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Air Partner profits rise above market expectations
Continued performance across all product lines, including strong results in its US and freight segments, led British aviation services firm Air Partner to a higher than expected annual profit.
Air Partner said pre-tax profit for the financial year ended 31 January should come in at no less than £6.4m, beating the previous trading year's figure of £5.1m and market expectations of £5.9m.
Consulting and training divisions both had an encouraging forward pipeline, the company said, while the acquisition of air traffic control services provider SafeSkys in September was performing in line with expectations, as operations were relocated to its London Gatwick headquarters in November to complete the company's integration.
With two weeks remaining in the trading year, Air Partner said it progress in the year was "encouraging".
"As we always state, the world of aviation, and most especially the global charter industry, can be volatile. Against this backdrop we manage the business for the long term, with a very clear strategy of alignment to the needs of our global customer base," the firm said.
Broker Cantor Fitzgerald said PBT will be 12% ahead of our forecast and 8% ahead of consensus: "Our analysis shows that market demand for private and business jet travel is strong globally, reflecting a synchronised improvement in the macroeconomy. The stock has performed well in the past two quarters, comfortably ahead of the wider market."
"That said, with better trading, we think that risks for 2018 forecasts are now on the upside," said analyst Robin Byde.
Woodseer estimated a final dividend of 3.9p for Air Partner with an ex-div date of 7 June.
As of 1000 GMT, investors were less optimistic, with the shares having dipped 1.32% to 149.50p.