16th Oct 2008 07:00
Air Partner PLC
("Air Partner" or "the Group" or "the Company")
Preliminary results for the 12 months ended 31 July 2008
Highlights
|
* Sales |
up 35% to £251.3m (£185.8m) |
|
* Profit before tax |
up 21% to £9.2m (£7.6m) |
|
* Diluted EPS |
up 23% to 61.7p (50.3p) |
|
* Proposed final dividend |
up 70% to 22.6p (13.3p) |
|
* Significant increase in full year dividend |
up 50% to 30.0p (20.0p) |
|
* Net Cash |
up 7% to £20.8m (£19.5m) |
* Diversity strategy providing resilience in current economic climate:
- strong increase in Government work
- high net worth (HNW) clients more than doubled to represent 13% of turnover
- UK, France, Italy and Germany performed particularly well
* Continued reduced demand from corporate market
* Creation of Air Partner Academy to increase investment in skills
* Robust financial position and no debt
* 14th consecutive dividend increase and announcement of further significant increase in dividend
* Current trading: Q1 remains on target
* However, forwards are significantly down, driven by poor visibility from recent economic turmoil
David Savile, Chief Executive commented: "I am delighted to be announcing a third consecutive year of record results. We have invested in the business throughout the period of near perfect conditions, and the Group enters this period of economic uncertainty in a strong financial position. Air Partner is a profitable business, with no debt, a highly experienced team, robust systems and a diversification strategy that the board believes will best position the Group to face the head wind and emerge in an even stronger position than we are today."
16 October 2008
|
ENQUIRIES: |
|
|
Air Partner PLC |
|
|
David Savile |
On 16th October 0207 002 1080 |
|
|
Thereafter 01293 844 805 |
|
Temple Bar Advisory |
0207 002 1080 |
|
Tom Allison |
0778 999 8020 |
|
Nicola Flynn |
|
Note to editors: please ensure "Air Partner" is written in its correct singular form, not in the plural.
A presentation of the results will be held at 60 Cannon Street EC4N 6NP at 09:30 today. To attend please contact Temple Bar Advisory on T. 020 7002 1080
Air Partner PLC
("Air Partner" or "the Group" or "the Company")
Year end results for the 12 months ended 31 July 2008
Chairman's Statement
In reporting my first set of results as Chairman, I am delighted to announce that Air Partner has once again had a very successful year and achieved record sales and profits. Turnover rose by 35% to £251.3m (2007: £185.8m) and profits increased by 21% to £9.2m (2007: £7.6m). Over the last three years the management team has more than doubled profits. Earnings per share increased to 62.6p (2007: 51.8p) and Group cash at 31 July was £20.8m (2007: £19.5m).
The second half year was characterised by Group sales being up 30% on the first half, and Group profitability being up 38% on the same comparable.
Trading Environment
In common with most other businesses the trading environment in the last year has become more challenging. For the aviation industry it has been a year of contrasts: on the one hand the high cost of oil is bankrupting many airlines, whilst on the other hand the private jet sector has shown huge growth with major investment in new aircraft. All of this makes predicting the future of the industry more difficult than ever.
Performance
Against this background our team of over 250 professionals has performed exceptionally well, taking advantage of opportunities to deliver a greater number of successful flights than ever before. One of the reasons for the resilience of the Group's performance in the last year is the nature and diversity of the client base. Government work, where we operate thousands of flights (many under challenging conditions) for a range of nation states, now accounts for 43% of sales - an increase of 79% on last year. The second largest client group is that of the Corporate sector where, given pressure on travel budgets and increased competition, business slipped by 2%. Thirdly, sales to High Net Worth clients more than doubled in the year and now represent 13% of turnover.
The main business streams all performed well. Commercial jet business benefited from the strength of demand from our Government sector clients. The geographic spread of our business has also helped with particularly good contributions from France, Italy and Germany. The private jet business encompasses broking, JetCard sales and our own in-house private jet operations. While growth rates have slowed significantly compared with the previous period, the comparison is off a very high base. Pleasingly, JetCard continued to grow well and our private jet operating company at Biggin Hill produced another positive contribution.
