Aero Inventory Share Discussion Threads

[robsy2] 10/2/2009 16:17

Hi MDJ8
Picking up on what you are saying if they throw 150m US$ at a new contract, thats a Quantas sized plus contract, (2008 turnover 140m) so say 150-200m US a year. That could give us another 40% ish on turnover, some stock dilution but probably offset by higher margins means a lot more EPS 2008/09 and onwards.
Any guesses anyone?

[mdj8] 10/2/2009 16:13

Great minds Robsy, Nurdin....

[robsy2] 10/2/2009 15:49

No idea who but from past experience they do not make a move like this without a major new contract in the offing.I would anticipate an announcement pretty soon.
Looking good. Thankfully the days of big rights issues seem to be gone.
R2

[mdj8] 10/2/2009 15:49

I believe they have approx $100 million that has not yet been drawn down from their $500- million facility. Add that to the sale of stock to ACTS and they have around $200- million to play with. The value of stock AI. bought from Qantas for their exclusive deal was £78- million ($117- million at current rates), so seems to me as they need $200- million and the money has been raised in an urgent/speedy/quiet manner, a big contract is on the cards....

[nurdin] 10/2/2009 15:27

looks like a contract with a major airline will be announces soon...BA?

[sleveen] 10/2/2009 15:24

Tried to buy 500 online and couldn't get a firm price LOL

[rat attack] 10/2/2009 15:16

Good bit of news with the stock sale with only a small placing:

Aero Inventory plc ("Aero Inventory" or the "Company")

Significant Stock Sale and Share Placing

STOCK SALE
In order to position itself to take on further new business Aero Inventory has
completed the sale of a significant quantity of consumable aircraft parts to Air
Canada. The consideration received by Aero Inventory for this material is in the
form of Bills of Exchange with a face value of approximately US$100 million,
maturing in just less than one year. Aero Inventory intends to discount the
Bills for cash to provide additional liquidity to facilitate new business. The
sale also represents a significant step towards achieving the Company's twin
objectives of improving stock turn and releasing cash from inventory.


SHARE PLACING
Aero Inventory has also considered it appropriate in the current business
climate to supplement the cash to be generated by the sale to Air Canada with a
placing of new ordinary shares. Aero Inventory has today raised approximately
GBP11.9 million, before expenses, through a placing with certain existing
shareholders of 4,762,680 new shares at a price of 250p per share (the
'Placing'). The shares placed represent approximately 10 per cent. of the
Company's existing issued share capital and approximately 9.1 per cent. of the
Company's issued share capital following the Placing.


The Placing is conditional on the Admission of the new shares to trading on the
Alternative Investment Market of the London Stock Exchange ('AIM'). Application
has been made for the new shares to be admitted to trading on AIM and dealings
are expected to commence on 13 February 2009. Following the Placing, Aero
Inventory has 52,389,678 Ordinary Shares of 1.25p in issue.


Lansdowne Partners, one of Aero Inventory's largest shareholders, is considered
a related party under the AIM Rules. It is participating in the Placing and as a
consequence the Placing is classified as a related party transaction. However,
the directors of Aero Inventory, having consulted with the Company's nominated
adviser, JPMorgan Cazenove, consider that the terms of the placing to Lansdowne
Partners are fair and reasonable insofar as its shareholders are concerned.


CURRENT TRADING
Demand from existing contracts continues to be resilient although it would be
unrealistic to expect it to remain entirely unaffected by the global economic
slowdown. Current trading is in line with management expectations and Aero
Inventory is seeing unprecedented new business opportunities with progress being
made in a number of new contract negotiations, in particular with one major
airline.


Commenting on the transactions, Rupert Lewin, the Chief Executive of Aero
Inventory, said:
'I am pleased to announce two transactions which will help to ensure that we
have the financial resources to enable Aero Inventory to continue to win
substantial new business despite the challenging economic climate.'

[rat attack] 09/2/2009 11:49

Robsy2 - good research and thanks for the info

[robsy2] 09/2/2009 11:04

Just had a quick look at Quantas interims. The ASK for Quantas should give us a fairly good indicator of demand for AI services.

The results show that ASK for 6 months to 31-12-08 compared to 31.12.07 is up 0.4% ,so more or less static.

