CHAIRMAN'S STATEMENT

Results

A stronger than expected performance in the second half of the year contrasted with the disappointing trading in the first half resulting in full year revenue of £192.1m and underlying profit before tax of £2.6m (2014: revenue of £211.5m and underlying profit before tax of £4.1m). The stronger second half of the year was driven by a good performance from the Commercial Jets division, particularly in Italy and Germany which delivered record six month performances, resulting in a full year underlying operating profit of £2.7m (2014: £3.9m), and the Freight division, which delivered an underlying operating profit of £0.4m, up £0.5m on the prior year (2014: loss of £0.1m).

 

The Group remains cash generative and debt free: as at 31 January 2015, the cash balance stands at £18.8m (2014: £18.4m). JetCard deposits have increased to £14.1m (2014: £8.8m), demonstrating the success of the continued sales focus in this area.

 

The reduction of the cost base in Commercial Jets, the recruitment of new talent into the division and improved trading conditions has led to a renewed confidence in the outlook for our largest division. Private Jets has continued to progress and the sales team is gaining real traction with our popular JetCard product, which is increasingly being recognised as one of the most flexible and smartest ways to access private jet travel for corporates and high net worth individuals. The Freight division showed strong improvement, albeit from a low base. The global economic downturn particularly affected aviation freight, and while we quickly adjusted the size of our freight team to reflect lower demand, we are pleased to see some momentum being built as the sector and economy starts to improve. Reflecting this gradual improvement, we added to our sales team in the division, and this, coupled with the Group's strong brand and expertise in its sector, has translated into a good financial performance for the year.

 

Dividend

The Board remains confident in the Group's long-term prospects and is pleased to propose a final dividend of 15.4p per share, to be paid on 15 June 2015 to shareholders on the register on 15 May 2015, subject to approval at the annual general meeting. This will result in a total dividend for the year of 22.06p per share, a 10% increase over the final and first interim dividend from the prior financial period.

 

Board Changes

The financial year saw a number of changes to the Board at Air Partner. Firstly, and as reported in the last annual report, Tony Mack retired from the Board following the last annual general meeting, and is now the Life President of the Company.

 

As previously announced in the last annual report, Gavin Charles, former Chief Financial Officer, left the business on 30 April 2014, with Neil Morris, former Group Financial Controller, being appointed as his replacement in June 2014. Neil was previously Group Finance Director of All Leisure Group plc, an AIM traded tour operator, and before that spent 11 years at Deloitte LLP, primarily working in the aviation and travel sector.

 

Non-executive director, Chuck Pollard, who had served for five years, resigned from the Board on 2 December 2014. Grahame Chilton resigned from the Board on 16 March 2015 to accept a role as Chief Executive Officer of Arthur J. Gallagher International, which regrettably meant that he could no longer dedicate the time to be a Non-executive director of Air Partner.

 

Peter Saunders joined the Board in September 2014. As non-executive director of Canadian Tire Corporation, Godiva Chocolatier NV, Total Wines & More and Jack Wills Ltd, and being the former chief executive officer of Body Shop International plc, Peter brings to the Board a wealth of proven experience in marketing and customer service.

 

On behalf of the Board, I would like to express my thanks to all of our employees who continue to work diligently for the Group. It is the knowledge, skills and professionalism of our employees across the world that make a difference to our customers and continue to build Air Partner's brand and reputation.

 

Outlook

Current trading is in line with the Board's expectation and this, together with the level of forward bookings, means that we begin the 2015/16 financial year with a degree of optimism. The Board remains confident that its strategy to focus on providing outstanding client service and solutions, while continuing to seek the further diversification of our client base, will deliver enhanced shareholder returns in the future.

 

Richard Everitt, Chairman

 

CHIEF EXECUTIVE'S REVIEW

The stronger second half of the year was much needed after a disappointing start.  The improvement was driven by management action taken in the Commercial Jet division, better trading conditions and hard work across the Air Partner team.  The Group generated underlying profit before tax of £2.6m, which is ahead of the revised market expectations, but still down 35.6% on prior year due to our disappointing first six months.  However, we believe some of the momentum generated in the second half of the year can now be carried forward.

Commercial Jet Broking

Revenue in the year decreased by 19.5% to £115.9m (2014: £143.9m), with underlying operating profit 31.6% lower at £2.7m (2014: £3.9m). The reduction is due to fewer material one-off Commercial Jet contracts, particularly in the UK and US, together with the impact of a reduced Tour Operating programme in our French business compared to the prior year.

Following a change in management in the summer, I have personally taken responsibility of the UK Commercial Jet division and taken a number of steps to re-focus our operations, reduce costs, develop a clear strategy and invest in new, experienced, talent. These actions have contributed towards the improved trading performance in the second half of the year. There have been a number of positives for the division during the year: Italy achieved its highest ever profits as a result of a successful Tour Operating programme; and Germany achieved its strongest ever set of results, which was driven by a number of ad-hoc automotive car launches.