Other activities performed well, most notably the UK Freight and Travel divisions, while the Air Planner and Emergency Planning division were both ahead of target.
Our People
Air Partner is very much a people business and its success is due to outstanding teams throughout the Group. However good the individual teams are, ultimate performance relies on the direction by the senior management team. I would like to pay tribute to the hard work of the Executive Directors under David Savile in achieving an excellent result for the year.
I would also like to thank Tony Mack who stood down as Chairman after 23 years, when I took over from him in April 2008. Under his guidance Air Partner has gone from strength to strength. I am delighted that he is staying on the Board as a Non-Executive Director and we will all benefit from his deep understanding of the business and tremendous knowledge of the aviation industry.
Dividends
In the past the Board has maintained a minimum increase of 10% in the core dividend supplemented by periodic special dividends. This year we propose rebasing the annual dividend by raising the final payment to 22.6p (2007: 13.3p) to bring the total for the year to 30.0p (20.0p). This 50% increase recognises the Board's confidence in the quality of recurring earnings and the level of cash in the Group. The Board intends to maintain its policy of progressively increasing the annual dividend from this higher base.
Future Strategy
The events of 9/11 were a watershed for the aviation industry; since then the whole sector has been transformed. In those seven years our sales have tripled and our profitability has quadrupled. We now expect a period of consolidation in the industry which we believe will present longer term opportunities to develop new business and new markets.
We will continue to invest in the business: the recent creation of the Air Partner Academy an in-house learning and development centre, will train the future fee earners and leaders of the business. On the operational front the substantial commitment to the new private jet enclave at Biggin Hill will provide an exciting expansion in a growing sector of the aviation industry.
The Outlook
The business world today has clearly changed since our year end, and a total loss of confidence in the financial markets for three long weeks will leave its mark on every business. In spite of this, the first two months of trading has held up better than expected, but forward Commercial Jet business is significantly reduced from the comparable period; it remains to be seen whether this reaction is short-lived whilst the world adjusts to constantly changing financial news, or if this is an early indication of reduced levels in the future.
Past experience of economic downturns has shown that while Group profits can be affected in the short term, they present an excellent platform to develop the business as people and clients are attracted to the stronger players in the market. It is worth emphasising to new readers that the Group has an enviable history of profitable growth, without recourse to debt, and has rewarded shareholders with constantly increasing dividends for well over a decade. Importantly, we remain confident that our strategy, the underlying breadth of the business, the client base and the quality of our people will allow us to seize new opportunities as they emerge, and continue the long term growth of Air Partner.
I am delighted to be part of a great team of people and thank them for their contribution to past results and undoubted future success.
Aubrey AdamsChairman16 October 2008
Chief Executive's Review
Introduction
Coming out of the 2007 Financial Year with record results, for the third consecutive year, the challenge for 2008 seemed daunting. In a business whose core activity is to harvest an ad hoc need (that may not repeat), one enters each new period with limited forward orders, a list of past and therefore potential clients, and just the historic success to encourage the team that anything is possible. Twelve months on, it is very satisfying to report that not only have we matched the success of 2007, but also we have exceeded it by 35% in sales, 21% in profitability and a net increase of 3% in our active client numbers. Indeed, for the first time we have managed to book contracts worth one quarter of a billion pounds, within a year, representing 400% growth in the last ten years.
2007 was a year of high demand for all of our products, in a strong economic climate with little to hold it back. This year, however the impact of the credit crunch has been growing through the period, and we have had to adjust our sales approach to maintain growth in times of slower demand. Here, our geographic, product and client sector diversity has ensured that we have been able to adjust our targeting in response to a weakening corporate market, and switch our energies to the non-recessionary governmental sector, and as well as continuing our development of the HNWI/private client sector. The 35% increase in annual sales is attributable to a 79% growth from the Governmental sector, 126% increase from the HNW sector, but a 2% slip from Corporates.
