Air Partner plc Interim Results for the six months to 31 st July 2015

Transcription

1 Air Partner plc Interim Results for the six months to 31 st July 2015 Mark Briffa, Chief Executive Officer Justin Scarborough, Director of Corporate Development and Investor Relations 1

2 Introducing Air Partner Air Partner PLC is a global aviation services group that provides high added value aviation solutions in the areas of aircraft charter and remarketing, specialist travel management, aviation safety & security and crisis & emergency planning Our leading aviation brands Air Partner Cabot Baines Simmons From our Headquarters in London Gatwick UK we operate 24/7 yearround and have 20 offices globally, across four continents, serving the needs of industry, commerce, governments, and private individuals 2

3 Divisional snapshot COMMERCIAL JETS PRIVATE JETS FREIGHT Charters airliners from 20 to 500 people Used for product launches, sport teams and conferences Typical clients include: Automotive, entertainment, pharmaceutical Cabot Aviation, a leading Aircraft Remarketing company, purchased in May 2015 for up to 1.1m Flies fewer than 20 people Offers a bespoke service or a JetCard Typical clients include: Finance houses, film and entertainment and high net worth individuals Ad hoc charter and; JetCard, a private jet card programme with >200 cardholders Charters aircraft from Learjets to the giant Antonov 225 Time critical door to door delivery service Typical clients include: Goverments, automotive, engineering and energy BAINES SIMMONS SUPPORT DIVISIONS A world-leading Aviation Safety consultant Specialising in aviation regulation, compliance and safety management Purchased in August 2015 for up to a net cash consideration of 6.0m 24/7 Operations, Travel Management, Emergency Planning Providing worldwide solutions to industry, commerce, governments and private individuals 3

4 First half overview A strong first-half performance with gross profit increasing by 13% Underlying operating profit, PBT and EPS increased by 101%, 100% and 26% respectively Interim dividend raised by 10% to 7.33p Cash balances of 15.0m ( 18.0m), including JetCard cash of 13.6m ( 11.9m) A record number of JetCards up by 26% year-on-year Launched Customer First programme in UK Commercial Jets Acquisition of Cabot Aviation for up to a net 1.1m announced in May significantly enhancing our Aircraft Remarketing capabilities worldwide Acquisition of Baines Simmons for up to a net 6.0m announced in August a leading Aviation Safety consultancy joins the group 4

5 Financial Highlights H116 H115 Change (%) Gross Transaction Value ( m) Gross Profit ( m) Gross margin (%) bps Underlying operating profit ( m) Underlying operating margin (%) bps Underlying PBT ( m) Underlying basic EPS (p) Interim Dividend (p) Total cash ( m) m Total cash excluding JetCard ( m) m Underlying relates to continuing operations and excludes non-trading items and non-cash acquisition related costs 5

6 Operating profit bridge (197) 581 2,241 1,114 H1 15 Commercial Jets Private Jets Freight Corporate Costs H1 16 6

7 Cash Flow bridge 1, (524) 465 (3,483) (149) (1,578) (240) 18,794 14,954 Jan-15 NOPAT D&A Acquisitions NWC Tax, interest & other Capex Dividend FX Jul-15 7

8 Cash Flow bridge excluding JetCard 1, (524) 465 4,701 (3,483) (149) 289 (1,578) 1,390 Jan-15 NOPAT D&A Acquisitions NWC Tax, interest & other Capex Dividend FX Jul-15 8

9 Gross profit by Product % % Commercial Jets outperformance % 100% 90% 6% 8% 80% 70% 39% 36% 60% 50% 40% 30% 20% 55% 56% 10% 0% H115 H116 Relatively steady gross profit mix by region Steady in Private Jets and Freight Slightly reduced Private Jets, increased Freight Commercial Jets Private Jets Freight 9

10 Gross profit by Region % ROW 2.7M % Robust UK performance, gross profit up by 31% Good progress in Europe up by 10% % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 20% 32% 48% H115 14% 31% 55% H116 The UK accounts for a majority of gross profit The contribution of the USA has fallen to 14% Disappointing performance in USA UK Europe USA 10

11 Operating profit by Product % % n/a 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 34% 66% H115 13% 31% 56% H116 Commercial Jets increased by 51% Commercial Jets accounted for 56% of profit Private Jets up by 59% Freight accounted for 13% of the profit Positive contribution from Freight Commercial Jets Private Jets Freight 11

12 JetCard Numbers JetCard achieved record numbers m 14.1m 13.6m 7.6m 8.8m 5.6m FY11 FY12 FY14 H115 FY15 H116 JetCard cash JetCard numbers JetCard Cash FY14 H115 FY15 H116 Europe US UK JetCard cash balances year-on-year have risen by 1.7m to 13.6m or by 14% The number of JetCards has risen year-on-year by 45 to a record level of 220 The UK has 146 JetCards, a year-on-year increase of 15 or 11% The USA had a successful period with 23 new JetCards, making a total of 50 Europe ended the period with 24 JetCards, a year-on-year increase of 7 or 41% 12

13 H115 H116 Gross profit increased by 16% to 6.8m Underlying operating profit increased by 51% to 1.7m Strong UK performance Good progress in Europe across tour ops and auto US below our expectations due to fewer one-offs and lower activity from a key customer Gross profit Operating profit OIL & GAS The oil and gas industries are used to functioning in remote, challenging locations, with precise operating demands and very exacting time considerations. We have unparalleled experience of dealing with extreme weather, remote inhospitable locations, political issues, civil unrest, and even war SPORTS It s all about preparation, performance and results. That s why so many of the world s top teams, athletes and sports professionals choose Air Partner as their support crew AUTOMOTIVE Whether it s flying 9,000 dealers and journalists to the exclusive launch of your new marque, getting a critical part delivered swiftly to your production line, or shuttle flights to get your engineers to work, Air Partner understands your needs from drawing board to showroom floor 13

