Results for the 18 months to 31 January 2014

Air Partner PLC

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

Results for the 18 months to 31 January 2014

STRONG TRADING DRIVEN BY COMMERCIAL AND PRIVATE JET DIVISIONS' PROGRESS AGAINST STRATEGY

Air Partner, the global aviation charter specialist for corporates, organisations, individuals and governments, is today pleased to announce results for the 18 month period ending 31 January 2014.

Due to a change in accounting reference date, the narrative to these results is based on unaudited pro forma results for the 12 months to 31 January 2014, with a 12 month comparative to 31 January 2013.

Results Highlights:

 * excluding non-trading items (see note 3)

 # includes JetCard cash of £8.8m (2013: £8.6m)

 ** excluding non-trading items (see note 5)

· Strong trading results

- Growth in revenue and underlying PBT driven by strong demand for Commercial and Private Jet broking

- After non-trading items of £1.4m Group PBT was £2.8m (2013: £3.2m)

- Group remains debt free, with £18.4m of cash

- Recommended final dividend of 14.0p up 10% on final dividend for the year ended 31 July 2012; reflects performance to date and confidence in future progress

· Good progress made against stated strategy: revenues from areas of strategic focus up 91% to £91.4m

- More than offsets reduction in government contracts

- Strong performance in the US

- Tour Operator revenue increased by 200%

- Steady growth in Oil & Gas; revenue up by 54%

· Commercial Jet division performed well with revenues up by 14% to £148.7m

- Underlying PBT up 38%

- Diversification away from Government business producing strong results

- Tour Operating and Oil & Gas performed particularly well

· Private Jet division performed strongly with revenues up by 21% to £55.9m

- Underlying PBT up 36%

- Recruitment of key talent making positive impact

- Strong JetCard sales and renewals reflect increasing leisure travel by high net worth individuals

· Trading in Freight division showing signs of improvement

- Underlying PBT unchanged despite lower revenue

- Positive upturn visible in the market

Mark Briffa, CEO of Air Partner, commented:"These are excellent results, driven by a strong trading performance. Our Commercial Jet and Private Jet businesses have grown particularly well, with tour operator services and our flexible private jet offering producing strong results. All of these areas have benefited from a strategic focus that has added both skills and structure to the company. Looking ahead we will further invest in technology to broaden our offering, while continuing to provide clients with the commercial and private air travel that they trust us to tailor to their needs. The Group is positioned for growth as the global macro-economic environment continues to slowly improve and we are well placed to take advantage of new opportunities that could enable us to improve our customer experience and add value for shareholders. I am pleased to announce a proposed final dividend of 14.0p per share. This brings the total dividend for the 18 months to January 2014 to 34.05p per share, reflecting our growth to date and our confidence in the strategy and potential of Air Partner over the medium and long term."

10 April 2014

Enquiries:

During 2013 Air Partner changed its accounting reference date from 31 July to 31 January. As a consequence the audited statutory results are in respect of the 18 month trading period from 1 August 2012 to 31 January 2014, with a 12 month comparative to 31 July 2012. To aid understanding pro forma results have also been provided for the 12 months to 31 January 2014 with a 12 month comparative to 31 January 2013. The narrative to the results is based on the pro forma results with additional comments on the statutory results where it aids understanding.

CHAIRMAN'S STATEMENT

Air Partner has performed strongly during the 12 months to 31 January 2014 with turnover growing by 7% to £224m and underlying profit increasing by 27% to £4.3m. Commercial Jet's strong performance was led by significant growth in the tour operating sector and successful new business wins helped replace the on-going contraction in government work, leading to a 14% increase in revenue and a 38% increase in underlying profit before tax. Private Jet's also performed well, particularly in the UK and the US, with revenues up by 21% and underlying profit before tax increasing by 36%. The Group remains cash generative and debt free. In the 12 month period, cash rose by £1.1m to £18.4m. £8.8m (2013: £8.6m) of cash is JetCard clients' deposits, which are segregated and held on deposit.

During the period, the Group undertook a fundamental review of its investment in new technology systems and, additionally moved the business to a product led structure. Unfortunately the technology review has resulted in a significant impairment of the IT investment and together with the restructuring and redundancy costs largely associated with the new product led structure has led to a charge of £1.4m to the income statement. After the impact of these non-trading items profit before tax was £2.8m (2013: £3.2m).