It remains our strategy to diversify revenues and improve the quality of earnings by building sustainable, repeat business beyond government and military contracts. Despite the reduction in Tour Operating revenues in France as noted above, strong progress was made in Italy and Austria.  Moreover, given the increased programme in France for summer 2015, we consider the setback suffered this year to be temporary.

Oil & Gas activity produced consistent revenues compared to prior year, leading to a 24% increase in gross profit.  We were also pleased to secure an excellent contract win in H2 with a major exploration company. During the year, our government relationships worldwide continued to generate contract wins and contribute towards the division's profits, albeit at the lower levels that the Group now expects. 

Private Jet Broking

The Private Jet division comprises two distinct product offerings: JetCard, Air Partner's private jet card programme, with transparent pricing and no hidden charges, verified by Conklin and de Decker to be the most flexible in the market; and Ad-hoc broking, our on demand charter service. In JetCard, our targeted investment to strengthen the sales team, particularly in the UK and US, has helped JetCard deposits rise to a record high of £14.1m (2014: £8.8m) and the number of JetCard holders increased to nearly 200 globally. This growth demonstrates the flexibility and value for money that this product offers, which differentiates it in the eyes of our customers, creating a demand that has resulted in £9.6m of card sales to new customers and £8.1m of renewals to existing customers in the period under review, helping increase our market share. However, JetCard revenue is not recognised until the client has flown the hours and therefore, despite a 153% year-on-year increase in new deposits and a 2% increase in renewals from existing customers, utilisations increased just 3% on prior year. The success in increasing JetCard deposits leaves the division well-placed for the current financial year.

In Ad-hoc broking, the picture has been mixed: our US business suffered as a result of decreased flying by one of our major corporate clients and in Europe the overall market has contracted slightly, reflecting uncertainty in the Eurozone. We took decisive action to reduce our cost base in these areas, with the associated redundancy costs being reflected in the current year, but leaving the business leaner and fitter for the future. Both of these factors contributed to lower revenue for the division as a whole, which reduced revenue by 6.7% to £52.1m (2014: £55.9m), with underlying operating profit falling by 51.3% to £0.8m (2014: £1.6m).

Freight Broking

Over the past year, the Freight division has seen year-on-year revenue and gross profit growth, reflecting new business wins generated by the investment made in skilled recruits. Our ability to attract and retain experienced sales people from competitors has certainly contributed to the strong results, with the division reporting a 105.4% increase in revenue to £24.1m (2014: £11.7m).  This led to a significant improvement in underlying operating profit from a loss of £0.1m in 2014 to a profit of £0.4m. Our Red Track technology, which aids our 'aircraft on ground' (AOG) business, and the continuation of our work with government global aid agencies has helped to build strong relationships and a good  reputation with freight forwarders, key contributors to the turnaround we are seeing in the Freight division.

Freight remains an important part of Air Partner's product offering; this represents a good example of where we have focused our energies and investments in order to replace and grow revenue and the results are encouraging.

 

Customer First and Project Connect

Air Partner is embarking on an exciting and robust 'Customer First' programme, with the ultimate aim of growing our business through being recognised as industry leaders and differentiating ourselves from our competitors through delivery of an elevated and consistent customer experience. We will report more about this project at the time of our half-year results.

The Customer First initiative has been enabled by Project Connect, the multi-year global technology project which included the deployment of Microsoft Dynamics CRM across the business, alongside a programme to address the Group's historical underinvestment in technology. The roll out of the CRM across the group system was implemented in the summer of 2014 and as the investment starts to embed, we are seeing early positive signs of the benefits it will deliver. We have also implemented a complete IT infrastructure upgrade, taking the total technology investment in the period to £1.5m. Our capital expenditure on IT infrastructure is now broadly complete and will be significantly lower in the current financial year.

 

Outlook

The second half of the year provided a great deal to be positive about including a major new contract win in Oil & Gas, which commenced in the current financial year. Looking further ahead, I am encouraged by the return to a two aircraft programme for our French Tour Operator division and the continuation of the momentum gained in Italy. We also anticipate a return on our investment in our Private Jets division in Europe and the US, as well as continued growth in our JetCard product. In addition, we are embarking on an exciting programme to improve customer experience - putting the customer at the heart of our business, which will be key to the longevity of Air Partner. However, despite the progress and potential, we continue to monitor costs and drive efficiencies wherever possible.

Air Partner remains well funded with a robust cash balance and this strong financial position allows us to invest in areas across the Group that will help deliver our strategy and remain at the forefront of the global charter market. Our unique and deep expertise around the world ensures that we provide our customers with what they want - a tailored, reliable and transparent service that takes care of every detail. We are looking to further cement our focus on this service through our Customer First project.

I would like to express my sincere thanks to all of my Air Partner colleagues for the hard work, dedication and commitment that they have shown throughout the year. I am proud of our people and their ability to deliver the highest standards of service every day.

