11th Oct 2007 07:00
Air Partner PLC11 October 2007 Air Partner PLC ("Air Partner" or "the Group" or "the Company") Year end results for the 12 months ended 31 July 2007 Highlights * Sales up 32% to £185.8m (£140.4m) * Profit before tax up 49% to £7.6m (£5.1m) * Diluted EPS up 46% to 50.3p (34.4p) * Proposed final dividend up 10% to 13.3p (12.1p) * Net Cash up 64% to £19.5m (£11.9m) * Proposed Special dividend 60p per share, equal to £6 million (5th in 12 years) * 38% increase in new clients * Strategy to diversify revenue performing well - all sectors and geographies extremely buoyant * UK, Germany and Italy show strongest growth. France and USA remain significant contributors * Investment in market for high net worth ("HNW") jet usage producing good results * Platform for growth strengthened by new operational boards * Two new offices opened in Sweden and Benelux * Over 10 years TSR has grown by an average of 30% per annum * Current trading is strong and 15% ahead of the comparative period * Shift to private aviation set to continue David Savile, Chief Executive of Air Partner commented: "These record resultsdemonstrate the Group's ability to provide outstanding service and clientsatisfaction over the long term. I am delighted to be announcing the group's13th consecutive 10% increase in dividend and our fifth special dividend in 12years. Over the last 12 months Air Partner has grown its business by geography,clients and products, and invested to produce a stronger platform from which wecan win further market share in the rapidly growing private aviation market." 11th October 2007 ENQUIRIES: Air Partner PLC Tel: 01293 844 805David Savile On 11th October Tel: 0207 002 1080 Thereafter Tel: 01293 844 805 Temple Bar Advisory Tel: 0207 002 1080Tom Allison Tel: 0778 999 8020Nicola Flynn Notes to editors: please ensure "Air Partner" is written in its correct singularform, not in the plural. Air Partner PLC ("Air Partner" or "the Group" or "the Company") Year end results for the 12 months ended 31 July 2007 Chairman's statement I am pleased to report that Air Partner has, once again, enjoyed a buoyant year,producing significant growth in both sales and profits. The significant progressin the year under review has been driven by five principal factors: an undividedfocus on the Group's core corporate and government business; further expansioninto the private high net worth market; continued diversification of the Group'srevenue by product, geography and clients; a commitment to maintaining thehighest of client service levels; and a back drop of near-perfect tradingconditions. In the twelve months to 31 July, turnover grew 33% to £185.8 million (2006:£140.4m), increasing the profit before tax to £7.6 million (2006: £5.1m) andraising basic earnings per share to 51.8p (2006: 35.5p). The Group's cashposition at the end of this period was £19.5 million (2006: £11.9 m) -particularly impressive considering we used £5.1 million to fund the acquisitionof Gold Air International Limited in the year. With such strong results, theBoard of directors is proposing a final dividend of 13.3p and a special dividendof 60p per ordinary share, both to be paid on 5 December 2007 to shareholders onthe register on 2 November 2007. We are confident that the cash reserves, andother sources of funds, are more than adequate for our strategic goals to beachieved as the company continues to grow. Over the last five years, Air Partner has made excellent progress in an industrythat is enjoying rapid growth, and the company is very different now to thebusiness founded almost 50 years ago. Today, Air Partner services anever-growing array of clients as diverse as heads of state and governmentdepartments to large corporates and high net worth individuals. Air Partneroffers clients all aspects of private aviation(1) service from commercial jetcharters to private jet charter, sales, management and JetCards, and freightaircraft. In line with our tried and tested strategy we have opened two moreEuropean offices during the year bringing the total to 23 offices in 15countries worldwide. Over the coming months work will commence on the Group's new high securityprivate jet enclave at Biggin Hill - providing another step in the Group'sprogression towards becoming the pre-eminent global private aviation company.Planning for growth is an enviable task and it is encouraging to report that theGroup's re-structuring into two core operating divisions, Air Partner PrivateJets and Air Partner Commercial Jets has been well received internally andexternally. The Board is confident that the Group has put in place thestructure and the management team to best lead the business forward and providea focused and global approach to client service. Pleasingly too, we continue to attract new clientele across all of the Group'sproduct offerings and geographic areas, with the active number of clients up 38%on the previous year - 21% organically and 17% through acquisition. Clientretention is also very solid. The last 18 months have provided Air Partner with unprecedented trading, drivenby a strong global economy, further deterioration of the scheduled airlineexperience and the continued rapid growth of the high net worth segment. Recentcapital market turmoil is a reminder that trading conditions can be volatile;Air Partner has not experienced any effect from this and I am pleased to reportthat