Hangar 8 Share Discussion Threads

[eezymunny] 27/11/2013 15:45

Hmmm a flurry of trades.

Smells like a Robbie Burns purchase to me! EMailed his merry men and shortly to appear on his website? Just a guess...

[rivaldo] 27/11/2013 14:04

I don't mind how quick the rise is :o))

I can easily see 300p-400p in the next 6 months to a year. The interims are not far away, usually in the first week of March, so not long until we get concrete news.

Agreed about the web site. I might get in touch myself, and also ask if they might issue an H1 trading update for the first time at the AGM or just after the 31/12 H1 period end.

[el1te] 27/11/2013 09:49

Hi Rivaldo,

Thanks - I actually was ready to put hgr8 as a buy at 165p but shot off an email to Dryden just to ask about the receivables/payables figures. Didn't receive a reply so forgot about it! Bit of a mistake, but my query seems to have been cleare up in the Final Results, which is good.

The benefit of not having many shares in issue is that they can rise quickly on news, but conversely there are a large number of companies that have suffered through not having a large free float, but hve benefited since it's been unlocked (BMN, NBU as examples).

The valuation is attractive and expect it to be much higher sfter the H1 results. Not sure what the price drivers will be in the meanwhile (aside from general monentum). Best scenario in my opinion would be to see support form at 200p over 1-2 weeks. Then push towards 220p afterwards. Don't want too quick a rise!

One side quibble I have is that their PR is terrible! Their website isn't even updated with the latest corporate news - Sort it out Dryden! :). Also would like to see them update the market with general 'trading updates' or the like, more often.

El1te

[rivaldo] 27/11/2013 08:43

El1te, that's a terrific write-up. Many thanks.

I notice that Air Partner are on a historic P/E of around 20 compared to HGR8's historic P/E of 10 (and which is much less than 10 stripping out the cash pile).

I'm happy to see the main shareholder's interests being so entwined with the rest of us. I've done extremely well with companies which have dominant shareholdings, FDP being a prime example.

Besides, it means that when we get our next piece of good news the share price should react rather nicely.

[el1te] 26/11/2013 23:34

Hangar8 - Flying onto the Radar

New write-up on Hangar8 available below. Feel free to sign up to free email updates via the right hand sidebar and leave comments on the article



Good Luck with your investments :) - I hope HGR8 continues its good performance

El1te

[rivaldo] 26/11/2013 12:26

New audio interview with the CEO today:



I may well top up. Some very exciting points made:

- long-term revenue growth is stellar, with over 70% of forward visibility of revenue now contracted
- growth in oil/gas/resources is looking good, having only been involved for 3/4 years, as HGR8 are only now on all the exploration companies' customer lists and growth could be exponential from here
- the current period is "going well"
- HGR8 will grow by acquisition, with possible step-changes in size over the next 24 months

Such step-changes are certainly possible when you're HGR8's size with a £19m m/cap and plenty of cash.

[hazl] 26/11/2013 09:20

thanks rivaldo just had a look at the website....quite impressive.... and the aircraft management is an interesting angle as well


imo

[rivaldo] 26/11/2013 08:12

Good coverage here:



"Hangar 8 plc Profits Double As It Adds To Aircraft Fleet

Published on : Tuesday, November 26, 2013

Oxford AirportLondon Oxford Airport-based Hangar 8 PLC reported a doubling in profit and a big rise in revenue for the first half boosted in part by a number of new ventures.

The company, which manages private jet aircraft, posted a pre-tax profit of GBP £1.2 million for the period ended June 30, up from GBP £522,000 a year earlier, while revenue climbed 39% to GBP £23.6 million from GBP £17.0 million in 2012.

Hangar 8 said its recently established services, including Aero-Medical, Engineering and Training, have provided it with "sustainable and profitable additional revenue streams."

Earlier this year Hangar 8 added a new medical aircraft to its African fleet due to growing demand for aero-medical services in the continent.

"These, together with our focus on long-term contracts as opposed to the spot charter market transactions we have relied upon in the past, have combined to increase not only the absolute level of profit but also the quality of our earnings and the forward visibility of revenues," it said.

The company also acquired International Jet Club Limited (IJC) for an undisclosed fee.

"The acquisition effected a step change in the scale of Hangar 8′s business, adding nine long-range, heavy jets to the fleet, strengthening the management team and ultimately enhancing our already strong aircraft management and charter operations," the firm said.