Mark Briffa, Chief Executive Officer

 

FINANCE REVIEW

Cash

Overall, the total cash balance of £18.8m has increased slightly from the prior year comparative of £18.4m. However, JetCard deposits have increased significantly, reflecting the strong sales of new cards within the period, and they now comprise £14.1m of the overall cash balance (2014: £9.7m), of which £1.8m is held in our segregated client account, which is referred to as restricted cash on the balance sheet (2014: £nil).

The fall in non-JetCard cash of £5.0m to £4.7m (2014: £9.7m) has been driven by capital expenditure and significant working capital movements, particularly in respect of a series of ad-hoc Commercial Jet projects in Germany and the servicing of a major government aid contract simultaneously in the final quarter of the financial year. While these projects have had a temporary impact on the Group's cash balance, it also demonstrates that Air Partner has the financial strength to deliver projects which a number of our competitors do not have the financial wherewithal to do so.

Taxation

It has been possible to implement a number of tax initiatives that have delivered benefits this financial year: firstly, the Group has received nearly £0.5m from a research and development tax claim arising from its investment in technology projects; secondly, £0.2m from a one-off credit arising from the treatment of JetCard deposits in the US; and finally, £0.2m from the recognition of deferred tax assets from capital allowances and losses in France. While some of these benefits are of a 'one-off' nature, the Group is actively reviewing its tax structure going forward.

Neil Morris, Chief Financial Officer

 

Financial information   

This preliminary announcement of annual results was approved by the Board of Directors on 22 April 2015. The announcement has been prepared solely to provide additional information to shareholders, in accordance with the UK Listing Authority's Disclosure and Transparency Rules.  It should not be relied on by any other party, for any other purpose.

 

The financial information in this preliminary announcement which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows, summary accounting policies and related notes does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

 

Statutory accounts for the year ended 31 January 2015 have not yet been delivered to the Registrar of Companies. The auditor's reports on the financial statements for the year ended 31 January 2015 and for the 18 month period ended 31 January 2014 were unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The financial statements for the 18 month ended 31 January 2014 have been delivered to the Registrar of Companies.

 

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

Lead times for ad-hoc bookings are measured in days or weeks, rather than months. 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. Economic uncertainty affects corporate, government and individual clients and affects the quality of supply of aircraft as operators consolidate or leave the market. These are trends outside the Group's control but the strategy remains to diversify to address seasonality and changes in the client mix. 

 

Principal risks and uncertainties facing the Group

 

The pervasive risk to Air Partner's business is the fact that lead times for ad-hoc bookings are measured in days or weeks, rather than months. 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. Economic uncertainty affects corporate, government and individual clients and affects the quality of aircraft supply as operators consolidate or leave the market. These trends are outside the Group's control but the strategy remains to diversify in order to address seasonality and changes in the client mix.

However, this risk is balanced in so much as aircraft charter broking on the Air Partner model can be classed as a relatively low financial risk business, in that the broker sells capacity on aircraft owned and operated by a third party and contracts are normally placed as mirrored transactions. The Group does not have any contractual arrangements with any significant individual or company which are essential to continuation of the business.

The Board has reviewed the processes for identification and reporting of risks during the year and considers the principal risks to include volatile market conditions, reputational risk, managing the Group's cost structure, cash management, legal and regulatory risk, recruitment and retention of key staff, retaining competitive advantage and risk of business interruption. The profile of both financial and operational risks varies from time to time with the principal risks to the Group stemming from the ongoing financial position of clients and the general economic conditions in which they operate, which affects their willingness to charter. Ad-hoc charters are likely to continue to be impacted by serious economic instability in the major world markets.

 

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 responsibility statement below has been prepared in accordance with the Company's full annual report for the year ended 31 January 2015. Certain parts thereof are not included in this announcement.

 

Each of the directors serving at the date of approval of the accounts confirms that, to the best of his knowledge and belief:

 

·      the financial statements, which have been prepared in accordance with IFRS as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and financial performance of the Group; and

 

·      the Chairman's Statement, the Chief Executive's Review and the Finance  Review, together with the supporting notes, give a fair review of the Group, including a description of the principal risks and uncertainties faced by Air Partner plc.

 

The responsibility statement was approved by the Board of Directors on 22 April 2015.

