TIDMAIR
RNS Number : 0343S
Air Partner PLC
28 September 2017
28 September 2017
Air Partner plc
Interim results for the six months ended 31 July 2017
Air Partner delivers strong first half trading results
Air Partner plc ("Air Partner" or "Group"), the global aviation
services group, today reports results for the six months to 31 July
2017.
July 2017 July 2016 Change (%)
Gross Transaction
Value GBP135.5m GBP112.9m 20.0
Gross profit GBP18.1m GBP16.1m 12.2
Underlying(--) profit
before tax GBP4.1m GBP3.0m 34.4
Statutory profit before
tax GBP3.7m GBP2.6m 40.0
Cash (including JetCard) GBP28.8m GBP24.6m 17.4
Net cash (non-JetCard
cash less debt) GBP10.6m GBP5.2m 103.7
Underlying(--) basic
EPS 5.6p 4.5p 24.4
Basic continuing EPS 4.9p 3.8p 28.9
Interim dividend 1.7p 1.6p 6.2
-- - Underlying results are stated after other items as defined
in note 1
Financial Highlights:
-- Gross profit of GBP18.1m, a year-on-year increase of 12.2%,
reflecting strong trading performance in the Broking division
-- Underlying profit before tax of GBP4.1m, a year-on-year increase of 34.4%
o Commercial Jets delivered underlying operating profit growth
of 44.3% to GBP2.7m
o Freight underlying operating profit up 88.6% to GBP0.6m
-- Underlying EPS of 5.6p, a year-on-year increase of 24.4%
-- Net cash (non-JetCard cash less debt), of GBP10.6m, an increase of 103.7%
-- Interim dividend increased by 6.2% to 1.7p per share, payable on 27 October 2017
Operating Highlights:
Broking
-- Commercial Jets:
o Significant contracts won for elite sports teams
o Strong growth from European tour operations
o German automotive contract renewed for a further three
years
o Air Partner Remarketing completed work for Kenya Airways,
China Airlines and awarded exclusive contract to market 15 Boeing
777-200ER aircraft for Saudia
-- Private Jets:
o JetCard renewals up 24%
o Number of Private Jet clients in the US up 70%
o Continuing alignment of our JetCard product with the lifestyle
needs of our customers with exciting partnerships and alliances
Consulting & Training:
-- Baines Simmons: new safety and training contracts won with
tier 1 national carriers and the Royal Air Force of Oman
-- Clockwork Research has good forward pipeline of projects
-- Cross selling success across the group
-- Acquisition of SafeSkys Limited enhances capabilities in aviation safety
Strategic Highlights & Outlook
-- Customer First fully embedded across the group, with the
positive results seen in increased customer loyalty and improved
retention across both divisions
-- Good headway made against our strategic objective to create a
balanced business, with two market leading divisions of Broking and
Consulting & Training
-- Current trading is in line with expectations
-- Second half entered with confidence that expectations for rest of year will be met
Mark Briffa, CEO of Air Partner, commented: "I am very pleased
to report on an encouraging first half performance with continued
progress made as a Group. We are building the company for the
long-term, and our strategic objective to create balance between
our Broking and Consulting & Training divisions is gaining
traction. Our Customer First programme continues to be a key
differentiator for us, and has played an important role in both
customer retention and new business wins in the period under
review. We continue to progress organic and acquisition
opportunities that enable us to extend the services and
capabilities we offer our global clients. We enter the next six
months with optimism that our expectations for the full year will
be met."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Air Partner 01293 844788
Mark Briffa, CEO
Neil Morris, CFO
Kate Patrick, Investor Relations
Temple Bar Advisory (Financial PR
advisor) 020 7002 1080
Tom Allison 07789 998 020
Ed Orlebar
Alycia MacAskill
CHAIRMAN'S STATEMENT
An encouraging start to the year
In my first statement as Chairman, I am pleased to report an
encouraging set of half year results, which demonstrate continued
success in the implementation of our strategy. The Group has had a
good start to the year with gross profit for the six months to 31
July 2017 up 12.2% to GBP18.1m. Underlying operating profit and
underlying profit before tax rose by 36.0% and 34.4%
respectively.
Air Partner is on a journey of transformation, with a clear,
long-term strategy to become a world-class global aviation services
group. We aim to create a balanced business, with two market
leading divisions of Broking and Consulting & Training. Our
strategy aligns us to the needs of our global customer base and
should provide our shareholders with higher quality and
increasingly visible earnings.
Our Customer First programme is now firmly established across
the Group. As well as retaining existing customers, with key
contracts renewed over the last six months, we are winning exciting
new business. There is still a significant amount of hard work to
be done across the Group in the months and years ahead to achieve
our long-term objectives but I am confident we have the right
framework in place from which to grow.
Our acquisition strategy is underpinned by sound financial
management. Whilst our strong balance sheet and significant cash
flows enable us to carry out acquisitions, we are careful to ensure
both financial and cultural fit, maintaining sound financial
disciplines in our assessment of each transaction.
Our people
Our customers fly with us time and again because they can rely
on the world-class service and expertise we consistently deliver.
Our people are at the heart of what we do and they enable us to
deliver that world-class, 24-7, year-round, personal service that
our customers enjoy as well as the expertise and focus on safety to
give them confidence in the air. I am pleased by the commitment
from all our people to work together to grow the business for the
long-term and achieve our strategic objectives, and so, on behalf
of the Board, I would like to thank all of our colleagues for their
hard work in delivering another strong set of results.
Board Changes
As previously announced, Richard Everitt stood down as Chairman
following the AGM in June, after 12 years as a Non-executive
Director and five years as Chairman. It is with great pleasure that
I take up the role, having been a Non-executive Director of the
Company since 2014. Following my appointment as Chairman, Amanda
Wills has been appointed as Chairman of the Remuneration Committee
and Richard Jackson has been appointed as Senior Independent
Director. Shaun Smith remains Head of the Audit Committee.
Earlier this month, we also announced that Tracy Beicken has
been appointed as Group Legal Counsel and Company Secretary. Tracy
is an experienced in house lawyer and company secretary and will
take responsibility for all legal and company secretarial matters
within the Company.
