Hangar 8 Share Discussion Threads

[igoe104] 16/1/2014 08:45

Could see £4-£5 very quickly with the lack of stock floating around and the low cap, for a company with so much prospects.

not forgetting

the cash pile
close on 80% recurring revenues.
50 planes.
And decent profit for its cap size.

mmmmmmmmm.

[igoe104] 15/1/2014 16:28

If this company gets into the Chinese market, I can see it going up another level. their are more and more millionaires created everyday.

china is so big, business men will needs companies like( hangar8) to get around.

[rivaldo] 15/1/2014 13:32

..and up again. New highs a-coming?

[rivaldo] 14/1/2014 12:55

No probs Gary. The upwards trend continues nicely here.

[gary38] 13/1/2014 12:09

Great read Rivaldo .Thanks

[rivaldo] 12/1/2014 08:21

Terrific new article in Global Trader magazine which really sets out what HGR8 are about and is definitely worth reading in full re the long-term nature of HGR8's contracts, the medical sector expansion, the global growth etc:



"Africa is just what the doctor ordered for plane firm expansion
By Eric Jackson

While Boris Johnston and David Cameron like to be seen on their bikes in the course of promoting business, the preferred mode of transport for the business big-hitters is the private jet.

From being a private jet sceptic, entrepreneur and investor Warren Buffet even went as far as saying he wanted to be buried with his.

John Travolta flies his own private jets – Jumbo scale in his case – while other celebrity private jet fans include Oprah Winfrey, Jackie Chan, Jay-Z and Tom Cruise.

But behind the glitz and the glamour lies a multi-billion pound industry that helps business executives and political leaders conduct their trade in what they see as an economy sensible manner.

However the Airbus A380, owned by Prince Alwaleed bin Talal Al Saud, costing an estimated $500m and including a two-car garage and a stable for horses and camels, would be difficult to justify.

What many people don't know about, though, is the essential – and often life-saving – services involving private jets from California to Korea, and now increasingly in Africa.

British-based private jet operator Hangar8 – which has a 50-plane presence across the globe, including such places as Almaty in Kazakhstan - is one of the sector's leading companies in the world and the main early adopter of operations in the continent, much of it surrounding medical evacuations and in-air treatments.

Great

The growth in demand has been so great that the firm, which is AIM-listed on the London Stock Exchange, has recently added a new Bombardier Challenger jet to its fleet of aeromedical aircraft in Africa.

Heading up operations there is 37-year-old Chris Perry, a qualified pilot with South African and UK citizenship, who has flown private planes in Europe, Russia and Africa and who joined Hangar8 in 2010.

Chris, whose terra-firma interests include squash, golf, skiing and shooting, says that while South Africa is the major aviation hub on the continent, other countries are catching up fast. Last year, the company's aeromedical business in Africa saw revenues increase by 300%.

"With many major international companies investing in new ventures across Africa, employees are spending more and more time travelling to remote areas in less economically developed parts of the continent. It is in areas like this that high quality aeromedical facilities are more important than ever," he says.

"This is why our aeromedical fleet is equipped to fly anywhere in Africa – from South Africa to the Republic of Congo – to ensure that our customers' and their employees' safety is never compromised, even in the most remote mines and factories."

Hangar 8 has long seen the potential in the African business aviation market and has identified the continent as one of its key growth markets.

Chris says: "With one in three African nations recording GDP growth of more than 6%, this shows that the continent as a whole is booming, and while certain countries do not currently have the infrastructure or economy to take advantage of the business aviation market, a large number are definitely developing the impetus to do so in a few years' time.

"Our target is to be an established and trusted presence in those countries when the demand is significant enough. We believe that this GDP growth, combined with a rapid increase in foreign direct investment in the continent, which equalled $50bn in 2012 alone, and the expanding expat community and tourism industry, gives Africa an excellent platform for growth over the coming decade.

"This will, in turn, lead to an increase in demand for charter business jet services."

Hangar8 claims to be able to cater for any need, not just executive travel or aeromedical evacuation, but in a broad range of niche sectors, ranging from security and political evacuation to mortal and remains repatriation.

"Indeed," says Chris, "Hangar8's dedication to its clients' needs has seen its aircraft operate in war and conflict zones across the world."

One country offering potentially the biggest market, but which as yet remains untapped by Hangar8, is China, although that may change soon.

