Half Year to 31 Jan 2010 Aubrey Adams - Chairman Mark Briffa - - - PowerPoint PPT Presentation

Half Year to 31 Jan 2010

Aubrey Adams - Chairman Mark Briffa - Chief Executive Officer Steph White - Chief Finance Officer

Slide 2

Trading overview

 Conditions remain challenging throughout sector  Overcapacity & aggressive pricing impact margins  Air Partner’s core broking sales remain robust  Further progress re-sizing business for reduced trading levels  Confident actions will return business to growth

PJ Operating Company

 FY09: reported £2.6m losses & £1m of costs removed  Further losses of £1.2m for six months to 31 Jan 2010

• no material change in traffic or demand levels

 Board agreed to close Subsidiary & place in administration  Management action preserves cash & reflects changed aviation environment  Changed market conditions remove the need to secure capacity via operating company  Air Partner Private Jets continues to offer excellent charter and JetCard services

Financial highlights

Continuing operations  Sales £95.0 m down 7% (2009: £101.8m)  PBT £1.0 m down 77% (2009: £4.3m)  Diluted EPS 11.7p down 64% (2009: 32.3p) Including discontinued operations  PAT (£1.2 m) down 148% (2009: £2.5m)  Diluted EPS (11.6 p) down 147% (2009: 24.5p)  Cash £14.7 m down 34% (2009: £22.1m)

2010 £’000 2009 £’000 Continuing operations Revenue 95,006 101,822 Cost of Sales (85,756) (89,807) Gross Profit 9,250 12,015 Operating profit 918 3,926 Financing 88 394 Profit before tax 1,006 4,320 Loss from discontinued operations (2,391) (792) EPS: Basic 11.6p 32.3p Diluted 11.6p 32.2p

Income statement

Balance sheet

2010 2009 £’000 £’000 Non-current assets 3,522 6,799 Current assets 42,779 43,038 Assets held for sale 2,137

• Total assets

48,438 49,837 Current liabilities (34,744) (31,095) Non-current liabilities

• (36)

Liabilities held for sale (1,508)

• Total liabilities

(36,252) (31,131) Net assets 12,186 18,706

Group cash flow

2010 2009 £’000 £’000 Net cash from operating activities 2,240 2,799 Net cash from investing activities (1,532) 112 Net cash used in financing activities (2,255) (2,260) Net (decrease)/increase in cash (1,547) 651 Opening cash 16,137 20,756 Foreign exchange rate changes 14 741 Closing cash 14,604 22,148

Cash position (£m)

5 10 15 20 25 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 £m

Total dividend Linear (Cash position)

Dividend (pence)

Cumulative Dividend since flotation = 334p : 416% of the float price

Geographical and Divisional Review

Global office network

New York Washington DC Fort Lauderdale Russia Dubai New Delhi Hong Kong Singapore Turkey Tokyo London Paris Nantes Cologne Vienna Zurich Amsterdam Milan Malmo Budapest

Sales by territory (% of total sales)

2010 2010 2009 2010 2009

£m

Divisional split of sales

(continuing operations)

2009

Divisional split of profitability

(continuing operations)

2009 2009 2010 2010

£m

Commercial Jets

 Sales of £46.6m (down 34%)  Operating Profit of £0.4m  Competition strong & aggressive

 impacting margins

 AIP’s bespoke service & client care performing well  Government & military business remains buoyant  C&I / automotive badly affected across Europe  Niche markets producing strong enquiries  No signs of reduction in over capacity  Continue to establish low risk partnerships with key suppliers

Private Jets

 Sales of £18.3m (down 10%)  Operating Profit of £0.4m  Sector over capacity remains an issue  Margins impacted by rival discounting  Charter set to benefit from fractional demise  Changed market removes need to secure capacity

 APPJ better placed to access competitive hourly jet rates  GSA secures capacity without downsides

 JetCard product remains profitable

 expansion into Europe and US

 Confidence in market returning slowly

Freight

 Sales of £22.9m (up 127%)  Operating Profit of £0.09m  Market is highly competitive, ↓ divisional margin  Sales strong, despite weak general cargo market  Growing market share: client numbers increased  Enquiry levels at an all time high  Govt business strong & commercial business held  Further investment for continued growth

 France, Germany, Turkey & Hong Kong  increased team in France & Germany

 Expect Freight to increase Group contribution

Other divisions

 Air Partner Fuel

 New fuel buying division launched May 2009  Not fuel broking business, but a complimentary service  Ability to offer fuel supports supplier relationship  AIP does not forward buy, hedge or take risk positions  Long term bookings on back to back basis only

 Emergency Planning Division

 Remains stable and profitable with circa 30 clients  Reflects geopolitical instability

 Leasing Operation

 6 year lease agreed with Dominican Republic operator

Strategy update

 Focus remains on core broking business  Retain talent  Continue with geographic diversification  Expand existing products into existing territories  Monitor and control costs

Slide 20

Outlook

 Further progress sizing business for today’s market  Largely achieved overhead aims  Well positioned for long term recovery  Key drivers remain in place  Committed to strategy  Current trading remains challenging

Appendix

Slide 22

Sales (£m)

H2

• H1

Slide 23

Profit before tax (*continuing operations)(£m)

1 2 3 4 5 6 7 8 9 10

'91 '93 '95 '97 '99 '01 '03 '05 '07 09*10* H2

• H1