RNS Number:0851K
Air Partner PLC
16 April 2003
AIR PARTNER PLC
Interim Results for the six months ended 31 January 2003
Air Partner PLC, the world's largest corporate air charter broker, today
announces interim results for the six months ended 31 January 2003
* Group sales of #40 million (2002: #45 million) - achieved in very
difficult trading environment
* Proposed interim dividend of 4.5 pence (2002: 4.1 pence), an increase of
10%. Currently yielding 5.5%
* Significant investment of #600,000 on international expansion; office
openings in the US, Continental Europe and Middle East
* New offices in Washington, Hamburg and Dubai are performing at or above
expectations
* Additional business from US and European governments expected in second
half
* Emergency Planning Division on target to double client base this year
* Australian leasing subsidiary profitable in line with expectations
* Cash position remains strong with #7.9 million
* Encouraging current trading with forward bookings at same level of last
year
Tony Mack, Chairman, commented:
"Air Partner has the advantage of being a small group of companies, nimble and
able to adapt quickly to this difficult, changing market and profit from
opportunities as and when they arise."
16 April 2003
ENQUIRIES:
Air Partner Tel: 020 7457 2020 (today)
Tony Mack, Chairman Tel: 01293 844 805 (thereafter)
David Savile, Group Managing Director
College Hill Tel: 020 7457 2020
Kate Pope
AIR PARTNER PLC
Interim Results for the six months ended 31 January 2003
Chairman's Statement
As mentioned in our announcement to the Stock Exchange on 7 January the first
half of our financial year has proved difficult.
Group sales reduced by 11% to #40 million (2002: #45 million) and profit before
tax fell to #500,000 (2002: #1.6 million). Group cash reduced to #7.9million
(2002: #8.3 million) reflecting the special dividend that was paid in December.
The Directors recommend increasing the interim dividend to 4.5p per share (2002:
4.1p per share) in line with previous policy.
The main reasons for this performance have been an unexpected fall in demand
from November - related to the current political and economic uncertainty and
the significant increase in investment in new sales outlets. We opened 3 new
offices, Washington, Hamburg and Dubai, increasing our total to 18; we now have
compressed 21/2 years of our future expansion plans into the last six months.
This investment in the future growth of the company has cost #600,000 more than
normal for this period. Encouragingly, all the new offices are performing at or
above target.
Our Emergency Planning Division planned to double its client base this year and
is currently on target. Also on a positive note, our leasing subsidiary in
Australia is profitable in line with expectations.
Our programme of cost rationalisation continues with the aim of increasing the
efficiency of each of our units. Although lead times are currently shorter than
normal, our forward bookings remain at around the same level as that of this
time last year.
Whilst the presence of War reduces demand from clients in the commercial sector,
in the past it has had a positive effect on the business we receive from our
Government clients. The growth of our international office network has resulted
in the Group having more government and NGO clients across Europe and North
America and we expect to benefit from the same positive effect.
The Board has greater expectations for the second half and we remain committed
as ever to make the best of the market we are currently in.
Our investment programme is already showing benefits. The new offices are a
welcome addition to our portfolio and are already producing new revenue
opportunities. We remain focused on our core markets and will build and improve
your Company with organic and geographic growth. As already stated the second
half is already showing improvement and I look forward to reporting further at
the end of the financial year.
