Air Partner Share Discussion Threads

[topvest] 06/4/2016 10:03

Yes, surprising. Looks a very good 10 year contract. Not clear what the revenue impact is but presumably reasonably significant otherwise they wouldn't have announced. Looks like the newer businesses are bedding in well.

[trident5] 06/4/2016 08:02

Market seems unexcited though

[masurenguy] 06/4/2016 07:37

RNS Number : 2756U
Air Partner PLC
06 April 2016

Baines Simmons awarded 10-year Isle of Man Aircraft Registry contract

Air Partner's aviation safety consultancy company Baines Simmons, has been successful in securing a 10-year contract to provide aviation support services to the Isle of Man Aircraft Registry ("IoMAR"). IoMAR is the 6th largest international business jet register, and the fastest growing aircraft registry in the world.

In accordance with the Convention on International Civil Aviation, all aircraft must be registered with a national aviation authority and they must carry proof of this registration in the form of a legal document called a Certificate of Registration at all times when in operation. The aircraft registration is made up of a prefix selected from the country's call sign prefix (making the registration a quick way of determining the country of origin) and the registration suffix. The Isle of Man prefix is 'M'. Baines Simmons assisted the first Isle of Man Director of Civil Aviation, Brian Johnson, in designing, building and launching the Isle of Man Aircraft Registry on behalf of the Isle of Man Government. IoMAR is known for award-winning levels of customer service and the highest standards of independent regulatory oversight.

Since launch on 1 May 2007, Baines Simmons' airworthiness surveyors have completed 2,760 aircraft surveys, recommending Certificate of Airworthiness for issue, renewal or export. Today, a total of 854 aircraft have been registered and there are 467 aircraft active on the register, covering private and corporate jets as well as twin-turbine helicopters. In addition, commercial airliners which are parked or between leases can be registered.

Some of the benefits of registering an aircraft in the Isle of Man include:
-- High regulatory standards
-- High service levels and award winning international reputation
-- Neutral Nationality registration prefix
-- Secure mortgage register
-- No insurance premium tax
-- European time zone
-- Professional infrastructure with experience in aviation finance
-- Clear and simple taxation regime
-- Stable legal and political environment

The Isle of Man has an international reputation as a tax-efficient, but responsible and co-operative jurisdiction and appears on the OECD 'white list' of countries complying with the global standard for tax co-operation and exchange of information.

Simon Williams, Director of Civil Aviation said: 'The highly specialist contract to provide Aviation Support Services to the Isle of Man Aircraft Registry went out to formal tender in 2015. The Isle of Man Government's Treasury led a rigorous process which saw the numerous companies who submitted a tender undergo a very detailed, thorough and objective assessment. Baines Simmons is to be congratulated for their successful tender following months of hard work. The team at the Isle of Man Aircraft Registry very much looks forward to continuing to work with Baines Simmons and to building on our highly successful strategic partnership. Formal confirmation of the Treasury decision provides an excellent opportunity to continue to build the Isle of Man aviation sector which in turn will make a significant contribution to the Island economy.'

Mark Briffa, CEO of Air Partner, commented: 'This 10 year contract is a testament to the work and dedication of the team at Baines Simmons. The expertise of our team has ensured that from the outset the Isle of Man Aircraft Registry has enjoyed a global reputation for award-winning customer service and the highest standards of independent regulatory oversight. We are delighted to have been successful in this latest tender process and look forward to further building on these strong foundations in the decade ahead.'

[crazycoops] 31/3/2016 16:39

Not sure when the edit occurred but that article now includes a quote from AIR.

“As our contracted flying programme with Exclusive Escapes ended early, we were able to mitigate our exposure and as a result suffered no cash loss.”

[masurenguy] 31/3/2016 11:01

Ouch - that bad debt write-off could reduce this years profit by a t least 10%.

[speedsgh] 31/3/2016 09:47

Creditors who lost more than £9 million from the collapse of luxury operator Exclusive Escapes have “no prospect” of getting their money back, TTG has learned.

The Surrey-based company collapsed last August, affecting more than 2,000 holidaymakers – 500 of whom were abroad at the time – and owing money to a variety of companies and individuals.

...Other companies listed on the original creditor schedule include Monarch Airlines (£134,000), Air Partner (£565,000) and Titan Airways (£313,000), but administrators have confirmed they will not receive any of the monies due, stating that there is “no prospect of a distribution to unsecured creditors”.

[topvest] 29/3/2016 20:20

Good news on another deal with Kenyan Airways from Cabot Aviation per Twitter - good news no doubt for this year's results.