The Group has made good progress against its stated strategy in the period under review. The strategy is focused on prioritising growth in the US, the Private Jet business in Europe and broking in the Oil & Gas and Tour Operating sectors. This is resulting in a good diversification of broking revenues with strong performances seen. In fact, it is pleasing to report that revenue in these areas grew by 91% to £91.4m. However, growth in the continental European private jet market remains challenging, reflecting the economic conditions in the region.

Air Partner continues to evolve its people and systems, selectively investing in skills and initiatives that support the strategy and help create a long term competitive advantage. In the period under review, the Group has added to its senior management team, strengthened and re-energised the sales force in selected growth areas, reviewed and refined the Information Technology (IT) strategy, while finalising a successful transition to a product-led structure.

Dividend

The Board remains confident in the Group's long term prospects and is pleased to propose a final dividend of 14.0p per share, to be paid on 16 June 2014, to shareholders on the register on 14 May 2014 (subject to shareholder approval at the General Meeting). Due to the change to the accounting reference date, the Group paid an increased interim dividend of 14.0p in October 2013, equivalent to the amount that would have been paid as a final dividend prior to the change of year-end. This brings the total dividend for the 18 months to January 2014 to 34.05p, 66% higher than the total dividend for the statutory 12 month comparative period.

The business pays dividends subject to performance and typically they are split on the basis of one third interim payment and two thirds final payment. In future the board anticipates returning to a one-third and two third split and intends to continue the recent practice of growing the dividend by 10% per annum.

Board Changes

Shareholders will be aware of Tony Mack's intention to retire from the Board at the forthcoming General Meeting. Under his initial leadership and subsequent guidance, Air Partner has become the successful business that it is today. The whole Company owes him a debt of gratitude and we wish him well for the future, while continuing to draw on his unique experience as Life President of the Company.

Elsewhere we have added to the Board and in September we welcomed Grahame Chilton as a Non-Executive Director. Grahame brings a wealth of global business experience, particularly in broking businesses.

As previously announced, Gavin Charles will be leaving on 30 April. Neil Morris was appointed interim Chief Financial Officer on 1 April 2014 to allow for a transitional handover period. Neil was Air Partner's Group Financial Controller, a position he held since July 2013. Before joining Air Partner, Neil was Group Finance Director of All Leisure Group PLC, the niche cruise and tour operator listed on AIM, and prior to that he spent 11 years at Deloitte LLP, primarily working in the aviation and travel sector. We continue to work with Odgers Berndtson, one of the UK's pre-eminent executive search firms, to assist in the search process for a permanent Chief Financial Officer and will provide an update as soon as practical.

Outlook

Current trading is in line with the Board's expectations, and while the economic environment continues slowly to improve, our experience leads us to balance such optimism with a degree of conservatism in our outlook and planning. Our focus on areas of strategic importance continues to produce results, and we are confident that further improvements in IT, efficiency and productivity combined with the opportunities we are seeing across the business, will generate further gains. We are a well-funded group with a trusted brand and an enviable reputation. We have a clear strategy and a strong product offering with a depth of management experience that positions us well for the future.

Richard Everitt, Chairman

CHIEF EXECUTIVE'S REVIEW

This is a strong performance with revenue growing by 7% and underlying profit before tax up 28%. However after the impact of the one-off, non-trading items, profit before tax was £2.8m (2013: £3.2m). (Please refer to the Chief Financial Officer's Review for further details). Pleasingly on an underlying basis, profit before tax grew by 28% to £4.3m (2013: £3.3m). This reflected good trading in both Commercial Jets and Private Jets which have performed well and benefitted from the recent restructuring into product lines. Our close management of the areas of strategic focus (USA, Private Jets in Europe, Tour Operating and Oil & Gas) has continued to deliver excellent results, with revenue up across these areas by 91%. This growth is significant for the business and marks excellent progress against the Group's aim to further diversify its revenues and clients.

The Freight division, a small but important part of the Group, has started to show some signs of improvement. However, the results reflect a tough comparable period due to the conclusion of a large government contract and the on-going difficulties in the market. While revenues contracted, pleasingly underlying profit before tax remained unchanged due to the early management action on cost control.

The Group's transition to a product led structure enabled synergies to be better captured, and has improved the ability to direct skills, expertise and knowledge across borders in an inclusive and integrated approach. The restructuring, announced in March 2013, has significantly contributed to the strong Private Jet and Commercial Jet performances. The restructuring associated with delivering this change resulted in the need to make a number of roles redundant and the costs associated with this are included in the £646,000 of restructuring and redundancy costs incurred in the period.