Tony Mack
Chairman
Air Partner PLC
Unaudited interim consolidated results
For the six months ended 31 January 2003
Half year to Half year to Year to
31 January 31 January 31 July
2003 2002 2002
(unaudited) (unaudited) (audited)
Note # '000 # '000 # '000
Turnover 1 40,203 44,790 100,700
Operating profit 381 1,461 3,805
Net interest receivable 120 142 224
Profit on ordinary activities before taxation 501 1,603 4,029
Taxation (173) (549) (1,218)
Profit on ordinary activities after taxation 328 1,054 2,811
Minority equity interest (49) (49) (146)
Profit attributable to the members of the parent 279 1,005 2,665
company
Dividends (452) (371) (1,728)
Retained (loss)/profit for the period (173) 634 937
Earnings per share
Basic 3.0p 11.1p 29.5p
Diluted 3.0p 10.8p 28.7p
Dividend per share 4.5p 4.1p 15p
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
2003 2002 2002
(unaudited) (unaudited) (audited)
# '000 # '000 # '000
Profit attributable to the members of the parent 279 1,005 2,665
company
Exchange adjustment on foreign equity investments 36 7 (94)
Prior year adjustment - - 126
Total recognised gains and losses relating to the year 315 1,012 2,697
Air Partner PLC
Consolidated balance sheet
As at 31 January 2003
31 January 31 January 31 July
2003 2002 2002
(unaudited) (unaudited) (audited)
# '000 # '000 # '000
Fixed assets
Tangible fixed assets 3,042 3,153 3,009
Total fixed assets 3,042 3,153 3,009
Current assets
Debtors: due within one year 7,941 9,323 12,621
Cash at bank and in hand 7,929 8,381 8,358
15,870 17,704 20,979
Creditors
Amounts falling due within one year (11,329) (12,395) (15,554)
Net current assets 4,541 5,309 5,425
Total assets less current liabilities 7,583 8,462 8,434
Creditors: due after more than one year (106) (1,711) (1,358)
Provision for liabilities and charges (37) - (37)
7,440 6,751 7,039
Capital and reserves
Called up share capital 465 452 452
Share premium account 1,254 765 765
Profit and loss account 5,531 5,363 5,691
Shareholders' funds - all equity 7,250 6,580 6,908
Minority equity interest 190 171 131
7,440 6,751 7,039
Air Partner PLC
Group cash flow statement
For the six months ended 31 January 2003
Half year to Half year to Year to
31 January 31 January 31 July
2003 2002 2002
(unaudited) (unaudited) (audited)
Note # '000 # '000 # '000
Cash inflow from operating activities 2 1,504 924 2,177
Returns on investment and servicing of finance (21) 143 70
Taxation (709) (540) (878)
Capital expenditure and financial investment (251) (55) (299)
Equity dividends paid (1,395) (812) (1,049)
Cash (outflow)/inflow before use of liquid resources
and financing (872) (340) 21
Management of liquid resources 57 (216) (163)
Financing 502 130 (514)
(Decrease) in cash in period (313) (426) (656)
Reconciliation of net cash flow to movement in net
funds
(Decrease) in cash in period (313) (426) (656)
Cash (outflow)/inflow from short term deposits (57) 216 163
Cash (outflow)/inflow from debt and financing - (130) 514
Change in net funds resulting from cash flows (370) (340) 21
Exchange adjustments 23 - -
Movement in net funds in period (347) (340) 21
Opening net funds 6,725 6,704 6,704
Closing net funds 6,378 6,364 6,725
Notes to the interim results
Half year to Half year to Year to
31 January 31 January 31 July
2003 2002 2002
(unaudited) (unaudited) (audited)
# '000 # '000 # '000
1 Turnover
Classes of business
Air Charter 39,618 44,007 99,383
Travel agency 567 768 1,284
Insurance 18 15 33
40,203 44,790 100,700
Turnover on ordinary activities by source:
United Kingdom 20,561 28,841 64,004
Rest of the world 19,642 15,949 36,696
40,203 44,790 100,700
Turnover on ordinary activities by destination
(client residence):
United Kingdom 16,974 23,504 54,820
Rest of the world 23,229 21,286 45,880
40,203 44,790 100,700
2 Reconciliation of operating profit to net cash inflow from
operating activities
Operating profit 381 1,461 3,805
Depreciation charges 262 265 562
Goodwill amortisation - 1 -
Exchange differences (81) (87) (12)
Loss on sale of fixed assets - - 12
Decrease/(increase) in debtors 4,827 (3,761) (7,140)
(Decrease)/increase in creditors (3,885) 3,045 4,950
Net cash inflow from operating activities 1,504 924 2,177
3 The interim results have been prepared using the accounting policies set
out in the financial statements for the year ended 31 July 2002. The financial
information for the year to 31 July 2002 on which the auditors issued an
unqualified opinion, does not constitute statutory accounts as in Section 240 of
the Companies Act 1985. The accounts have been delivered to the Registrar of
Companies.
4 The interim results include the results of Air Partner Insurance
Consultants Ltd., Air Partner International SARL, Air Partner International
GmbH, Air Partner Inc., Air Partner (Switzerland) AG, Air Partner Travel
Consultants Ltd., Air Partner Leasing Pty Ltd.
5 The directors have declared an interim dividend of 4.5 pence net per share
payable on 6 June 2003 to shareholders on the register at the close of business
on 2 May 2003. The ordinary shares will be marked ex dividend on 30 April 2003.
6 Basic earnings per share have been calculated by reference to earnings of
#279,000 (2002: #1,005,000) and the weighted average number of ordinary shares
in issue of 9,194,842 (2002: 9,048,333). Diluted earnings per share have been
calculated by reference to the same earnings and the weighted average number of
shares in issue plus any outstanding options totalling 9,249,768 (2002:
9,331,699).
This report is being sent to shareholders and will be available to members of
the public at the Company's registered office at Platinum House, Gatwick Road,
Crawley, West Sussex RH10 9RP.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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