Results for the 12 months to 31 January 2015

Air Partner plc

("Air Partner" or "the Group" or "the Company")

Results for the year ended 31 January 2015

Strong second half recovery delivers full year results ahead of revised expectations

23 April 2015 - Air Partner, the global aviation charter specialist for corporates, individuals and governments, today reports results for the year ended 31 January 2015.

Due to the change in accounting reference date in the prior period, the narrative to these results is based on audited results for the year ended 31 January 2015, with a comparative based on unaudited pro-forma results for the year ended 31 January 2014.

* - as restated. † = "underlying excludes non-trading items and discontinued operations. # = includes JetCard cash of £14.1m (2014: £8.8m), of which £1.8m held on a client account (2014: £nil).

Financial highlights:

* Group responded well to disappointing H1 trading, leading to a much improved H2

* The recovery in H2 led to full year results being ahead of the revised expectations

* Profit after tax further assisted by £0.9m of tax credits

* Group remains debt free, with cash of £18.8m (2014: £18.4m), of which £14.1m is JetCard deposits (2014: £8.8m)

* Proposed final dividend up 10% to 15.4p, taking the total dividend for the year to 22.06p

* Year-to-date trading and forward order visibility in line with management expectations

Group highlights:

* Areas of strategic focus continue to progress with new contract wins across all areas

* Successful Tour Operating programme in Italy led to record profits for the region

* Excellent broking for automotive launch programmes led to record year for the German Commercial Jets division

* Investment in Private Jets sales staff leading to record new JetCard sales of £9.6m

* Investment in the Freight division has started to show returns with excellent improvements in sales and profits

Mark Briffa, CEO of Air Partner, commented: "This has proved to be a year of two very different halves, as reflected in the disappointing half-year results, which were lower than expected as a result of fewer material one-off contracts in our Commercial Jet division. However, the second half of the year delivered better results than anticipated helping us achieve a full year result ahead of revised expectations. With no debt and over £18m of cash, the Board has increased the final dividend by 10% to 15.4p. Air Partner remains well funded with a robust cash balance and this strong financial position allows us to invest in areas across the Group that will help deliver its strategy and remain at the forefront of the global charter market."

CHAIRMAN'S STATEMENT

Results

A stronger than expected performance in the second half of the year contrasted with the disappointing trading in the first half resulting in full year revenue of £192.1m and underlying profit before tax of £2.6m (2014: revenue of £211.5m and underlying profit before tax of £4.1m). The stronger second half of the year was driven by a good performance from the Commercial Jets division, particularly in Italy and Germany which delivered record six month performances, resulting in a full year underlying operating profit of £2.7m (2014: £3.9m), and the Freight division, which delivered an underlying operating profit of £0.4m, up £0.5m on the prior year (2014: loss of £0.1m).

The Group remains cash generative and debt free: as at 31 January 2015, the cash balance stands at £18.8m (2014: £18.4m). JetCard deposits have increased to £14.1m (2014: £8.8m), demonstrating the success of the continued sales focus in this area.

The reduction of the cost base in Commercial Jets, the recruitment of new talent into the division and improved trading conditions has led to a renewed confidence in the outlook for our largest division. Private Jets has continued to progress and the sales team is gaining real traction with our popular JetCard product, which is increasingly being recognised as one of the most flexible and smartest ways to access private jet travel for corporates and high net worth individuals. The Freight division showed strong improvement, albeit from a low base. The global economic downturn particularly affected aviation freight, and while we quickly adjusted the size of our freight team to reflect lower demand, we are pleased to see some momentum being built as the sector and economy starts to improve. Reflecting this gradual improvement, we added to our sales team in the division, and this, coupled with the Group's strong brand and expertise in its sector, has translated into a good financial performance for the year.

Dividend

The Board remains confident in the Group's long-term prospects and is pleased to propose a final dividend of 15.4p per share, to be paid on 15 June 2015 to shareholders on the register on 15 May 2015, subject to approval at the annual general meeting. This will result in a total dividend for the year of 22.06p per share, a 10% increase over the final and first interim dividend from the prior financial period.