I am confident that through working closely with our highly
experienced Board and Group senior management, we can continue to
implement our long-term transformation strategy to become a
world-class global aviation services group.
Dividend
In line with our dividend policy, the Board is proposing an
interim dividend of 1.7p, representing a year-on-year increase of
6.2%. The interim dividend is expected to be paid on 27 October
2017 to those shareholders registered at close of business on 6
October 2017.
Outlook
The Board is pleased with our start to the year. Trading
performance since the period end has remained solid, and the Board
continues to have confidence in our full year expectations.
Air Partner is making good progress on our journey of
transformation. As we always state, the world of aviation, and most
especially the global charter industry, is a volatile industry. Our
aim to create a balanced business with two market leading divisions
of Broking and Consulting & Training should provide us with
higher quality and increasingly visible earnings for our
shareholders. While it is prudent to remain cautious, we are
confident that we have the right long-term strategy in place, in
alignment with the needs of our global customer base.
Peter Saunders
Chairman
CHIEF EXECUTIVE'S REVIEW
I am delighted with this very encouraging first half performance
and the continued progress we are making as a Group. Underlying
profit before tax increased 34.4% year on year to GBP4.1m and
statutory profit before tax by 40.0% to GBP3.7m, which is testament
to the skills, expertise and knowledge of our teams who provide the
world-class experience that keeps our customers flying with
confidence.
The first six months of the year have seen further progress
against our clear long-term strategy to become a world-class global
aviation services group. We have a global platform from which to
grow the business, with a clear objective to achieve balance
between our two divisions - Broking and Consulting & Training -
providing exceptional service and value to our customers globally,
and delivering higher quality and increasingly visible earnings to
our shareholders.
I am very pleased with our strategic progress so far and am
encouraged that there is still a lot more we can do.
As shareholders know from reading prior Chief Executive Reviews,
a significant amount of time has been spent over the years engaging
with customers to really understand how they perceive Air Partner,
what they expect from us, what they value from us, and where and
how they want to work with us in the future. We listened, and those
findings became the foundation of our clear, long-term strategy. It
gave us the confidence to launch initiatives such as the Customer
First programme, which has become central to our business
transformation.
Customer First is now fully embedded across the Group, with the
positive results seen in increased customer loyalty and improved
retention across our divisions. We are seeing some encouraging new
business from existing customers requesting services from other
divisions, which is testament to the strength of our relationships
and the quality and increasing breadth of products and services we
can deliver.
Today, as an organisation we are more aligned to our global
customer than ever before. Like our customers, we are thinking,
planning and managing for the long-term, acting and behaving
strategically. We are quick to respond and able to navigate
short-term obstacles if required to do so, but find we win more
often when we think and act long-term, with integrity, while
putting our customer's best interests first. Our long-term approach
has significant benefits for customers and staff, and I am
confident it will continue to deliver sound economic returns for
our shareholders.
Our long-term approach informs how we consider potential
acquisitions, and also how vendors perceive Air Partner as a
potential owner of their business. I am delighted with the
businesses we have acquired and the quality people they have
brought into the Group. We will take time to get things right. Our
ambition for these businesses as 'an Air Partner company' is
substantial and strategically we think well beyond a one or two
year financial forecast period, confident that the real value
creation and operational benefit to the Group comes as they settle,
align with our culture and develop working relationships across the
global organisation. We will never be afraid to pause, take a step
back or accelerate investment today, if it positions us to take a
leap forward tomorrow, because we believe the long-term rewards are
worth it.
Divisional Review
Broking
This has been a strong first half performance for our Broking
division, with gross profit up 21.4% to GBP15.7m and underlying
operating profit up 27.9% to GBP4.7m.
Commercial Jets has underpinned this strong performance, with
gross profit increased by 34.4% to GBP9.4m and underlying operating
profit up 44.3% to GBP2.7m. This growth was driven by pleasing
performances from all territories with good business from both new
and existing customers. Across Europe we have benefitted not only
from our European Tour Operating programmes but also from our
expertise in serving elite sports teams with flights to the US,
China, Singapore, South America and Europe arranged for high
profile football clubs during the pre-season tours. In the UK we
have won a new contract with a premier league football club,
bringing the total number of football teams we work for to 35. We
have also renewed our contract with a major German automotive
company for a further three years. Finally, our UK and US teams
have worked seamlessly together to deliver a successful programme
for a large global insurance company.
In Private Jets, gross profit increased slightly year-on-year,
by 0.4% to GBP5.1m while underlying operating profit decreased by
6.0% to GBP1.4m. This masks the growth and improvement in
performance of our US and JetCard businesses and reflects a lower
spend over the period from some key clients. In addition, we have
continued to invest in our sales team both in the UK and US. While
this investment had an adverse impact on the first half results, we
are well positioned to benefit from this over the second half and
beyond. Our work on the Customer First programme is rewarding us
with JetCard renewals up 24% year on year. To enhance our customer
experience further we are driving initiatives to align our product
with the lifestyle needs of our customers with some exciting
partnerships and alliances, and have rolled out bespoke JetCard
catering in 33 airports across the UK and Continental Europe.
In the US, where we expanded our New York office last year and
brought in new management to bring greater focus and strong
leadership to the region, we have seen a sharp increase in
corporate and high net worth individual business, with overall
client numbers increased by nearly 70% over the period. European
Private Jets business remains small with slow growth, hence our
focus on the US and UK where there are greater opportunities and
greater rewards.
Air Partner Remarketing has had a good start to the new
financial year having been rebranded under the Air Partner
umbrella. Over the period, Air Partner Remarketing has successfully
sold and delivered two B737-700 aircraft and a GE engine for Kenya
Airways, two 747-400s on behalf of China Airlines and won an
exclusive contract with Saudia to market 15 Boeing 777-200ER
aircraft.
We continue to consider Freight a strategic offering, enabling
us to provide our customers with a full aviation service. Freight
has had a good first half, against a soft comparative period, with
gross profit up 42.9% to GBP1.1m and underlying operating profit
increasing by 88.6% to GBP0.6m. While the automotive sector
remained strong, this growth arose from our international offices,
which benefited from contracts to the Middle East.