Adjusted earnings before interest taxation, depreciation and amortisation increased 169% to GBP £2.0 million from GBP £75,000 a year earlier, while overhead costs increased to GBP £6.5 million, from GBP £4.5 million. This reflected the inclusion of IJC for a seven month period as well as the investment in the management team.

"Our decision to focus growth both inside of and particularly outside of Europe continues to benefit us against our immediate competitors who have been affected by the weak economies at home in the UK and across Europe during the reported period," Chief Executive Dustin Dryden said in a statement.

"This strategy has both strengthened and protected the quality and longevity of our earnings, as we continue to focus on annual contracts rather than ad hoc spot-market revenues," he added."

[rivaldo] 25/11/2013 14:00

Good summary goliard, cheers.

I came across this recent article indicating that HGR8 are after another acquisition of up to £10m or so - this would be a real catalyst for the shares as they could probably achieve this using their cash pile and a bit of borrowing:



"London super rich give private jet market a lift
By Roland Gribben
9:30PM GMT 03 Nov 2013

A new generation of the super rich buying expensive properties in London are providing a spin-off for the corporate and private jet market.

Hangar8, the Aim-listed charter, leasing and aircraft management business, says the influx has increased demand for large private jets in the UK and contributed to fleet expansion. Hire rates range from about £3,000 to £10,000 an hour.

The company has added another six Bombardier Global 5000 long-distance business jets to its fleet this year to meet demand stimulated by the increase in what are described as "ultra-high net worth individuals" living in London and the growth in traffic from major companies in the oil, gas and mining industries.

Dustin Dryden, the chief executive, said: "We're now seeing the second or third generation of moneyed people from Russia, west Africa, Kazakhstan and elsewhere moving into London and we have to expand to cater for them.

"The children have been to London schools and they're bringing their own children over now, but they fly all over the world. To illustrate what's been happening, probably less than 10pc are British."

Hangar8, formed in 2002 and based in Oxford, now manages 50 aircraft after doubling the size of its long-distance fleet. The acquisition of International Jet Club has provided a boost for the group and Mr Dryden wants to complete another deal for a company with a market capitalisation of around £10m in the current financial year.

Figures for the year to the of end June, to be released on Nov 14 will show Hangar8 had an "exceptionally good year", said Mr Dryden.

He sees more opportunities for acquisitions "because the desire to travel at the moment is not as great as expected" and feels the market has recovered from the era of the "bucket and spade and skiing brigade" charter holidays."

[goliard] 25/11/2013 12:24

I really don't like PE multiples as people tend to ignore the cash or debt and come up with some really odd views on whether a company is cheap or not, but as Rivaldo says, once you strip out the cash, this is cheap.

Reminds me a bit of Air Partner where I sold too early and watched it keep moving up, so even though I have a £3 target I really need to try and stop myself from selling when we get there!

There is no doubt that the global economy is improving and the recovery in companies that were particularly exposed to the decimation in wealth over the last six years should be the strongest. It is great to see Hangar8 with so much contracted revenue, but I can see them increasing the private jet part of the business due to demand rather than as a strategy. It is also a pretty obvious takeover target for the likes of Air Partner.

Above all, it has no debt, is making money, is growing and has a low PE. I really struggle to find companies like that to invest in (HHR is my other favourite), so if anyone knows of any more in a similar position then I would be happy to hear about them.

Time to sit back and wait for £3...

[hazl] 25/11/2013 11:42

I am pleased, as well about the expansion of the aero medical unit announced back in October

'
-- Hangar8 announces plan to add new medical aircraft to its African fleet. It will have the longest range of any medically dedicated aircraft on the continent '

[rivaldo] 25/11/2013 10:24

Moving nicely now...but still only on a historic P/E of 11, and in single figures after stripping out the cash.

[hazl] 25/11/2013 09:02

OT

rivaldo you may be interested in FUTR a company that also has potential

I have recently found.

[hazl] 25/11/2013 08:58

Yes thanks Riv I am impressed with those results, there is obviously a niche market that are using them.

Thanks for the forecasts!

Onwards and upwards then!

[rivaldo] 25/11/2013 08:50

Agreed hazl (good to see you here). I'll be trying to get hold of the new current year forecasts, but I'd be surprised if they're less than 23p-25p EPS given the growth.