Board Changes

The financial year saw a number of changes to the Board at Air Partner. Firstly, and as reported in the last annual report, Tony Mack retired from the Board following the last annual general meeting, and is now the Life President of the Company.

As previously announced in the last annual report, Gavin Charles, former Chief Financial Officer, left the business on 30 April 2014, with Neil Morris, former Group Financial Controller, being appointed as his replacement in June 2014. Neil was previously Group Finance Director of All Leisure Group plc, an AIM traded tour operator, and before that spent 11 years at Deloitte LLP, primarily working in the aviation and travel sector.

Non-executive director, Chuck Pollard, who had served for five years, resigned from the Board on 2 December 2014. Grahame Chilton resigned from the Board on 16 March 2015 to accept a role as Chief Executive Officer of Arthur J. Gallagher International, which regrettably meant that he could no longer dedicate the time to be a Non-executive director of Air Partner.

Peter Saunders joined the Board in September 2014. As non-executive director of Canadian Tire Corporation, Godiva Chocolatier NV, Total Wines & More and Jack Wills Ltd, and being the former chief executive officer of Body Shop International plc, Peter brings to the Board a wealth of proven experience in marketing and customer service.

On behalf of the Board, I would like to express my thanks to all of our employees who continue to work diligently for the Group. It is the knowledge, skills and professionalism of our employees across the world that make a difference to our customers and continue to build Air Partner's brand and reputation.

Outlook

Current trading is in line with the Board's expectation and this, together with the level of forward bookings, means that we begin the 2015/16 financial year with a degree of optimism. The Board remains confident that its strategy to focus on providing outstanding client service and solutions, while continuing to seek the further diversification of our client base, will deliver enhanced shareholder returns in the future.

Richard Everitt, Chairman

CHIEF EXECUTIVE'S REVIEW

The stronger second half of the year was much needed after a disappointing start. The improvement was driven by management action taken in the Commercial Jet division, better trading conditions and hard work across the Air Partner team. The Group generated underlying profit before tax of £2.6m, which is ahead of the revised market expectations, but still down 35.6% on prior year due to our disappointing first six months. However, we believe some of the momentum generated in the second half of the year can now be carried forward.

Commercial Jet Broking

Revenue in the year decreased by 19.5% to £115.9m (2014: £143.9m), with underlying operating profit 31.6% lower at £2.7m (2014: £3.9m). The reduction is due to fewer material one-off Commercial Jet contracts, particularly in the UK and US, together with the impact of a reduced Tour Operating programme in our French business compared to the prior year.

Following a change in management in the summer, I have personally taken responsibility of the UK Commercial Jet division and taken a number of steps to re-focus our operations, reduce costs, develop a clear strategy and invest in new, experienced, talent. These actions have contributed towards the improved trading performance in the second half of the year. There have been a number of positives for the division during the year: Italy achieved its highest ever profits as a result of a successful Tour Operating programme; and Germany achieved its strongest ever set of results, which was driven by a number of ad-hoc automotive car launches.

It remains our strategy to diversify revenues and improve the quality of earnings by building sustainable, repeat business beyond government and military contracts. Despite the reduction in Tour Operating revenues in France as noted above, strong progress was made in Italy and Austria. Moreover, given the increased programme in France for summer 2015, we consider the setback suffered this year to be temporary.

Oil & Gas activity produced consistent revenues compared to prior year, leading to a 24% increase in gross profit. We were also pleased to secure an excellent contract win in H2 with a major exploration company. During the year, our government relationships worldwide continued to generate contract wins and contribute towards the division's profits, albeit at the lower levels that the Group now expects.

Private Jet Broking

The Private Jet division comprises two distinct product offerings: JetCard, Air Partner's private jet card programme, with transparent pricing and no hidden charges, verified by Conklin and de Decker to be the most flexible in the market; and Ad-hoc broking, our on demand charter service. In JetCard, our targeted investment to strengthen the sales team, particularly in the UK and US, has helped JetCard deposits rise to a record high of £14.1m (2014: £8.8m) and the number of JetCard holders increased to nearly 200 globally. This growth demonstrates the flexibility and value for money that this product offers, which differentiates it in the eyes of our customers, creating a demand that has resulted in £9.6m of card sales to new customers and £8.1m of renewals to existing customers in the period under review, helping increase our market share. However, JetCard revenue is not recognised until the client has flown the hours and therefore, despite a 153% year-on-year increase in new deposits and a 2% increase in renewals from existing customers, utilisations increased just 3% on prior year. The success in increasing JetCard deposits leaves the division well-placed for the current financial year.

