Air Partner plc Results for the year ended 31 January 2017 Mark - - PowerPoint PPT Presentation

Air Partner plc

Results for the year ended 31 January 2017

Mark Briffa, CEO Neil Morris, CFO

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Introducing Air Partner

• Air Partner is a global aviation services group headquartered in

London Gatwick

• The Group’s global platform operates 24/7 x 365 from 20 key

gateway cities

• The Group operates two complementary divisions
• Broking: Commercial Jets, Private Jets, JetCard and Freight
• Consulting & Training: professional services and managed

services in Aviation Safety

• Through Air Partner’s Customer First programme, the Group

delivers outstanding and exceptional service to some 14,000 clients across the globe

• Governments, NGOs, Corporations, HNWI
• Sports, Oil & Gas, Automotive, Tour Operators, Military & Civil
• A clear long term strategy, with an objective to deliver an even better

customer experience, and achieve a balanced business mix which generates a higher quality of earnings for shareholders

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Air Partner plc Broking Consulting & Training

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• Strong full-year results
• Commercial Jets strong
• Exceptional year in JetCard with record utilisation
• Remarketing and ACMI both performed well
• Baines Simmons contributed 10% of the Group’s underlying profit before tax
• Isle of Man Aircraft Registry contract awarded for next 10 years
• Strategy to diversify quality of earnings is starting to pay dividends
• Acquisition of Clockwork Research

Overview

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Financial highlights

Underlying relates to continuing operations and excludes non-trading items and non-cash acquisition related costs

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January 2017 January 2016 Change Gross Transaction Value (£m) 215.8 210.8 2.4% Gross profit (£m) 31.7 27.3 16.3% Gross margin (%) 14.7 12.9 +180bps Underlying operating profit (£m) 5.1 4.4 16.6% Underlying operating margin (%) 2.4 2.1 +30bps Underlying PBT (£m) 5.1 4.4 17.2% Underlying EPS (p) 6.5 5.9 10.2% Total dividend (p) 5.2 4.9 7.2% Total cash (£m) 19.8 19.8

• Net cash excluding JetCard (£m)

3.9 3.0 30.3%

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Operating highlights

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Broking Commercial Jets:

• Strong performances in USA, Europe and ACMI
• UK performed well despite non-repeat of major contract
• Cabot Aviation successfully remarketed three Boeing

777’s for Kenya Airways and rebranded as Air Partner Remarketing Private Jets:

• Exceptional JetCard performance: utilisation up 41%
• Strong H1 performance in UK, strong H2 in USA
• Improvement in Europe, particularly in Germany

Consulting & Training

• Baines Simmons delivers good performance in first full

year of ownership

• Renewal of Isle of Man Aircraft Registry contract for

further 10 years

• Successfully won a number of long-term government

and corporate contracts

One Group/Two Divisions

89% 11% Underlying Operating Profit 82% 18% Gross Profit

Broking Consulting & Training

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Operating profit bridge

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• 16.6% increase in underlying operating profit
• Stand out performance from Commercial Jets
• Consulting & Training now represents 10% of Group profit before tax
• Private Jet performance up, but investments made in growing US business
• Disappointing year for Freight

£’000k

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Cash flow bridge

7 £’000k

• Overall £914k increase in non-JCD cash
• Inflows:
• Increase in NOPAT of £2,847k
• Addback of depreciation of £780k and tax and

interest of £1,012k

• Favourable forex benefit of £736k
• Outflows:
• Dividends of £2,574k
• Repayment of bank loan
• Capex of £269k and acquisitions of £362k
• Net working capital of £742k

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Balance sheet

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£’000 January 2017 January 2016 Change Property, plant and equipment 1,086 1,281 (195) Goodwill and other intangibles 8,743 8,384 359 Net deferred tax (192) (408) 216 Net current liabilities (excluding cash and borrowings) (11,541) (11,723) 182 JetCard Cash 15,886 16,776 (910) Non-JetCard Cash net of borrowings 972 (456) 1,428 Net assets 14,934 13,854 1,080