Consulting & Training
Overall, our Consulting & Training division's performance
was flat year-on-year, with underlying operating profit at GBP0.4m.
However, gross profit has decreased by 24.1%, to GBP2.5m due to the
timing of major projects in Baines Simmons when compared to prior
year. It should also be noted that we now include our Emergency
Planning Division ("EPD") within Consulting & Training, and EPD
has had a good start to the year, with operating profit up 42.1%,
albeit off a low base.
At the 2017 full year we reported that our 2015 acquisition,
Baines Simmons, was profitable in its first full year of operation
under the Air Partner banner. Over the first half, Baines Simmons
has won new safety and training contracts with tier 1 national
carriers and with the Royal Air Force of Oman. The pipeline for the
second half remains encouraging. Baines Simmons has secured a four
year contract with the European Defence Agency to provide
consultancy and training services to all 28 Member States and is
also working with various well-known schedule and charter airlines.
We have also seen a strong performance in Academy Training.
At the end of 2016, we acquired fatigue management consultancy,
Clockwork Research. First half trading has been challenging, but
with a good pipeline of projects we are confident in the
longer-term prospects for the business. We have undertaken work to
further strengthen this pipeline and leverage the Baines Simmons
offering. An encouraging example of the cross selling opportunities
that have arisen following acquisition, is that Clockwork Research
is now carrying out work within the rotary sector with a Baines
Simmons client.
I am pleased to announce today the acquisition of SafeSkys
Limited ("SafeSkys"), a leading Environmental and Air Traffic
Control services provider to UK & International airports.
Established in 1993 by Richard Barber, SafeSkys has built a great
reputation serving Airport customers around the world in specialist
areas of Aviation Safety, predominantly Environmental Wildlife
Hazard Management & Bird Control and Air Traffic Control.
SafeSkys is a great acquisition for Air Partner, immediately
enhancing the Group's capabilities and international presence in
Aviation Safety and extending our activities with Airport
customers. Working with Richard, and as part of Air Partner's
Consulting & Training division, we look forward to supporting
SafeSkys's international growth in the years ahead.
We continue to assess acquisition opportunities within
Consulting & Training, as we aim to create a balanced mix
between the two divisions.
Outlook
The new financial year has started well and we are making good
headway against our strategic objectives. Trading since the period
end has remained solid. We enter the second half with continued
confidence that our expectations for the remainder of the year will
be met, whilst the final quarter of the financial year can be the
most challenging.
We have built a strong platform from which to continue to grow
the business. Our long-term objective to create a more equal
balance between our two divisions, Broking and Consulting &
Training, will deliver higher quality and increasingly visible
earnings to our shareholders and will further align us to the needs
of our global customer base, enabling us to continue to provide
exceptional service and value.
Mark Briffa, Chief Executive Officer
FINANCIAL REVIEW
Financial position
The total cash balance of GBP28.8m has increased from the prior
year comparative of GBP24.6m, driven by an increase in non-JetCard
cash of GBP5.0m to GBP13.4m, offset by a reduction in JetCard cash
of GBP0.8m to GBP15.4m. The increase in non-JetCard cash was a
result of working capital movements, particularly an increase in
deferred income relating to our Tour Operations programmes, the
first half trading performance and a further weakening of sterling,
particularly against the euro, compared to prior year. JetCard cash
has reduced because of the continued high utilisation of existing
cards outpacing renewals and new card sales.
As noted in our annual report, we have undertaken a programme of
placing all JetCard funds into segregated accounts to provide
further assurance to our customers. This has resulted in the
significant increase in 'Restricted Cash' from GBP2.4m at 31 July
2016 to GBP11.0m. The remainder of the JetCard cash will have been
moved into these accounts by the year-end.
Our gross debt at the year-end totalled GBP2.9m and has reduced
following the refinancing of the loan that was in place at the 31
January 2017 with a revolving credit facility. This is due to be
repaid or rolled on in November 2017.
The Group's net cash, excluding JetCard cash, stood at GBP10.6m,
compared to net cash of GBP1.0m at the year-end and demonstrates
the strength of our balance sheet.
Foreign Exchange
Although sterling has weakened since the EU referendum result in
June 2016, given that the Group maintains a net asset position in
euros and profits are generated in its international offices, the
Group has not suffered an adverse impact from these movements.
Where possible the Group uses natural hedging to minimise its
foreign exchange exposure, for example matching JetCard deposits
denominated in euros with the respective deferred income. The net
foreign exchange gain for the period was GBP92k (2016: GBP42k
gain).
The Group also uses derivative financial instruments to hedge
certain transactions in accordance with its internal policy. The
fair value of these instruments at the balance sheet date was a net
asset of GBP3k (2016: GBP5k liability).
Balance Sheet
The significant increase in both trade and other receivables
(increase of GBP8.1m), other liabilities (increase of GBP6.6m) and
deferred income (increase of GBP5.6m) is driven by a combination of
a larger Tour Operations programme this financial year, coupled
with the timing of the flights. As noted above, the increase in
deferred income has also resulted in a higher cash balance.
Taxation
The underlying effective tax rate for the period stood at 27.4%
(2016: 24.7%) and is higher than the UK statutory rate of tax due
to the impact of international tax rates.
Other items
Other items of GBP0.4m (2016: GBP0.4m) include amortisation of
intangible assets arising on acquisition of GBP0.2m and acquisition
related costs of GBP0.2m. Other items in the prior period comprise
restructuring of GBP0.2m and amortisation of intangibles arising on
acquisition of GBP0.2m.
Neil Morris, Chief Financial Officer
Forward-looking statements
Announcements issued by Air Partner plc may contain forward
looking statements, indicated by words such as "aims", "believes,"
"expects", "intends," and similar expressions. These statements
reflect current views and expectations up to the date of approval
of this statement and are made in good faith by the directors.
Unless otherwise required by laws, regulations or changes in
accounting standards, Air Partner accepts no obligation to update
these statements as a result of future events or new information
subsequently obtained. New announcements will be made to the market
as required under the Disclosure and Transparency Rules.