In Ad-hoc broking, the picture has been mixed: our US business suffered as a result of decreased flying by one of our major corporate clients and in Europe the overall market has contracted slightly, reflecting uncertainty in the Eurozone. We took decisive action to reduce our cost base in these areas, with the associated redundancy costs being reflected in the current year, but leaving the business leaner and fitter for the future. Both of these factors contributed to lower revenue for the division as a whole, which reduced revenue by 6.7% to £52.1m (2014: £55.9m), with underlying operating profit falling by 51.3% to £0.8m (2014: £1.6m).

Freight Broking

Over the past year, the Freight division has seen year-on-year revenue and gross profit growth, reflecting new business wins generated by the investment made in skilled recruits. Our ability to attract and retain experienced sales people from competitors has certainly contributed to the strong results, with the division reporting a 105.4% increase in revenue to £24.1m (2014: £11.7m). This led to a significant improvement in underlying operating profit from a loss of £0.1m in 2014 to a profit of £0.4m. Our Red Track technology, which aids our 'aircraft on ground' (AOG) business, and the continuation of our work with government global aid agencies has helped to build strong relationships and a good reputation with freight forwarders, key contributors to the turnaround we are seeing in the Freight division.

Freight remains an important part of Air Partner's product offering; this represents a good example of where we have focused our energies and investments in order to replace and grow revenue and the results are encouraging.

Customer First and Project Connect

Air Partner is embarking on an exciting and robust 'Customer First' programme, with the ultimate aim of growing our business through being recognised as industry leaders and differentiating ourselves from our competitors through delivery of an elevated and consistent customer experience. We will report more about this project at the time of our half-year results.

The Customer First initiative has been enabled by Project Connect, the multi-year global technology project which included the deployment of Microsoft Dynamics CRM across the business, alongside a programme to address the Group's historical underinvestment in technology. The roll out of the CRM across the group system was implemented in the summer of 2014 and as the investment starts to embed, we are seeing early positive signs of the benefits it will deliver. We have also implemented a complete IT infrastructure upgrade, taking the total technology investment in the period to £1.5m. Our capital expenditure on IT infrastructure is now broadly complete and will be significantly lower in the current financial year.

Outlook

The second half of the year provided a great deal to be positive about including a major new contract win in Oil & Gas, which commenced in the current financial year. Looking further ahead, I am encouraged by the return to a two aircraft programme for our French Tour Operator division and the continuation of the momentum gained in Italy. We also anticipate a return on our investment in our Private Jets division in Europe and the US, as well as continued growth in our JetCard product. In addition, we are embarking on an exciting programme to improve customer experience - putting the customer at the heart of our business, which will be key to the longevity of Air Partner. However, despite the progress and potential, we continue to monitor costs and drive efficiencies wherever possible.

Air Partner remains well funded with a robust cash balance and this strong financial position allows us to invest in areas across the Group that will help deliver our strategy and remain at the forefront of the global charter market. Our unique and deep expertise around the world ensures that we provide our customers with what they want - a tailored, reliable and transparent service that takes care of every detail. We are looking to further cement our focus on this service through our Customer First project.

I would like to express my sincere thanks to all of my Air Partner colleagues for the hard work, dedication and commitment that they have shown throughout the year. I am proud of our people and their ability to deliver the highest standards of service every day.

Mark Briffa, Chief Executive Officer

FINANCE REVIEW

Cash

Overall, the total cash balance of £18.8m has increased slightly from the prior year comparative of £18.4m. However, JetCard deposits have increased significantly, reflecting the strong sales of new cards within the period, and they now comprise £14.1m of the overall cash balance (2014: £9.7m), of which £1.8m is held in our segregated client account, which is referred to as restricted cash on the balance sheet (2014: £nil).

