Air Partner’s (AIP) US business has taken off, and a slump at the jet broker’s lower-margin and highly cyclical freight broking unit actually helped improve returns - driving full-year adjusted pre-tax profit up 31 per cent to £4.2m.
Poaching staff with large client books in the highly lucrative American market hasn’t been difficult. Attracted by Air Partner’s British heritage and growth prospects, they drove client numbers up 28 per cent and tripled sales of its JetCard for rich flyers - generating 75 per cent growth in revenue to £31.6m and record profits. The private jet business in Europe is ramping up, too. Revenue there jumped 17 per cent and appointing well-connected Paul Richardson as head of the division, where profit rose 47 per cent to £1.5m, is a smart move. So, too, is parachuting former Monarch Airlines director Alan Murray in at the commercial jets operation. A tight grip on costs meant profit leapt 46 per cent to £2.3m, and a winter contract with ski holiday firm Hotelplan was announced recently. Further deals with tour operators look inevitable. A new office in Houston should also attract oil & gas companies where client numbers are already up 50 per cent.
Liberum Capital hasn’t published forecasts for the new end-January year-end, but expects adjusted pre-tax profit of £4.4m for end-July 2014, giving adjusted EPS of 27.7p (from 27.1p).
AIR PARTNER (AIP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 448p | MARKET VALUE: | £46.1m | |
| TOUCH: | 448-451p | 12-MONTH HIGH: | 495p | LOW: 255p |
| DIVIDEND YIELD: | 4.5% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 147p | NET CASH: | £20.7m | |
| Year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 187 | 5.64 | 45.9 | 30.7 |
| 2010 | 230 | 2.73 | 26.4 | 15.0 |
| 2011 | 282 | 5.26 | 32.5 | 16.5 |
| 2012 | 228 | 4.14 | 29.1 | 18.2 |
| 2013 | 221 | 3.91 | 24.7 | 20.1 |
| % change | -3 | -6 | -15 | +10 |
Ex-div: 2 Oct Payment: 25 Oct | ||||