Trends and factors affecting the business
Air Partner's lead times for ad hoc bookings are measured in
days or weeks, rather than months and future revenues cannot be
predicted with any certainty. Forward bookings can be impacted very
suddenly by changes in financial markets, political instability and
natural events affecting the movement of people or cargo from one
country to another. Lead times in the Remarketing business can be
up to one year and therefore forecasting when a particular contract
may be realised is not easy to predict. Economic uncertainty
affects corporate, government and individual clients and affects
the quality of supply of aircraft as operators consolidate or leave
the market. These trends are outside the Group's control but the
strategy remains to diversify to address seasonality and broaden
the client mix.
Principal risks and uncertainties facing the Group
Aircraft charter broking, remarketing and consultancy can be
classed as a relatively low financial risk business, in that the
business sells capacity on aircraft owned and operated by a third
party and contracts are normally placed as mirrored transactions,
or remarkets aircraft on behalf of a third party. The Group does
not have any contractual arrangements with any significant
individual or company which are essential to continuation of the
business. The Board reviews risks which may have a significant
impact on the Group, including operational aviation related risks
(quality and quantity of supply, adverse weather conditions,
competitive pricing pressure and regulatory changes) and financial
risks such as foreign exchange and interest rate fluctuations,
credit risk and liquidity and cash flow management. The profile of
both financial and operational risks varies from time to time but
the current level of risk is not substantially different from that
as at 31 January 2017, as described in the principal risks and
uncertainties section of the annual report. The principal risk to
the Group's business remains the degree to which clients' available
financial resources and the general economic conditions in which
they operate affect their willingness to charter. The Group
recognises that ad hoc charters are likely to continue to be
impacted by changes, both positive and negative, in the
macro-economic climate.
Related party transactions
There has been no significant change in the level of
transactions between Air Partner plc and its subsidiaries since
that disclosed in the annual report for the year ended 31 January
2017. Such transactions did not materially affect the financial
position or performance of the Group in the period under review.
There are no other related party transactions which are required to
be disclosed under DTR 4.2.8R.
Going concern
After making enquiries, the directors are satisfied that the
Group and the Company have adequate resources to continue in
business for the foreseeable future. The directors have therefore
continued to adopt the going concern basis in the preparation of
these financial statements.
Directors' responsibility statement
The interim report is the responsibility of, and has been
approved by, the directors. The directors are responsible for
preparing the interim report in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The unaudited condensed consolidated financial
statements included in this interim report have been prepared in
accordance with International Accounting Standard 34 "Interim
Financial Reporting" as adopted by the European Union.
Mark Briffa Neil Morris
Chief Executive Officer Chief Financial
Officer
27 September 2017 27 September
2017
The directors of Air Partner plc are listed in the Group's
Annual Report and Accounts for the year ended 31 January 2017 and
on our website at www.airpartner.com.
See more at: http://www.airpartner.com/en/investors.
Enquiries
Air Partner 01293 844788
Mark Briffa, CEO
Neil Morris, CFO
Kate Patrick, Investor Relations
Temple Bar Advisory (Financial PR
advisor) 020 7002 1080
Tom Allison 07789 998 020
Ed Orlebar
Alycia MacAskill
About Air Partner:
Founded in 1961, Air Partner is a global aviation services group
that provides worldwide solutions to industry, commerce,
governments and private individuals. The Group has two divisions :
Broking division, comprising air charter broking and remarketing;
and the Consulting & Training division, comprising the aviation
safety consultancies, Baines Simmons, Clockwork Research and
SafeSkys, as well as Air Partner's Emergency Planning Division. For
reporting purposes, the Group is structured into four divisions:
Commercial Jets, Private Jets, Freight (Broking) and Consulting
& Training (Baines Simmons, Clockwork Research, SafeSkys and
Air Partner's Emergency Planning Division). The Commercial Jet
division charters large airliners to move groups of any size. Air
Partner Remarketing, which is within the Commercial Jet division,
provides comprehensive remarketing programmes for all types of
commercial and corporate aircraft to a wide range of international
clients. Private Jets offers the Company's unique pre-paid JetCard
scheme and on-demand charter. Freight charters aircraft of every
size to fly almost any cargo anywhere, at any time. Baines Simmons
is a world leader in aviation safety consulting specialising in
aviation regulation, compliance and safety management. Clockwork
Research is a leading fatigue risk management consultancy. SafeSkys
is a leading Environmental and Air Traffic Control services
provider to UK and International airports. Air Partner is
headquartered alongside Gatwick airport in the UK. Air Partner
operates 24/7 year-round and has 20 offices globally. Air Partner
is listed on the London Stock Exchange (AIR) and is ISO 9001:2008
compliant for commercial airline and private jet solutions
worldwide. www.airpartner.com
Consolidated income statement
for the half year ended 31 July 2017 (unaudited)
Half year Half year Year ended
ended 31 July ended 31 July 31 January
2017 2016 2017
============================== ============================== ==============================
Other Other Other
Continuing Underlying* items Total Underlying* items Total Underlying* items Total
operations Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
================ ==== =========== ======= ======== =========== ======= ======== =========== ======= ========
Gross
transaction
value (GTV) 135,450 - 135,450 112,922 - 112,922 215,829 - 215,829
================ ==== =========== ======= ======== =========== ======= ======== =========== ======= ========
Revenue 23,109 - 23,109 22,230 - 22,230 42,538 - 42,538
Gross profit 2 18,118 - 18,118 16,141 - 16,141 31,707 - 31,707
Administrative
expenses (13,966) (371) (14,337) (13,087) (385) (13,472) (26,593) (709) (27,302)
================ ==== =========== ======= ======== =========== ======= ======== =========== ======= ========
Operating profit 2 4,152 (371) 3,781 3,054 (385) 2,669 5,114 (709) 4,405
Finance income 2 - 2 8 - 8 39 - 39
Finance expense (104) - (104) (49) - (49) (96) - (96)
================ ==== =========== ======= ======== =========== ======= ======== =========== ======= ========