The figures are (m) 63,853 compared to 63,627 ie +0.4

This would indicate that demand for AI services from our number 1 customer has been more of less static, whereas the share price has lost a lot of altitude. Motto of the story.

Stock oversold, prepare to regain altitude with the March interims!
R2

[rafthorney] 07/2/2009 13:13

And the divi is nice as well.

[johnrxx99] 06/2/2009 15:29

Nice cup and handle though. Patience is a virtue.

[mymini] 06/2/2009 14:19

The general markets on the up, but AI. has been left behind somewhat.

[robsy2] 03/2/2009 15:24

I don't see how they can come up with figures in GBP , the whole thing is trading and reporting in US$ so the eranings in GBP depend on the ex-rate at balance sheet day!?

[nurdin] 31/1/2009 07:43

Charles Stanely however have much lower forecasts of £56m for the current year rising to £62m next year. EPS forecasts are for 73p and 80.4p respectively

Who do you believe? Better to err on the cautious side imo

[penpont] 31/1/2009 00:05

ra - they are in £, have amended post to indicate this.

[rat attack] 30/1/2009 18:07

penpont - are these figures in $ or £?

[sleveen] 23/1/2009 16:34

can't think of a better use for Belgium

[martinc] 23/1/2009 16:30

Amazing number of airports.. don't know where they think the fuel's going to come from in 10-20 years time! Peak oil will likely be here, and biofuels aren't ready to fill the gap yet, so flying might be getting expensive. Maybe they will in 10 years. At the moment an area of land roughly equal to that of Belgium would need to be covered in algae-growing tanks to make enough biofuel just for flying (I think.. lost the reference). Will the Belgians be happy about this?

[robsy2] 23/1/2009 16:12

Thanks Pretty extraordinary stuff isn't it?
R2

[sleveen] 23/1/2009 14:19

Nice find R2

[robsy2] 23/1/2009 13:38

OK I've googled it and here we are.It is not a new story but it is a plan and it shows the scale of development in this part of the World. We are well placed to benefit from this trend over the coming decades!


China to Open 97 New Airports Over Next 12 Years
25 March 2008
People's Daily. China will open 97 new airports before 2020, including a second international airport in Beijing, according to the General Administration of Civil Aviation of China (CAAC) in its latest airport development plan.

The number of airports will increase to 192 by 2010, and to 244 by 2020. At the end of 2006, there were 147, including 45 used for both civilian and military purposes.

This means 82 in every 100 people-who contribute 96 percent of the country's gross domestic product (GDP)-will live within 100 km, or 90 minutes' drive, from an airport by 2020. At present, only 61 percent of people-who contribute 82 percent of GDP-lives within this range, the plan said.

The civil airport development plan was drafted to meet increasing demand, as the CAAC predicted passenger traffic will grow by 11.4 percent annually from now until 2020, during which time freight traffic will increase by 14 percent a year.

The number of airports serving more than 30 million passengers a year will increase to 13 by 2020 from three currently. Beijing Capital International Airport, which opened its third terminal last month, is currently China's largest and busiest, handling 53.5 million passengers in 2007, and ranking among the world's 10 busiest airports.

March 25, 2008 in Brief | Permalink | Comments (1) | TrackBack

[robsy2] 23/1/2009 10:03

OK Thanks Nurdin I was a bit confused by that!

I wentto a presentation yesterday on Emerging Markets given by someone from HSBC, who got onto the subject of building new airports. He said that it may take 10 years to get the third runway built at Heathrow and contrasted that with the Chinese authorities plans to build 97 new airports in China between now and 2020.

I have no idea where he got his info from but, supposing it contains a grain of truth, thats a lot of expansion in airtravel and we're well place to benefit.

[nurdin] 20/1/2009 16:47

yes Robsy...they have 98.4p for 09...which is also much higher than other forecasts

oops...should have said last preliminaries

[robsy2] 20/1/2009 16:21

Nurdin
I don't understand your post. You say

"Numis, their house brokers, have a very bullish projection of 119.4p.But before we get carried away ,it seems to me that they havent revised their previous forecasts after the interim so it is better to err on the cautious side."

Is this for year end 2010?
What interims?
R2