TIDMAIR
RNS Number : 5025K
Air Partner PLC
11 April 2018
LEI: 213800JLR6YIRMSCUS98
11 April 2018
AIR PARTNER PLC
('Air Partner', 'Company' or 'Group')
FURTHER UPDATE ON ACCOUNTING REVIEW
On 3rd April 2018, the Company announced that, as part of its
year-end close process, it had identified an issue relating to its
accounting for receivables and deferred income in previous Air
Partner results. Air Partner is committed to ensuring this matter
is resolved in a transparent, thorough and exhaustive manner and
accordingly, the Company provides the following update.
The Board appointed PricewaterhouseCoopers LLP ('PwC') and
Rosenblatt Solicitors ('Rosenblatt') to provide independent
accounting and legal support as part of the review into this
matter. PwC and Rosenblatt have full, unencumbered access to staff,
records and systems to enable them to conclude the review as
swiftly as possible.
Our review has made good progress, and is ongoing. At this
stage, we believe that the total cumulative impact arising between
the financial years ended 31 July 2011 and 31 January 2018 will not
exceed GBP4m. The final amount will be confirmed to the market
after completion of the review. In accordance with accounting
practice, amounts relating to prior periods will be recorded as
restatements of comparative financial information.
Any amount attributable to any period will be treated as a
non-cash item.
IMPACT ON YEAR END 31 JANUARY 2018
-- On the advice of its advisers, considering the work required
to restate appropriate historic accounts and complete the full year
audit, the Company believes it prudent to reschedule the
announcement of its full year results for year ended 31 January
2018 from 26th April 2018 to 31 May 2018.
-- After appropriate restatements, the Board expects that the
Company will have sufficient distributable reserves to pay
dividends.
-- The Board believes that no shareholder should be further
disadvantaged by the impact of this matter. Subject to completion
of the year end audit, the Board intends to recommend that the
final dividend payable for the year ended 31st January 2018 will be
3.8 pence per share. The Board further wishes to take this
opportunity to reaffirm its ongoing commitment to its dividend
policy, which targets cover of between 1.5 and 2.0 times underlying
earnings per share.
-- On 6th February 2018, the company announced, "underlying
pre-tax profit for the financial year ended 31 January 2018 is
expected to be not less than GBP6.4m". Prior to adjustment for any
expense attributable to the period arising from this matter, this
statement remains valid.
-- The Group currently maintains a strong balance sheet with
over GBP8.6m of its own cash at the end of March 2018.
ADDITIONAL INFORMATION
-- At no point has a customer, operator or supplier been adversely impacted or disadvantaged.
-- The Air Partner finance team identified this matter as part
of the year-end closing process and following the proper procedure,
escalated it to the Executive team who notified the Board.
-- Between the period financial year ended 31 July 2011 and
financial year ended 31 January 2017, taking into account expected
adjustments, the Company had sufficient distributable reserves in
each year to enable it to pay dividends legally. Over this period,
the company returned over GBP14.2m in cash to shareholders through
interim and full year dividend payments, with an additional GBP0.9m
paid as an interim dividend in October 2017 for the year ended 31
January 2018.
-- Any one off costs and fees associated with the review will be
expensed in the financial year ended 31st January 2019 and clearly
identified as such.
-- Whilst our review is ongoing, we will not comment on rumour
or speculation, and shareholders should expect official statements
to be issued to recognised Regulatory Information Service providers
as appropriate, ensuring full compliance with regulatory
obligations.
Peter Saunders, Non-Executive Chairman of Air Partner Plc,
said:
"Once this issue was identified, we immediately launched a
review and engaged independent advisers to assist and support the
process. Our review will be transparent, thorough and exhaustive
and we will allocate as much time and resources as is appropriate
to reach a satisfactory conclusion.
"I am pleased to report that colleagues across the Group's UK
and international offices have remained resolutely focused on
normal customer service while the Board undertakes this review, and
I thank them for their commitment and loyalty.
"I am also aware of the patience and support many shareholders
have extended to the Company while we review and address this
matter. The Board would like to reassure shareholders that we are
focused on serving their best interests, meeting the Group's
regulatory obligations, and returning to the Company's normal
business agenda as soon as possible."
ENDS
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) NO 596/2014.
Enquiries:
TB Cardew (PR Advisor to Air T. +44 (0)20 7930
Partner) 0777
Tom Allison M. +44 (0)7789 998
020
Alycia MacAskill M. +44 (0)7876 222
703
Lucy Featherstone M. +44 (0)7789 374
663
Mark Briffa, Chief Executive
Officer T. +44 (0)1293 844
Neil Morris, Chief Financial 788
Officer
Kate Patrick, Investor Relations
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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