It is inevitable in such markets that our margins come under some pressure and the average group margin has slipped approximately two percentage points during this period. However, it is important to remember that as a trading company Air Partner does not target a set margin, but transacts business at the best rate available each day. Nevertheless, it is pleasing that the lower margin has been more than offset by a 35% growth in sales.
Subject to shareholders' approval, the directors have recommended the payment of a final dividend of 22.6 pence (2007: 13.3 pence) per share that will be paid on 19 December 2008 to shareholders on the register at 14 November 2008. This makes a total dividend for the year of 30.0 pence (2007: 80.0 pence, which included a 60.0 pence special dividend) per share. The shares will be marked ex-dividend on 12 November 2008.
Commercial Jets (CJ)
This division represents 66% of total sales, and 52% of the gross profit and it remains the strongest part of our business activity in the UK and the overseas office network. It is a unique quality of the CJ team that we match the specialism of our people perfectly to the repeating requirements of our clients. This engenders a long term trust, as we continually deliver successful flights on a size and scale that others cannot achieve.
Whereas a decade ago the team was largely servicing the Corporate sector, today it majors on global Government sector clients. Given the growing agenda of leading powers to pursue active foreign policies, work levels are high and in today's climate such consistent business is an important source of income.
Our Government sector derived business now accounts for 43% (2007: 33%) of total Group sales in the period under review. Governments around the world require aircraft for a wide variety of needs, mostly in the short term and the Group has developed a close working relationship with many states to supply aircraft for anything from prime ministerial travel to peace-keeping troop movements. They derive comfort from dealing with a large supplier with a long track record of outstanding service across thousands of contracts. Air Partner's strong financial security and the transparency of a fully quoted company allow us to ensure best delivery on all client programmes. The Group's financial strength also allows us to provide important and sometimes unique cash flow to our airline suppliers performing these contracts. This is in stark contrast to alternative bidders and whilst it is a strong USP for the Group, it doesn't override the need for us to be a best value bidder to continue winning new contracts.
Air Partner's wide spread of global commercial jets business has produced strong earnings, with notable performances in France, Italy and Germany, all significantly ahead of target. Tighter procurement budgets and increased competition have led to pressure on margins, and a curtailment of growth in the corporate sector in some territories. However, our diversity has ensured that where slippage has occurred it has been more than offset by disproportionate growth in other key areas, notably the specialist European leisure sector.
However, the high profile failure of airlines is expected to continue through this winter low season, and it is clear that there will be a very different airline landscape in 2009. Accordingly, the charter industry as a whole must now anticipate supply constraints in the future and these have the potential to be more limiting than any reduction in client spend. Over the past five years we have profited from an ample supply of competitive airline capacity to sell, but today, the charter industry's biggest concern is for the short term future of many of the supplier airlines; traditionally supply returns quickly under improving markets. Consequently it should be a year of contrast: on the one hand, much reduced supply matched with higher prices creates difficult trading conditions for all brokers; on the other hand, however, historically, the Group has always benefited in the medium term from states of flux and the opportunities they generate. Additionally the experience of our professional team, our long trading history, the Group's financial security, and our excellent supplier relationships will all contribute to differentiate us from our peers.
Private Jets (PJ)
The PJ division spans ad hoc broking, JetCard sales, and our own in-house private jet operations. Total divisional sales were up 6% on the prior year; together PJ accounts for 23% of group activity.
Ad hoc broking remains a very successful business that has continued to flourish this year, despite PJ being the division most exposed to corporate cutbacks. After two successive record years, we are still pleased to have achieved 95% of PJ's divisional target; this remains a strong achievement given the extremes of 2006 and 2007, and the lack of confidence in the economy today. It is worth noting that total sales for the period were 80% ahead of 2005.
The JetCard division continued to grow well both in terms of sales and profitability throughout the year. There are three essential components to be able to run a successful JetCard programme: volume, captive quality supply, and the ability to optimise the flight programme within your fleet. Air Partner has all three components and the programme is successful, running profitably at competitive rates and on better terms than our rivals. The division continues to perform above expectations; we have maintained client growth through the period, and had a high degree of repeat business. Looking forward we are cautiously investing in a demand driven soft launch of the JetCard across Europe.
