2019 Full Year Results For the year ended 31 January 2019
Mark Briffa Group Chief Executive
OVERVIEW • Full year results in line with prior year with underlying PBT of £5.8m* • Gross profit up 2.3% Charter in line with prior year; record profits in US, up 30.2%, and Freight, up 45.3% Consulting & Training up 25.0%, now contributing 11.9% to overall gross profit • Underlying EPS of 9.6p, up 14.3%*; statutory EPS of 5.6p (FY18: 6.9p) • Full year dividend up 1.8% at 5.60p with final dividend of 3.85p, an increase of 1.3% • Strategy intact and proving effective; moving forward fitter and stronger, and with confidence *Stated before exceptional and other items 3 FULL YEAR RESULTS MAY 2019
A GLOBAL AVIATION SERVICES GROUP Blue Chip Global Customer Base • Airline Operators • Military & Civil CHARTER MANAGED CONSULTING SERVICES & TRAINING • Regulators • Airports • Oil & Gas REGULATORY & COMPLIANCE • Sports PRIVATE JETS • MICE WILDLIFE COMMERCIAL • Corporates HAZARD JETS MANAGEMENT, FATIGUE RISK ATC MANAGED • Individuals MANAGEMENT JETCARD FREIGHT SERVICES A V I A T I O N S A F E T Y 4 FULL YEAR RESULTS MAY 2019
STRONG GEOGRAPHIC PRESENCE Founded in 1961, Air Partner is an aviation services group that provides worldwide aviation charter, consulting and training services to industry, commerce, governments and private individuals and across civil and military organisations. Operating 24/7, 365 days 14 offices globally AIR PARTNER OFFICES c.350 employees globally GATW ICK | FAIROAKS | LONDON | NEW YORK | FORT LAUDERDALE | HOUSTON | W ASHINGTON D.C. LOS ANGELES | PARIS | COLOGNE | SINGAPORE | MILAN | ISTANBUL | VIENNA 5 FULL YEAR RESULTS MAY 2019
STRATEGY IN ACTION 2010: Military contracts Acquisition of Cabot > 60% of profits Post Year End: (Air Partner Remarketing). New York office opened Acquisition of Baines Offices opened in Acquisition of SafeSkys Simmons. Customer First Houston and Singapore New Finance System More planned initiative launched 1 into 5 share split 2019: No one customer > 10% profits 2015 2016 2017 2018 2019 Acquisition of Clockwork. Upskilling of key positions 83.7 % Baines Simmons wins 10 and Board capabilities year Isle of Man contract. Processes & controls New dividend policy upgraded announced Los Angeles office opened Accounting Review Total Shareholder Return 6 FULL YEAR RESULTS MAY 2019
Joanne Estell Chief Financial Officer
CHANGES TO CONTROL ENVIRONMENT • Rapid and thorough response: comprehensive work plan developed • Good progress made in short space of time: We have upgraded and upskilled key members of the finance and head office team Roles and responsibilities reviewed, reducing dependency on one person and removing ‘single points of failure’ A new Risk and Assurance role created, reporting directly to the CFO with a direct line to the Chair of the Audit Committee Balance sheet control and review process tightened Improved quality and frequency of management information Key policies and procedures rolled out, level of training increased • We are on a road to recovery; control environment improved and processes in place to continually review and challenge arrangements 8 FULL YEAR RESULTS MAY 2019
2018/19 FINANCIAL HIGHLIGHTS January January Change £m’s 2019 2018 (%) Gross transaction value (£m) 273.3 261.3 4.6% Revenue 77.5 74.3 4.2% Gross profit 35.5 34.7 2.3% *Admin expenses & net impairment losses on financial assets (29.5) (28.8) (2.4)% *Underlying operating profit 6.0 5.9 1.7% *Underlying profit before tax (£m) 5.8 5.8 - Statutory profit before tax (£m) 3.4 4.8 (29.1)% Underlying basic EPS (pence) 9.6p 8.4p 14.3% Basic continuing EPS (pence) 5.6p 6.9p (18.8)% Final dividend (pence) 3.85p 3.80p 1.3% Total dividend (pence) 5.60p 5.50p 1.8% *Stated before exceptional and other items 9 FULL YEAR RESULTS MAY 2019
2018/19 PROFIT RECONCILIATION January January £m’s 2019 2018 Underlying profit before tax (£m’s) 5.8 5.8 Costs related to the accounting review and associated items (1.3) - Abortive acquisitions costs (0.5) (0.3) Changes in Board composition (0.4) - Amortisation of purchased intangible assets (0.4) (0.3) Acquisition costs & non – cash acquisition costs - (0.1) Restructuring costs - (0.3) Release of deferred consideration 0.2 Statutory profit before tax (£m) 3.4 4.8 10 FULL YEAR RESULTS MAY 2019