our forward bookings as at 31 July 2007 compared with last year (which werealso very good) are currently 15% higher and showing signs of getting better.Whilst our corporate markets can be volatile, we believe our diversified spreadof earnings is a good buffer against significant flux, and we remain confidentin the Group's future prospects, inasmuch as our limited visibility permits. Importantly, Air Partner is confident that it is maximising the opportunitiespresented to the Group, and the business has made significant progress that thedirectors believe will stand it in good stead if a significant economic slowdowndoes materialise. On 4 September we bought the 45% shareholding that we did not already own in AirPartner International SAS, our French subsidiary. This is a sound investment andearnings enhancing. Lastly, I would like to thank both the team and my fellow Board directors forall their unstinting hard work, support and commitment during the 2007 financialyear. Chief Executive's Review Financial Year 2007 has proved to be another great year for Air Partner. Just 12months ago the Group announced profits before tax of £5m for the first time,with expectations to remain ahead of that landmark. Today, Air Partner is almost50% ahead of last year. For the second consecutive year the Group has traded ahead of both internal andexternal expectations. Sales, margin, gross profit and net profit improvementshave been exceptionally strong, with trading sustained at unprecedented levelsfor each and every one of the twelve months, in near perfect trading conditions The main challenge this year has been to maintain our front line reputation for"delivering successful flights", given an extreme workload one third higher thanlast year, and no 'quieter months' to devote to supporting the new levels.Hence, I am particularly pleased to report that the team has maintained andimproved our operational reputation with regular clients, broadened our clientbase, and created new systems and structures to maintain these new levels. In addition, Air Partner has furthered its stated strategy to continuediversifying its revenues across the three geographic, client, and product axes- this being a hallmark of the Group in recent years. Air Partner is a people business, and its strength stems from the team thatchooses to work here. This year we have had over 97% desired retention of theteam, whilst attracting many new key post holders and fee earners in theprocess. Today, the team size is now almost 250 employees. During the year the Group restructured and now operates and reports as two coredivisions: Air Partner Private Jets ("PJ"), and Air Partner Commercial Jets ("CJ") collectively accounting for 93% of the Group's activity. Private Jets The PJ division accounts for 30% of Group sales and comprises two sub divisions.The larger part is the traditional air charter business, selling private jetusage and JetCards. This business is based in our head office in Gatwick, butoperates throughout the global network, generating the bulk of the Group's PJrevenues. The second part is the PJ Operating Company (formerly Gold Air),managing the largest fleet of Learjets in western Europe from London (BigginHill), and offering charter, jet management, jet sales, and jet maintenance.Total sales for the PJ division grew 62% to £55.3m, of which 31% came fromorganic growth, and 31% from the acquisition. Operating profit rose 73% to£2.78m, as Air Partner benefited from the halo effect of being broker andend-supplier. A key theme of the year has been an improvement of the balance of demand, suchthat it is more evenly spread across every month of the year. This stems fromthe successful growth of the Group's jet-for-leisure business which serviceshigh net worth (HNW) clients, who traditionally travel at times when existingcorporate flying is reduced. With business emanating from corporate, governmentand private sectors we have achieved a more even flow of business as a result.Pleasingly, demand is not only more balanced, but it is currently at recordlevels. Our focus now switches to sustainability of this even and strong demandacross the traditionally quieter winter months. As part of the Board's continued focus on adding structure to support growth ofthe business, a review of recruitment, training, career development andmanagement structure was undertaken earlier in the year. The key aim of thereview was to develop the very best private jet team at all levels, from newhires and senior traders, to operations teams and management. It is pleasing toreport that much has been achieved on these fronts, and the Group now has a PJBoard fully responsible for the operational control of all PJ products andservices. The Group has benefited greatly from the acquisition of Gold Air last October,and its conversion into Air Partner Private Jets as an operating company. Withseven private jets under the Air Partner brand, and under our direct control(2),the market now identifies Air Partner as an end-supplier of private aviationservices, as much as the market-leading broker. This significant change inperception has strengthened the brand immensely and has been a key factor in theperformance in the year under review. Moreover, this broadening of the Group'sfocus will play a core part in the Group's future growth. JetCard sales have similarly grown, providing many new clients, better