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Gross profit by Product

Commercial Jets Private Jets Freight Consulting & Training

• Strong performances across our broking division

with the exception of Freight

• Strong first full year contribution from Consulting

& Training division

• Commercial Jets remains largest division, but has

decreased as proportion of total GP to 46%

• Consulting & Training now 18% of total GP

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£’m

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Operating profit by Product

• Commercial Jets +30% due to strong

US and Europe

• Private Jets shows lower increase

due to investment in US

• Consulting & Training performance

strong in first full year of ownership

• Commercial Jets remains our largest division
• Consulting & Training showing change in mix

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Commercial Jets Private Jets Freight Consulting & Training

£’m

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Gross profit by Region

• Strong performance in the UK with gross profit up

by 14%

• Europe increased 21%
• US up 18% year on year
• Split by geography consistent year-on-year

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UK Europe US

£’m

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JetCard goes from strength to strength

• Utilisation up by an impressive 41% leading to

record performance

• JetCard cash balances reduced to £15.9m due to

increased utilisation

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Broking

• Strong performance in Europe due to

Tour Ops, Automotive, Sports and Government contracts

• USA performed well due to

presidential campaign work

• Strong growth in Sports in the UK
• ffsetting the non repeat contract in

the Oil & Gas sector

• Remarketing has successfully

remarketed three Boeing 777’s for Kenya Airways 14

Broking

• JetCard success - utilisation up by 41%

leading to record result

• Lower growth in operating profit due to

investment in USA

• Solid performance in Europe
• Strong start in UK tailed off in H2,

whereas USA performance improved

• ver year
• Challenging year overall: no

government aid agency work in period

• Strong performance in automotive

in Europe

Commercial Jets Private Jets Freight

0.0 0.5 1.0 1.5 2.0 2.5 8.8 9.0 9.2 9.4 9.6 9.8 10.0 10.2 10.4

FY16 FY17 Gross profit Operating profit

0.0 1.0 2.0 3.0 4.0 5.0 13.6 13.8 14.0 14.2 14.4 14.6 14.8

FY16 FY17 Gross profit Operating profit

0.0 0.2 0.4 0.6 0.8 1.0 0.0 0.5 1.0 1.5 2.0

FY16 FY17 Gross profit Operating profit

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Consulting & Training

• Baines Simmons profit before tax of £0.5m equivalent to 10% of Group total
• Successful contract wins include BAE Systems, Thomas Cook, Marshalls and

the UK Military Aviation Authority

• Renewal of the Isle of Man Aircraft Registry contract for the next 10 years
• In house training had a record Q4
• Acquired Clockwork Research, a specialist fatigue risk management consultancy

in December 2016 16

Consulting & Training

Consulting Training

AVIATION SAFETY

Managed Services

Complementary services with a focus on aviation safety 16

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Acquisition of Clockwork Research

• Fatigue risk management consultancy
• Team of physiologists, psychologists and safety

professionals

• Safety critical industries: predominantly aviation, also Oil &

Gas and Mining

• Training, Risk Assessment, Research, Consultancy
• Translates scientific research into operational solutions
• Assisting operators to build fatigue risk management

systems for over 10 years 17

Group Strategy

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We have a clear long term strategy to build a global aviation services group:

• Broaden our customer offering to encompass a full range of aviation services
• Extend our geographical reach
• Customer First delivering an exceptional customer experience
• Leverage the Air Partner brand and heritage

A clear strategic roadmap to transform our Group leading to

• Growth
• Cash generation
• A balanced business mix which will reduce volatility, increase visibility and lead to

higher quality earnings

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Group Strategic Initiatives

• Customer First
• Continues to embed across the group
• Increased levels of service delivery leading to increased repeat business and customer loyalty
• Cross Selling
• Ability to maximise the new combined group client base
• Success already seen in Sports and Government business
• Technology
• New Finance system rolled out in February 2017
• Infrastructure upgrades, improved functionality and systems integration
• Upgrades to CRM planned for H2
• Partnerships
• Strategic partnership with Camper & Nicholsons enabling both companies to offer a full suite of

private jets and superyacht services

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Outlook

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Outlook

• Strong full year results
• Results reflect last two years of hard work and commitment from across the group
• Trading has commenced in line with the Board’s expectation
• Begin financial year with degree of optimism
• Transformation continues - Board remains confident that long term strategy to

build a global aviation services group will continue to create shareholder value

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