GROSS PROFIT BY PRODUCT 20 100% 17.3 11.9% 9.7% 18 90% 15.9 9.7% 13.8% 16 80% 14 70% 29.3% 30.5% 12 10.6 60% 10.4 £’m 10 50% 8 40% 4.9 6 30% 4.2 44.9% 50% 3.4 3.4 20% 4 10% 2 0% 0 Commercial Jets Private Jets Freight Consulting & Training Jan-19 Jan-18 Commercial Jets Private Jets Freight Consulting and Training Jan-19 Jan-18 • Commercial Jets down, owing to significant PY one-off contract • Commercial Jets remains largest division at 44.9% • Freight gross profit up 45.3%, driven by investment in people • Freight growth leads to contribution of 13.8% • Private Jets strong US performance, flat overall • Consulting & Training now 11.9% of total, v 9.7% LY • Consulting & Training up 25.0%, including SafeSkys; up 14.9% on a LFL basis 11 FULL YEAR RESULTS MAY 2019
GROSS PROFIT BY REGION 3% 0.1% 20 100% 17.6 17.4 18 90% 22.8% 17.9% 16 80% 14 70% 28.3% 28.0% 12 60% 9.9 9.8 £’m 10 50% 8.1 8 40% 6.2 6 30% 50.8% 49.1% 20% 4 1.1 10% 2 0.1 0% 0 UK Europe USA ROW Jan-19 Jan-18 UK Europe USA ROW Jan-19 Jan-18 • Record growth in the US, up 30.2%; investment in people • >50% of gross profit coming from outside UK and broadening of footprint • Further growth in the US takes contribution to 22.8% • UK and Europe impacted by sector volatility in second half 12 FULL YEAR RESULTS MAY 2019
2018/19 BALANCE SHEET – as at 31 January 2019 January January £ms 2019 2018 Intangible assets 11.6 12.1 Tangible assets 0.9 1.2 Trade and other receivables 19.1 16.3 Restricted cash balances – Jet Card 17.7 15.9 Other cash balances 7.5 7.3 Other current assets 0.3 0.7 Trade and other payables (8.0) (6.7) Deferred income (25.4) (24.3) Other current liabilities (5.8) (6.9) Deferred tax (net) (0.3) (0.3) Borrowings (5.5) (2.5) Other long term liabilities (0.2) (1.4) Net assets 11.7 11.4 13 FULL YEAR RESULTS MAY 2019
CASH FLOW • The above explains net increase in cash between opening and closing balances • Level of debt increased to support growth in Freight where ability to mobilise is a competitive advantage • Increase in working capital relates to trade receivables – no issues with ageing of receivables 14 FULL YEAR RESULTS MAY 2019 • Record JetCard deposits received in the UK
Mark Briffa Group Chief Executive
CHARTER – flat year on year COMMERCIAL JETS • Strength across territories offsetting large, one-off, prior year contract • Driven by Tour Ops, Government, Sports, and Conferences & Exhibition sectors • Significant business in US from corporate shuttles and Typhoons recovery Commercial Jets Private Jets Freight • 3-year managed services contract win for Airbus • Cross-selling supporting underlying strength PRIVATE JETS 16% • UK: Investment in new sales teams; benefit expected in current financial year 51% • UK & Europe: sector volatility, key customers flying less; but growth in JetCard numbers and deposits 33% • US: Investment in people delivering growth in gross profit, in ad-hoc and JetCard • US: Increase in JetCard membership, bookings and renewals FREIGHT Gross Profit • Second year of record profits • Good business wins and team growth across office network • New team established in US, immediately profit enhancing • Business coming from On Board Courier, Aircraft on Ground spares and Government requirements 16 FULL YEAR RESULTS MAY 2019
CONSULTING & TRAINING – up 25.0% • We are integrating all Consulting & Training businesses into Baines Simmons • Gross profit was up 25.0%, including impact of SafeSkys. LFL gross profit up 14.9% BAINES SIMMONS • Strong new management driving strategy, clear direction and future growth • Record performance in Training with momentum continuing into current year • Good new business wins, and cross selling opportunities crystallising CLOCKWORK RESEARCH 11.9 % • Small, niche business – good progress integrating Fatigue Risk Management into Baines Simmons • Co-authored industry guidance with South West Airlines and NASA • Other work carried out incudes with Air France and Jet2.com Consulting & Training SAFESKYS contribution to Group gross profit • Wildlife Management holds strong market position in the UK • New contracts won and existing extended; secured Western region with RAF for further minimum three years • New contracts supporting foreign government air forces within Europe • Provision of £0.7m made for two loss making Air Traffic Control contracts 17 FULL YEAR RESULTS MAY 2019
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