forwardvisibility of earnings, and the ability for us to sell different PJ products toclients, as their changing use and need dictates. The total PJ sector rewards have been high, with record levels of flights,record positive client feedback, referrals, and new client acquisitions. In justfour years we have tripled the PJ sector earnings. Looking forward there is muchheadroom for growth both in absolute and market share terms. The integration of Gold Air proved to be more challenging than expected. GoldAir historically made its profits in the summer, and lost money in certainwinter months. We acquired it in October (as it entered its weak season) andafter reviewing the business, the decision was taken to restructure earlier thanplanned, re-brand it to incorporate the Air Partner name and strengthen the keyteam members. This led to one one-off costs of £275,000 in the process. Theoutcome of the restructuring has been pleasing and six months of winter losseswere more than offset in the last four months to establish a small operatingprofit by the year-end(3), whilst writing off all the one-off costs into thisyear. Moreover, the business is now placed on a stronger footing, better gearedtowards optimised utilisation of its assets than before. Given the progress in the first six months, in May we were able to announceplanned investment of £5m to develop our base at London's Biggin Hill airportinto a high security private jet enclave. The plan includes the construction ofa new hangar complex alongside the Group's existing facility and increasing itsarea from 25,000 to 150,000 sq ft. This endorses the Board's view that Bigginis the ideal airport for Air Partner's longer term strategies and its clients'requirements. Located just 14 miles from the City, it is the least constrainedof all London airports, with significant available runway capacity, and offersowners, users, and the company the most flexible access to the South East'scrowded skies, together with the least constraints on future growth. There is much debate whether today's unprecedented private jet demand, driven bythe ever-deteriorating scheduled air experience, oppressive and intrusiveairport security, and rising personal wealth is a transient phenomenon awaitingthe next cycle, or whether there has been a sea-change in users' attitude andtoday's demand is to become the norm. Anecdotal evidence from both the usersand the industry itself supports the latter view, and the Group's focus remainson sustained growth. However Air Partner is prepared for either eventuality andis confident that it can perform well in either scenario. Commercial Jets The performance of the Commercial Jets team has been no less impressive and noless easy. CJ is the largest Group division and currently accounts for 63% oftotal sales. This year CJ sales were up 26% to £117.5m and operating profit wasup 41% to £3.72m; average margin was up 175 base points. Similarly rebranded and with a tighter management structure in the form of a CJBoard, the focus has also been to grow the structural integrity of the businessas much as the financial results. Notably we have found that average clientspend is significantly increased, with the 'top 100 client spend' up 24%, and weare uncovering and winning more medium term contracts than in the past. Thisprovides for better visibility of earnings, but in supporting this increasedactivity, it stretched the team and restricted our ability to grow the totalnumber of active clients as we would have liked; new recruitment is alreadyhaving a positive impact. Today's broking businesses need to offer real added value on every contract andthis is where the Air Partner team excels through its sheer volume ofexperience. Not only does Air Partner provide the best in-house logisticsservice, but the Group's growing reputation is starting to score moreconsistently against perceived look-alikes. Increasingly, Government andestablished corporates know that Air Partner provides a quality result on everyone of its contracts, irrespective of the vagaries of today's airline andairport services. Government sector business continues to be a significant part of the Group inall divisions and this year sales have exceeded £60 million. There is some sensethat this may be a peak, and whilst we are prepared for this market to mature,we are also conscious that in today's volatile geo-political and securityenvironment, new demand can emerge very quickly. For example, just over half oftoday's contracts are driven by ongoing pervasive instability. To counterbalancethis, the Group's sales are spread over a wide range of different world powers,earnings diversification being an important theme of the Group's strategy. This year has seen the CJ team enter new markets: early penetration into thespecialised European tour operator markets has been growing in France overrecent years, but now is established in Italy as a result of a key businessalliance with a local Italian airline. Acting as the commercial arm for smallercarriers provides the Group with an excellent opportunity for new businessgrowth and we will explore further opportunities in niche markets around theGroup. The Global Network - Regional variations Whilst the bias of the PJ business is firmly towards the UK, the CJ business isstrongly enhanced by its spread through the rest of the global network. Despite58% of Group activity originating from