviation industry to hold a Royal Warrant, as Supplier of Aircraft Charter to Her Majesty Queen Elizabeth II, a globally recognised mark of excellence.
www.airpartner.com