Profit before
tax 4,050 (371) 3,679 3,013 (385) 2,628 5,057 (709) 4,348
Taxation 8 (1,108) 26 (1,082) (745) 32 (713) (1,654) 153 (1,501)
================ ==== =========== ======= ======== =========== ======= ======== =========== ======= ========
Profit for the
period
from continuing
operations 2,942 (345) 2,597 2,268 (353) 1,915 3,403 (556) 2,847
Profit for the
period 2 2,942 (345) 2,597 2,268 (353) 1,915 3,403 (556) 2,847
================ ==== =========== ======= ======== =========== ======= ======== =========== ======= ========
Attributable to:
Owners of the
parent
company 2,942 (345) 2,597 2,268 (353) 1,915 3,403 (556) 2,847
================ ==== =========== ======= ======== =========== ======= ======== =========== ======= ========
Earnings/(loss)
per
share:
Continuing
operations
Basic 5 5.6p (0.7)p 4.9p 4.5p (0.7)p 3.8p 6.5p (1.1)p 5.4p
Diluted 5 5.5p (0.6)p 4.9p 4.4p (0.7)p 3.7p 6.4p (1.1)p 5.3p
================ ==== =========== ======= ======== =========== ======= ======== =========== ======= ========
Continuing and
discontinued
operations
Basic 5 5.6p (0.7)p 4.9p 4.5p (0.7)p 3.8p 6.5p (1.1)p 5.4p
Diluted 5 5.5p (0.6)p 4.9p 4.4p (0.7)p 3.7p 6.4p (1.1)p 5.3p
================ ==== =========== ======= ======== =========== ======= ======== =========== ======= ========
*Before other items (see note 3)
Consolidated statement of comprehensive income
for the half year ended 31 July 2017 (unaudited)
Half Half
year year Year
ended ended ended
31 31 31
July July January
2017 2016 2017
GBP'000 GBP'000 GBP'000
======================================= ======== ======== ========
Profit for the period 2,597 1,915 2,847
Other comprehensive income - items
that may subsequently be reclassified
to profit or loss:
Exchange differences on translation
of foreign operations 97 254 346
Total comprehensive income for the
period 2,694 2,169 3,193
======================================= ======== ======== ========
Attributable to:
Owners of the parent company 2,694 2,169 3,193
======================================= ======== ======== ========
Consolidated statement of changes in equity
for the half year ended 31 July 2017 (unaudited)
Share Share
Share premium Merger Own Translation option Retained Total
capital account Reserve shares reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
======================== ========= ======== ======== ========= ============ ======== ========== =========
Opening equity
as at 1 February
2016 522 4,814 295 (1,199) 1,064 1,708 6,650 13,854
Profit for the
period - - - - - - 1,915 1,915
Exchange differences
on translation
of foreign operations - - - - 254 - - 254
Total comprehensive
income for the
period - - - - 254 - 1,915 2,169
Share option movement
for the period - - - - - 122 - 122
Issue of shares - - - 60 - (60) - -
Share options exercised
during the period - - - 110 - - (45) 65
Dividends paid
(note 4) - - - - - - (1,741) (1,741)
======================== ========= ======== ======== ========= ============ ======== ========== =========
Closing equity
as at 31 July 2016 522 4,814 295 (1,029) 1,318 1,770 6,779 14,469
======================== ========= ======== ======== ========= ============ ======== ========== =========
Share Share
Share premium Merger Own Translation option Retained Total
capital account Reserve shares reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
======================== ========= ======== ======== ========= ============ ======== ========== =========
Opening equity
as at 1 February
2017 522 4,755 354 (672) 1,410 2,017 6,548 14,934
Profit for the
period - - - - - - 2,597 2,597
Exchange differences
on translation
of foreign operations - - - - 97 - - 97
======================== ========= ======== ======== ========= ============ ======== ========== =========
Total comprehensive
income for the
period - - - - 97 - 2,597 2,694
Share option movement
for the period - - - - - 299 - 299
Issue of shares - (59) 59 60 - (60) - -
Share options exercised
during the period - - - 15 - - (14) 1
Dividends paid
(note 4) - - - - - - (1,869) (1,869)
======================== ========= ======== ======== ========= ============ ======== ========== =========
Closing equity
as at 31 July 2017 522 4,696 413 (597) 1,507 2,256 7,262 16,059
======================== ========= ======== ======== ========= ============ ======== ========== =========
Consolidated statement of financial position
as at 31 July 2017
31 July 31 July 31 January
2017 2016 2017
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
================================= ==== ============ ============ ==========
Assets
Non-current assets
Goodwill 6 3,860 3,440 3,787
Other intangible assets 4,795 4,825 4,956
Property, plant and equipment 1,084 1,140 1,086
Deferred tax assets 533 524 533
================================= ==== ============ ============ ==========
10,272 9,929 10,362
================================= ==== ============ ============ ==========
Current assets
Trade and other receivables 42,245 34,191 25,405
Current tax assets 488 399 506
------------ ------------ ----------
Restricted bank balances 10,977 2,434 1,965
Other cash and cash equivalents 17,842 22,121 17,830
------------ ------------ ----------
Total cash and cash equivalents 28,819 24,555 19,795
Derivative financial instruments 3 - -
================================= ==== ============ ============ ==========
71,555 59,145 45,706
================================= ==== ============ ============ ==========
Total assets 81,827 69,074 56,068
================================= ==== ============ ============ ==========
Current liabilities
Trade and other payables (4,796) (6,564) (4,359)
Current tax liabilities (1,430) (466) (1,071)
Other liabilities (11,873) (5,241) (4,463)
Borrowings (2,872) (514) (514)
Deferred income (43,827) (38,242) (27,350)
Provisions (71) - -
Derivative financial instruments - (5) (9)
================================= ==== ============ ============ ==========
(64,869) (51,032) (37,766)
================================= ==== ============ ============ ==========
Net current assets 6,686 8,113 7,940
================================= ==== ============ ============ ==========
Long term liabilities
Borrowings - (2,700) (2,443)
Deferred consideration (200) - (200)
Deferred tax liability (699) (873) (725)
Total long term liabilities (899) (3,573) (3,368)
================================= ==== ============ ============ ==========
Total liabilities (65,768) (54,605) (41,134)
================================= ==== ============ ============ ==========
Net assets 16,059 14,469 14,934
================================= ==== ============ ============ ==========
Equity
Share capital 522 522 522
Share premium account 4,696 4,814 4,755
Merger Reserve 413 295 354
Own shares (597) (1,029) (672)
Translation reserve 1,507 1,318 1,410
Share option reserve 2,256 1,770 2,017
Retained earnings 7,262 6,779 6,548
================================= ==== ============ ============ ==========
Total equity 16,059 14,469 14,934
================================= ==== ============ ============ ==========
Consolidated statement of cash flows
for the half year ended 31 July 2017 (unaudited)
