AIR Partner Share Discussion Threads

[pvb] 12/10/2012 12:58

What actually is the point in starting up another AIP thread?

[ayl30] 11/10/2012 17:48

Would have been nice if the rise had stuck, oh well its still up over the week

[spob] 11/10/2012 15:58

Air Partner profits lose spring

Investors Chronicle

A sharp drop in demand, oversupply of planes and fierce competition made this a tough year for Air Partner 's (AIP) core commercial jet broking business. With no Arab Spring or Japanese tsunami to boost demand, profits there halved. Still, cutting costs and poaching key staff from rivals is paying off and the numbers weren't as bad as some analysts had feared.

Ignore £0.9m of one-off credits and Air Partner's pre-tax profit fell 44 per cent to £3.2m. Just £1.6m of that came from commercial jet broking compared with a record £3.3m in 2011. However, revenue from private jet broking grew 8 per cent to £44m, driven by brisk business in the US where turnover soared by two-thirds to £9.2m. The company's all-inclusive JetCard scheme should underpin growth in the region, and in continental Europe, too, where management expects to grow sales fast and dramatically increase its 2 per cent share of the £650m market - new, well-connected recruits in Spain and Russia are already generating business. Bosses also want to replicate a local partnership in India across high growth markets within Asia and South America. A drive to fly more oil workers should help, too.

Having trimmed forecasts by 5-6 per cent, broker Oriel Securities now expects current year adjusted pre-tax profit of between £3.7m and £3.8m, giving adjusted EPS of around 23.5-24.1p (2012: £3.2m and 21.3p).


AIR PARTNER (AIP)
ORD PRICE: 262p MARKET VALUE: £27.0m
TOUCH: 260-265p 12-MONTH HIGH: 345p LOW: 230p
DIVIDEND YIELD: 6.9% PE RATIO: 9
NET ASSET VALUE: 137p NET CASH: £15.7m



Year to 31 Jul Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2008 251 9.24 62.6 30.0
2009 187 5.64 45.9 30.7
2010 230 2.73 26.4 15.0
2011 282 5.26 32.5 16.5
2012 228 4.14 29.1 18.2
% change -19 -21 -10 +10
Ex-div: 14 Nov

Payment: 14 Dec



IC view:
An impressive cash pile means Air Partner's generous dividend is safe. It has a sensible plan for growth, too. However, both visibility and the economic outlook are equally poor, so, on a forward PE ratio of 11, the shares rate a hold.

Last IC view: Hold, 270p, 16 March 2012

[pvb] 11/10/2012 10:01

OTOH could be over excited expectations...

[pvb] 10/10/2012 23:10

I think that jump is surely more than can be expected from the 'Lee Effect', it must be leakage from the results.

[ayl30] 10/10/2012 18:20

We shall see then!

[haroldthegreat] 10/10/2012 17:50

how about a rise in profits in tomorrows results ?

[ayl30] 10/10/2012 17:31

So is the rise down to John Lee, shares on offer being cleared or what?
I can't complain as a holder but would like to know why the sudden rise

[darlocst] 14/9/2012 16:14

10% of the company picked up in the last 2 days by a buyer. Standard Life sold their 5% holding yesterday and another 5% chunk today has been bought.

Think AIP is good value at this level.

[checkers2] 17/7/2012 19:42

Today bought into this company ( through a 3m long spread bet) . Seems good value, and is a cash generating well run business in a very cyclic industry. The shares are near to there 52 week lows and currently out of favour. There value lies in their global franchise, nearly half of the market-cap is in cash and they have great management.

FT columnist John Lee met up with the CEO recently and had good things to say about him. Fairer times will surely come and aviation fuel is now sharply lower than 3m ago.

Another sotck in this sector - Dart Group holding (DTG) which is also very good value.

[superstardj] 29/5/2012 08:38

Market cap £26.7m, net cash £15.3m, single figure PE and dividend yield 6.3%.

[superstardj] 15/3/2012 20:21

Yet for the third disappointment running the share price falls only to be followed by buying and a recovery. Is all of our disappointment therefore now priced in?

[haywards26] 15/3/2012 19:46

Terrible interims!! Surely a severe dent on the bod/managements credibility for the below reasons!

1) 2010 FET investigation and subsequent fine of GBP 1 million.
2) 2011 reverse of previously accrued for costs, doubling the underlying profit.
3) Moving to new head office premises which will involve higher rents etc plus all the removal related costs when the business is not performing and there is a lack of forward visibility.

The below statement from todays interims as an accountant makes me shudder with disbelief - the balance sheet should be reviewed and managed on a montly basis! Let alone take 6 months to complete the correction/clear out of balance sheet items.

" The process of reviewing the historic accruals and other credit balances in the balance sheet is now largely complete. The remaining work, which will be completed by the year end, is not expected to have a material effect on profits."

All of the above prove controls and management are inadequate. Embarrasing, it would be interesting to think what major shareholders make of this. I would not invest.

[robcoo] 09/2/2012 08:03

Can anyone explain why each day commences with the sale of a small parcel of shares at a price some 3-4% lower than the previous closing price?

[lbo] 31/1/2012 22:31

Aircraft broker Air Partner (AIP) has cautioned full year results will be below expectations due to 'significantly greater levels of competition'.

The fully-listed concern issued a profit warning for the six months to January in which it noted its commercial jet broking division had experienced greater levels of competition, leading to revenues that were said to have been 'below management estimates'. However its private jet broking business was 'on target' while trading in its freight division was described as 'satisfactory'.

While the group notes it expects profits for the six months to January will 'not meet the board's initial expectations' as a result of what it said was 'continuing economic conditions and poor visibility' in addition to this results for the year to July 'will also be lower than expected'.

Analysts at Oriel Securities cut their forecasts for the year to September from £4.5 million to £4 million (EPS: 27.7p) on sales of £250 million. A dividend of 17.5p is also pencilled in.