The PJ Operating Company (APPJ Ltd.) has seen another year of progress. We are extremely pleased with the halo effect from our Biggin Hill operations, and fleet flight hours and sales turnover have both increased, together with its profitability. Private aviation remains a rapidly consolidating industry, with heavy regulation, high barriers to entry and only a finite number of available opportunities. Against this backdrop our Biggin Hill operations represent a fantastic and rare asset. Air Partner's challenge, as with all its operations, is to take this niche operation and grow the asset for the benefit of all shareholders and customers. Progress against this challenge continues, and in the period under review sales integration and fleet optimisation have been very good, a great testament to the work put in by many to integrate the business. There remain some legacy issues (from pre-acquisition), but most have now been resolved. Encouragingly, we are receiving strong feedback from clients of both our in-house flight operations, and also our third party jet maintenance activity. Moreover, following a recent audit, the regulatory authorities complimented the team on its high quality levels. We will continue to focus on growth and look at all options to build on the work done to date. Additionally, as previously announced, the Group is building a private jet enclave which will rival leading operations in the UK. The enclave's development was slightly delayed due to technical and legal reasons, but we are now at the tender stage ahead of commencing construction. We expect to open the facility in late 2010 and the project has already attracted further new business opportunities to the Group.
Private Jets are used by all three of our main client segments: Governments, Corporates and HNWs. The latter group is where we have concentrated our marketing efforts, and over the past 12 months we have seen the most sales growth. The world of private jets currently remains on a very different trajectory to that of the airline market. Despite a full year of the credit crunch and the high oil price, there is continuing evidence of exceptional growth and capital spending in the higher echelons in the private jet sector. This sentiment has remained throughout the period under review, although clear signs of reduced use have been emerging in some sectors since our year end. Industry observers concur, though, that the backlog of new jet orders through to 2014 and beyond should amply support the industry through any slower years.
Freight
The smallest of the three main divisions, our Freight team is a highly focused, logistics team that delivers the impossible as a matter of routine. This year they were the first division to exceed their annual target, and they did so before the half year. They went on to achieve over double that target and, in doing so, created strong loyalty from a group of clients who recognise the benefits of well organised rapid air movements of vital cargos. Consolidation of the team in the UK provides for central smart trading and procurement, using our overseas offices to expand our client portfolio locally. Expanding this business creates some issues: the average lead time of business is measured in hours not days, and it gains its trade from its clients' misfortunes or unfortunate necessities. We therefore take growth steadily and expand where we see the demand being sustainable. As elsewhere in the Group, Freight has a team of dedicated sales professionals with unrivalled logistical excellence, provided around the clock all year long. Divisional sales grew 134%, resulting in the business being some 10% (2007: 6%) of overall Group activity.
The Global Network - Regional variations
One of the strengths of the group is its international diversity, which creates a spread of earnings across different geographical areas and local economies, each with its own variations for our local office. The UK office has continued to show its strength both in growth of sales and profitability and is unmatched in its network and clients. But beyond the UK, France, Germany, Italy, and Switzerland have provided us with the biggest gains this year. The USA has been the most demanding territory. We have had to accept a year of consolidation as a good outcome for the US market, given the poor trading conditions and our higher dependence on corporate clients.
The record French performance comes from a unique team that has an unbroken ten year history of strong contributions to the Group. This is particularly pleasing in the light of the Group's decision to purchase the division's minority shareholding last year.
It has been a long-standing policy of the company to re-invest today's profits in tomorrow's new territories. This year we have been establishing the two offices in Sweden and Benelux that were started in 2007, and working to grow the profitability of the existing overseas offices opened over the last decade. While our overseas territories provide critical earnings and growth for the parent, the UK market has proven to be very strong, as a result we have held back from new office openings in this period, in favour of investment of additional time and energies into the existing offices. Looking forward, there remain many business cities which could support a local office, all currently in the western world.
