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Air Partner plc Interim Results for the half-year ended 31 July 2016
Mark Briffa, CEO
Neil Morris, CFO
1
Introducing Air Partner
Founded in 1961, Air Partner is a global aviation services group that provides worldwide solutions to
industry, commerce, governments and private individuals. Air Partner is headquartered alongside Gatwick
airport in the UK. The Group’s global platform operates 24/7, from in 20 key gateway cities. Enabled by Air
Partner’s Customer First Programme, the Group delivers outstanding and exceptional service to some
14,000 clients across the globe. Clients include six of the G7, and some of the world’s leading employers,
corporations, business leaders, stars and HNW individuals.
2
Divisional overview
• Charters airliners from 20 to 500 people
• Used for product launches, sports teams and conferences
• Typical clients include: automotive, sports, entertainment, pharmaceutical
• Cabot Aviation, remarkets commercial aircraft and private jets
• ACMI (‘wet leasing’)
• Flies fewer than 20 people
• Offers a bespoke service or a JetCard
• Typical clients include: finance houses, film / entertainment and high net worth individuals
• Ad hoc charter, our bespoke on demand service
• JetCard, a private jet card programme with >200 cardholders
• Charters aircraft from Learjets to the giant
Antonov 225
• Time critical door to door delivery service
• Typical clients include: goverments,
automotive, engineering and energy
• A world-leading Aviation Safety consultant
• Specialises in aviation regulation,
compliance and safety management
• Manages Isle of Man Aircraft Registry,
awarded 10 year contract in April 2016
24/7 Operations, Travel Management,
Emergency Planning
SUPPORT
DIVISIONS
FREIGHT
COMMERCIAL
JETS PRIVATE JETS
BAINES
SIMMONS
3
• Strong H1 results, despite terrorism, tour operating, geopolitical uncertainty
• Broking and Consulting divisions both performed well
• Strategy producing results
• Acquisitions fully integrated and contributing
• Customer First rolled-out globally and supporting growth (Broking op.profit up 24%)
• NED appointments further aligns industry and operational experience with strategy
• Interim dividend increased by 10% to 8.1p
• Full year outlook: Board remains optimistic
Overview
4
Financial highlights
Underlying relates to continuing operations and excludes non-trading items and non-cash acquisition related costs
5
July 2016 July 2015 Change
Gross Transaction Value (£m) 112.9 110.2 2%
Gross Profit (£m) 16.1 12.1 34%
Gross margin (%) 14.3 10.9 +340bps
Underlying operating profit (£m) 3.1 2.2 36%
Underlying operating margin (%) 2.7 2.0 +70bps
Underlying PBT (£m) 3.0 2.2 35%
Underlying EPS (p) 22.3 17.1 30%
Interim Dividend (p) 8.1 7.3 10%
Total cash (£m) 24.6 15.0 +£9.6m
Net cash excluding JetCard (£m) 5.2 1.4 +£3.8m
Operating Highlights
6
Broking
Commercial Jets:
• Significant sport contracts won for Euros and pre-season Premier League tours
• Cabot Aviation successfully remarkets two Boeing 777s for Kenya Airways
Private Jets:
• Record H1 results
• Exceptional UK performance
• JetCard utilisation up by 25%
Freight:
• Good automotive wins
Consulting & Training
• Good performance and solid contribution
• Renewal of Isle of Man Aircraft Registry contract for further 10 years
• Successfully won a number of long-term government and corporate contracts
Operating profit bridge
7
3,054
2,241
311
525
(89)
275
(209)
HY15 Commercial Jets Private Jets Freight Baines Simmons Corporate Costs HY16
Cash flow bridge
8
8,406
3,015
1,915 419
(257)
3,826
(22)
524
(1,741)
727
Jan-16 NOPAT D&A Net bankloans
Working cap(Excl. JCD)
Capex Tax, interest& other
Dividends FX Jul-16
Gross profit by Product
Commercial Jets
Private Jets
Freight
Baines Simmons
• Strong performances across CJ and PJ
• First time contribution from Baines Simmons
• Decrease of 20% in Freight
• Decrease in proportion of gross profit from CJ by
11%
• Baines Simmons 19% of gross profit
9
56% 45%
36%
32%
8%
5%
0%
19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