Half
year
Half year ended
ended 31
31 July July
2017 2016
Note GBP'000 GBP'000
================================================== ==== ========== =========
Net cash inflow from operating
activities 7 10,079 5,088
================================================== ==== ========== =========
Investing activities
* Interest received 2 8
* Purchases of property, plant and equipment (217) (22)
* Purchases of intangible assets (53) -
Net cash used in investing activities (268) (14)
================================================== ==== ========== =========
Financing activities
* Dividends paid (1,869) (1,741)
* Proceeds on exercise of share options 1 65
* New bank loans raised 2,872 -
* Repayment of borrowings (2,872) (257)
================================================== ==== ========== =========
Net cash used in financing activities (1,868) (1,933)
================================================== ==== ========== =========
Net increase in cash and cash
equivalents 7,943 3,141
Opening cash and cash equivalents 19,795 19,791
Effect of foreign exchange rate
changes 1,081 1,623
================================================== ==== ========== =========
Closing cash and cash equivalents 28,819 24,555
================================================== ==== ========== =========
JetCard cash
The closing cash and cash equivalents balance can be further
analysed into 'JetCard cash' (being restricted and unrestricted
cash received by the Group in respect of its JetCard product) and
'non-JetCard cash' as follows:
2017 2016
GBP'000 GBP'000
===================================== ======== ========
JetCard cash restricted in its use 10,977 2,434
Jetcard cash unrestricted in its use 4,394 13,715
===================================== ======== ========
Total JetCard cash 15,371 16,149
Non-JetCard cash 13,448 8,406
===================================== ======== ========
Cash and cash equivalents 28,819 24,555
===================================== ======== ========
1 GENERAL INFORMATION, BASIS OF PREPARATION AND ACCOUNTING
POLICIES
General information
The Directors of Air Partner plc present their interim report
and the unaudited condensed consolidated financial statements for
the six months ended 31 July 2017.
The Company is a limited liability company incorporated and
domiciled in England and Wales under registration number 00980675.
The address of its registered office is 2 City Place, Beehive Ring
Road, Gatwick, West Sussex, RH6 0PA. The Company is listed on the
London Stock Exchange.
The Interim Financial Statements have been reviewed, but not
audited, by Deloitte LLP and were approved by the Board of
Directors on 27 September 2017.
The information for the six months ended 31 July 2017 does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006. The Interim Financial Statements should be
read in conjunction with the Annual Report and Financial
Statements, for the year ended 31 January 2017, which were prepared
in accordance with European Union endorsed International Financial
Reporting Standards ("IFRS") and those parts of the Companies Act
2006 applicable to companies reporting under IFRS. The Annual
Report and Financial Statements for the year ended 31 January 2017
were approved by the Board of Directors on 26 April 2017 and
delivered to the Registrar of Companies. The auditor's report on
those financial statements was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under section 498(2) or (3) of the Companies Act 2006.
Basis of preparation
This condensed financial information for the half year ended 31
July 2017 has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Conduct Authority and
International Accounting Standard ("IAS") 34 "Interim Financial
Reporting" as adopted by the European Union. These interim
condensed financial statements are unaudited and should be read in
conjunction with the annual financial statements for the year ended
31 January 2017.
Accounting policies
The accounting policies adopted are consistent with those of the
annual financial statements for the year ended 31 January 2017.
Going concern
The Directors are, based on current financial projections,
satisfied that the Group has sufficient resources to continue in
operation for the foreseeable future, that is a period of at least
12 months from the date of this report. Accordingly, they continue
to adopt the going concern basis in preparing the Interim Financial
Statements.
Gross transaction value
Gross transaction value (GTV) represents the total value
invoiced to clients and is stated exclusive of value added tax.
Other items
The directors believe that the underlying profit and earnings
per share measures provide additional useful information for
shareholders on the underlying performance of the business. These
measures are consistent with how underlying business performance is
measured internally. The underlying profit before tax measure is
not a recognised profit measure under IFRS and may not be directly
comparable with adjusted profit measures used by other companies.
The adjustments made to reported profit before tax are to exclude
the following:
-- restructuring costs
-- significant and one-off impairment charges and provisions
that distort underlying trading
-- costs relating to strategy changes that are not considered
normal operating costs of the underlying business
-- acquisition costs
-- amortisation of intangible assets recognised on
acquisition
-- acquisition consideration classified as an employee cost
under IFRS 3 Business Combinations.
Key accounting estimates and judgments
The preparation of financial statements requires management to
make judgments, estimates and assumptions that affect the
application of policies and reported amounts of assets and
liabilities, income and expenses. These estimates and associated
assumptions are based on historical experience and various other
factors believed to be reasonable under the circumstances. Actual
results could differ from these estimates. These underlying
assumptions are reviewed on an on-going basis. Revisions to
accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or
future periods.
2 SEGMENTAL ANALYSIS
The services provided by the Group consist of chartering
different types of aircraft and related aviation services.
The Group has four operating segments: Commercial Jets, Private
Jets and Freight (comprising Broking) and Consulting &
Training. Due to a change of reporting line, Emergency Planning is
now included with Consulting & Training - the prior period
comparatives have been restated to reflect this change.
Overheads, with the exception of Corporate costs, are allocated
to the Group's operating segments in relation to operating
activities.
Sales transactions between operating segments are carried out on
an arm's length basis. All results, assets and liabilities reviewed
by the Board (which is the chief operating decision maker) are
prepared on a basis consistent with those that are reported in the
financial statements.
The Board does not review gross transactional value, revenue,
assets or liabilities at segmental level, therefore these items are
not disclosed.
