AIR Partner Share Discussion Threads

[lbo] 10/12/2014 15:33

The Jetcard cash is 100% refundable



And if you no longer require your JetCard you can leave the program at any time without penalty and with a full refund on unused jet card hours



Taking all this into account shows a significant fall in non-JetCard cash of £4.6m to £6.1m (2013: £10.7m)

[nehpets81] 09/12/2014 10:36

OK, so now I am quite confused. According to the latest interim statement, "the 'jetcard cash' is unrestricted cash received by the group in respect of its jetcard product. The group did not hold any restricted cash at 31st July 2014"

Not sure how that ties in to the explanations given above?

Anyway to answer spob's question, there was approx £11.9M of Jetcard cash and £6.1M of non-jetcard cash at the end of July. There are no bank loans.

Also notice £37.6M of "other liabilities" which is presumably predominantly the deferred income from the jetcard...against £37.2M of receivables and £8.7M of payables (a net £9.1M of payables including these other liabilities) so it seems that there is indeed a potential claim over some of that jetcard cash. Sadly the interim results statement doesn't go into enough detail to split those other payables and receivables properly so the above is pretty crude.

[spob] 09/12/2014 07:57

what is the current unrestricted net cash here

anyone ?

[speedsgh] 08/12/2014 18:22

Potentially a decent trade over the cycle then with an attractive dividend to boot. What's not to like. The most difficult aspect is the poor visibility which means that cycles are not predictable (like say property) + one has to be ready to exit in fairly short order when trading conditions turn.

[hvs] 08/12/2014 18:22

Has it lost its wings ?

[salpara111] 08/12/2014 17:53

I am surprised that they do not clearly define "restricted cash" which is commonly used in situations like this where a business receives a prepayment of cash prior to delivering a service.
I guess the bottom line is that there is little downside risk from here and the divi is huge but it is difficult to see where any long term sustainable growth might come from.
If you look at the business over 10 years it has never gained any real traction but instead has just cycled up and down over that period.

[lbo] 05/12/2014 19:44

Yes cash on the Jetcards is 100% refundable to customers if they do not use the hours so the cash is not Air Partners. And if the do fly the hours then Air Partner has to pay an operator to fly the customer so they only make a percentage profit margin on all that cash even if all the hours were flown. So cash is significantly less then people think.

[nehpets81] 05/12/2014 11:37

Very good point about the cash on the jet cards, I had not considered that. Are customers able to take cash off the card once they have paid on to it and is it restricted cash? My point still stands I think but the leeway might not be as high as I thought.

[undervaluedassets] 05/12/2014 07:10

crude sharply down again last night

[drsmessguide] 04/12/2014 17:43

True, but it seems to cut both ways as they do not book profit from the card downpayments until the cards are used

[salpara111] 04/12/2014 17:18

The cash pile is not massive....they have net cash but it is nowhere near what it appears to be as the majority of the money is in fact prepayments on jet cards.
I was almost caught out with this.
The drop in the cost of fuel will help a bit but nothing like what it will do for Ryanair where 40% of their operating costs are fuel.
The fact that they did not even mention the big drop in fuel costs would seem to suggest to me that they are not material.
I am still tempted by this stock but it is not as clear cut as it might appear on the surface.

[nehpets81] 04/12/2014 15:19

Yeah, oil price will certainly help for most of the business, AIP does do some work for the oil and gas industry though so they might put off some projects.

With two divisions trading as expected and one (albeit small) doing better than expected and that massive cash pile, the stonking dividend yields looks fairly safe so I think I might take a position here after watching on the sidelines for a year or so.

[undervaluedassets] 04/12/2014 14:46

Oil price decline has to be helpful for margins here - just as it has been helpful for the commercial airlines and Carnival etc.

The cost of chartering private jets will surely be going down as well with the oil price.

Good cash and good divi here and already languishing share price all add to AIP's attractions.

[speedsgh] 04/12/2014 12:56

Salpara - Yes, very true. The lack of visibility will generally tend to act as a brake on the share price. Got ahead of itself in H2 2013 as a result of the 'Simon Thompson effect' during last year's small cap bull market.

For me AIP is interesting as a small constituent in an income portfolio if you can time your entry. They do have a pretty good dividend history + strong balance sheet.

[salpara111] 04/12/2014 12:50

The business appears to have a fundamental problem that is not easy to solve and that is the commercial business, there is no forward visibility so earnings are very low quality, the business has never managed to grow consistently which speaks volumes about the management.
I am tempted but not overly confident about taking a stake.

[speedsgh] 04/12/2014 09:41

Interim Management Statement -

[speedsgh] 21/11/2014 11:22

Air Partner and Envirotainer Respond to the Ebola Crisis -

[speedsgh] 23/10/2014 11:26

Recovering Market for Business Jets Faces Headwinds -

"Global political headwinds are threatening to slow recovery in the business-jet market just as it has started gaining speed.

Western economic sanctions on Russia, a government crackdown on corruption in China and slow economic growth in Brazil are damping demand among the companies and wealthy individuals in emerging markets who are typically prime customers, industry officials say.

But continuing resilience in the U.S. market, low interest rates and plunging fuel costs are giving the industry reason for hope."

"Meanwhile, demand in developed markets has strengthened. Use of business aircraft in key European markets, such as the U.K., France, Germany and Ireland, has picked up this year, said Air Partners’ Mr. Wheatley. Companies that stopped hiring planes have started to return, he said."

[emmo1210] 20/10/2014 11:40

Are people here not concerned with the remuneration, in particular the bonus structure. It looks that large bonuses were given last year for what was a mediocre year at best. They don't choose to allude to what exactly the so called 'Key responsibility areas' are in the report to which the bonuses have been given against.The whole business of not declaring performance criteria in an annual report stinks. Looks like a feathering of nests - director pay of £1.5m vs PBT of £2.8m after exceptionals.

[speedsgh] 15/10/2014 12:09

Darrin - Nice yield at that price so long as it is maintained.

[darrin1471] 15/10/2014 11:43

Bought in today at 260

[speedsgh] 15/10/2014 11:17

Air Partner Launches #Thousandaire Referral Program -

Air Partner delivers historical arts for exhibition at the Louvre -

[wjccghcc] 10/10/2014 14:32

Bought back in as well.

[speedsgh] 10/10/2014 13:47

Added today.

[speedsgh] 08/10/2014 16:06

Horse Dragon takes flight with Air Partner and Ruslan International -