The fall in non-JetCard cash of £5.0m to £4.7m (2014: £9.7m) has been driven by capital expenditure and significant working capital movements, particularly in respect of a series of ad-hoc Commercial Jet projects in Germany and the servicing of a major government aid contract simultaneously in the final quarter of the financial year. While these projects have had a temporary impact on the Group's cash balance, it also demonstrates that Air Partner has the financial strength to deliver projects which a number of our competitors do not have the financial wherewithal to do so.

Taxation

It has been possible to implement a number of tax initiatives that have delivered benefits this financial year: firstly, the Group has received nearly £0.5m from a research and development tax claim arising from its investment in technology projects; secondly, £0.2m from a one-off credit arising from the treatment of JetCard deposits in the US; and finally, £0.2m from the recognition of deferred tax assets from capital allowances and losses in France. While some of these benefits are of a 'one-off' nature, the Group is actively reviewing its tax structure going forward.

Neil Morris, Chief Financial Officer

Financial information

This preliminary announcement of annual results was approved by the Board of Directors on 22 April 2015. The announcement has been prepared solely to provide additional information to shareholders, in accordance with the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied on by any other party, for any other purpose.

The financial information in this preliminary announcement which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows, summary accounting policies and related notes does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

Statutory accounts for the year ended 31 January 2015 have not yet been delivered to the Registrar of Companies. The auditor's reports on the financial statements for the year ended 31 January 2015 and for the 18 month period ended 31 January 2014 were unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The financial statements for the 18 month ended 31 January 2014 have been delivered to the Registrar of Companies.

Forward-looking statements

Announcements issued by Air Partner plc may contain forward-looking statements, indicated by words such as "aims", "believes," "expects", "intends," and similar expressions. These statements reflect current views and expectations up to the date of approval of this statement and are made in good faith by the directors. Unless otherwise required by laws, regulations or changes in accounting standards, Air Partner accepts no obligation to update these statements as a result of future events or new information subsequently obtained. New announcements will be made to the market as required under the Disclosure and Transparency Rules.

Trends and factors affecting the business

Lead times for ad-hoc bookings are measured in days or weeks, rather than months. Forward bookings can be impacted very suddenly by changes in financial markets, political instability and natural events affecting the movement of people or cargo from one country to another. Economic uncertainty affects corporate, government and individual clients and affects the quality of supply of aircraft as operators consolidate or leave the market. These are trends outside the Group's control but the strategy remains to diversify to address seasonality and changes in the client mix. 

Principal risks and uncertainties facing the Group

The pervasive risk to Air Partner's business is the fact that lead times for ad-hoc bookings are measured in days or weeks, rather than months. Forward bookings can be impacted very suddenly by changes in financial markets, political instability and natural events affecting the movement of people or cargo from one country to another. Economic uncertainty affects corporate, government and individual clients and affects the quality of aircraft supply as operators consolidate or leave the market. These trends are outside the Group's control but the strategy remains to diversify in order to address seasonality and changes in the client mix.

However, this risk is balanced in so much as aircraft charter broking on the Air Partner model can be classed as a relatively low financial risk business, in that the broker sells capacity on aircraft owned and operated by a third party and contracts are normally placed as mirrored transactions. The Group does not have any contractual arrangements with any significant individual or company which are essential to continuation of the business.

The Board has reviewed the processes for identification and reporting of risks during the year and considers the principal risks to include volatile market conditions, reputational risk, managing the Group's cost structure, cash management, legal and regulatory risk, recruitment and retention of key staff, retaining competitive advantage and risk of business interruption. The profile of both financial and operational risks varies from time to time with the principal risks to the Group stemming from the ongoing financial position of clients and the general economic conditions in which they operate, which affects their willingness to charter. Ad-hoc charters are likely to continue to be impacted by serious economic instability in the major world markets.

Going concern

After making enquiries, the directors are satisfied that the Group and the Company have adequate resources to continue in business for the foreseeable future. The directors have therefore continued to adopt the going concern basis in the preparation of these financial statements.

Directors' responsibility statement

The responsibility statement below has been prepared in accordance with the Company's full annual report for the year ended 31 January 2015. Certain parts thereof are not included in this announcement.