The transition to a product led restructure required a strengthened senior management team, capable of developing business divisions in multiple territories and furthering growth across the company's areas of strategic focus. Significant progress has been made on this front, and in August 2013 Paul Richardson was appointed as Director of Private Jets. Paul previously worked in the wealth management, sports and entertainment sectors, both at Coutts and Barclays Wealth and his experience and insight working with high net worth individuals is proving valuable.

The revenue from Inclusive Tour Operating has increased by 200% against the prior period, with significant new contracts won. The team was further strengthened in September 2013 with the appointment of Alan Murray as Director of Inclusive Tour Programmes. Alan was previously MD and COO of Voyages of Discovery and Director of Monarch Airlines and his wide range of experience is already making a positive impact.

Marketing helps drive both the existing and new areas of strategic focus and last December Kiran Parmar joined as Global Director of Marketing. Kiran previously held senior international marketing roles at Bentley Motors and Ford Motor Company, enabling him to understand both the luxury side of our Private Jets business and the Commercial Jets and Freight divisions too.

Air Partner has historically underinvested in technology and as part of a step change in IT, Colin Jowers was appointed Global Director of Business Technology in January. Until recently, Colin was global Chief Operating Officer of Royal Bank of Scotland's Global Banking and Markets Research and Strategy division. He has also been involved in numerous broking service industry initiatives, focused on maximising technology and operational efficiencies. Colin's appointment is a direct reflection of the Group's desire to place technology at the heart of Air Partner's offer, enabling the Group to better understand its customers, putting their needs first, while more accurately measuring performance against these aims. With that objective in mind I am pleased to announce the start of Project Connect, a multi-year global technology project, which will include the deployment of Microsoft Dynamics CRM across the business.

Colin's deep knowledge and experience are already proving themselves and having reviewed the Group's IT systems, he is already transforming the way we work. As part of his review, Colin recommended Air Partner continue with its planned CRM development, but discontinue the integrated broker and finance tools. Subsequently, the CRM element will go live this year, but the £774,000 investment in the broker and finance tool will now not be utilised and has been fully impaired. However, we are confident that the revised system, under Colin's management and combined with the new systems will be better placed to help drive future growth.

As a result of the increased strategic focus on technology and Project Connect, going forward we expect the annual technology cost for the Group to increase, albeit off a low base. We are confident that this is strategically the right investment to be making and the increased cost will better position the Company for the long term.

Commercial Jet Broking

Revenue in the 12 months to 31 January 2014 increased by 14% to £148.7m (2013: £130.7m) with underlying profit before tax 38% higher at £2.3m (2013: £1.7m). The growth has been driven by excellent performances in the UK, US and France, resulting from an increased sales focus and the development of closer relationships with clients. These strong results have been achieved despite the slowdown of government business.

The recruitment of key individuals into the division has had a positive impact, strengthening our specialist expertise and capabilities in our strategic areas, for example in Tour Operating and Oil & Gas. Today, we have an even better understanding of customers' requirements and have improved our ability to provide the bespoke solutions our clients require. Tour Operating in Europe has delivered strong results and has contributed 35% of the revenue in the division. Our established presence in Aberdeen and Houston has enabled us to gain good traction in the Oil & Gas sector and revenue has increased by 54%. The team in the US carried out several successful evacuations, rescuing stranded cruise line passengers and also won the prestigious programme to fly the World Cup Trophy to 90 different countries before the World Cup tournament starts in Brazil in June. The Conference and Incentive market remains slow to come out of recovery and the sector remains extremely competitive with low margins.

Private Jet Broking

Revenue increased in the period by 21% to £55.9m (2013: £46.4m) with underlying profit before tax increasing by 36% to £1.5m (2013: £1.1m). Significant growth was achieved in the UK and US, which was driven by investment in high calibre talent that has added a new dimension to the private jet division, with an increased focus on sales and improved tailoring of products to suit local markets.

We are seeing particularly strong interest from high net worth individual leisure traffic, and in line with this, our JetCard continues to perform well. Sales and renewals are up 29% for the period with card utilisation up by 84%. The product continues to provide the flexibility that both corporates and high net worth individuals demand. This flexibility has been improved further with the launch of our new card product aimed specifically at the corporate market. As the economy continues to improve, we are well placed to benefit from further HNWI flying as potential clients seek to enhance their air travel preferences.

The traction gained in the Continental European private jet market has not been as great as expected. The market conditions remain challenging, reflecting the economic conditions in the region, but we continue to build our talent and skill set in our European private jet offices. We are confident that the recruitment and steps taken to date leave the division well placed for the future, as continental economies improve.

