8th Oct 2019 10:55
(Alliance News) - Air Partner PLC said Tuesday it traded "slightly" above expectations in the first half amid a "challenging operating environment".
In the six months to June 30, the aviation services firm recorded GBP2.8 million in pretax profit, 7.7% higher than the GBP2.6 million reported the year before.
Revenue, however, slipped 12% to GBP31.7 million from GBP36.0 million. The company said its revenue is susceptible to fluctuation depending on the number of contracts enacted in the reporting period. As a result, Air Partner said gross profit is a better indicator of its performance.
In the first half, gross profit was broadly flat year-on-year at GBP17.2 million.
Air Partner upped its interim dividend by 2.9% to 1.80 pence from 1.75p the year before.
"I am pleased to report on a solid first half performance, despite a challenging operating environment. It is clear from these results that our strategy to diversify by revenue stream and geography is working, with Consulting & Training compensating for slower trading in our Group Charter division," said Chief Executive Mark Briffa.
Gross transaction value was down 6.6% year on year to GBP124.1 million, with the slowed trading from the Charter unit being blamed.
Briffa continued: "Additionally, our earlier investments in the US are showing good results, with Private Jets trading particularly well in the period. We are pleased with the return we are generating on our organic growth initiatives and believe there is plenty of headroom for further growth too."
Briffa said he expects Air Partner to meet market expectations for the full year.
"We expect Air Partner to deliver profits in the second half of the year in line with the first half of the year and to meet market expectations. The board remains confident in the future prospects for the business and is encouraged by the forward order book and pipeline of business opportunity for next year," said Briffa.
Shares in Air Partner were 6.0% lower in London on Tuesday at 86.00 pence each.
By Paul McGowan; [email protected]
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