Global jet-setters are clamouring for private planes capable of flying long-haul. Satisfying that demand helped private-plane operator Hangar 8 (HGR8) grow its operating profit by 29 per cent in the year to 30 June.
Hangar 8 took on the management of four more "heavy" aeroplanes, which can fly farther than lighter models, taking the total to 27 of its 47 aircraft. The result was a 26 per cent rise in revenue at its aircraft management and logistics division to £54m.
The group's goal is to secure more long-term contracts, diversify its services and expand internationally. It has already internalised engineering services, such as maintenance and planning, and now offers them to other aircraft operators. And it widened its European footprint by purchasing charter operator Oasis Flight Malta.
Hangar 8 benefited from strong corporate demand for flights to troubled countries. It completed almost 1,500 charter flights - up 51 per cent - which sent charter sales soaring more than a third to £6m. The group also added a Bombardier Challenger outfitted with medical equipment to its fleet, and plans to introduce a long-range aircraft capable of transferring Ebola patients safely.
Hangar 8's shares trade at 14.5 times forecast earnings for 2015 - a "modest premium" to the wider market, says broker Cantor Fitzgerald, which has put its forecasts under review.
| HANGAR 8 (HGR8) | ||||
|---|---|---|---|---|
| ORD PRICE: | 328p | MARKET VALUE: | £31m | |
| TOUCH: | 322-334p | 12-MONTH HIGH: | 365p | LOW: 187p |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 32 | |
| NET ASSET VALUE: | 79p* | NET CASH: | £4.6m | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 10.9 | -0.9 | -15.9 | nil |
| Year to 30 Jun | ||||
| 2011† | 18.2 | -0.5 | -8.7 | nil |
| 2012 | 17.0 | 0.5 | 4.9 | nil |
| 2013 (restated) | 51.4 | 1.2 | 9.7 | nil |
| 2014 | 65.0 | 1.5 | 10.4 | 2.3 |
| % change | +26 | +29 | +7 | - |
Ex-div: tba Payment: tba *Includes intangible assets of £3.2m, or 33p a share †14-month period ended 30 Jun | ||||
