04 Apr 07 1
Interim Results 6 months to Jan 2007 David Savile / CEO Steph White / CFO Current period: slides 1 to 32 Appendix: background briefing 04 Apr 07 2
Disclaimer This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. competitive product and pricing pressures and regulatory developments. 04 Apr 07 3
Financial highlights � Sales £ 90.3 m up 60% � Operating profit £ 3.2 m up 139% � Profit before tax £ 3.5 m up 118% � Diluted EPS 23.0 p up 115% � Interim dividend 6.7 p up 10% � Cash £ 17.3 m up 39% 04 Apr 07 4
Operational highlights � Strong trading across the Group � Exceptional performance from our Government and Corporate sectors � Continued progress in the HNWI sector � Gold Air creating positive halo effect in Air Partner � Gold Air creating positive halo effect in Air Partner Private Jets � New offices under development � Recruitment of professional brokers continues � New corporate identity to strengthen our brand 04 Apr 07 5
Delivering on Group Strategy � Diversification of Revenue Stream � � Continued dominance of Government Sector � � Further progress in growing the large Corporate Sector � � Move into the HNWI sector with JetCard � � Investment in global offices and team continues � � Strong Dividend Policy is maintained � 04 Apr 07 6
New corporate identity � Revised divisional & reporting business units for Airliner charter { Ad hoc private jet charter { JetCard card programme { Gold Air Int’l operations 04 Apr 07 7
Sales (£m) 200 175 150 125 100 75 50 H2 ---- 25 H1 0 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 04 Apr 07 8
Income statement 2007 2006 £’000 £’000 Revenue 90,308 56,278 Cost of Sales (76,064) (50,048) Gross Profit 14,244 6,230 Operating profit 3,203 1,342 Profit before tax 3,464 1,607 Earnings per share: Basic 23.5p 11.0p Diluted 23.0p 10.7p 04 Apr 07 9
Profit before tax (£m) 7 6 5 4 4 3 2 H2 ---- 1 H1 0 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 04 Apr 07 10
FY profit trend (£m) 7 6 5 4 4 H1 is 88% towards the H1 is 88% towards the trend line for the year-end 3 2 1 0 '94 '96 '98 '00 '02 '04 '06 '08 '10 04 Apr 07 11
Balance sheet 2007 2006 £’000 £’000 Non-current assets 5,712 2,578 Current assets 33,096 26,735 Total assets Total assets 38,808 38,808 29,313 29,313 Current liabilities (23,539) (17,445) Non-current liabilities (266) (329) Total liabilities (23,805) (17,774) Net assets 15,003 11,539 04 Apr 07 12
Group cash flow 2007 2006 £’000 £’000 Net cash from operating activities 10,036 198 Net cash from investing activities (3,993) 199 Net cash used in financing (588) (3,416) activities Net increase/(decrease) in cash 5,455 (3,019) Opening cash 11,931 15,437 Foreign exchange rate changes (75) 8 Closing cash 17,311 12,426 04 Apr 07 13
Dividend growth (pence) Half Year Full Year Special 40 35 30 25 25 20 15 10 5 0 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 04 Apr 07 14
Group review 04 Apr 07 15
Diversification strategy Geographic UK Europe Middle East Asia North America Product sector Private Jet Charter Commercial Jet Charter Freight Charter JetCards Client sector Block Hours Contracts Private Jet Sales Government Private Jet Management Royal Emergency Planning Corporate Flight Operations HNWI Travel Service 04 Apr 07 16
Geographic review (sales) � 21 offices across 4 continents • All established broking offices profitable • All newly seeded broking offices profitable • 2 more offices under development 13 offices 4 offices 2 offices 2 offices USA UK Europe Rest of the 9% 57% 29% world 5% 04 Apr 07 17
Group product review Players Products Territories Private Private Aircraft Airliner Freight Jet Card Emerg. Jet USA EUR ME ASIA Jet Sales Mgmt Charter Charter Program Evac Charter Air Partner � � � � � � � � � � � � � � � � � � � � � � � � Airlines (direct sell) Most are single continent � � � Private Jet Operators � � � � � Fractionals � � Card � Programme Operators 04 Apr 07 18
Building depth � 20 top-quality aviation managers • In-house training • Cranfield School of Management � Long history within the Group and the Industry • 10 most senior managers have average 22 years in the industry, and 16 years with the Group Air Partner Managment Experience Air Partner Managment Experience 500 Cumulative management experience Years 400 300 in the industry 200 100 with Air Partner 0 97 98 99 00 01 02 03 04 05 06 07 04 Apr 07 19
Corporate social responsibility � Stated aim for AP to be carbon-neutral by end 2008 � First scheme launched • Carbon-neutral offering launched in October 06 04 Apr 07 20
Divisional review 04 Apr 07 21
Divisional split of sales 3.5% 7% 63.5% 26% Commercial Jets Private Jets Freight Other 04 Apr 07 22
Commercial Jets � Exceptional business levels from the dominant part of the group • Sales up 52% at £57m, representing 63.5% of Group activity • Margin improvement as well � All traditional client sectors performing well � Good diversity of revenue; strong areas include � Good diversity of revenue; strong areas include • Government, NGO • Conference & Incentive • Product launch: e.g. Automotive, Pharmaceuticals • Cruise ship business • Sports events • Airline sub-service and general sales agency work 04 Apr 07 23
Commercial Jets � High degree of repeat business � Team’s trading ability is very strong 04 Apr 07 24
Private Jets review � Strong trading throughout � Benefit of being seen as an end-supplier � 25% increase in active client numbers � Restructuring in progress will create immaterial one- off cost � Strategic aims falling into place � Strategic aims falling into place 04 Apr 07 25
AP product at every point Ad hoc charter “I want to charter a jet next week” Non-type specific Charter Management The JetCard “I want a fixed hourly rate and “I want my jet to earn its keep” guaranteed availability” The Type specific Product Lear 45 Card Cycle Aircraft Management “I like this Lear and I want to use it regularly” “Please look after this for me” Private Jet Sales Consultancy “what jet should I buy?” & “managing the purchase”
Private jet market overview � Growth of private jet market is extremely strong � Manufacturer order books bulging; earliest deliveries • Gulfstream G450 & G550: Q1, 2010 • Bombardier Global Express/5000: Q4, 2010 • Dassault Falcon 900 & F2000: Q4, 2009 • • Dassault Falcon 7X: Dassault Falcon 7X: Q2, 2011 Q2, 2011 • Airbus ACJ & Boeing BBJ: 2010-2011* *with completed interiors � London airports facing high demand, constraints • (Heathrow & Gatwick inaccessible) • Limitation issues now facing London City, Luton and Stansted • Farnborough 85% full 9 months since it was fully opened • Biggin Hill private jet traffic up 39% over last 12 months but almost unlimited capacity 04 Apr 07 27
Private jet market engine manufacturer view � Honeywell predict 12,000 sales worth $195B between 2006 & 2016, of which 25% will come to Europe 04 Apr 07 28
Current trading � All markets remain buoyant � However, forward order book is up 29% • Strong, but slower than H1 � Consolidating position for the future � Consolidating position for the future � Air Partner remains, as always, a long term investment 04 Apr 07 29
Q & A 04 Apr 07 30
Appendix � For the benefit of investors who are new to our business, we attach some previously used slides that provide a background briefing on Air Partner. Please contact us if you would like further amplification. 04 Apr 07 31
Contents � A straightforward Business Model � An uncomplicated Financial Model � The Business by Activity � Secondary Divisions � Driving the Business • The PLC Board • Senior Management • Future Management � Independent Research 04 Apr 07 32
Recommend
More recommend