Each of the directors serving at the date of approval of the accounts confirms that, to the best of his knowledge and belief:

· the financial statements, which have been prepared in accordance with IFRS as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and financial performance of the Group; and

· the Chairman's Statement, the Chief Executive's Review and the Finance Review, together with the supporting notes, give a fair review of the Group, including a description of the principal risks and uncertainties faced by Air Partner plc.

The responsibility statement was approved by the Board of Directors on 22 April 2015.

Air Partner plc

("Air Partner" or "the Group" or "the Company")

Results for the year ended 31 January 2015

Unaudited pro-forma financial information

Consolidated income statement (unaudited)for the year ended 31 January 2015

*Before non-trading items (see note 3)

Consolidated statement of comprehensive income (unaudited)for the year ended 31 January 2015

Consolidated statement of financial position (unaudited)as at 31 January 2015

Consolidated statement of changes in equity (unaudited)for the year ended 31 January 2015

Consolidated statement of cash flows (unaudited)for the year ended 31 January 2015

JetCard cash

The closing cash and cash equivalents balance can be further analysed into 'JetCard cash' (being restricted and unrestricted cash received by the Group in respect of its JetCard product) and 'non-JetCard cash' as follows:

Notes to the unaudited pro-forma financial information

For the year ended 31 January 2015

1 ACCOUNTING POLICIES

 Basis of preparation

As a result of the change of accounting reference date to 31 January during the prior financial period, the following pages present 'unaudited pro-forma' financial information comprising a consolidated income statement, a consolidated statement of comprehensive income, a consolidated statement of changes in equity, consolidated statement of financial position and consolidated statement of cash flows and selected notes comparing the financial performance for the year ended 31 January 2015 to that for the year ended 31 January 2014.

This unaudited pro-forma financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 January 2015 were approved by the board of directors on 22 April 2015, but have not yet been delivered to the Registrar of Companies. The auditor's reports on the financial statements for the periods ended 31 January 2015 and 31 January 2014 were unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The financial statements for the period ended 31 January 2014 have been delivered to the Registrar of Companies.

During the year the directors reviewed the accounting for certain contracts relating to its Aircraft, Crew, Maintenance and Insurance (ACMI) and travel agency departments. Following this review, revenue and cost of sales in the prior period was restated as shown below. There was no impact on reported profit or cash flows.

In addition, as detailed in note 13, management closed the Fuel department. Accordingly, results of the Fuel department have been presented as discontinued operations. The table below reconciles the income statement as previously stated to the current position.

2 SEGMENTAL ANALYSIS

The services provided by the Group consist of chartering different types of aircraft and related aviation services.

Following a change in management structure, and the closure of the Fuel department, results of the Emergency Planning division have been aggregated with Commercial Jets. In addition, overheads, with the exception of Corporate costs, are allocated to the Group's operating segments in relation to operating activities. As a result, prior year segmental analysis has been restated to reflect the current segmental reporting of continuing operations.

Sales transactions between operating segments are carried out on an arm's length basis. All revenues, results, assets and liabilities reviewed by the Board (which is the chief operating decision maker) are prepared on a basis consistent with those that are reported in the financial statements.

The Board does not review assets and liabilities at segmental level, therefore these items are not disclosed.

The segmental information, as provided to the Board on a monthly basis, is as follows:

The Company is domiciled in the UK but, due to the nature of the Group's operations, a significant amount of revenue from external customers is derived from overseas countries. The Group reviews revenue based upon the location of the assets used to generate those revenues. Apart from the UK and France, no single country is deemed to have material non-current asset levels.

The Group's revenue from external customers by geographical location is as follows:

Europe can be further analysed as:

3 NON-TRADING ITEMS

In the prior period, management conducted a review of ongoing intangible asset related projects and identified that an impairment of £774,000 was required to write down the assets to their recoverable amount.

The reorganisation of the Group to report on a product-led basis has resulted in restructuring costs of £618,000 in the prior period. These costs comprised redundancy payments, external legal advice, outplacement costs and were included within administrative expenses.

4 DIVIDENDS

5 EARNINGS PER SHARE

The denominators used are the same as those above for both basic and diluted earnings per share from continuing and discontinued operations.