Other Divisions
Our Travel division, the Air Planner flight planning service, and our Emergency Planning division all performed ahead of target and each made an important contribution to the Group, providing the diversity of product that appeals to our clients. Air Partner strives to be the only truly global supplier of aircraft and aviation solutions and our progress in all divisions this year takes us closer to that goal, and continues to differentiate the Group from all other aviation companies. Whilst these other divisions account for just 1% of sales, this translates to 4% of profits.
One of many areas where Air Partner differs from its rivals is in its support network. Over recent years we have created, developed and enhanced in-house support for IT, Marketing and PR, Treasury and Finance, and HR to such a level that each operating division can draw on the resources it needs to meet its targets. The roll-out of the new brand over the past 18 months has been well received, and very successful. The finance functions are meeting their targets and while we now have a robust IT platform, we will need to re-invest over the next year given the volume of trade now being pushed through it.
Strategic Update
The Group has benefited from both a consistent strategy and consistent management now for more than a decade. Each year we make definitive improvements whilst maintaining the integrity of the business. I am delighted that Aubrey Adams accepted our invitation to join us as Non-executive Chairman, and his arrival, and wide business experience has already been a great asset to the Group. This has allowed us to increase the time and commitment given to medium and long term planning, aided in no small way by a talented senior management team that focus on managing the trading business against annual divisional targets. His enthusiasm and vitality adds fresh impetus to our experienced Board. The Group continues to pursue further geographic growth as opportunities arise, and investment in our Biggin Hill operation and the wider team at every level. To this end we are making a significant investment in a formalised in-house learning and development centre.
Air Partner AcademyAbove all, we never forget that Air Partner is a people business, and our commitment to personal development has been augmented by the creation of an Air Partner Academy in August 2008. The academy is a serious investment in the ongoing learning and development of all our team. It is a recognition that our business is human-capital intensive, and that it makes long term business sense to increase our investment in skills, and their optimisation. At its heart is the belief that we should be developing careers not just providing jobs. It runs at three levels: starters, expert, and management, and has a dedicated team whose role is to harness individual excellence and progress it throughout the international network. Significant resource and finances have been invested into the initiative, demonstrating the Board's confidence in the long term future of the business.
Current Trading & Outlook
Seven years ago, the ramifications from the 9/11 tragedy required the Group to be more proactive and to seek out new opportunities as traditional ones were suspended. The Group's response demonstrated our resilience and we went on to achieve record results for that financial year. Reassuringly today, we believe the Group's structural integrity will ensure that we continue to be well-placed to seize new opportunities, and emerge stronger as and when economies recover. In these unusual times, the move to increase the core dividend by 50% announced today clearly demonstrates the Board's longer term confidence in the strength of the business.
After an exceptional fourth quarter, the first two months of trading, amidst dramatically weakening sentiment, have held up surprisingly well across our three main product divisions (Private Jets, Commercial Jets and Freight). In the last three weeks, where we have all been witness to a complete loss of confidence in the global banking system, the visibility of bookings has continued to reduce. The trend towards shortening forwards is somewhat contradicted by acceptable daily earnings statistics, leading us into Q2 with some uncertainty, but a measured degree of optimism given everything happening in the global economy today.
Today, we can feel pleased with past achievements but, as ever, the value of the company lies with its longer term capabilities.