The segmental information, as provided to the Board on a monthly
basis, is as follows:
Half year ended 31 July Commercial Private Consulting
2017 Jet Jet Freight & Training Corporate
(unaudited) Broking Broking broking Broking GBP'000 costs Total
Continuing operations GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================== ========== ======== ======== ========= =========== ========= =========
Segmental gross profit 9,444 5,140 1,073 15,657 2,461 - 18,118
============================== ========== ======== ======== ========= =========== ========= =========
Depreciation and amortisation (139) (90) (1) (230) (49) - (279)
============================== ========== ======== ======== ========= =========== ========= =========
Underlying operating
profit 2,736 1,376 577 4,689 408 (945) 4,152
Other items (see note
3) (147) - - (147) (224) - (371)
============================== ========== ======== ======== ========= =========== ========= =========
Segment result 2,589 1,376 577 4,542 184 (945) 3,781
============================== ========== ======== ======== ========= =========== ========= =========
Finance income 2
Finance expense (104)
============================== ========== ======== ======== ========= =========== ========= =========
Profit before tax 3,679
Tax (1,082)
============================== ========== ======== ======== ========= =========== ========= =========
Profit after tax 2,597
============================== ========== ======== ======== ========= =========== ========= =========
Half year ended 31 July Commercial Private
2016 Jet Jet Freight Consulting Corporate
(unaudited) Broking Broking broking Broking & Training costs Total
Continuing operations GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================== ========== ======== ======== ======== =========== ========= =========
Segmental gross profit 7,025 5,122 751 12,898 3,243 - 16,141
============================== ========== ======== ======== ======== =========== ========= =========
Depreciation and amortisation (90) (63) - (153) (42) - (195)
============================== ========== ======== ======== ======== =========== ========= =========
Underlying operating
profit 1,896 1,464 306 3,666 406 (1,018) 3,054
Other items (see note
3) (111) - - (111) (274) - (385)
============================== ========== ======== ======== ======== =========== ========= =========
Segment result 1,785 1,464 306 3,555 132 (1,018) 2,669
============================== ========== ======== ======== ======== =========== ========= =========
Finance income 8
Finance expense (49)
============================== ========== ======== ======== ======== =========== ========= =========
Profit before tax 2,628
Tax (713)
============================== ========== ======== ======== ======== =========== ========= =========
Profit after tax 1,915
============================== ========== ======== ======== ======== =========== ========= =========
Year ended 31 January Commercial Private
2017 Jet Jet Freight Consulting Corporate
Broking Broking broking Broking & Training costs Total
Continuing operations GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================== ========== ======== ======== ======== =========== ========= =========
Segmental gross profit 14,126 10,236 1,113 25,475 6,232 - 31,707
============================== ========== ======== ======== ======== =========== ========= =========
Depreciation and amortisation (249) (162) - (411) (62) - (473)
============================== ========== ======== ======== ======== =========== ========= =========
Underlying operating
profit 3,508 2,491 233 6,232 867 (1,985) 5,114
Other items (see note
3) (182) - - (182) (399) (128) (709)
============================== ========== ======== ======== ======== =========== ========= =========
Segmental result 3,326 2,491 233 6,050 468 (2,113) 4,405
============================== ========== ======== ======== ======== =========== ========= =========
Finance income 39
Finance expense (96)
============================== ========== ======== ======== ======== =========== ========= =========
Profit before tax 4,348
Tax (1,501)
============================== ========== ======== ======== ======== =========== ========= =========
Profit after tax 2,847
============================== ========== ======== ======== ======== =========== ========= =========
The company is domiciled in the UK but due to the nature of the
Group's operations, a significant amount of gross profit is derived
from overseas countries. The Group reviews gross profit based upon
location of the assets used to generate that gross profit. Apart
from the UK, no single country is deemed to have material
non-current asset levels other than goodwill in relation to the
French operation.
The Board also reviews information on a geographical basis based
on parts of the world which are considered to be key to operational
activities. As a result, the following additional information is
provided showing a geographical split of the United Kingdom,
Europe, the United States of America and the Rest of the World:
United Rest
United States of the
Kingdom Europe of America World Total
Continuing operations GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================== ======== ========= =========== ======== =========
Half year ended 31 July 2017
(unaudited)
Gross profit 9,837 4,633 3,046 602 18,118
Non-current assets (excluding
deferred tax assets) 8,486 1,092 158 3 9,739
============================== ======== ========= =========== ======== =========
Half year ended 31 July 2016
(unaudited)
Gross profit 10,286 4,274 1,511 70 16,141
Non-current assets (excluding
deferred tax assets) 8,262 1,096 42 5 9,405
Year ended 31 January 2017
(audited)
Gross profit 18,812 8,930 3,771 194 31,707
Non-current assets (excluding
deferred tax assets) 8,696 1,090 39 4 9,829
============================== ======== ========= =========== ======== =========
Europe can be further analysed as:
France Germany Italy Other Total
Continuing operations GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================= ======== ======== ======== ======== ========
Half year ended 31 July 2017
(unaudited)
Gross profit 1,772 996 1,215 650 4,633
============================= ======== ======== ======== ======== ========
Half year ended 31 July 2016
(unaudited)
Gross profit 1,595 1,198 954 527 4,274
Year ended 31 January 2017
(audited)
Gross profit 3,047 2,547 1,854 1,482 8,930
============================= ======== ======== ======== ======== ========
3 OTHER ITEMS
31 31 31
July July January
2017 2016 2017
(unaudited) (unaudited) (audited)
Continuing operations GBP'000 GBP'000 GBP'000
Restructuring costs (13) (161) (183)
Amortisation of intangibles arising
on acquisition (152) (171) (304)
Acquisition costs (174) - (128)
Acquisition consideration treated
as an employee related share based
payment cost under IFRS3 "Business
Combinations" (32) (53) (94)
(371) (385) (709)
Tax effect of other items 26 32 153
==================================== ============ ============ ==========
Other items after taxation (345) (353) (556)
==================================== ============ ============ ==========
Restructuring costs in the current and prior period relate to
changes in the management structure following the acquisitions made
in the prior period.