 

 

 

 

Air Partner plc

("Air Partner" or "the Group" or "the Company")

Results for the year ended 31 January 2015

Unaudited pro-forma financial information

 

Consolidated income statement (unaudited)
for the year ended 31 January 2015

		Year ended 31 January 2015			Year ended 31 January 2014 (as restated - see note 1)
Continuing operations	Note	Underlying* £'000	Non-trading items £'000	Total £'000	Underlying* £'000	Non-trading items £'000	Total £'000
Revenue	2	192,100	-	192,100	211,541	-	211,541
Cost of sales		(170,075)	-	(170,075)	(188,176)	-	(188,176)
Gross profit		22,025	-	22,025	23,365	-	23,365
Administrative expenses		(19,393)	-	(19,393)	(19,264)	(1,392)	(20,656)
Operating profit		2,632	-	2,632	4,101	(1,392)	2,709
Finance income		25	-	25	21	-	21
Finance expense		(21)	-	(21)	(29)	-	(29)
Profit before tax		2,636	-	2,636	4,093	(1,392)	2,701
Taxation	7	151	-	151	(1,184)	332	(852)
Profit for the year from continuing operations		2,787	-	2,787	2,909	(1,060)	1,849
Discontinued operations
(Loss)/profit for the year from discontinued operations	13	(7)	-	(7)	120	(21)	99
Profit for the year		2,780	-	2,780	3,029	(1,081)	1,948
Attributable to:
Owners of the parent company		2,780	-	2,780	3,029	(1,081)	1,948
Earnings/(loss) per share:
Continuing operations
Basic	5	27.7p	-	27.7p	28.6p	(10.4)p	18.2p
Diluted	5	27.5p	-	27.5p	28.2p	(10.3)p	17.9p
Discontinued operations
Basic	5	(0.1)p	-	(0.1)p	1.2p	(0.2)p	1.0p
Diluted	5	(0.1)p	-	(0.1)p	1.1p	(0.2)p	0.9p
Continuing and discontinued operations
Basic	5	27.6p	-	27.6p	29.8p	(10.6)p	19.2p
Diluted	5	27.4p	-	27.4p	29.3p	(10.5)p	18.8p

*Before non-trading items (see note 3)

Consolidated statement of comprehensive income (unaudited)
for the year ended 31 January 2015

						Year ended 31 January 2015 £'000	Year ended 31 January 2014 £'000
Profit for the year						2,780	1,948
Other comprehensive income - items that may subsequently be reclassified to profit or loss:
Exchange differences on translation of foreign operations						(8)	(137)
Total comprehensive income for the year						2,772	1,811
Attributable to: Owners of the parent company						2,772	1,811

 

 

 

Consolidated statement of financial position (unaudited)
as at 31 January 2015

	Note	31 January 2015 £'000	31 January 2014 £'000
Assets
Non-current assets
Goodwill	8	838	918
Other intangible assets	9	1,066	396
Property, plant and equipment	10	1,273	697
Deferred tax assets		299	247
		3,476	2,258
Current assets
Trade and other receivables		21,029	20,812
Current tax assets		1,157	665
Restricted bank balances		1,842	-
Other cash and cash equivalents		16,952	18,419
Total cash and cash equivalents		18,794	18,419
		40,980	39,896
Total assets		44,456	42,154
Current liabilities
Trade and other payables		(2,660)	(5,746)
Current tax liabilities		(87)	(128)
Other liabilities		(4,067)	(4,071)
Deferred income		(23,669)	(18,916)
Provisions	12	(512)	(734)
Derivative financial instruments		(150)	(46)
		(31,145)	(29,641)
Net current assets		9,835	10,255
Total liabilities		(31,145)	(29,641)
Net assets		13,311	12,513
Equity
Share capital		513	513
Share premium account		4,518	4,518
Own shares		(1,051)	(1,154)
Translation reserve		1,093	1,101
Share option reserve		1,485	1,430
Retained earnings		6,753	6,105
Total equity		13,311	12,513

 

Consolidated statement of changes in equity (unaudited)
for the year ended 31 January 2015

	Share capital £'000	Share Premium account £'000	Own Shares £'000	Translation reserve £'000	Share Option reserve £'000	Retained earnings £'000	Total equity £'000
Opening equity as at 1 February 2013	513	4,518	-	1,238	1,330	6,418	14,017
Profit for the year	-	-	-	-	-	1,948	1,948
Exchange differences on translation of foreign operations	-	-	-	(137)	-	-	(137)
Total comprehensive income for the year	-	-	-	(137)	-	1,948	1,811
Share option movement for the year	-	-	-	-	100	-	100
Deferred tax on share-based payment transactions	-	-	-	-	-	68	68
Own shares acquired during the year	-	-	(2,000)	-	-	-	(2,000)
Share options exercised during the year	-	-	846	-	-	(271)	575
Dividends paid	-	-	-	-	-	(2,058)	(2,058)
Closing equity as at 31 January 2014	513	4,518	(1,154)	1,101	1,430	6,105	12,513

 

	Share capital £'000	Share Premium account £'000	Own Shares £'000	Translation reserve £'000	Share Option reserve £'000	Retained earnings £'000	Total equity £'000
Opening equity as at 1 February 2014	513	4,518	(1,154)	1,101	1,430	6,105	12,513
Profit for the year	-	-	-	-	-	2,780	2,780
Exchange differences on translation of foreign operations	-	-	-	(8)	-	-	(8)
Total comprehensive income for the year	-	-	-	(8)	-	2,780	2,772
Share option movement for the year	-	-	-	-	55	-	55
Deferred tax on share-based payment transactions	-	-	-	-	-	8	8
Share options exercised during the year	-	-	103	-	-	(22)	81
Remeasurements of post-employment benefit obligations	-	-	-	-	-	(41)	(41)
Dividends paid	-	-	-	-	-	(2,077)	(2,077)
Closing equity as at 31 January 2015	513	4,518	(1,051)	1,093	1,485	6,753	13,311

