Air Partner PLC Further update on accounting review (5025K)

TIDMAIR

RNS Number : 5025K

Air Partner PLC

11 April 2018

LEI: 213800JLR6YIRMSCUS98

11 April 2018

AIR PARTNER PLC

('Air Partner', 'Company' or 'Group')

FURTHER UPDATE ON ACCOUNTING REVIEW

On 3rd April 2018, the Company announced that, as part of its year-end close process, it had identified an issue relating to its accounting for receivables and deferred income in previous Air Partner results. Air Partner is committed to ensuring this matter is resolved in a transparent, thorough and exhaustive manner and accordingly, the Company provides the following update.

The Board appointed PricewaterhouseCoopers LLP ('PwC') and Rosenblatt Solicitors ('Rosenblatt') to provide independent accounting and legal support as part of the review into this matter. PwC and Rosenblatt have full, unencumbered access to staff, records and systems to enable them to conclude the review as swiftly as possible.

Our review has made good progress, and is ongoing. At this stage, we believe that the total cumulative impact arising between the financial years ended 31 July 2011 and 31 January 2018 will not exceed GBP4m. The final amount will be confirmed to the market after completion of the review. In accordance with accounting practice, amounts relating to prior periods will be recorded as restatements of comparative financial information.

Any amount attributable to any period will be treated as a non-cash item.

IMPACT ON YEAR END 31 JANUARY 2018

-- On the advice of its advisers, considering the work required to restate appropriate historic accounts and complete the full year audit, the Company believes it prudent to reschedule the announcement of its full year results for year ended 31 January 2018 from 26th April 2018 to 31 May 2018.

-- After appropriate restatements, the Board expects that the Company will have sufficient distributable reserves to pay dividends.

-- The Board believes that no shareholder should be further disadvantaged by the impact of this matter. Subject to completion of the year end audit, the Board intends to recommend that the final dividend payable for the year ended 31st January 2018 will be 3.8 pence per share. The Board further wishes to take this opportunity to reaffirm its ongoing commitment to its dividend policy, which targets cover of between 1.5 and 2.0 times underlying earnings per share.

-- On 6th February 2018, the company announced, "underlying pre-tax profit for the financial year ended 31 January 2018 is expected to be not less than GBP6.4m". Prior to adjustment for any expense attributable to the period arising from this matter, this statement remains valid.

-- The Group currently maintains a strong balance sheet with over GBP8.6m of its own cash at the end of March 2018.

ADDITIONAL INFORMATION

   --     At no point has a customer, operator or supplier been adversely impacted or disadvantaged. 

-- The Air Partner finance team identified this matter as part of the year-end closing process and following the proper procedure, escalated it to the Executive team who notified the Board.

-- Between the period financial year ended 31 July 2011 and financial year ended 31 January 2017, taking into account expected adjustments, the Company had sufficient distributable reserves in each year to enable it to pay dividends legally. Over this period, the company returned over GBP14.2m in cash to shareholders through interim and full year dividend payments, with an additional GBP0.9m paid as an interim dividend in October 2017 for the year ended 31 January 2018.

-- Any one off costs and fees associated with the review will be expensed in the financial year ended 31st January 2019 and clearly identified as such.

-- Whilst our review is ongoing, we will not comment on rumour or speculation, and shareholders should expect official statements to be issued to recognised Regulatory Information Service providers as appropriate, ensuring full compliance with regulatory obligations.

Peter Saunders, Non-Executive Chairman of Air Partner Plc, said:

"Once this issue was identified, we immediately launched a review and engaged independent advisers to assist and support the process. Our review will be transparent, thorough and exhaustive and we will allocate as much time and resources as is appropriate to reach a satisfactory conclusion.

"I am pleased to report that colleagues across the Group's UK and international offices have remained resolutely focused on normal customer service while the Board undertakes this review, and I thank them for their commitment and loyalty.

"I am also aware of the patience and support many shareholders have extended to the Company while we review and address this matter. The Board would like to reassure shareholders that we are focused on serving their best interests, meeting the Group's regulatory obligations, and returning to the Company's normal business agenda as soon as possible."

ENDS

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) NO 596/2014.

 
   Enquiries: 
 
     TB Cardew (PR Advisor to Air          T. [phone] 
     Partner)                              0777 
   Tom Allison                           M. [phone] 
                                          020 
   Alycia MacAskill                      M. [phone] 
                                          703 
   Lucy Featherstone                     M. [phone] 
                                          663 
    Mark Briffa, Chief Executive 
    Officer                               T. [phone] 
    Neil Morris, Chief Financial          788 
    Officer 
    Kate Patrick, Investor Relations 
 

About Air Partner:

Founded in 1961, Air Partner is a global aviation services group that provides worldwide solutions to industry, commerce, governments and private individuals. The Group has two divisions: Broking division, comprising air charter broking and remarketing; and the Consulting & Training division, comprising the aviation safety consultancies, Baines Simmons, Clockwork Research and SafeSkys, as well as Air Partner's Emergency Planning Division. For reporting purposes, the Group is structured into four divisions: Commercial Jets, Private Jets, Freight (Broking) and Consulting & Training (Baines Simmons, Clockwork Research, SafeSkys and Air Partner's Emergency Planning Division). The Commercial Jet division charters large airliners to move groups of any size. Air Partner Remarketing, which is within the Commercial Jet division, provides comprehensive remarketing programmes for all types of commercial and corporate aircraft to a wide range of international clients. Private Jets offers the Company's unique pre-paid JetCard scheme and on-demand charter. Freight charters aircraft of every size to fly almost any cargo anywhere, at any time. Baines Simmons is a world leader in aviation safety consulting specialising in aviation regulation, compliance and safety management. Clockwork Research is a leading fatigue risk management consultancy. SafeSkys is a leading Environmental and Air Traffic Control services provider to UK and International airports. Air Partner is headquartered alongside Gatwick airport in the UK. Air Partner operates 24/7 year-round and has 20 offices globally. Air Partner is listed on the London Stock Exchange (AIR) and is ISO 9001:2008 compliant for commercial airline and private jet solutions worldwide. www.airpartner.com

This information is provided by RNS

The company news service from the London Stock Exchange

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April 11, 2018 02:01 ET (06:01 GMT)