14 Gross profit Operating profit H115 H ON-DEMAND CHARTER Whether you need to fly for business or leisure, our on-demand charter lets you fly on your own terms, with the aircraft of your choice, and from the airport most convenient to you Gross profit increase by 4% to 4.4m Underlying operating profit increased by 59% to 0.9m Strong performance in the UK A weak performance in the US JetCard success with record cards number at 220 JetCard utilisation up by 22% year-on-year Ad hoc performance mixed with a strong UK but weaker-thanexpected Europe and the US JETCARD Fly whenever you want, to wherever you need at very short notice with no peak hour restrictions. JetCard is designed for busy individuals whose time is precious yet relish the opportunity to enjoy life's pleasures CORPORATE CARD Enabling key personnel of an organisation to plan their day around work instead of planning work around their travel 14

15 H115 H Gross profit Operating profit HUMANITARIAN AID Air Partner s unrivalled experience, advanced technical support and vast global reach make us the first choice for numerous governments and aid organisations for air charter flights to delver disaster relief and humanitarian aid worldwide Gross profit rose by 52% to 0.9m Underlying operating profit of 0.4m versus breakeven last year Ongoing assistance to government and aid agencies Good profit progression in the UK, France and the US OIL & GAS AIRCRAFT PARTS AUTOMOTIVE PARTS DANGEROUS GOODS HIGH VALUE CARGO TIME CRITICAL Time is money. It s also reputation ours and yours. That s why we provide secure, time critical door-to-door delivery of your cargo to destinations worldwide 24/7 15

16 We have a clear strategy A world class aviation services group: Through: Optimising our existing customer portfolio and building new customer relationships Providing the very best products and services, with an unbeatable customer experience Continuous self-improvement and innovation Underpinned by employing the best people and being a great place to work Customer First: An exciting programme to: Drive organic growth across our business Differentiate through delivery of an elevated customer experience Strengthen our brand and extend our market leadership Cabot: Successful acquisition and integration which provides: A highly complementary service capability to our ACMI/wet lease activities Organic growth opportunities to extend remarketing services across both products and customers Cross-leverage across existing customer relationships Baines Simmons: An acquisition which offers: Immediate leadership in Aviation Safety consulting, with an unrivalled reputation Exposure to an attractive growth market within the Aviation sector Extension of the product and services that customers can expect from the Air Partner group 16

17 Customer First will play a pivotal role An extensive customer feedback exercise conducted during 2014 identified the areas where we could improve our business organically. It identified: Where our customer service was inconsistent and our processes were disjointed Areas where we could capture a greater understanding of our customer and their needs What our customers expect from Air Partner people, where service can differentiate us and what customers will buy from us The strength of our brand and its endorsement capability We created our Customer First programme to drive self improvement and enhance profitability: Following the UK Commercial Jets trial the programme will be rolled out across the broking business ready for the start of 2016 Baines Simmons has the potential to develop in-house training programmes for Air Partner Brokers covering Customer First and Continuous Professional Development (CPD) programmes 17

18 Cabot Aviation acquired in May for up to 1.1m Cabot Aviation is recognised globally as a leading aircraft remarketing company for Commercial and Freight aircraft types Aircraft Remarketing is advising clients on the sale or acquisition of aircraft: Complementary to our Wet Lease and ACMI operations A complementary customer base, but has added depth and new relationships with Lessors and Financial Institutions A robust model with transaction fees paid on completion of sale Cabot Aviation powered by Air Partner - integration has been seamless and since acquisition, Cabot has won new business with: Kenya Airways Four ERs China Airlines Two B747s Aerfin - acquisition contract Completed its first aircraft sale to Bulgarian Air Charter The acquisition rationale has been proven and our focus is now on building scale and potentially expanding beyond Commercial and Freight aircraft types 18 18

19 Baines Simmons acquired in August for up to 6.0m Founded in 2001, Baines Simmons is a world leader in Aviation Safety Consulting which specialises in aviation regulation, compliance and safety management A first class customer base and reputation built over 15 years Covering three divisions of Training, Consulting and Outsourcing, Baines Simmons is a trusted consultant and advisor to more than 750 aviation organisations, more than 40 aviation authorities and has helped develop the skills and expertise of more than 120,000 aviation professionals Aviation Safety is an attractive market with strong regulatory framework and increasing compliance needs Baines Simmons provides Air Partner the opportunity to extend the Group s service and product capabilities: First joint collaboration within 3 weeks of acquisition at SPE Offshore Europe Oil & Gas Conference offering Aircraft Audit Services to Air Partner Charter customers Reaction has been extremely positive, the integration is underway 19

20 Summary A strong H1, with particularly strong performances in Commercial Jets and UK Private Jets JetCard numbers reached record levels Year-to-date trading and forward order visibility in line with management expectations We continue to monitor costs and drive efficiencies wherever possible Customer First has been launched The acquisition and integration of Cabot has proved successful The recent purchase of Baines Simmons is an exciting step for Air Partner and brings multiple opportunities We have made great strides over the past year We have a strong platform to move ahead from and we are well positioned to take advantage of opportunities that will improve our customer experience and create value for our shareholders 20