 

 

Consolidated statement of cash flows (unaudited)
for the year ended 31 January 2015

	Note	Year ended 31 January 2015 £'000	Year ended 31 January 2014 £'000
Net cash inflow from operating activities	6	4,405	4,874
Investing activities
Interest received		25	21
Purchases of property, plant and equipment		(820)	(72)
Purchases of intangible assets		(705)	(597)
Purchases in respect of asset held for sale		-	(10)
Proceeds on disposal of property, plant and equipment		-	8
Proceeds on disposal of asset held for sale		-	815
Net cash (used in)/generated by investing activities		(1,500)	165
Financing activities
Continuing operations
- Dividends paid	4	(2,077)	(2,058)
- Proceeds on exercise of share options		81	575
- Purchase of own shares		-	(2,000)
Net cash used in financing activities		(1,996)	(3,483)
Net (decrease)/increase in cash and cash equivalents		909	1,556
Opening cash and cash equivalents		18,419	17,252
Effect of foreign exchange rate changes		(534)	(389)
Closing cash and cash equivalents		18,794	18,419

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:

	31 January 2015 £'000	31 January 2014 £'000
JetCard cash restricted in its use	1,842	-
Jetcard cash unrestricted in its use	12,251	8,752
Total JetCard cash	14,093	8,752
Non-JetCard cash	4,701	9,667
Cash and cash equivalents	18,794	18,419

 

Notes to the unaudited pro-forma financial information

For the year ended 31 January 2015

 

1        ACCOUNTING POLICIES  

 

 Basis of preparation

 

As a result of the change of accounting reference date to 31 January during the prior financial period, the following pages present 'unaudited pro-forma' financial information comprising a consolidated income statement, a consolidated statement of comprehensive income, a consolidated statement of changes in equity, consolidated statement of financial position and consolidated statement of cash flows   and selected notes comparing the financial performance for the year ended 31 January 2015 to that for the year ended 31 January 2014.

This unaudited pro-forma financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 January 2015 were approved by the board of directors on 22 April 2015, but have not yet been delivered to the Registrar of Companies. The auditor's reports on the financial statements for the periods ended 31 January 2015 and 31 January 2014 were unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The financial statements for the period ended 31 January 2014 have been delivered to the Registrar of Companies.

Restatement of prior year

During the year the directors reviewed the accounting for certain contracts relating to its Aircraft, Crew, Maintenance and Insurance (ACMI) and travel agency departments. Following this review, revenue and cost of sales in the prior period was restated as shown below. There was no impact on reported profit or cash flows.

In addition, as detailed in note 13, management closed the Fuel department. Accordingly, results of the Fuel department have been presented as discontinued operations. The table below reconciles the income statement as previously stated to the current position.

Year ended 31 January 2014 (Unaudited)	As previously Stated £'000 (Unaudited)	ACMI / Travel agency £'000 (Unaudited)	Fuel £'000 (Unaudited)	As restated £'000 (Unaudited)
Revenue	223,977	(7,048)	(5,388)	211,541
Cost of sales	(200,158)	7,048	4,934	(188,176)
Gross profit	23,819	-	(454)	23,365
Administrative expenses	(20,981)	-	325	(20,656)
Operating profit	2,838	-	(129)	2,709

 

2          SEGMENTAL ANALYSIS

 

The services provided by the Group consist of chartering different types of aircraft and related aviation services.

 

Following a change in management structure, and the closure of the Fuel department, results of the Emergency Planning division have been aggregated with Commercial Jets. In addition, overheads, with the exception of Corporate costs, are allocated to the Group's operating segments in relation to operating activities. As a result, prior year segmental analysis has been restated to reflect the current segmental reporting of continuing operations.

Sales transactions between operating segments are carried out on an arm's length basis. All revenues, 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 assets and 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:

 

Year ended 31 January 2015 (Unaudited) Continuing operations	Commercial Jet Broking £'000	Private Jet Broking £'000	Freight £'000	Corporate costs £'000	Total £'000
Total revenues	117,543	52,208	24,980	-	194,731
Revenues from transactions with other operating segments	(1,672)	(70)	(889)	-	(2,631)
Revenues from external customers	115,871	52,138	24,091	-	192,100
Depreciation and amortisation	(177)	(84)	-	-	(261)
Underlying operating profit	2,693	791	368	(1,220)	2,632
Non-trading items (see note 3)	-	-	-	-	-
Segment result	2,693	791	368	(1,220)	2,632
Finance income					25
Finance expense					(21)
Profit before tax					2,636
Tax					151
Profit after tax					2,787
Discontinued operations					(7)
Profit for the year					2,780