4 DIVIDS
Half Half
year year
to to
31 July 31 July
2017 2016
(unaudited) (unaudited)
GBP'000 GBP'000
========================================== ============ ============
Amounts recognised as distributions to
owners of the parent company
Final dividend for the year ended 31
January 2017 of 3.6 pence (half year
to 31 July 2016: final dividend for the
year ended 31 January 2016 of 3.5 pence) 1,869 1,741
========================================== ============ ============
5 EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is
based on the following data:
31 July 31 July 31 January
2017 2016 2017
(unaudited) (unaudited) (audited)
Continuing and discontinued operations GBP'000 GBP'000 GBP'000
======================================== ============ ============ ==========
Earnings for the calculation of
basic and diluted earnings per
share
Profit attributable to owners of
the parent company 2,597 1,915 2,847
Adjustment to exclude other items 345 353 556
======================================== ============ ============ ==========
Underlying profit attributable
to owners of the parent company 2,942 2,268 3,403
======================================== ============ ============ ==========
Number of shares Number Number Number
==================================================== ========== ========== ==========
Weighted average number of ordinary shares for the
calculation of basic earnings per share 52,687,808 50,915,335 52,361,659
Effect of dilutive potential ordinary shares: share
options 1,133,970 225,470 1,133,083
==================================================== ========== ========== ==========
Weighted average number of ordinary shares for the 53,494,
calculation of diluted earnings per share 53,821,779 51,140,805 742
==================================================== ========== ========== ==========
On 25 January 2017, the Company's shareholders approved a 5 to 1
split of the Company's shares, which reduced the nominal value of
the ordinary shares to 1 pence each. The share split became
effective on 31 January 2017. As a result the prior period number
of shares and EPS calculations have been restated to show
comparable numbers.
The calculation of underlying earnings per share (before other
items) is included as the directors believe it provides a better
understanding of the underlying performance of the Group. Other
items are disclosed in note 3.
6 GOODWILL
GBP'000
============================================= =======
Cost
At 1 February 2016 3,346
Foreign currency adjustments 94
============================================= =======
At 31 July 2016 3,440
At 1 February 2017 3,787
Foreign currency adjustments 73
============================================= =======
At 31 July 2017 3,860
Provision for impairment
At 1 February 2016, 31 July 2016 and 31 July
2017 -
============================================= =======
Net book value
At 31 July 2017 3,860
============================================= =======
At 31 July 2016 3,440
============================================= =======
At 31 January 2017 3,787
============================================= =======
Goodwill acquired in a business combination is allocated, at
acquisition, to the cash generating units (CGUs), or group of units
that are expected to benefit from that business combination. Before
recognition of impairment losses, the carrying amount of goodwill
has been allocated as follows:
31 July 31 July
2017 2016
GBP'000 GBP'000
========================================== ======== ===========
Air Partner International S.A.S. (France) 1,015 942
Cabot Aviation Services Limited 787 787
Baines Simmons Limited (Training and
Consulting) 1,072 1,072
Baines Simmons Limited (Managed Services) 639 639
Clockwork Research Limited 347 -
========================================== ======== ===========
3,860 3,440
========================================== ======== ===========
The Group tests goodwill annually for impairment, or more
frequently if there are indications that goodwill might be
impaired. The directors do not believe that there are any
reasonably possible changes to the key assumptions that would
result in a material impairment of goodwill.
7 NET CASH INFLOW FROM OPERATING ACTIVITIES
Half Half
year year
to to
31 July 31 July
2017 2016
GBP'000 GBP'000
========================================== ===================== ========
Profit for the period 2,597 1,915
Adjustments for:
Finance income (2) (8)
Finance expense 104 49
Income tax expense 1,082 713
Depreciation and amortisation 432 419
Fair value (gains)/losses on derivative
financial instruments (12) 41
Share option cost for period 299 122
Decrease in provisions - (421)
Foreign exchange differences (1,081) (937)
========================================== ===================== ========
Operating cash inflows before movements
in working capital 3,419 1,893
Increase in receivables (13,605) (7,695)
Increase in payables 21,100 11,315
========================================== ===================== ========
Cash generated from operations 10,914 5,513
Income taxes paid (731) (376)
Interest paid (104) (49)
========================================== ===================== ========
Net cash inflow from operating activities 10,079 5,088
========================================== ===================== ========
8 TAXATION
Total
=== ======== ============ ========================
Half Half
year year Year
to 31 to 31 ended
July July 31 Jan
2017 2016 2017
(unaudited)
(unaudited) GBP'000 (audited)
GBP'000 GBP'000
======================== === === === ============ ============ ==========
Current tax:
UK corporation tax 925 468 528
Foreign tax 157 280 822
Current tax adjustments
in respect of prior
years (UK) - - 376
Current tax adjustments
in respect of prior
years (overseas) - - 66
======================================= ============ ============ ==========
1,082 748 1,792
Deferred tax 26 (35) (291)
======================================= ============ ============ ==========
Total tax 1,108 713 1,501
======================================= ============ ============ ==========
Of which:
Tax on underlying
profit 1,108 745 1,654
Tax on other items
(see note 3) (26) (32) (153)
======================================= ============ ============ ==========
1,082 713 1,501
==================================== ============ ============ ==========
9 EVENTS AFTER THE BALANCE SHEET DATE
On 27 September 2017 Air Partner plc acquired the entire share
capital of SafeSkys Limited for a total net of consideration of
GBP3.0m, obtaining control of the company on that date. SafeSkys
Limited is a leading environmental and air traffic control services
provider to UK and international airports. The acquisition has been
funded from the Group's cash resources. Due to the proximity of the
transaction to the reporting date, the purchase price allocation
accounting has not been finalised. Details of the acquisition
accounting will be provided in the annual report for the year
ending 31 January 2018.
INDEPENDENT REVIEW REPORT TO AIR PARTNER PLC
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 31 July 2017 which comprises the income statement,
the statement of financial position, the statement of changes in
equity, the cash flow statement and related notes 1 to 9. We have
read the other information contained in the half-yearly financial
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
"Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Auditing Practices
Board. Our work has been undertaken so that we might state to the
company those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company, for our review work, for this
report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34 "Interim
Financial Reporting" as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 31
July 2017 is not prepared, in all material respects, in accordance
with International Accounting Standard 34 as adopted by the
European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
Deloitte LLP
Statutory Auditor
Crawley, United Kingdom
27 September 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LDLLLDKFLBBL
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