the UK, and growth here still being thestrongest, the international operation is crucial to the success of the Group.During the final quarter we opened two new offices, the first in Amsterdam whichwill cover the whole of the Benelux area, and the second in Malmo - the Group'sfirst entry into the Scandinavian market. These bring the total number ofoffices to 23. The main businesses accounting for the bulk of non-UK earnings havetraditionally been the US, France, Germany and the UAE. The smaller officesremain essential for our global reach, not only in sales, but also in flightlogistics, support and execution. The fastest growing offices were Germany and,notably, Italy, which have seen quantum growth in both sales and profitability.After many strong years, the performance of both France and the USA has reduceda little this year, but they remain significant profit contributors, and officeswe are very proud of. It is this geographic, product, and industry spread thathas assisted the Group to deliver outstanding results year on year. After the financial year end, the Group purchased the 45% equity stake of theFrench office, held by the founder Mr Claude Giunta, for €1.38m. This removesthe only piece of locally-held minority interest, and leaves all businesses(4)wholly-owned by the Group. Mr Giunta had stood down from the French business in2001 and subsequently had no direct involvement with the business. Other Divisions Outside the core activities we continue to grow with smaller, but equallystrong, support divisions. These include the Freight team, Travel business,Emergency Planning, and 'Air Planner' - the global flight support team.Combined, these businesses contribute an important final 7% of revenue, withsimilar growth rates to the rest of the Group. They are well integrated with therest of group activities, providing opportunities of support, clientcross-selling, and repackaging of the core group skills to address nichemarkets. Air Partner also maintains the historic small aircraft lease contractin Australia which started in 2000 and remains profitable today. Strategic Update The Group continues to use geographic, product and client diversification toexpand its revenue streams and reduce the vulnerability of its business to anyparticular line of earnings. Significant progress has been made this year in allareas, but notably in the development of a wider portfolio of earnings from theprivate jet sector, and the development of the Biggin Hill facility is alsoexpected to create a range of new opportunities over the next 5 years. CJcontinues to deliver strong cash flow that helps to fuel the strategicinvestments into long term growth. The key drivers for our business growth remain globalisation, ongoingdeterioration of the scheduled air experience, the instability of thegeo-political environment, increasing corporate and private wealth, and anincreasing value placed on time. It is hard to see any of these drivers changingto the detriment of the Group in the coming months. Environmental Issues We have made further progress towards meeting our green ambitions, and are ontarget to be carbon neutral by the end of 2008. The consequences of the growthin global air travel has been much in the news, and we have the ability toimprove the impact our client's flying has on the environment, as well as ourown corporate footprint. Current Trading The Group has benefited from near-perfect trading conditions in recent years. Asthe nature of the business is meeting ad hoc need, the Group will always sufferfrom a small forward order book. Average lead-in periods for key divisions arejust two months for CJ, two days for PJ, and as low as two hours for the Freightteam. However, where medium term contracts come to the surface, the Group hasshown its adeptness in winning them. This, in conjunction with increasingrevenues emanating from JetCard and Jet Management revenue lines, improvesvisibility. We are therefore encouraged by forward bookings that are currently15% ahead of the comparable time last year. Your directors have used the favourable trading conditions over the last twoyears to re-inforce the structural integrity of the Group and today Air Partnerhas a fantastic team of skilled traders, managers, and support teams. TheGroup's internal services (finance, logistics, marketing, IT, training, and HR)are equally strong and scaled for the current growth rates, and the PJ OperatingCompany has made good progress in its first 10 months post acquisition. Webelieve that your company remains well-placed for the future. My personal thanks go out to a team that I know to be the best within thesector. Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of audited Results for the year ended 31st July 2007 Consolidated income statement Continuing operations Note 2007 2006 £'000 £'000----------------------------------------------------------------------------------------------------------------Revenue 185,780 140,368 Cost of sales (160,600) (124,819)----------------------------------------------------------------------------------------------------------------Gross profit 25,180 15,549 Administrative expenses (18,233) (10,948)----------------------------------------------------------------------------------------------------------------Operating profit 6,947 4,601 Finance income 2 668 534 Finance costs 2 (9) (6)----------------------------------------------------------------------------------------------------------------Profit before tax 7,606 5,129 Taxation 3 (2,511) (1,537)----------------------------------------------------------------------------------------------------------------Profit for the period 5,095 3,592----------------------------------------------------------------------------------------------------------------Attributable to: Equity holders of the parent 5,089 3,429 Minority interests 6 163---------------------------------------------------------------------------------------------------------------- 5,095 3,592----------------------------------------------------------------------------------------------------------------Earnings per share: Basic 51.8p 35.5p Diluted 50.3p 34.4p---------------------------------------------------------------------------------------------------------------- Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of audited Results for the year ended 31st July 2007 Consolidated statement of recognised income and expense 2007 2006 £'000 £'000----------------------------------------------------------------------------------------------------------------Exchange differences on translation of foreign operations (175) (271)----------------------------------------------------------------------------------------------------------------Net expense recognised directly in equity (175) (271) Profit for the period 5,095 3,592----------------------------------------------------------------------------------------------------------------Total recognised income and expense for the period 4,920 3,321----------------------------------------------------------------------------------------------------------------Attributable to: Equity holders of the parent 4,909 3,158 Minority interests 11 163---------------------------------------------------------------------------------------------------------------- 4,920 3,321---------------------------------------------------------------------------------------------------------------- Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of audited Results for the year ended 31st July 2007 Consolidated balance sheet Assets Note 2007 2006 £'000 £'000 restated----------------------------------------------------------------------------------------------------------------Non-current assets Goodwill 3,619 - Other intangible assets 379 - Property, plant and equipment 1,421 425 Deferred tax assets 157 315---------------------------------------------------------------------------------------------------------------- 5,576 740---------------------------------------------------------------------------------------------------------------- Current assets Inventories 395 - Trade and other receivables 26,675 23,613 Financial assets - 28 Cash and cash equivalents 19,479 11,931---------------------------------------------------------------------------------------------------------------- 46,549 35,572----------------------------------------------------------------------------------------------------------------Non-current assets held for sale - 1,582----------------------------------------------------------------------------------------------------------------Total assets 52,125 37,894---------------------------------------------------------------------------------------------------------------- Current liabilities Trade and other payables (9,763) (7,928) Financial liabilities (170) - Current tax liabilities (1,164) (796) Other liabilities (23,605) (15,819)---------------------------------------------------------------------------------------------------------------- (34,702) (24,543)----------------------------------------------------------------------------------------------------------------Net current assets 11,847 11,029---------------------------------------------------------------------------------------------------------------- Non-current liabilities Trade and other payables - (110) Deferred tax liabilities (76) (76)---------------------------------------------------------------------------------------------------------------- (76) (186)---------------------------------------------------------------------------------------------------------------- Total liabilities (34,778) (24,729)---------------------------------------------------------------------------------------------------------------- Net assets 17,347 13,165---------------------------------------------------------------------------------------------------------------- Equity Share capital 6 499 483 Share premium account 6 3,475 2,581 Translation reserve 6 (289) (114) Share option reserve 6 454 496 Retained earnings 6 13,023 9,545----------------------------------------------------------------------------------------------------------------Equity attributable to equity holders of the parent 17,162 12,991----------------------------------------------------------------------------------------------------------------Minority equity interest 185 174----------------------------------------------------------------------------------------------------------------Total equity 6 17,347 13,165---------------------------------------------------------------------------------------------------------------- Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of audited Results for the year ended 31st July 2007 Consolidated cash flow statement Note 2007 2006 £'000 £'000----------------------------------------------------------------------------------------------------------------Net cash from operating activities 7 12,097 154---------------------------------------------------------------------------------------------------------------- Investing activities Interest received 668 534 Proceeds on disposal of property, plant and equipment 1,638 32 Acquisition of subsidiaries (net of cash acquired) (2,104) - Purchases of property, plant and equipment (968) (208) ----------------------------------------------------------------------------------------------------------------Net cash (used in)/generated by investing activities (766) 358---------------------------------------------------------------------------------------------------------------- Financing activities Dividends paid (2,030) (3,586) Decrease in bank loans (2,533) (343) Proceeds on issue of shares 910 -----------------------------------------------------------------------------------------------------------------Net cash used in financing activities (3,653) (3,929)---------------------------------------------------------------------------------------------------------------- Net increase/(decrease) in cash and cash equivalents 7,678 (3,417) Opening cash and cash equivalents 11,931 15,437 Effect of foreign exchange rate changes (130) (89) ----------------------------------------------------------------------------------------------------------------Closing cash and cash equivalents 19,479 11,931---------------------------------------------------------------------------------------------------------------- 1 AUTHORISATION OF FINANCIAL STATEMENTS AND STATEMENT OF COMPLIANCE WITH IFRSs The Group prepares its financial statements on the basis of InternationalFinancial Reporting Standards ("IFRS") as adopted by the European Union and inaccordance with the provisions of the Companies Act 1985. The financialinformation presented in this preliminary statement has been prepared inaccordance with the accounting policies used in preparing the annual financialstatementsfor the year ended 31 July 2007, which do not differ significantlyfrom those used for the most recent annual financial statements. This preliminary statement was approved by a duly appointed and authorisedcommittee of the Board of directors on 11 October 2007. This statement does notcomprise the statutory accounts of the Group, as defined in section 240 of theCompanies Act 1985. The financial information in this preliminary statementhas, however, has been extracted from statutory accounts for the year ended 31July 2007 on which an unqualified audit report has been issued. The 2006 statutory accounts have been filed with the Registrar of Companies. The2007 statutory accounts will be sent to shareholders in October 2007 and will befiled with the Registrar of Companies following their adoption at theforthcoming Annual General Meeting. 2 Finance income and costs Finance income 2007 2006 £'000 £'000----------------------------------------------------------------------------------------------------------------Interest on bank deposits 668 534---------------------------------------------------------------------------------------------------------------- Finance costs 2007 2006 £'000 £'000----------------------------------------------------------------------------------------------------------------Interest on bank overdrafts 9 6---------------------------------------------------------------------------------------------------------------- 3 Tax 2007 2006 £'000 £'000----------------------------------------------------------------------------------------------------------------Current income tax:UK corporation tax 1,636 785Foreign tax 969 897---------------------------------------------------------------------------------------------------------------- Current income tax charge 2,605 1,682 Deferred tax (94) (145)---------------------------------------------------------------------------------------------------------------- 2,511 1,537---------------------------------------------------------------------------------------------------------------- 4 Dividends 2007 2006 £'000 £'000----------------------------------------------------------------------------------------------------------------Amounts recognised as distributions to equity holders in the periodFinal dividend for year ended 31 July 2006 of 12.1 pence (2005: 11 pence) per share 1,200 1,063 Special dividend for year ended 31 July 2005 of 20.0 pence per share - 1,933Interim dividend for year ended 31 July 2007 of 6.7 pence (2006: 6.1 pence) per share 666 590---------------------------------------------------------------------------------------------------------------- 1,866 3,586---------------------------------------------------------------------------------------------------------------- Proposed final dividend for the year ended 31 July 2007 of 13.3 pence (2006: 12.1 pence per share) 1,327 1,170----------------------------------------------------------------------------------------------------------------Proposed special dividend for the year ended 31 July 2007 of 60.0 pence (2006: Nil) 5,985 ----------------------------------------------------------------------------------------------------------------- The proposed final dividend is subject to approval by shareholders at the AnnualGeneral Meeting and has not been included as a liability in these financialstatements. 