 

Year ended 31 January 2014 (Unaudited) Continuing operations	Commercial Jet Broking £'000	Private Jet Broking £'000	Freight £'000	Corporate costs £'000	Total £'000
Total revenues	146,180	55,965	11,979	-	214,124
Revenues from transactions with other operating segments	(2,244)	(87)	(252)	-	(2,583)
Revenues from external customers	143,936	55,878	11,727	-	211,541
Depreciation and amortisation	(122)	(63)	-	-	(185)
Underlying operating profit	3,938	1,624	(107)	(1,354)	4,101
Non-trading items (see note 3)	(220)	(155)	(33)	(984)	(1,392)
Segment result	3,718	1,469	(140)	(2,338)	2,709
Finance income					21
Finance expense					(29)
Profit before tax					2,701
Tax					(852)
Profit after tax					1,849
Discontinued operations					99
Profit for the year					1,948

 

 

The Company is domiciled in the UK but, due to the nature of the Group's operations, a significant amount of revenue from external customers is derived from overseas countries. The Group reviews revenue based upon the location of the assets used to generate those revenues. Apart from the UK and France, no single country is deemed to have material non-current asset levels.

The Group's revenue from external customers by geographical location is as follows:

 

	United Kingdom £'000	Europe £'000	United States of America £'000	Rest of the World £'000	Total £'000
Year ended 31 January 2015 (Unaudited)
Revenues from external customers	85,290	82,333	21,902	2,575	192,100
Non-current assets (excluding deferred tax assets)	2,094	1,017	66	-	3,177
Year ended 31 January 2014 (Unaudited)
Revenues from external customers	91,495	83,230	34,045	2,771	211,541
Non-current assets (excluding deferred tax assets)	968	736	280	27	2,011

 

Europe can be further analysed as:

Continuing operations	France £'000	Germany £'000	Italy £'000	Other £'000	Total £'000
Year ended 31 January 2015 (Unaudited)
Revenues from external customers	29,586	26,328	19,103	7,316	82,333
Year ended 31 January 2014 (Unaudited)
Revenues from external customers	44,189	19,856	9,859	9,326	83,230

 

3          NON-TRADING ITEMS

 

Continuing operations	Year ended 31 January 2015 (Unaudited)  £'000	Year ended 31 January 2014 (Unaudited) £'000
Impairment of intangible assets	-	(774)
Restructuring costs	-	(618)
Non-trading items before taxation	-	(1,392)
Tax effect of non-trading items	-	332
Non-trading items after taxation	-	(1,060)

 

In the prior period, management conducted a review of ongoing intangible asset related projects and identified that an impairment of £774,000 was required to write down the assets to their recoverable amount.

The reorganisation of the Group to report on a product-led basis has resulted in restructuring costs of £618,000 in the prior period. These costs comprised redundancy payments, external legal advice, outplacement costs and were included within administrative expenses.

 

4          DIVIDENDS

 

	Year ended 31 January 2015 (Unaudited) £'000	Year ended 31 January 2014 (Unaudited) £'000
Amounts recognised as distributions to owners of the parent company
Final dividend for the eighteen month period ended 31 January 2014 of 14.0 pence
(2014: First interim dividend for the eighteen month period ended 31 January 2014 of 6.05 pence) per share	1,406	621
Interim dividend for the year ended 31 January 2015 of 6.66p per share
(2014: Second interim dividend for the eighteen month period ended 31 January 2014 of 14.0 pence) per share	671	1,437
	2,077	2,058

 

 

5          EARNINGS PER SHARE

 

From continuing and discontinued operations	Year ended 31 January 2015 (Unaudited) £'000	Year ended 31 January 2014 (Unaudited) £'000
Earnings
Profit attributable to equity holders owners of the parent company	2,780	1,948
Non-trading items	-	1,081
Earnings for the calculation of basic and diluted earnings per share	2,780	3,029

 

Number of shares	Number	Number
Weighted average number of ordinary shares for the calculation of basic earnings per share	10,056,276	10,169,490
Effect of dilutive potential ordinary shares: share options	75,764	155,875
Weighted average number of ordinary shares for the calculation of diluted earnings per share	10,132,040	10,325,365

 

From continuing operations	Year ended 31 January 2015 (Unaudited)  £'000	Year ended 31 January 2014 (Unaudited) £'000
Earnings
Profit attributable to equity holders owners of the parent company	2,780	1,948
Adjustment to exclude loss/(profit) for the year from discontinued operations	7	(99)
Earnings for the calculation of basic and diluted earnings per share	2,787	1,849
Non-trading items	-	1,060
Earnings for the calculation of continuing underlying basic and diluted earnings per share	2,787	2,909

 

From discontinued operations	Year ended 31 January 2015 (Unaudited)  £'000	Year ended 31 January 2014 (Unaudited) £'000
Earnings
Earnings for the calculation of basic and diluted earnings per share	(7)	99
Non-trading items	-	21
Earnings for the calculation of continuing underlying basic and diluted earnings per share	(7)	120

 

The denominators used are the same as those above for both basic and diluted earnings per share from continuing and discontinued operations.

