7th Apr 2005 07:00
Air Partner PLC07 April 2005 Air Partner PLC ("the Group" or "the company") Interim Results for the six months ended 31st January 2005 Air Partner is the world's leading aircraft charter broker. The Group provides aircraft charter to industry, commerce & governments worldwide. Highlights • Sales of £63.6m up 46% (£43.6m) • Operating profit £2.32m up 110% (£1.10m) • Pre-tax profits £2.50m up 109% (£1.19m) • EPS 17.3p up 108% (8.3p) • Interim dividend 5.5p up 10% (5.0p) • Group cash £12.5m up 41% (£8.9m) • Significant one-off, non-repeatable business wins • Strong performance from key US and UK markets • New office openings in Minneapolis and Venice in line with expansion programme • H2 expected to be more 'normal' than H1 David Savile, Chief Executive commented: "It has been a phenomenal six months dominated by a series of one-off contractwins. In a market where many clients are very price-sensitive, we have deliveredboth sales growth and the highest levels of service and quality. Thisperformance has been enhanced by the Group's investment in its team. Today, AirPartner is better resourced than ever before allowing it to win and executebusiness with new levels of professionalism. The underlying business remainsstrong, but the one-off contracts that shaped the first half are not expected tobe repeated in the next six months." 7th April 2005 ENQUIRIES:Air Partner T: 01293 844 805David Savile, Chief ExecutiveSteph White, Finance Director TCA T: 0207 670 7400Tom Allison T: 0778 999 8020Amanda Palmer Editor Note: please ensure "Air Partner" is written in its correct singularform, not in the plural. Air Partner PLC ("the Group" or "the company") Interim Results for the six months ended 31st January 2005 I am delighted to report that the Company has enjoyed an exceptional start tothis current financial year. The period has been characterised by the winning ofa number of one-off, non-repeatable projects which have positively impacted theGroup's interim results, with Group sales rising by 46% to £63.6 million (2004:£43.6 million). Profit before tax doubled to £2.5 million (2004: £1.2 million),with earnings per share at 17.3p, a 108% improvement on the comparative period.The Group's cash balance as at 31 January was £12.5 million (2004: £8.9 million)and against this financial backdrop the Directors are recommending increasingthe interim dividend by 10% to 5.5p (2004: 5.0p). The UK and US operations provided the Group's strongest performances, althoughalmost all of the Group's offices are ahead of expectations during the period.The Group treasury function secures currency on a deal-by-deal basis andsubsequently Air Partner's only exposure to currency is on consolidation at eachperiod-end. It is important to note that the high oil price did not directlyaffect the Group. In line with the Group's policy to create a 'diversified business providing aglobal solution based on local expertise', two new offices were opened inMinneapolis and Venice. New office openings are subject to local marketopportunities, suitable candidate availability and cost neutrality achievedwithin one year. Today the Group has a total of 19 offices in 10 countries.Air Partner expects to announce further openings before the year-end. The Group is now benefiting from investments made in team training anddevelopment courses, better recruitment, and significant investment inproprietary IT systems. This has clearly enabled it to win more business despitecompetitive market conditions, and a more fragmented market. Current Trading Due to the significant one-off contracts that occurred in the first half, itwould be unreasonable to expect the second half to be as outstanding as thefirst. In line with this, current trading has reverted to a more normalperformance and business has become more difficult to predict, with lead-intimes shortening against the previous trend. This is manifested by advancedbookings being slightly behind those of the previous period. However, as thefirst half has shown, should large work flows occur again Air Partner hasprepared its business so that it is capable of dealing with significant one-offcontracts whilst maintaining its excellence of client service. The Directors remain confident of the Group's ability to manage the marketvolatility and continue to grow market share. Air Partner continues to be along-term business, operating in a short-term market, and therefore the fullyear results provide a more accurate measure of the Group's progress. Tony Mack, Chairman Air Partner PLC ("the Group" or "the company") Interim Results for the six months ended 31st January 2005 Consolidated profit and loss account Half year to Half year to Year to 31 January 31 January 31 July 2005 2004 2004 (unaudited) (unaudited) (audited) Note £'000 £'000 £'000Turnover 1 63,581 43,642 100,597Operating profit 2,317 1,105 3,504 Net interest receivable 181 89 205Profit on ordinary activities before taxation 2,498 1,194 3,709Taxation (850) (364) (1,174)Profit on ordinary activities after taxation 1,648 830 2,535Minority equity interest (21) (54) (211)Profit attributable to the members of the parent 1,627 776 2,324companyDividends (535) (465) (1,396)Retained profit for the period 1,092 311 928 Earnings per share Basic 17.3p 8.3p 25.0pDiluted 17.0p 8.3p 24.7pDividend