Air Partner PLC. (LON:AIRA) is on a journey of transformation, with a clear, long-term strategy to become a world-class global aviation services group. While AIR’s market includes some inherent volatility, the group is international, broadly based and diversified – increasingly so as the younger Consulting & Training business scales up. Cash-rich, it is well-placed both to add and grow complementary businesses.
Strong H1 results
AIR reported a strong first half with underlying PBT of £4.1m, up 34% y-o-y, on gross profit up 12% to £18.1m. Net cash strengthened further, up 104% at £10.6m. Management signals that full-year expectations should be met (we suspect they may be exceeded) and the interim dividend has been raised by 6.2% to 1.7p.
Both divisions progressing
Within the Broking division, Commercial Jets has won significant sports contracts, now serving 35 football clubs, and saw strong growth from European tour operations, the extension of its German automotive contract and work for airlines. In Private Jets, US clients increased 70%, and JetCard renewals were up 24%, although key customers reduced spend and profit was flat on investment in staff. The Consulting & Training division performed solidly with encouraging potential for H2. Baines Simmons, acquired in 2015, has added significant safety and training contracts. The move to reach a more equal balance (the division is currently c 14% of gross profit) continues, with the £3.0m acquisition of SafeSkys, a leading environmental and air traffic control services provider with particular expertise on avoiding bird strikes and the potential to expand into, for example, drone safety.
To read the entire report Please click on the pdf File Below: