Air Partner plc Interim Results for the half-year ended 31 July 2016 - - PowerPoint PPT Presentation

Air Partner plc

Interim Results for the half-year ended 31 July 2016

Mark Briffa, CEO Neil Morris, CFO

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Introducing Air Partner

Founded in 1961, Air Partner is a global aviation services group that provides worldwide solutions to industry, commerce, governments and private individuals. Air Partner is headquartered alongside Gatwick airport in the UK. The Group’s global platform operates 24/7, from in 20 key gateway cities. Enabled by Air Partner’s Customer First Programme, the Group delivers outstanding and exceptional service to some 14,000 clients across the globe. Clients include six of the G7, and some of the world’s leading employers, corporations, business leaders, stars and HNW individuals.

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Divisional overview

• Charters airliners from 20 to 500 people
• Used for product launches, sports teams

and conferences

• Typical clients include: automotive, sports,

entertainment, pharmaceutical

• Cabot Aviation, remarkets commercial

aircraft and private jets

• ACMI (‘wet leasing’)
• Flies fewer than 20 people
• Offers a bespoke service or a JetCard
• Typical clients include: finance houses, film

/ entertainment and high net worth individuals

• Ad hoc charter, our bespoke on

demand service

• JetCard, a private jet card programme with

>200 cardholders

• Charters aircraft from Learjets to the giant

Antonov 225

• Time critical door to door delivery service
• Typical clients include: goverments,

automotive, engineering and energy

• A world-leading Aviation Safety consultant
• Specialises in aviation regulation,

compliance and safety management

• Manages Isle of Man Aircraft Registry,

awarded 10 year contract in April 2016 24/7 Operations, Travel Management, Emergency Planning

SUPPORT DIVISIONS FREIGHT COMMERCIAL JETS PRIVATE JETS BAINES SIMMONS 3

• Strong H1 results, despite terrorism, tour operating, geopolitical uncertainty
• Broking and Consulting divisions both performed well
• Strategy producing results
• Acquisitions fully integrated and contributing
• Customer First rolled-out globally and supporting growth (Broking op.profit up 24%)
• NED appointments further aligns industry and operational experience with strategy
• Interim dividend increased by 10% to 8.1p
• Full year outlook: Board remains optimistic

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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July 2016 July 2015 Change Gross Transaction Value (£m) 112.9 110.2 2% Gross Profit (£m) 16.1 12.1 34% Gross margin (%) 14.3 10.9 +340bps Underlying operating profit (£m) 3.1 2.2 36% Underlying operating margin (%) 2.7 2.0 +70bps Underlying PBT (£m) 3.0 2.2 35% Underlying EPS (p) 22.3 17.1 30% Interim Dividend (p) 8.1 7.3 10% Total cash (£m) 24.6 15.0 +£9.6m Net cash excluding JetCard (£m) 5.2 1.4 +£3.8m

Operating Highlights

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Broking Commercial Jets:

• Significant sport contracts won for Euros and pre-season Premier League tours
• Cabot Aviation successfully remarkets two Boeing 777s for Kenya Airways

Private Jets:

• Record H1 results
• Exceptional UK performance
• JetCard utilisation up by 25%

Freight:

• Good automotive wins

Consulting & Training

• Good performance and solid contribution
• Renewal of Isle of Man Aircraft Registry contract for further 10 years
• Successfully won a number of long-term government and corporate contracts

Operating profit bridge

7 3,054 2,241 311 525 (89) 275 (209) HY15 Commercial Jets Private Jets Freight Baines Simmons Corporate Costs HY16

Cash flow bridge

8 8,406 3,015 1,915 419 (257) 3,826 (22) 524 (1,741) 727 Jan-16 NOPAT D&A Net bank loans Working cap (Excl. JCD) Capex Tax, interest & other Dividends FX Jul-16

Gross profit by Product

Commercial Jets Private Jets Freight Baines Simmons

• Strong performances across CJ and PJ
• First time contribution from Baines Simmons
• Decrease of 20% in Freight
• Decrease in proportion of gross profit from CJ by

11%

• Baines Simmons 19% of gross profit

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56% 45% 36% 32% 8% 5% 0% 19%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HY15 HY16

£’m

Gross profit by Region

• Strong performance in the UK with gross profit up

by 58% or by 12% excluding Baines Simmons

• Europe increased 16% to £4.3m
• US down by 12% year on year
• UK accounted for 64% of gross profit
• Europe and US mix reduced

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55% 64% 31% 27% 14% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HY15 HY16

UK Europe US

£’m

Operating profit by Product

• CJ +18% due to strong UK and Europe
• Outstanding PJ performance, particularly

the UK

• Decrease in Freight of 22%
• Encouraging performance at

Baines Simmons

• CJ remains our largest division
• PJ increased to 36% of operating profit

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56% 50% 31% 36% 13% 8% 0% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HY15 HY16

Commercial Jets Private Jets Freight Baines Simmons

£’m

JetCard goes from strength to strength

• Utilisation up by an impressive 25% leading to

record H1 performance

• JetCard cash balances year-on-year have risen

by £2.5m (18%) to £16.1m

• The number of JetCards has risen since 31

January 2016 by 9 to 218 – UK 137 (up 9), USA has 50 (down 2) and Europe 31 (up 2)

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50 100 150 200 250 FY14 FY15 FY16 H117 Europe US UK

JetCard numbers

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COVER

Commercial Jets

OIL & GAS SPORT AUTOMOTIVE REMARKETING

• Gross profit increased by 8% to £7.3m
• Underlying operating profit increased by 18% to £2.0m
• Strong performance in the UK as a result of Sports, Oil & Gas and government work
• Automotive and tour operations performing well in Europe
• Cabot Aviation has successfully remarketed two Boeing 777s for Kenya Airways
• H2 in the US expected to improve

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Commercial Jets

1.5 1.6 1.7 1.8 1.9 2.0 2.1 6.5 6.6 6.7 6.8 6.9 7.0 7.1 7.2 7.3 7.4 HY15 HY16 Gross profit Operating profit

Private Jets

ON-DEMAND CHARTER JETCARD CORPORATE CARD

• Record H1 performance with gross profit increase by 17% to £5.1m
• Operating profit increased by 56% to £1.5m
• Strong performance in the UK through success of Customer First
• JetCard success - utilisation up by 25% leading to record H1 result
• Solid performance in Europe
• US showing signs of improvement

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Private Jets

0.0 0.3 0.5 0.8 1.0 1.3 1.5 1.8 3.8 4.0 4.2 4.4 4.6 4.8 5.0 5.2 HY15 HY16 Gross profit Operating profit

Freight

HUMANITARIAN AID OIL & GAS AIRCRAFT PARTS AUTOMOTIVE PARTS DANGEROUS GOODS HIGH VALUE CARGO TIME CRITICAL

• Gross profit decreased by 20% to £0.8m
• Operating profit decreased by £0.1m to £0.3m
• Strong performance in automotive in Europe
• Tough comparable: no government aid agency work in period

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Freight

0.00 0.10 0.20 0.30 0.40 0.50 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 HY15 HY16 Gross profit Operating profit

Baines Simmons

TRAINING MANAGED SERVICES CONSULTING

• Gross profit of £3.0m, representing 19% of the group
• Operating profit of £0.3m, equivalent to 10% of the group
• Successful contract wins include Isle of Man Aircraft Registry for 10 years, BAE

Systems (Typhoon) and a number of commercial airlines

• Encouraging performance from Baines Simmons which was acquired in August 2015

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Baines Simmons

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 HY16 Gross profit Operating profit

Summary

Strategic update

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• Focused on building a world class aviation services group
• Delivering tailored and comprehensive aviation solutions to our global customers
• Strategy based around three components: Optimise, Enhance and Extend
• Good progress made acquiring or investing in complementary

capabilities/services that support these three components

Optimise Enhance Extend Initiative Customer First Acquisition of Cabot Aviation Acquisition of Baines Simmons H1 result Broking op. profit up 24% 2x Kenya Airways Boeing 777s remarketed Isle of Man Aircraft Registry renewal

Outlook

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• Strong first half performance
• Current trading good albeit slowest trading quarter to come
• Continue to assess investment opportunities that will enhance or extend our

customer services

• The Board remains confident that its expectations for the remainder of the

financial year will be achieved