David Savile
Chief Executive
16 October 2008
Air Partner PLC
"the Group" or "the Company")
Preliminary Announcement of audited results for the year ended 31 July 2008
Consolidated income statement
|
Continuing operations |
Note |
2008 £'000 |
2007 £'000 |
|
Revenue |
2 |
251,315 |
185,780 |
|
Cost of sales |
(221,410) |
(160,600) |
|
|
Gross profit |
29,905 |
25,180 |
|
|
Administrative expenses |
(21,444) |
(18,233) |
|
|
Operating profit |
8,461 |
6,947 |
|
|
Finance income |
3 |
784 |
668 |
|
Finance costs |
3 |
(2) |
(9) |
|
Profit before tax |
9,243 |
7,606 |
|
|
Taxation |
4 |
(2,892) |
(2,511) |
|
Profit for the period |
6,351 |
5,095 |
|
|
Attributable to: |
|||
|
Equity holders of the parent |
6,351 |
5,089 |
|
|
Minority interests |
- |
6 |
|
|
6,351 |
5,095 |
||
|
Earnings per share: |
|||
|
Basic |
62.6p |
51.8p |
|
|
Diluted |
61.7p |
50.3p |
|
Air Partner PLC
("the Group" or "the Company")
Preliminary Announcement of audited results for the year ended 31 July 2008
Consolidated statement of recognised income and expense
|
2008 £'000 |
2007 £'000 |
|
|
Exchange differences on translation of foreign operations |
645 |
(175) |
|
Net expense recognised directly in equity |
645 |
(175) |
|
Profit for the period |
6,351 |
5,095 |
|
Total recognised income and expense for the period |
6,996 |
4,920 |
|
Attributable to: |
||
|
Equity holders of the parent |
6,996 |
4,909 |
|
Minority interests |
- |
11 |
|
6,996 |
4,920 |
|
Air Partner PLC
("the Group" or "the Company")
Preliminary Announcement of audited results for the year ended 31 July 2008
Consolidated balance sheet
|
Assets |
Note |
2008 £'000 |
2007 £'000 |
|
Non-current assets |
|||
|
Goodwill |
4,374 |
3,619 |
|
|
Other intangible assets |
204 |
379 |
|
|
Property, plant and equipment |
1,852 |
1,421 |
|
|
Deferred tax assets |
292 |
157 |
|
|
6,722 |
5,576 |
||
|
Current assets |
|||
|
Inventories |
434 |
395 |
|
|
Trade and other receivables |
30,388 |
26,675 |
|
|
Cash and cash equivalents |
20,756 |
19,479 |
|
|
51,578 |
46,549 |
||
|
Total assets |
58,300 |
52,125 |
|
|
Current liabilities |
|||
|
Trade and other payables |
(10,040) |
(9,763) |
|
|
Financial liabilities |
(217) |
(170) |
|
|
Current tax liabilities |
(1,422) |
(1,164) |
|
|
Other liabilities |
(29,503) |
(23,605) |
|
|
(41,182) |
(34,702) |
||
|
Net current assets |
10,396 |
11,847 |
|
|
Non-current liabilities |
|||
|
Deferred tax liabilities |
(36) |
(76) |
|
|
(36) |
(76) |
||
|
Total liabilities |
(41,218) |
(34,778) |
|
|
Net assets |
17,082 |
17,347 |
|
|
Equity |
|||
|
Share capital |
7 |
509 |
499 |
|
Share premium account |
7 |
4,264 |
3,475 |
|
Translation reserve |
7 |
356 |
(289) |
|
Share option reserve |
7 |
591 |
454 |
|
Retained earnings |
7 |
11,362 |
13,023 |
|
Equity attributable to equity holders of the parent |
17,082 |
17,162 |
|
|
Minority equity interest |
- |
185 |
|
|
Total equity |
7 |
17,082 |
17,347 |
Air Partner PLC
("the Group" or "the Company")
Preliminary Announcement of audited results for the year ended 31 July 2008
Consolidated cash flow statement
|
Note |
2008 £'000 |
2007 £'000 |
|
|
Net cash from operating activities |
8 |
9,440 |
12,097 |
|
Investing activities |
|||
|
Interest received |
784 |
668 |
|
|
Proceeds on disposal of property, plant and equipment |
- |
1,638 |
|
|
Purchase of minority interest |
(935) |
- |
|
|
Acquisition of subsidiaries (net of cash acquired) |
- |
(2,104) |
|
|
Purchases of property, plant and equipment |
(697) |
(968) |
|
|
Net cash used in investing activities |
(848) |
(766) |
|
|
Financing activities |
|||
|
Dividends paid |
(8,221) |
(2,030) |
|
|
Decrease in bank loans |
- |
(2,533) |
|
|
Proceeds on issue of shares |
799 |
910 |
|
|
Net cash used in financing activities |
(7,422) |
(3,653) |
|
|
Net increase in cash and cash equivalents |
1,170 |
7,678 |
|
|
Opening cash and cash equivalents |
19,479 |
11,931 |
|
|
Effect of foreign exchange rate changes |
107 |
(130) |
|
|
Closing cash and cash equivalents |
20,756 |
19,479 |
|
1 AUTHORISATION OF FINANCIAL STATEMENTS AND STATEMENT OF COMPLIANCE WITH IFRS
The Group prepares its financial statements on the basis of International Financial Reporting Standards ("IFRS") as adopted by the European Union and in accordance with the provisions of the Companies Act 1985. The financial information presented in this preliminary statement has been prepared in accordance with the accounting policies used in preparing the annual financial statements for the year ended 31 July 2008.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not contain sufficient information to comply fully with IFRS.