Freight Broking

Although revenue was down by 26% to £11.7m (2013: £15.9m), underlying profit before tax was level with the comparable 12 month period at £0.2m, due to early management of the cost base. The lower revenues reflect on-going challenging conditions in the freight sector, and the comparative period, which still included a large government contract which ended in March 2012.

However, over the last 6 months, a positive upturn has been seen in the market and the level of new business has increased. Two significant flying programmes were completed; delivering humanitarian aid to the Philippines and flying equipment to the Winter Olympics in Sochi. Freight remains a core product offering and to support this, investment has been made in experienced industry specialists based in Cologne and Istanbul. Progress building new business around the Air Partner Time Critical offering is being made and this is helping to reinforce an improving performance.

In conclusion, I am pleased to report that the Group has delivered a strong performance for the year and continued its positive progress against our strategic objectives. While the global macro environment continues slowly to improve, over 50 years' aviation experience reminds us to balance optimism with a healthy degree of conservatism in our outlook and planning. We are well funded with a robust cash balance sheet and intend to deliver a growing dividend for our shareholders into the foreseeable future. This strong position enables Air Partner to invest in areas such as new IT, product development, recruitment, training, brand marketing and in strengthening the global office infrastructure.

I would like to thank all of my Air Partner colleagues for their hard work and commitment through the year. Our company is trusted by customers to respond quickly and deliver the highest standards of service and I am proud that we achieve these high standards day in, day out. 

Mark Briffa, CEO

CHIEF FINANCIAL OFFICER'S REVIEW

Financial Review

This is a strong set of results with 7% revenue growth and 28% underlying profit growth. The results were driven by strong performances in the two key divisions - Commercial Jets and Private Jets.

Commercial Jet revenues improved by 14% to £148.7m and Private Jet revenues were 21% stronger at £55.9m. This contrasted with Group revenues, which showed year on year revenue growth of 7%, reflecting continued Freight weakness, and the Group's Operations divisions (Fuel and Ops24) transitioning from revenue seeking business units to smaller support services functions.

There were two significant non-trading expenditures in the period, which negatively impacted profit before tax and earnings per share. Firstly, the capital cost associated with the CRM, resulting in a £774,000 impairment charge, leaving an asset value of £260,000. This represents the CRM element of the new system which is being retained as part of Project Connect and will go-live in the second half of this financial year. Secondly, the restructuring and redundancy costs, largely associated with delivering the transition to a product led focus, resulted in restructuring costs of £646,000 in the period.

After the impact of non-trading items, the performance of the divisions is as follows:

Dividend

The Board has recommended a final dividend for the period of 14.0p per share which together with the interim paid in April 2013 of 6.05p and the increased interim dividend of 14.0p paid in October 2013 respectively represent a total dividend for the period of 34.05p per share. If approved by shareholders the dividend will be paid on 16 June 2014 to shareholders on the register on 14 May 2014.

The business pays dividends subject to performance and typically they are split on the basis of one third interim payment and two thirds final payment. In future the board anticipates returning to a one-third and two third split and intends to continue the recent practice of growing the dividend by 10% per annum.

Cash

During the period from 31 January 2013 to 31 January 2014, cash rose by £1.1m to £18.4m. The Group's short term cash balances show high levels of short term volatility due to the timing differences in the receipt of funds from clients and payment to aircraft operators. It should be noted that £8.8m (2013: £8.6m) of the cash balance is due to JetCard clients' deposits with the Group and to improve the visibility of this split, it is now shown separately as a footnote on the Consolidated Statement of Cash Flows.

Gavin Charles, CFO

Financial information

This preliminary announcement of annual results was approved by the Board of Directors on 9 April 2014. 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 period ended 31 January 2014 have not yet been delivered to the Registrar of Companies. The auditor's reports on the financial statements for the 18 month period ended 31 January 2014 and for the year ended 31 July 2012 were unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The financial statements for the year ended 31 July 2012 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

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, including operational aviation-related risks (shortages of supply, adverse weather conditions, competitive pricing pressure and regulatory changes), legal and regulatory risks, such as tax and aviation authority requirements, and financial risks such as foreign exchange and interest rate fluctuations, credit risk and liquidity and cash flow management. The profile of both financial and operational risks varies from time to time. The principal risk to the Group's business stems from the ongoing financial position of clients and the general economic conditions in which they operate, affecting 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 period ended 31 January 2014. 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 Officer's Review and the Chief Financial Officer's 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 9 April 2014.