The calculation of underlying earnings per share (before non-trading items) is included as the directors believe it provides a better understanding of the underlying performance of the Group. Non-trading items are disclosed in note 3.

6 NET CASH INFLOW FROM OPERATING ACTIVITES

7 TAXATION

8 GOODWILL

9 OTHER INTANGIBLE ASSETS

There were no commitments at year end to purchase any intangible assets.

10 PROPERTY, PLANT AND EQUIPMENT

There were no commitments at year end to purchase any items of property, plant or equipment.

11 CONTIGENT LIABILITIES

The Group had issued the following guarantees at 31 January 2015.

In addition, the Company's bankers hold a free and floating charge over the Company's assets.

12 PROVISIONS

A provision of £478,000 (31 January 2014: £465,000) was held in relation to the potential costs of settlement of claims which have been received from third parties following the closure of Air Partner Private Jets Limited. All remaining claims within this provision are expected to be settled by 31 March 2016.

13 DISCONTINUED OPERATIONS

On 20 January 2014, management closed the Group's Fuel department. Accordingly, trading results of the Fuel department, which were previously disclosed as continuing operations, have now been disclosed as discontinued operations:

Cash flows attributable to the Fuel department were as follows:

Air Partner plc

("Air Partner" or "the Group" or "the Company")

Audited results for the year ended 31 January 2015

Consolidated income statementfor the year ended 31 January 2015

*Before non-trading items (see note 3)

Consolidated statement of comprehensive incomefor the year ended 31 January 2015

Consolidated statement of financial positionas at 31 January 2015

Consolidated statement of changes in equityfor the year ended 31 January 2015

Consolidated statement of cash flowsfor the year ended 31 January 2015

JetCard cash

The closing cash and cash equivalents balance can be further analysed into 'JetCard cash' (being restricted and unrestricted cash received by the Group and Company in respect of its JetCard product) and 'non-JetCard cash' as follows:

1 GENERAL INFORMATION, BASIS OF PREPARATION AND ACCOUNTING POLICIES

General information

The Company is a limited liability company incorporated and domiciled in England and Wales under registration number 00980675. The address of its registered office is 2 City Place, Beehive Ring Road, Gatwick, West Sussex RH6 0PA. The Company is listed on the London Stock Exchange.

This condensed consolidated financial information was approved for issue on 22 April 2015.

This condensed consolidated financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 January 2015 were approved by the board of directors on 22 April 2015, but have not yet been delivered to the Registrar of Companies. The auditor's reports on the financial statements for the periods ended 31 January 2015 and 31 January 2014 were unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The financial statements for the period ended 31 January 2014 have been delivered to the Registrar of Companies.

Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted for use in the European Union in accordance with EU law (IAS regulation EC1606/2002) and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. 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 itself contain sufficient information to comply with IFRS. The Company expects to publish full financial statements that comply with IFRS in May 2015.

Accounting policies

The accounting policies adopted are consistent with those of the previous financial year, except as described in the following sections:

During the year the management reviewed the accounting for certain contracts relating to its Aircraft, Crew, Maintenance and Insurance (ACMI) and travel agency departments. Following this review, revenue and cost of sales in the prior period was restated as shown below.

In addition, as detailed in note 13, management announced the closure of its Fuel department. Accordingly, results of the Fuel department have been presented as discontinued operations. The table below reconciles the income statement as previously stated to the current position.

Adoption of new and revised Standards

The following standards and interpretations have been adopted in the current financial year, none of which has resulted in a restatement of the prior financial period's results:

2 SEGMENTAL ANALYSIS

The services provided by the Group consist of chartering different types of aircraft and related aviation services.

Following a change in management structure, and the closure of the Fuel department, results of the Emergency Planning division have been aggregated with Commercial Jets. In addition, overheads, with the exception of Corporate costs, are allocated to the Group's operating segments in relation to operating activities. As a result, prior year segmental analysis has been restated to reflect the current segmental reporting of continuing operations.

Sales transactions between operating segments are carried out on an arm's length basis. All revenues, results, assets and liabilities reviewed by the Board (which is the chief operating decision maker) are prepared on a basis consistent with those that are reported in the financial statements.

