Good morning, it’s Paul here with the SCVR for Tuesday.

(Today's report is now finished)

Let’s start with some catch up items from yesterday:

Air Partner (LON:AIR) - (I hold) - trading update & dividend policy

Tristel (LON:TSTL) - interim results. Good, but share looks very expensive, and H2 outlook wobbly.

Solid State (LON:SOLI) - Trading update

Finsbury Food (LON:FIF) - interims look resilient in the circumstances. Shares look cheap, in my view.


From today's trading updates & results:

Begbies Traynor (LON:BEG) (I hold) - reassuring Q3 trading update. Looks cheap, based on forecasts for FY 04/2022.

Tracsis (LON:TRCS) - in line update. Looks quite attractively priced, in an expensive market.

Springfield Properties (LON:SPR) - a reader request, interim results from this AIM-listed Scottish housebuilder. Looks quite good.


Air Partner (LON:AIR)

(I hold)

65p (down 8% yesterday) - mkt cap £41.3m

Shareholder Update & Dividend Policy

Air Partner, the global aviation services group...

Year end is 31 Jan 2021. the Board's expectation, as previously stated in the Group's trading update of 20 January 2021, to announce underlying profit before tax of no less than £11.5 million for the year ended 31 January 2021 (FY 2020: £4.2m).

I reviewed it here on 21 Jan 2021, pointing out that the £11.5m annual profit is split:

  • £10.5m in H1 (benefits from covid related one-offs), and
  • Only £1.0m in H2.

We are reminded that AIR raised £7.5m in a placing, and did some cost-cutting.

Acquisition - CHS Engineering was bought out of administration, and will offer additional services within the AIR group.

Cash - looks fine, with what they call normalised cash of £8.3m. Plus debt facilities of £14.5m, currently undrawn.

Dividends - it paid 0.8p interim divi in Nov 2020, and intends to pay a 1.6p final dividend. The total is therefore 2.4p, yielding a reasonable 3.7%. It’s good to remember that a lot of companies are only tentatively bringing back divis, so there’s scope for yields to rise.

Dividend policy is to aim for 3.0 to 3.5 times dividend cover in future.

Current trading & outlook -

  • Profitable start to FY 01/2022 has been made, but below last year’s exceptionally strong H1.
  • US business is buoyant.
  • Other divisions…

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