The calculation of underlying earnings per share (before non-trading items) is included as the directors believe it provides a better understanding of the underlying performance of the Group. Non-trading items are disclosed in note 3.

 

 

 

6          NET CASH INFLOW FROM OPERATING ACTIVITES

 

	Year ended 31 January 2015 (Unaudited)  £'000	Year ended 31 January 2014 (Unaudited) £'000
Profit for the year
Continuing operations	2,787	1,849
Discontinued operations	(7)	99
	2,780	1,948
Finance income	(25)	(21)
Finance expense	21	29
Income tax	(153)	882
Depreciation and amortisation	261	185
Impairment of intangible assets	-	774
Loss on disposal of property, plant and equipment	5	4
Profit on disposal of asset held for sale	-	(82)
Fair value losses on derivative financial instruments	104	65
Share option charge for year	55	100
(Decrease)/increase in provisions	(238)	62
Foreign exchange differences	496	174
Operating cash flows before movements in working capital	3,306	4,120
(Increase)/decrease in receivables	(773)	12,519
Increase/(decrease) in payables	2,343	(11,086)
Cash generated from operations	4,876	5,553
Income taxes paid	(463)	(650)
Interest paid	(8)	(29)
Net cash inflow from operating activities	4,405	4,874

 

7          TAXATION

 

	Continuing operations		Discontinued operations		Total
	Year ended 31 January 2015 (Unaudited)  £'000	Year ended 31 January 2014 (Unaudited) £'000	Year ended 31 January 2015 (Unaudited)  £'000	Year ended 31 January 2014 (Unaudited) £'000	Year ended 31 January 2015 (Unaudited)  £'000	Year ended 31 January 2014 (Unaudited) £'000
Current tax:
UK corporation tax	207	473	(2)	30	205	503
Foreign tax	513	158	-	-	513	158
Current tax adjustments in respect of prior years	(788)	(148)		-	(788)	(148)
	(68)	483	(2)	30	(70)	513
Deferred tax	(83)	369	-	-	(83)	369
Total tax (credit)/charge	(151)	852	(2)	30	(153)	882
Of which:
Tax on underlying profit	(151)	1,184	(2)	37	(153)	1,221
Tax on non-trading items (see note 3)	-	(332)	-	(7)	-	(339)
	(151)	852	(2)	30	(153)	882

 

8          GOODWILL

 

(Unaudited)	Goodwill £'000
Cost
At 1 February 2013	956
Foreign currency adjustments	(38)
At 31 January 2014	918
Foreign currency adjustments	(80)
At 31 January 2015	838
Provision for impairment
At 1 February 2013, 31 January 2014 and 31 January 2015	-
Net book value
At 31 January 2015	838
At 31 January 2014	918
At 1 February 2013	956

 

 

9          OTHER INTANGIBLE ASSETS

 

(Unaudited)	Software £'000
Cost
At 1 February 2013	621
Additions	597
Foreign currency adjustments	(1)
At 31 January 2014	1,217
Additions	705
Foreign currency adjustments	(1)
At 31 January 2015	1,921
Amortisation
At 1 February 2013	20
Charge for the year	27
Impairment loss	774
At 31 January 2014	821
Charge for the year	35
Foreign currency adjustments	(1)
At 31 January 2015	855
Net book value
At 31 January 2015	1,066
At 31 January 2014	396
At 1 February 2013	601

 

There were no commitments at year end to purchase any intangible assets.

 

10        PROPERTY, PLANT AND EQUIPMENT

 

(Unaudited)	Short leasehold property and leasehold improvements £'000	Fixtures and equipment £'000	Motor vehicles £'000	Total £'000
Cost
At 1 February 2013	828	1,752	44	2,624
Additions	8	72	-	80
Foreign currency adjustments	(5)	(30)	(2)	(37)
Disposals	(8)	(8)	(38)	(54)
At 31 January 2014	823	1,786	4	2,613
Additions	71	749	-	820
Foreign currency adjustments	(6)	(20)	(1)	(27)
Disposals	(119)	(88)	(3)	(210)
At 31 January 2015	769	2,427	-	3,196
Depreciation
At 1 February 2013	237	1,567	28	1,832
Charge for the year	55	99	4	158
Foreign currency adjustments	(5)	(25)	(2)	(32)
Disposals	(6)	(7)	(29)	(42)
At 31 January 2014	281	1,634	1	1,916
Charge for the year	83	143	-	226
Foreign currency adjustments	(3)	(11)	-	(14)
Disposals	(119)	(85)	(1)	(205)
At 31 January 2015	242	1,681	-	1,923
Net book value
At 31 January 2015	527	746	-	1,273
At 31 January 2014	542	152	3	697
At 1 February 2013	591	185	16	792

 

There were no commitments at year end to purchase any items of property, plant or equipment.