[masurenguy] 28/2/2016 08:46

Results due in 8 weeks. Based upon the year end trading statement pretax profit should be up by circa 60%. Last year there was no tax liability but I'm assuming that this year there will be and this could be circa 30%. I'm looking for a final dividend of circa 17p, which would push the annual yield up to 6% at Fridays closing offer price, but it could potentially be higher if I have overestimated their tax liability.

[wjccghcc] 04/2/2016 09:02

True but that's been happening for over a year and yet they still managed to beat expectations and double profits in 2015. Seems they've done a good job diversifying away from it.

[lbo] 04/2/2016 07:53

Yes the article is a year old and that's why the results have been ok the last year. The collapse in the oil price has since worsened and will cause huge pressure for many of Air Partners customers in the sector.

[pvb] 03/2/2016 22:09

the Air Partner card, or whatever it is they are calling it.

JetCard

[wjccghcc] 03/2/2016 21:58

That article is a year old.

[lbo] 03/2/2016 21:30

Not just referring to Air freight but also the commercial jet division which will also see weakness. It's exposed to Oil and Gas and Automotive customers which are both obviously seeing slow down in their industries.



Anaemic global recovery aside, Air Partner’s biggest challenge in recent years has been coming to terms with a significant structural decline in its business with the Ministry of Defence (MoD). The progressive reduction in the UK’s armed forces’ presence in Afghanistan and increased use of the Royal Air Force’s own fleet of new Voyager transporters to ship troops home have both hit hard.
To compensate, Air Partner’s management has been targeting the oil and gas industry, where all three of the firm’s freight, commercial and private jets operations can generate business worldwide. It may be worth keeping an eye on this exposure given the pressure on this industry.

[nehpets81] 03/2/2016 20:10

Thanks for that Speedsgh, it seems Morningstar is missing that broker forecast, perhaps they got confused when the ticker changed over.

The BDI is surely down on subdued demand for coal and iron ore in China, not sure if that has much of a read-through to AIR. I agree that earnings visibility is generally rather poor - I guess they are trying to change that via the Air Partner card, or whatever it is they are calling it.

[trident5] 03/2/2016 18:34

Not sure the Baltic Dry Index reads through to AIR - their cargo related earnings have always been a small part of what they do.

[pvb] 03/2/2016 17:50

It was ever thus.

[lbo] 03/2/2016 17:40

Problem with Air Partner is its inherently reliant upon ad hoc business, but this leads to limited earnings visibility and potentially very volatile earnings. It used to trade at nearly £14 per share back in 2007. If the Baltic dry index is anything to go on then Air Partner will also experience some downturn.

[puku] 03/2/2016 15:45

the latest update says PBT not less than £4.2m for 2016 which implies eps 30 p and PE 13. Now looking cheap.

[speedsgh] 02/2/2016 12:35

Not sure if this will look intelligible due to advfn formatting but this is copied from Digital Look. Forecasts show 2016 EPS 25.2p (2017 EPS 37.06p); 2016 div 24.27p (2017 div 26.70p)

AIR PARTNER (AIR)

Key Fundamentals
Year Ending Revenue (£m) Pre-tax (£m) EPS P/E PEG EPS Grth. Div Yield
2011-07-31 281.93 5.26 36.00p 11.9 0.3 36% 16.50p 3.9%
2012-07-31 227.56 4.14 21.30p 11.4 -0.3 -41% 18.20p 7.5%
2014-01-31 211.54 2.70 19.01p 27.2 -2.5 -11% 22.64p 4.4%
2015-01-31 192.10 2.64 27.70p 10.8 0.2 46% 22.06p 7.4%
Forecast
Year Ending Revenue (£m) Pre-tax (£m) EPS P/E PEG EPS Grth. Div Yield
2016-01-31 42.10 3.74 27.52p 14.6 -22.4 -1% 24.27p 6.1%
2017-01-31 46.30 5.04 37.06p 10.8 0.3 35% 26.70p 6.7%

[speedsgh] 02/2/2016 12:31

Shouldn't. Digital Look is a free website, no need to register afaiaa. If link doesn't work, suggest you google Digital Look, then when on website enter AIR in the search facility (using the magnifying glass icon at the far right of the toolbar. Can then select the company from the list provided.

[pvb] 02/2/2016 12:14

Do you need a log in on that link speedsgh, I can't get direct access?

[nehpets81] 02/2/2016 11:02

Yeah, nice update - I have bought back in here after banking some profits earlier in the year.

Does anyone know of any market forecasts for AIR?

[topvest] 28/1/2016 20:07

Yes, all very positive- seems to be making good progress. Wonder how much the 15 January Cabot announcement contributed?