per share 5.5p 5.0p 10.0p All the Group's activities are classified as continuing. Consolidated statement of total recognised gains and losses Half year to Half year to Year to 31 January 31 January 31 July 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000Profit attributable to the members of the parent company 1,627 776 2,324Exchange adjustment on retranslation of net assets ofsubsidiary undertakings 5 22 (79)Total recognised gains and losses relating to the period 1,632 798 2,245 Air Partner PLC ("the Group" or "the company") Interim Results for the six months ended 31st January 2005 Consolidated balance sheet as at 31 January 2005 31 January 31 January 31 July 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000Fixed assetsTangible fixed assets 2,521 2,986 2,546Total fixed assets 2,521 2,986 2,546 Current assetsDebtors: 12,310 7,494 13,848Cash at bank and in hand 12,536 8,882 9,983 24,846 16,376 28,831Creditors: amounts falling due within one year (16,082) (10,040) (16,575)Net current assets 8,764 6,336 7,256 Total assets less current liabilities 11,285 9,322 9,802 Creditors: due after more than one year (262) (595) (427)Provision for liabilities and charges (205) (192) (197)Net assets 10,818 8,535 9,178 Capital and reservesCalled up share capital 473 465 466Share premium account 1,785 1,254 1,281Profit and loss account 8,365 6,593 7,268Shareholders' funds - all equity 10,623 8,312 9,015 Minority equity interest 195 223 163 10,818 8,535 9,178 Air Partner PLC ("the Group" or "the company") Interim Results for the six months ended 31st January 2005 Group cash flow statement for the six months ended 31 January 2005 Half year to Half year to Year to 31 January 31 January 31 July 2005 2004 2004 (unaudited) (unaudited) (audited) Note £'000 £'000 £'000Cash inflow from operating activities 2 4,018 1,917 4,189Returns on investment and servicing of finance (23) (124) (8)Taxation (633) (648) (1,262)Capital expenditure and financial investment (172) (103) (149)Equity dividends paid (946) (846) (1,326)Cash inflow before use of liquid resourcesand financing 2,244 196 1,444Management of liquid resources (4,166) (1,029) (1,900)Financing 347 (182) (319)(Decrease) in cash in period (1,575) (1,015) (775) Reconciliation of net cash flow to movement in net funds Half year to Half year to Year to 31 January 31 January 31 July 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000(Decrease) in cash in period (1,575) (1,015) (775)Cash outflow from short term deposits 4,166 1,029 1,900Cash outflow from debt and financing 164 182 347Change in net funds resulting from cash flows 2,755 196 1,472Exchange adjustments (31) 15 13Movement in net funds in period 2,724 211 1,485 Opening net funds 9,332 7,847 7,847Closing net funds 12,056 8,058 9,332 Air Partner PLC ("the Group" or "the company") Interim Results for the six months ended 31st January 2005 Notes to the interim results Half year to Half year to Year to 31 January 31 January 31 July 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'0001. TurnoverClasses of business Air Charter 63,046 43,132 99,538Travel agency 528 498 1,046Insurance 7 12 13 63,581 43,642 100,597Turnover on ordinary activities by source:United Kingdom 33,114 24,013 52,773Rest of the world 30,467 19,629 47,824 63,581 43,642 100,597Turnover on ordinary activities by destination (clientresidence):United Kingdom 17,381 17,142 36,642Rest of the world 46,200 26,500 63,955 63,581 43,642 100,597 2. Reconciliation of operating profit to net cash inflow from operatingactivitiesOperating profit 2,317 1,105 3,504Depreciation charges 243 293 589Loss on sale of fixed assets 1 1 1Decrease/(increase) in debtors 1,635 5,552 (962)(Decrease)/increase in creditors (178) (5,034) 1,057Net cash inflow from operating activities 4,018 1,917 4,189 3. The interim results have been prepared using the accounting policies setout in the financial statements for the year ended 31 July 2004. The financialinformation for the year to 31 July 2004 on which the auditors issued anunqualified opinion, does not constitute statutory accounts as in Section 240 ofthe Companies Act 1985. The accounts have been delivered to the Registrar ofCompanies. 4. The interim results include the results of Air Partner InsuranceConsultants Ltd., Air Partner International SARL, Air Partner InternationalGmbH, Air Partner Inc., Air Partner (Switzerland) AG, Air Partner TravelConsultants Ltd., Air Partner Leasing Pty Ltd. 5. The directors have declared an interim dividend of 5.5 pence net per sharepayable on 20 May 2005 to shareholders on the register at the close of businesson 22 April 2005. The ordinary shares will be marked ex-dividend on 20 April2005. 6. Basic earnings per share have been calculated by reference to earnings of£1,627,000 (2004: £776,000) and the weighted average number of ordinary sharesin issue of 9,407,081 (2004: 9,300,273). Diluted earnings per share have beencalculated by reference to the same earnings and the weighted average number ofshares in issue plus any outstanding options totalling 9,570,306 (2004:9,340,214). 7. This report is being sent to shareholders and will be available to membersof the public at the Company's registered office at Platinum House, GatwickRoad, Crawley, West Sussex RH10 9RP. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
AIR.L