It's easy to see a 300p-350p share price imo following the interims, given that we're almost halfway through the current year and the company are confidently talking about "strong" trading.

[hazl] 25/11/2013 08:25

I can see this carrying on up ....its got the hall marks of a successful company imo

[hazl] 25/11/2013 08:08

what great figures friday

[rivaldo] 23/11/2013 17:40

Agreed loobrush.

Macc2, the relatively small free float means that any upwards movement could be quick and large - and given Friday's results I fully expect a re-rating,

Today's Mail has great coverage of HGR8 in its market report which could see a nice opening on Monday - although it just concentrates on the luxury jet hire aspect which is diminishing in importance relative to other, more sustainable income streams:



"MARKET REPORT: Mega rich fuel boom of private jet operator Hangar-8
By Geoff Foster

PUBLISHED: 22:29, 22 November 2013 | UPDATED: 10:56, 23 November 2013 0

It has become common practice. Mega-rich Russians are paying up to £10,000 an hour to hire a Bombardier Global 5000 long-distance business jet to whizz their friends and/or families over to London to either splash out on a London mansion or place their offspring into private school education.

Knight Frank tell us that around 70 per cent of London's £10m-plus homes sold between January 2012 and April 2013 went to overseas buyers, with Russians making up to 21 per cent of the purchases. In the three months to June this year, sales of super prime London property was up more than 50 per cent when compared with last year.

Dustin Dryden absolutely loves it. He is chief executive and major shareholder of AIM-listed Hangar 8, a leading operator of private jets, which is literally flying on growing demand for luxury air travel from mega wealthy overseas customers. Full-year results to the end of June showed operating profits up 140pc to £1.2million on revenues 39pc higher at £23.6million. Shares closed 3p better at 200.5p.

Hangar 8's long-range business flight activity doubled between June 2012 and June 2013. Over the last year it has doubled the number of Bombardier Global Ultra Long Range business aircraft to six.

It has 11 large jets that can fly over 9,000km without the need for refuelling, which is the equivalent from London to most of America, or to anywhere in Europe, the Middle East of India."

[loobrush] 23/11/2013 09:43

Bought last week-this company is going places and is growing at an exceptional rate for the business its in and is aiming to become a global player in the ever increasing air charter business. Recently brought in new top notch key employees. Well underated compared with others, Only smallish in size but with lots of potential and could easily double in the year. Results Friday were excellent giving a taste of the future. Limited shares available so get on board for the flight to an exciting future. Its a winner.

[macc2] 22/11/2013 16:53

According to their website they have 9,437,087 shares in issue of which 72% are not in 'public hands'. If I understand this correctly - only 2,642,384 shares are tradeable and at £2.00 per share that equals £5.28m. I'd be interested in people's thoughts on this but it seems to me that it will put a bit of a damper on the share price

[rivaldo] 22/11/2013 10:10

Cheers Eezymunny. I've a feeling this is quite volatile, so if any investors or tipsters pick up on it we could be in for a nice ride.

This looks interesting from Note 25 - remember that IJC was only acquired just before halfway through the year, so this year will see a full year's contribution.

IJC contributed £217k profit to HGR8 post-acquisition, but in the prior 5/6 months it made £720k profit! Prior to that IJC made £551k profit for the year, so there should be plenty of additional contribution this year:

"The acquisition made during the year to 30 June 2013 contributed £1,218k to the Group's revenue and profit of £217k to the Group's profit from operations. If the acquisition had occurred on 1 July 2012, Group revenue would have been £24,502k and Group profit for the year would have been £937k using pro-rata figures for the impact of the acquisition."

[eezymunny] 22/11/2013 09:36

Looks sort of interesting to me and sort of cheap.

I've stuck it in my Eezymunny portfolio



As you say Rivaldo, doesn't look a quick big winner but with what we know today may well run a worthwhile bit higher over the next few weeks. Mr Market will decide!

[old tyke] 22/11/2013 09:24

Spooky,

2 things:
1 creditors have increased a lot too.
2 the run rate of sales is I hope a fair bit higher than the FY total, so year-end debtors should be slightly fewer weeks' sales than you suspect.

But you are right to flag it - it was what struck me most in the statement.

[rivaldo] 22/11/2013 09:07

Cheers El1te :o))

[el1te] 22/11/2013 09:00

I take that back - there were almost £300k of exceptional costs. Fair enough