The following accounting standards and interpretations became effective during the period:
IFRS 7 Financial Instruments: Disclosures
IAS 1 Presentation of Financial Statements: Capital Disclosures
The Group has adopted the above standards and interpretations. The accounting policy amendment affects disclosures only and has no material impact on the current or preceding periods' financial position and performance.
This preliminary statement was approved by a duly appointed and authorised committee of the Board of directors on 16 October 2008. This statement does not comprise the statutory accounts of the Group, as defined in section 240 of the Companies Act 1985. The financial information in this preliminary statement has, however, has been extracted from statutory accounts for the year ended 31 July 2008 on which an unqualified audit report has been issued.
The 2007 statutory accounts have been filed with the Registrar of Companies. The 2008 statutory accounts will be sent to shareholders in November 2008 and will be filed with the Registrar of Companies following their adoption at the forthcoming Annual General Meeting.
2 SEGMENTAL ANALYSIS
|
2008 £'000 |
2007 £'000 |
|
|
Geographical segment - revenue |
||
|
United Kingdom |
152,000 |
107,935 |
|
Europe |
76,589 |
57,970 |
|
United States of America |
19,088 |
16,041 |
|
Rest of the World |
3,638 |
3,834 |
|
251,315 |
185,780 |
|
|
Geographical segment - operating profit |
||
|
United Kingdom |
5,934 |
4,324 |
|
Europe |
1,626 |
1,313 |
|
United States of America |
882 |
856 |
|
Rest of the World |
19 |
454 |
|
8,461 |
6,947 |
|
|
Finance income |
784 |
668 |
|
Finance costs |
(2) |
(9) |
|
Profit before tax |
9,243 |
7,606 |
|
Income tax expense |
(2,892) |
(2,511) |
|
Profit for the period |
6,351 |
5,095 |
|
Business segment - revenue |
||
|
Private Jets |
58,644 |
55,282 |
|
Commercial Jets |
165,415 |
117,525 |
|
Freight |
24,687 |
10,527 |
|
Other |
2,569 |
2,446 |
|
251,315 |
185,780 |
|
|
Business segment - operating profit |
||
|
Private Jets |
3,178 |
2,783 |
|
Commercial Jets |
4,418 |
3,717 |
|
Freight |
558 |
120 |
|
Other |
307 |
327 |
|
8,461 |
6,947 |
|
|
Finance income |
784 |
668 |
|
Finance costs |
(2) |
(9) |
|
Profit before tax |
9,243 |
7,606 |
|
Income tax expense |
(2,892) |
(2,511) |
|
Profit for the period |
6,351 |
5,095 |
3 Finance income and costs
|
Finance income |
2008 £'000 |
2007 £'000 |
|
Interest on bank deposits |
784 |
668 |
|
Finance costs |
2008 £'000 |
2007 £'000 |
|
Interest on bank overdrafts |
2 |
9 |
4 Tax
|
2008 £'000 |
2007 £'000 |
|
|
Current income tax: |
||
|
UK corporation tax |
1,803 |
1,636 |
|
Foreign tax |
1,264 |
969 |
|
Current income tax charge |
3,067 |
2,605 |
|
Deferred tax |
(175) |
(94) |
|
2,892 |
2,511 |
|
5 Dividends
|
2008 £'000 |
2007 £'000 |
|
|
Amounts recognised as distributions to equity holders in the period |
||
|
Final dividend for year ended 31 July 2007 of 13.3 pence (2006: 12.1 pence) per share |
1,356 |
1,200 |
|
Special dividend for year ended 31 July 2007 of 60.0 pence per share |
6,111 |
- |
|
Interim dividend for year ended 31 July 2008 of 7.4 pence (2007: 6.7 pence) per share |
754 |
666 |
|
8,221 |
1,866 |
|
|
Proposed final dividend for the year ended 31 July 2008 of 22.6 pence (2007: 13.3 pence per share) |
2,303 |
1,327 |
An interim dividend of 7.4 pence (2007: 6.7 pence) per share was paid on 16 May 2008. Subject to shareholders' approval, the directors recommend the payment of a final dividend of 22.6 pence (2007: 13.3 pence) per share that will be paid on 19 December 2008 to shareholders on the register at 14 November 2008; this makes a total dividend for the year of 30.0 pence (2007: 80.0 pence, which included a 60.0 pence special dividend) per share. The shares will be marked ex-dividend on 12 November 2008.
The proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.
6 Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
|
2008 £'000 |
2007 £'000 |
|
|
Earnings |
||
|
Earnings for the purposes of basic earnings per share being net profit attributable to equity holders of the parent |
6,351 |
5,089 |
|
Earnings for the purposes of diluted earnings per share |
6,351 |
5,089 |
|
Number of shares |
||
|
Weighted average number of ordinary shares for the purposes of basic earnings per share |
10,138,500 |
9,818,736 |
|
Effect of dilutive potential ordinary shares: share options |
157,769 |
296,161 |
|
Weighted average number of ordinary shares for the purposes of diluted earnings per share |
10,296,269 |
10,114,897 |
7 Statement of changes in equity
|
Share capital £'000 |
Share premium account £'000 |
Share option reserve £'000 |
Translation reserve £'000 |
Retained earnings £'000 |
Minority interest £'000 |
Total equity £'000 |
||
|
Opening equity as at 1 August 2007 |
499 |
3,475 |
454 |
(289) |
13,023 |
185 |
17,347 |
|
|
Exchange differences on translation of foreign operations |
- |
- |
- |
645 |
- |
- |
645 |
|
|
Net expense recognised directly in equity |
- |
- |
- |
645 |
- |
- |
645 |
|
|
Share option movement for period |
- |
- |
346 |
- |
- |
- |
346 |
|
|
Profit for the period |
- |
- |
- |
- |
6,351 |
- |
6,351 |
|
|
Total recognised income and expense for the period |
- |
- |
346 |
- |
6,351 |
- |
6,697 |
|
|
Dividends |
- |
- |
- |
- |
(8,221) |
(8,221) |
||
|
Purchase of minority interest |
- |
- |
- |
- |
- |
(185) |
(185) |
|
|
Issue of shares under share option scheme |
10 |
789 |
(209) |
- |
209 |
- |
799 |
|
|
Closing equity as at 31 July 2008 |
509 |
4,264 |
591 |
356 |
11,362 |
- |
17,082 |
|
8 Net cash from operating activities
|
2008 £'000 |
2007 £'000 |
|
|
Operating profit for the period |
8,461 |
6,947 |
|
Adjustments for: |
||
|
Depreciation and amortisation |
565 |
458 |
|
Profit on disposal of property, plant and equipment |
- |
(78) |
|
Movement on financial liability |
47 |
198 |
|
Share option cost for period |
346 |
213 |
|
Operating cash flows before movements in working capital |
9,419 |
7,738 |
|
Increase in receivables |
(3,713) |
(522) |
|
(Increase)/decrease in inventories |
(39) |
54 |
|
Increase in payables |
6,584 |
6,979 |
|
Cash generated from operations |
12,251 |
14,249 |
|
Income taxes paid |
(2,809) |
(2,143) |
|
Interest paid |
(2) |
(9) |
|
9,440 |
12,097 |
|
Related Shares:
AIR.L