The Board does not review assets and liabilities at segmental level, therefore these items are not disclosed.

The segmental information, as provided to the Board on a monthly basis, is as follows:

The Company is domiciled in the UK but, due to the nature of the Group's operations, a significant amount of revenue from external customers is derived from overseas countries. The Group reviews revenue based upon the location of the assets used to generate those revenues. Apart from the UK and France, no single country is deemed to have material non-current asset levels.

The Group's revenue from external customers by geographical location is as follows:

Europe can be further analysed as:

The Group did not have any customers who accounted for more than 10% of the Group's external revenue during the year (2014: nil).

3 NON-TRADING ITEMS

In the prior period, management conducted a review of ongoing intangible asset related projects and identified that an impairment of £774,000 was required to write down the assets to their recoverable amount.

The reorganisation of the Group to report on a product-led basis resulted in restructuring costs of £618,000 in the prior period. These costs comprised redundancy payments, external legal advice, outplacement costs and were included within administrative expenses.

4 DIVIDENDS

The Air Partner Employee Benefit Trust, which held 199,236 (2014: 224,932) ordinary shares at 31 January 2015 representing 1.9% (2014: 2.2%) of the Company's issued share capital is not entitled to receive dividends.

5 EARNINGS PER SHARE

The calculation of the basic and diluted earnings per share is based on the following data:

The denominators used are the same as those above for both basic and diluted earnings per share from continuing and discontinued operations.

The calculation of underlying earnings per share (before non-trading items) is included as the directors believe it provides a better understanding of the underlying performance of the Group. Non-trading items are disclosed in note 3.

6 NET CASH INFLOW FROM OPERATING ACTIVITIES

7 TAXATION

Corporation tax in the UK was calculated at 21.3% (2014: 23.4%) of the estimated assessable profit for the period. Taxation for other jurisdictions was calculated at the rates prevailing in the respective jurisdictions.

The charge for the period can be reconciled to the profit per the consolidated income statement as follows:

The UK corporation tax rate decreased from 23% to 21% from 1 April 2014. The impact on the tax charge is shown above.

Further reductions to the UK corporation tax rate have been announced. A reduction to 20% effective from 1 April 2015 was substantively enacted on 17 July 2013 and the deferred tax balance has been adjusted to reflect this change.

8 GOODWILL

Goodwill has been allocated entirely to one cash generating unit, being Air Partner International SAS.

For the purpose of impairment testing, the recoverable amount of the cash generating unit was measured on the basis of its value in use, by applying cash flow projections based on financial forecasts covering a three-year period. The key assumptions for the value in use calculation were those regarding the discount rates, growth rates and expected changes to selling prices and direct costs during the forecast period. The estimated growth rates were based on past performance and expectation of future changes in the market. The growth rate used to extrapolate cash flow projections beyond the period covered by the financial forecasts was 2% (2014: 2%). The pre-tax rate used to discount the forecast cash flows was 11% (2014: 14%).

The directors do not believe that there are any reasonably possible changes to the key assumptions that would result in a material impairment of goodwill.

9 OTHER INTANGIBLE ASSETS

Other intangible assets comprise acquired software. Refer to notes 3 for further details regarding the nature of the impairment loss incurred during the prior financial period.

10 PROPERTY, PLANT AND EQUIPMENT

There were no commitments at year end to purchase any items of property, plant or equipment.

11 CONTINGENT LIABILITIES

The Group had issued the following guarantees at 31 January 2015.

In addition, the Company's bankers hold a free and floating charge over the Company's assets.

12 PROVISIONS

A provision of £478,000 (2014: £465,000) was held in relation to the potential costs of settlement of claims which have been received from third parties following the closure of Air Partner Private Jets Limited. All remaining claims within this provision are expected to be settled by 31 March 2016.

13 DISCONTINUED OPERATIONS

On 20 January 2014, management closed the Fuel department. Accordingly, results of the Fuel department, shown below which were previously disclosed as continuing operations, have now been disclosed as discontinued operations:

Cash flows attributable to the Fuel department were as follows: