Air Partner Share Discussion Threads

[robsy2] 11/7/2016 11:22

I have picked up a few more this morning. The spread is fairly horrible but I have bitten the bullet. This is a buy and hold stock...It has to be, let's hope they can keep up the good work.
R2

[pvb] 27/6/2016 17:44

This one is being really hammered. :-(

[speedsgh] 22/6/2016 10:02

BCD Travel Italia calls upon Air Partner to provide air charter solutions for the Giro d’Italia -

[speedsgh] 14/6/2016 08:34

Air Partner launches exclusive ‘Rio Express’ cargo service for Olympic Games -

Air Partner, the global aviation services group, today announces that it will be launching a ‘Rio Express’ freight service that will operate before and after the Olympic Games this summer. In the run-up to the Games, Air Partner will have exclusive freight availability on a weekly Sunday flight from Frankfurt to Rio de Janeiro, starting on 10 July and ending on 24 July...

[speedsgh] 13/6/2016 12:14

Why I'm a sucker for specialists -

Air charter broker Air Partner (AIR) may be following the example of Clarksons (CKN), the shipbroker that became a global shipping services company...

[speedsgh] 07/6/2016 11:17

Share Watch: Air Partner to widen business horizon -

ADD: AIR PARTNER (AIR)

Shareholders are used to turbulence from Air Partner, but in the year ending in January 2016 all three of its divisions performed well.

The company earned 10 per cent more revenue than it did the previous year, adjusted profit doubled, and strong cash flow ensured the company remained unindebted despite spending £6.5 million on acquisitions.

Air Partner brokers charters for large commercial jets, private jets and freight. Demand fluctuates with economic activity, and the commercial jet division also depends on political activity. Since these factors are variable, Air Partner's profit can be too.

The company is seeking to expand beyond broking charters by acquiring and selling other services to customers, diversifying and perhaps stabilising its business.

During the last financial year it acquired Cabot Aviation, a broker that sells and leases aircraft, and Baines Simmons, an airline safety consultancy.

A share price of 425p values the enterprise at just over £64 million, or about 10 times adjusted profit. The earnings yield is 10 per cent. That looks cheap, but valuing firms with volatile profits on the basis of one year's profit is perilous.

We have to look back to 2008 before we can find a year in which Air Partner earned more than the 22 per cent return on capital it did in 2016.

Return on capital dropped as low as 10 per cent in 2010 and the average over the past 10 years is 18 per cent. Taking that figure as a more reliable prediction of future profitability, Air Partner's earnings yield is 8 per cent.

It looks good value by the more conservative measure too, especially if its diversification strategy brings more stability.

[speedsgh] 03/6/2016 11:44

New Proactive video interview with CEO...

Air Partner flying high in tough private jet sector, says chief -

Chartered commercial and private aircraft specialist, Air Partner PLC (LON:AIP), is bucking the trend and growing in the luxury air travel market, says chief executive Mark Briffa.

“If you look at the private jet space today, a lot of the numbers coming out are pretty much saying that it’s flat or it’s not growing,” says Briffa, adding “that’s not where we are”.

Briffa also explained the reasoning behind the company’s latest acquisition, Baines Simmons, an aviation safety consultancy it acquired last summer for £6mln.

“We felt it’s a space…where we see a growing market not crowded with competition, but fundamentally for us as well it’s all around adding more value to the customer.”

Briffa adds that Air Partner is always on the lookout for further acquisitions, but stresses that it must be the “right opportunity”.

[speedsgh] 26/5/2016 09:04

Is This The Most Economical and Flexible Jet Membership Program? -

"For the third consecutive year, independent aviation specialist consultant Conklin & de Decker's report, US Jet Memberships Compared, has found that the Air Psrtner JetCard continues to surpass all major US competitors in terms of both cost and flexibility..."

NOTE: the above report was commissioned by Air Partner so the 'independence' of the report should presumably be taken with at least a small pinch of salt.

[pvb] 04/5/2016 13:59

However, a key part of management’s strategy is to increase exposure to more stable and predictable earnings streams.

Yes, likely this is indeed the trajectory. AIR has in the past had a fairly low PE ratio, presumably due to the volatility of earnings. A more stable earnings platform would understandably lead to it being quoted at a higher PER. All IMO.

[thomasthetank1] 04/5/2016 13:31

Read Liberum's note on AIR PARTNER PLC (AIR), out this morning, by visiting hxxps://www.research-tree.com/company/GB0000115302
"The FY results confirmed the group has a strong platform to support future growth. Customer First is set to support growth in the core business. However, a key part of management’s strategy is to increase exposure to more stable and predictable earnings streams. Further acquisitions may be needed to deliver this goal, but last year’s deals provide encouragement..."

[thomasthetank1] 28/4/2016 14:28

Read Liberum's note on AIR PARTNER, out this morning, by visiting hxxps://www.research-tree.com/company/GB0000115302
"Results as expected, confirming a sharp rebound from an awful 2015. Current trading appears encouraging, although given the lack of visibility in air charter broking we keep our estimates unchanged at this early stage of the year. Recent acquisitions should contribute more stable and predictable earnings, as well as expanding the group's capabilities, and we see scope for additional deals in a similar vein. We see the valuation as compelling on an 11x P/E, 6% dividend yield and 10% FCF yield ..."