"Business travel in China, much like in Africa, is hampered by the vast distances between major economic hubs," says Chris. "China adopted business aviation slightly before Africa, which gives it a more established market, although it is still some way off the size of the North American or European markets.

"It has the second largest GDP in the world behind the States and is catching up fast, which means that in the coming years a greater number of corporates and UHNWIs in China will require air travel to conduct their business.

"For these reasons, Hangar8 views China as a very attractive market and one that we are monitoring very closely."

Of course most people's idea of aeromedical services goes no further than the Flying Doctor image portrayed on TV, but the sector has evolved beyond recognition in recent years.

"The technology involved in medical evacuation has advanced at a phenomenal rate over the past 40 years," says Chris."Our model is based on providing the best possible care in the shortest possible time before the patient is delivered to a hospital.

"In order to do this, we have equipped our four medical evacuation aircraft with the best possible equipment – essentially making them a mobile Intensive Care Unit (ICU) – and investing in the aircraft with the greatest range on the continent so as to ensure that wherever a casualty occurs in Africa, our service can not only get to them but deliver them safely to a specialist medical centre."

While Hagar8 is now really taking off, the company hit some serious turbulence a few years ago with the global economic meltdown.

Struggling

"As the global crisis took effect in 2009 the bottom fell out of the private aviation market, leaving both manufacturers and operators struggling," says Chris.

"It was a time for business owners to re-think their strategy or risk facing some really tough times ahead. Hangar8 was no exception. However, unlike many other operators who were forced to downsize or in some cases even close their doors, Hangar8 changed its focus from midsize jet charter operations to long-term leasing and heavy jet operations.

"We started working closely with aircraft owners and their banks to deliver safe returns on their aircraft by placing their aircraft on long-term leases with major industry conglomerates operating in emerging markets and we saw an almost immediate response.

"As a result of this, we managed to grow as a business during one of the worst downturns the industry has ever seen and is today recognised as a preferred supplier of business aviation solutions to some of the biggest players in the mining, oil and gas industry.

"This change in focus also means that we are now facing new challenges, such as operating business jets in West Africa and other emerging markets. We have been a pioneer in these markets and, as such, have significant 'first mover' advantages over our competition – especially in Africa.

"We pride oursleves on providing a very personal, private, bespoke service with a worldwide network of bases, including London, Lagos, Dubai and Mumbai, to ensure that wherever our clients find themselves, a private jet won't be far away."

The company has 24/7 operational support and personalised services such as a visa waiver programme, which allows customers easy access to the United States and a special service to cater for passengers' pets.

Hangar8 factfile

Established in 2002, Hangar8 is one of Europe's leading operators of private jets.
With aircraft based worldwide and fleet bases at Oxford, Luton, Biggin Hill, Edinburgh, Guernsey, Jersey, Nice, Almaty, Kiev, Dubai, Krasnodar, Mumbai, Abuja, Lagos and Moscow airports, Hangar8 is not only ideally situated but has at its disposal some of the finest terminal facilities.
Hangar8 Group includes the VVIP boutique operator JetClub based in Farnborough and operates a fleet of 50+ aircraft across key manufacturer types.
Having started out as a mid-size and super mid-size jet operator, Hangar8 has moved towards a focus on the long-haul market.
The speciality is now Gulfstream and Bombardier products with a fleet of more than 20 Bombardier Challenger and Global type aircraft.
Hangar8's clients come from a wide variety of backgrounds including music, sport and corporate.
Hangar8's focus on long range jets and long term leases has made the company a preferred aviation solutions supplier to some of the world's largest the oil and gas, mining and commodity trading conglomerates."

[rivaldo] 10/1/2014 13:47

Just beat you to it goliard :o))

Looking forward to the interims now.

[goliard] 10/1/2014 12:08

Not much of an AGM statement, but always good to get confirmation that things continue to be going well. WH Ireland report isn't anything we don't know, but again, it is further confirmation of the shares being undervalued. Exactly the type of stock I like to own, but they are hard to find.

[rivaldo] 10/1/2014 12:08

RNS out - apparently the AGM was today, which I'd completely missed...



Most importantly, there was a brief and very satisfactory trading statement:

"Nigel Payne, Non-Executive Chairman, read a short statement as follows, "The Board is pleased with trading which continues to be in line with expectations".

