Morning!

If news flow is quiet, I'm happy to take requests for today's report.

Cheers,

Graham


Somebody requested that I do "Rockin all over the world" - not exactly what I had in mind!

Forming a list for today:

Finished at 6pm.



Air Partner (LON:AIR)

  • Share price: 72.6p (+2%)
  • No. of shares: 53.5 million
  • Market cap: £39 million

Full year results for year ended 31 January 2020

Many thanks to Tamzin for recording an interview with the CEO at Air Partner. These videos from PIworld are always very professional and high-quality - thanks Tamzin and Tim!

As the name suggests, this is an aviation services group. It does not own any aircraft, it is purely a service provider.

We've covered it plenty of times in the archives, most recently in March. I said "I think the company needs to tighten its belt now, to work its way back towards a more comfortable financial position".

Today's results

The year to January 2020 was a tough one.

And net cash turned into net debt after a £10 million acquisition:

5ec794963d92fAIR_20200522.PNG


The results shown above include the input from the acquired business. So the like-for-like (organic) performance is slightly worse, e.g. like-for-like gross profit is down 5.3% (not 3.7%).

The Charter division had a tough year, "impacted by Brexit, late UK election and the lack of a one-off event requiring urgent action".

There is usually some disaster requiring emergency charter services, or a big sporting event like the World Cup, but that didn't happen in this financial year. There was also a reduction in business from a key UK customer.

The goal of the acquisition strategy is to diversify and reduce the group's exposure to the volatility of this Charter division, which is still responsible for most of its gross profits.

Current Trading / Outlook

Disaster certainly struck in the last few months, and the demand for AIR's charter services took off. There…

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