HY15 HY16
£’m
Gross profit by Region
• Strong performance in the UK with gross profit up
by 58% or by 12% excluding Baines Simmons
• Europe increased 16% to £4.3m
• US down by 12% year on year
• UK accounted for 64% of gross profit
• Europe and US mix reduced
10
55% 64%
31% 27%
14% 9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
HY15 HY16
UK
Europe
US
£’m
Operating profit by Product
• CJ +18% due to strong UK and Europe
• Outstanding PJ performance, particularly
the UK
• Decrease in Freight of 22%
• Encouraging performance at
Baines Simmons
• CJ remains our largest division
• PJ increased to 36% of operating profit
11
56% 50%
31% 36%
13% 8% 0% 7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
HY15 HY16
Commercial Jets
Private Jets
Freight
Baines Simmons
£’m
JetCard goes from strength to strength
• Utilisation up by an impressive 25% leading to
record H1 performance
• JetCard cash balances year-on-year have risen
by £2.5m (18%) to £16.1m
• The number of JetCards has risen since 31
January 2016 by 9 to 218 – UK 137 (up 9), USA
has 50 (down 2) and Europe 31 (up 2)
12
0
50
100
150
200
250
FY14 FY15 FY16 H117
Europe
US
UK
JetCard numbers
12
COVER
Commercial Jets
OIL & GAS
SPORT
AUTOMOTIVE
REMARKETING
• Gross profit increased by 8% to £7.3m
• Underlying operating profit increased by 18% to £2.0m
• Strong performance in the UK as a result of Sports, Oil & Gas and government work
• Automotive and tour operations performing well in Europe
• Cabot Aviation has successfully remarketed two Boeing 777s for Kenya Airways
• H2 in the US expected to improve
15
Commercial Jets
1.5
1.6
1.7
1.8
1.9
2.0
2.1
6.5
6.6
6.7
6.8
6.9
7.0
7.1
7.2
7.3
7.4
HY15 HY16
Gross profit
Operating profit
Private Jets
ON-DEMAND CHARTER JETCARD CORPORATE CARD
• Record H1 performance with gross profit increase by 17% to £5.1m
• Operating profit increased by 56% to £1.5m
• Strong performance in the UK through success of Customer First
• JetCard success - utilisation up by 25% leading to record H1 result
• Solid performance in Europe
• US showing signs of improvement
18
Private Jets
0.0
0.3
0.5
0.8
1.0
1.3
1.5
1.8
3.8
4.0
4.2
4.4
4.6
4.8
5.0
5.2
HY15 HY16
Gross profit
Operating profit
Freight
HUMANITARIAN AID
OIL & GAS
AIRCRAFT PARTS
AUTOMOTIVE PARTS
DANGEROUS GOODS
HIGH VALUE CARGO
TIME CRITICAL
• Gross profit decreased by 20% to £0.8m
• Operating profit decreased by £0.1m to £0.3m
• Strong performance in automotive in Europe
• Tough comparable: no government aid agency work in period
21
Freight
0.00
0.10
0.20
0.30
0.40
0.50
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
HY15 HY16
Gross profit
Operating profit
Baines Simmons
TRAINING MANAGED SERVICES CONSULTING
• Gross profit of £3.0m, representing 19% of the group
• Operating profit of £0.3m, equivalent to 10% of the group
• Successful contract wins include Isle of Man Aircraft Registry for 10 years, BAE
Systems (Typhoon) and a number of commercial airlines
• Encouraging performance from Baines Simmons which was acquired in August 2015
24
Baines Simmons
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
HY16
Gross profit
Operating profit
Summary
Strategic update
26
• Focused on building a world class aviation services group
• Delivering tailored and comprehensive aviation solutions to our global customers
• Strategy based around three components: Optimise, Enhance and Extend
• Good progress made acquiring or investing in complementary
capabilities/services that support these three components
Optimise Enhance Extend
Initiative
Customer First
Acquisition of
Cabot Aviation
Acquisition of
Baines Simmons
H1 result
Broking op. profit up
24%
2x Kenya Airways
Boeing 777s
remarketed
Isle of Man Aircraft
Registry renewal
Outlook
27
• Strong first half performance
• Current trading good albeit slowest trading quarter to come
• Continue to assess investment opportunities that will enhance or extend our
customer services
• The Board remains confident that its expectations for the remainder of the
financial year will be achieved
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