This is a noticeable improvement on prior AGM's, which had no trading statement at all. Bearing in mind the timing (i.e just after the half year date), we can now be pretty sure that the forthcoming interims will make good reading.

[rivaldo] 10/1/2014 09:01

WH Ireland have tipped half a dozen or so companies for 2014 - and HGR8 is one of them (along with KENZ, which I also hold). I received this newsletter in the post yesterday, so hopefully it'll bring some more buying in:



"AIM listed Hangar8 is one of Europe's largest operators of privately owned
aircraft. Founded in 2002, it is organised into three divisions: aircraft chartering, aircraft management and engineering. The chartering arm accounts for two-thirds of revenues, with Hangar8 focusing its efforts on securing long-term contracts as opposed to spot charter business. Indeed, contracted
revenue now accounts for 82% of the total, and increased 78% to £19.3m last year.

When Hangar8 floated in 2010 it was managing 19 aircraft, but thanks to
continued expansion and the astute acquisition of rival International Jet Club just over a year ago, this is now nearer 50. Heavier aircraft generate better margins and by leveraging the economies of scale it enjoys by operating a number of international hubs, incremental new business can be very profitable. It has a chunky £3.8m cash balance and due to the stringent EU regulatory environment, subscale operators struggle to compete.

Results for the first three months of the current year are encouraging. For 2014, brokers expect sales in the region of £29m, pre-tax profits of £2.2m and EPS in excess of 21p. The shares are inexpensive on current fundamentals, but Hangar8 should also benefit significantly from an improving economy."

[gary38] 09/1/2014 12:41

Rivaldo ----- good find .Steady progress.

[rivaldo] 09/1/2014 12:19

...and again today.

I came across this older article outlining why private jets are so useful in times of bad weather - I'm thinking in terms of recent airport closures in the UK and the current snowstorms in the USA. I'd hope that private charter operations are doing rather well at present in the circumstances:

[rivaldo] 08/1/2014 11:40

Moving up nicely again - hopefully new highs soon.

[rivaldo] 06/1/2014 08:46

Agreed goliard. By the end of 2014 I'm hoping for a share price of between 350p-400p given the fundamentals - and possibly more if HGR8 can beat the 22.3p EPS expectations to 30/6/14 as I hope they will.

[goliard] 03/1/2014 09:43

Good to see it starting the next leg up. Now one of my largest holdings and hoping to see over 300p after the March update.

[rivaldo] 03/1/2014 08:47

A great start to 2014....

[rivaldo] 30/12/2013 08:29

A positive end to the year, moving up on small buying. Good to see.

Happy New Year to all here!

[rivaldo] 23/12/2013 09:16

Nice to see another tick up. Did anyone go to the AGM (it was actually on Friday 20/12, so a good job I didn't try to go on the Thursday!)?

[rivaldo] 18/12/2013 14:26

Cheers goliard. In a way I'm hoping the price doesn't go up so I can pick up some more over time.

I disagree about AGMs, as you can often get that 10 minutes (sometimes more) with the CEO or FD which can be pretty useful. But I understand what you're saying. Some take the view that directors will always lie/twist the truth to tell you what you want to hear, but though this is sometimes true I find it's often the reverse that's true, namely that body language and tone can tell you quite a lot.

Anyway, I can't go on Thursday either :o))

[goliard] 18/12/2013 09:51

Should add that I'm not going because I find AGMs a waste of time. Company can't really tell you anything, so only good if you want to have 10 mins with the CEO to see if you like him or not.

[goliard] 18/12/2013 09:49

Not me. Managed to pick up some more yesterday, but then couldn't even get a quote for 1,000 towards the close, but the MM didn't move the price up at all.

[rivaldo] 18/12/2013 09:28

The AGM is on Thursday - anyone going? Historically there's hasn't been a trading update at the AGM, but hopefully this might change with everything looking so good and acquisitions on the horizon.

[goliard] 16/12/2013 12:17

We still have people selling in to any rise just in case in doesn't happen again. I guess it will take a while to flush them out, but we will get there in the end. Seems to be a regular pattern of morning increases followed by a drop back. I might try buying at the end of the day and then trading some the next morning!

[rivaldo] 16/12/2013 08:46

Nice start to the week.

EDIT : never mind :o))