[gostevie63] 28/4/2016 08:54

I am very pleased with these results.

Just a petty point. They say the total dividend for the year is 24.3p.

I make it 24.23p (7.33p + 16.90p = 24.23p).

Gostevie

Disclosure: I hold shares in AIR

[robsy2] 28/4/2016 08:34

It is a problem, you have to be quite confident of buying and holding before you launch in on this one, stock shortage = wide spread.
R2

[masurenguy] 28/4/2016 08:27

Nice "10%" rise at the open but a crazy 7.5% spread of 34p. They really must increase share liquidity to address this issue - 10m shares in issue is too few for a £44m market cap company.

[robsy2] 28/4/2016 08:08

Good set of results, the highlights for me are;
increased dividend, strong cash flow, prudent accounting policies, sensible acquisitions that are making good contributions and will add customers and cross selling oportunities across their network.
The accounts , website etc read well , it all looks quite impressive , it looks like a well run business ( from this distance).
Cabot would have added 2.3m GBP gross profit had it been owned throughout the year, New acquisition, Baines Simmons, contributed 2m GBP gross profit in the period from aug 2015 to end of year.Jetcard seems to be going well and receiving industry accolades and the directors report good trading into this financial year and are reasonably optimistic. Shame about the spread on the stock but looks like a good income stock with some decent upside potential.
R2

[masurenguy] 28/4/2016 08:02

Great set of results. Shareprice should move up this morning.

RNS Number : 5857W
28 April 2016
Air Partner plc

Preliminary results for the year ended 31 January 2016. Air Partner delivers strong full-year profits and good strategic progress

Air Partner plc ("Air Partner" or "Group"), the global aviation services group, today reports results for the year ended 31 January 2016.

January 2016 January 2015 Change (%)
Gross Transaction Value
(£m)* 210.8 192.1 10
Gross Profit (£m) 27.3 22.0 24
Underlying profit before
tax (£m) 4.3 2.6 64
Statutory profit before
tax (£m) 3.2 2.6 20
Cash # 19.8 18.8 5
Underlying basic EPS (p) 29.7 27.7 7
Basic continuing EPSYen 19.1 27.7 -31
Final dividend (p) 16.9 15.4 10

-- EBITDA is calculated as underlying profit before tax, adjusted for depreciation, amortisation and amortisation on acquisition related intangible assets
* following the change in revenue recognition (see note 1 to the financial information), gross transaction value as opposed to the statutory revenue amount of £49.9m (2015: £37.6m) is stated
"underlying" excludes other items (see note 3) and discontinued operations
# includes JetCard cash of £16.8m (2015: £14.1m)

Financial highlights:
-- Underlying PBT of £4.3m, an increase of 64%
-- Underlying EPS of 29.7p, an increase of 7%, lower than the increase in underlying PBT due to non-recurrence of last year's credits and a non-recurring US tax item. Excluding this, underlying EPS would have been 33.1p
-- Statutory PBT rose by 20% to £3.2m after £1.1m of other items
-- Total cash balances including JetCard deposits of £19.8m (£18.8m)
-- Group cash (excluding JetCard deposits) of £3.0m (£4.7m), following acquisitions (£2.3m net) and working capital movements
-- Net debt, excluding JetCard cash, of £0.5m equivalent to 0.1x EBITDA(--)
-- Proposed final dividend of 16.9p up 10.0%, taking the total for the year to 24.3p
-- Positive start to the new year

Operating highlights:
-- Commercial Jets delivered a strong performance, particularly in the UK and with a solid performance in Europe but as with the first half, the US was below expectations
-- Private Jets in the UK performed exceptionally well, Europe was stable and the US was slightly below expectations
-- Freight doubled profits, performing particularly well in Germany and the UK
-- JetCard utilisation up by 33%

Strategic highlights:
-- After successful trials, our Customer First programme has been rolled-out across the global broking business
-- Acquisition of Cabot Aviation Services Limited, a leading Aircraft Remarketing company, announced in May 2015 for a net consideration of up to £0.8m
-- Acquisition of Baines Simmons Limited, a world leader in Aviation Safety Consulting, announced in August 2015 for a net cash consideration of £5.3m
-- Dividend policy announced targeting cover between 1.5 and 2.0 times

Mark Briffa, CEO of Air Partner, commented: "Our full-year performance is a testament to all of those who work at Air Partner and shows that by putting our Customer First we can deliver good trading and positive momentum, the benefits of which we are already seeing in the new financial year. The acquisition of Cabot Aviation and Baines Simmons are exciting opportunities for Air Partner to extend the Group's service and product capabilities and should enhance our customer proposition."

[topvest] 06/4/2016 18:38

Yes you might be right. They didn't announce the 2nd Cabot deal so this must be bigger?

[masurenguy] 06/4/2016 14:28

topvest, I think the absence of any valuation to this contract is the reason for market indifference. Less than 10,000 shares traded so far today is indicative of this.