5 Earnings per share The calculation of the basic and diluted earnings per share is based on thefollowing data: 2007 2006 £'000 £'000----------------------------------------------------------------------------------------------------------------- Earnings Earnings for the purposes of basic earnings per share being net profit attributable 5,089 3,429to equity holders of the parent Earnings for the purposes of diluted earnings per share 5,089 3,429----------------------------------------------------------------------------------------------------------------- Number of shares Weighted average number of ordinary shares for the purposes of basic earnings per share 9,818,736 9,665,518 Effect of dilutive potential ordinary shares: share options 296,161 314,851----------------------------------------------------------------------------------------------------------------- Weighted average number of ordinary shares for the purposes of diluted earnings per share 10,114,897 9,980,369----------------------------------------------------------------------------------------------------------------- 6 Statement of changes in equity Share Share Transla- Share premium option Hedging tion Retained Minority Total capital account reserve reserve reserve earnings interest equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000--------------------------------------------------------------------------------------------------------------- Opening equity as at 1 August 2006 483 2,581 496 (28) (114) 9,545 174 13,137 Prior year restatement - - - 28 - - - 28--------------------------------------------------------------------------------------------------------------- Opening equity as at 1 August 2006 (restated) 483 2,581 496 - (114) 9,545 174 13,165--------------------------------------------------------------------------------------------------------------- Exchange differences on translation of foreignoperations - - - - (175) - 5 (170)--------------------------------------------------------------------------------------------------------------- Net expense recognised directly in equity - - - - (175) - 5 (170) Share option movement for period - - 213 - - - - 213 Profit for the period - - - - - 5,089 6 5,095--------------------------------------------------------------------------------------------------------------- Total recognised income and expense for theperiod - - 213 - - 5,089 6 5,308 Dividends - - - - - (1,866) (1,866) Issue of shares under share option scheme 16 894 (255) - - 255 - 910--------------------------------------------------------------------------------------------------------------- Closing equity as at 31 July 2007 499 3,475 454 - (289) 13,023 185 17,347--------------------------------------------------------------------------------------------------------------- 7 Net cash from operating activities 2007 2006 £'000 £'000----------------------------------------------------------------------------------------------------------------Operating profit for the period 6,947 4,601 Adjustments for: Depreciation and amortisation 458 445 (Profit) / loss on disposal of property, plant and equipment (78) 5 Movement on financial liability/(asset) 198 (38) Share option cost for period 213 196----------------------------------------------------------------------------------------------------------------Operating cash flows before movements in working capital 7,738 5,209 (Increase)/decrease in receivables (522) (11,922) Decrease in inventories 54 - Increase in payables 6,979 8,279----------------------------------------------------------------------------------------------------------------Cash generated from operations 14,249 1,566 Income taxes paid (2,143) (1,406) Interest paid (9) (6)---------------------------------------------------------------------------------------------------------------- 12,097 154---------------------------------------------------------------------------------------------------------------- 8 Analysis of net funds 31 July Cash flow Foreign exchange 31 July 2006 effect 2007Group £'000 £'000 £'000 £'000--------------------------------------------------------------------------------------------------------------- Cash and short-term deposits 11,931 7,678 (130) 19,479---------------------------------------------------------------------------------------------------------------Net cash and cash equivalents 11,931 7,678 (130) 19,479---------------------------------------------------------------------------------------------------------------Total net funds 11,931 7,678 (130) 19,479--------------------------------------------------------------------------------------------------------------- -------------------------- (1) 'Private Aviation' defined as flights operated where one user charters the whole aircraft, as opposed to flights where passengers have paid for individual seats on a flight already planned to operate from a timetable (2) The jets themselves are in private ownership, and are not owned by the Group (3) With Gold Air adopting the AP financial year dates, we are reporting after 10 months of trading. (4) The Delhi, Singapore, and Tokyo offices are sales and logistics outlets, and not owned by Group This information is provided by RNS The company news service from the London Stock ExchangeENDRelated Shares:
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