Air Partner PLC

("the Group" or "the Company")

Results for the year ended 31 January 2014

Pro-forma consolidated income statement (unaudited)

For the year ended 31 January 2014

* Before non-trading items (see note 3)

There were no profits or losses from discontinued operations during either the current or comparative periods.

Consolidated statement of comprehensive income (unaudited)

For the year ended 31 January 2014

Consolidated statement of financial position (unaudited)

As at 31 January 2014

Consolidated statement of changes in equity (unaudited)

For the year ended 31 January 2014

Consolidated statement of cash flows (unaudited)

For the year ended 31 January 2014

JetCard Cash

The closing cash and cash equivalents balance can be further analysed into 'JetCard cash' (being 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 2014

1 ACCOUNTING POLICIES

Basis of preparation

As a result of the change of accounting reference date to 31 January 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 2014 to that for the year ended 31 January 2013.

2 SEGMENTAL ANALYSIS

The services provided by the Group consist of hiring different types of aircraft for charter to its clients and related aviation services. The Board reviews the performance of the services that are provided by the Group on the following basis: Commercial Jet Broking, Private Jet Broking, Freight Broking and Support Services (which includes fuel, emergency planning and travel services). Each of these components has been identified as an operating segment.

Sale transactions between operating segments are carried out on an arm's length basis and all revenues, results, assets and liabilities which are reviewed by the Board are prepared on a basis consistent with those that are reported in the financial statements.

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

The segmental information, as provided to the Board for the reportable segments 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, no single country is deemed to have material non-current asset levels, other than goodwill attributable to the French subsidiary.

The Board also reviews information on a geographical basis based on the parts of the world which are considered to be key to operational activities. As a result the following additional information is provided showing a geographical split of the United Kingdom, Europe, the United States of America and the Rest of the World:

3 NON-TRADING ITEMS

At the commencement of the prior period, a provision of £1,000,000 was held in relation to unpaid Federal Excise Tax due on certain flights contracted by the Company outside the US but involving a US destination. During the prior year, the Company and its US tax advisors concluded discussions with the relevant authorities, resulting in payments totalling £468,000 including interest for late payment and professional fees. The remaining provision of £532,000 was written back to the income statement, resulting in a gain of £443,000 within administrative expenses and a gain of £89,000 within finance expense.

In the prior period, the carrying value of the Group's sole owned aircraft was written down by £335,000 to its fair value less costs to sell of £690,000 based on a third party valuation. The aircraft was disposed during the current period. See note 11 for further details.

The reorganisation of the Group to report on a product-led basis has resulted in restructuring costs of £646,000 in the current period. In the prior period, the Group's cost reduction restructuring exercise resulted in costs of £319,000. These costs in both the current and prior periods comprised redundancy payments, external legal advice and outplacement costs. These costs were included within administrative expenses.

In the current period, management conducted a review of ongoing intangible asset related projects and identified that impairment was required to write down the assets to their recoverable amount, totaling £774,000. For details see note 9.

4 DIVIDENDS

5 EARNINGS PER SHARE

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

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

8 GOODWILL

.

9 OTHER INTANGIBLE ASSETS

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

10 PROPERTY, PLANT AND EQUIPMENT

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

11 ASSET HELD FOR SALE

In August 2011, the Group commenced actively marketing its sole owned aircraft for sale and accordingly, the aircraft was reclassified as an asset held for sale. The aircraft was subsequently disposed of during the current period for a consideration of US$1,230,000 (£815,000).

12 CONTINGENT LIABILITIES

At 31 January 2014, the Group had a charge over cash of £376,000 (31 January 2013: £240,000) in respect of a passenger sales agency agreement. Additionally, at 31 January 2014 the Group had a bank guarantee for £17,000 (31 January 2013: £17,000) lodged in regard to certain employee rights in Dubai.

13 PROVISIONS

A provision of £465,000 (31 January 2013: £474,000) 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.

During the prior financial year, the Group completed a cost reduction restructuring exercise. This resulted in a provision of £198,000 for employees who left the Group after the year end. Of this amount, £139,000, net of foreign exchange differences, was utilised during the current financial period and the remaining £59,000 will still be required. Additionally, and as a result of the change to a product-led reporting structure, during the current financial period further redundancies were identified and communicated to the relevant employees, resulting in a further provision of £210,000 being required.

Audited results for the 18 month period ended 31 January 2014

Consolidated income statement

For the period ended 31 January 2014

* Before non-trading items (see note 3)

There were no profits or losses from discontinued operations during either the current or comparative periods.

Consolidated statement of comprehensive income

For the period ended 31 January 2014