 

11        CONTIGENT LIABILITIES

 

The Group had issued the following guarantees at 31 January 2015.

Description	Currency	2015 '000	2014 '000
Passenger sales agency agreement	Sterling	398	376
Dubai employee rights	Sterling	17	17
Aircraft operator	Euros	1,400	-
Aircraft operator	Euros	47	-
Rental deposit	Euros	11	-

 

In addition, the Company's bankers hold a free and floating charge over the Company's assets.

 

12        PROVISIONS

 

	31 January 2015 (Unaudited) £'000	31 January 2014 (Unaudited) £'000
Administration claims	478	465
Restructuring	34	269
	512	734

 

A provision of £478,000 (31 January 2014: £465,000) was held in relation to the potential costs of settlement of claims which have been received from third parties following the closure of Air Partner Private Jets Limited.  All remaining claims within this provision are expected to be settled by 31 March 2016.

13        DISCONTINUED OPERATIONS

 

On 20 January 2014, management closed the Group's Fuel department. Accordingly, trading results of the Fuel department, which were previously disclosed as continuing operations, have now been disclosed as discontinued operations:

	Year ended 31 January 2015 (Unaudited) £'000	Year ended 31 January 2014 (Unaudited) £'000
Revenue	62	5,388
Cost of sales	(64)	(4,934)
Gross (loss)/profit	(2)	454
Administrative expenses	(7)	(325)
(Loss)/profit before tax	(9)	129
Taxation	2	(30)
Net (loss)/profit attributable to discontinued operations	(7)	99

 

Cash flows attributable to the Fuel department were as follows:

	Year ended 31 January 2015 (Unaudited) £'000	Year ended 31 January 2014 (Unaudited) £'000
Net operating cash flows	(7)	99

 

Air Partner plc

("Air Partner" or "the Group" or "the Company")

Audited results for the year ended 31 January 2015

 

Consolidated income statement
for the year ended 31 January 2015

		Year ended 31 January 2015			18 months ended 31 January 2014 (as restated - see note 2)
Continuing operations	Note	Underlying* £'000	Non-trading items £'000	Total £'000	Underlying* £'000	Non-trading items £'000	Total £'000
Revenue	2	192,100	-	192,100	308,257	-	308,257
Cost of sales		(170,075)	-	(170,075)	(274,565)	-	(274,565)
Gross profit		22,025	-	22,025	33,692	-	33,692
Administrative expenses		(19,393)	-	(19,393)	(28,348)	(1,392)	(29,740)
Operating profit		2,632	-	2,632	5,344	(1,392)	3,952
Finance income		25	-	25	37	-	37
Finance expense		(21)	-	(21)	(32)	-	(32)
Profit before tax		2,636	-	2,636	5,349	(1,392)	3,957
Taxation	7	151	-	151	(1,675)	332	(1,343)
Profit for the year/period from continuing operations		2,787	-	2,787	3,674	(1,060)	2,614
Discontinued operations
Profit for the year/period from discontinued operations	13	(7)	-	(7)	173	(21)	152
Profit for the year/period		2,780	-	2,780	3,847	(1,081)	2,766
Attributable to:
Owners of the parent company		2,780	-	2,780	3,847	(1,081)	2,766
Earnings/(loss) per share:
Continuing operations
Basic	5	27.7p	-	27.7p	36.0p	(10.4)p	25.6p
Diluted	5	27.5p	-	27.5p	35.6p	(10.3)p	25.3p
Discontinued operations
Basic	5	(0.1)p	-	(0.1)p	1.7p	(0.2)p	1.5p
Diluted	5	(0.1)p	-	(0.1)p	1.7p	(0.2)p	1.5p
Continuing and discontinued operations
Basic	5	27.6p	-	27.6p	37.7p	(10.6)p	27.1p
Diluted	5	27.4p	-	27.4p	37.3p	(10.5)p	26.8p

*Before non-trading items (see note 3)

 

Consolidated statement of comprehensive income
for the year ended 31 January 2015

	Year ended 31 January 2015 £'000	18 months ended 31 January 2014 £'000
Profit for the year/period	2,780	2,766
Other comprehensive income - items that may subsequently be reclassified to profit or loss:
Exchange differences on translation of foreign operations	(8)	138
Exchange differences on liquidation of foreign operations	-	22
Total comprehensive income for the year/period	2,772	2,926
Attributable to:
Owners of the parent company	2,772	2,926

 

Consolidated statement of financial position
as at 31 January 2015

	Note	31 January 2015 £'000	31 January 2014 £'000
Assets
Non-current assets
Goodwill	8	838	918
Other intangible assets	9	1,066	396
Property, plant and equipment	10	1,273	697
Deferred tax assets		299	247
		3,476	2,258
Current assets
Trade and other receivables		21,029	20,812
Current tax assets		1,157	665
Restricted bank balances		1,842	-
Other cash and cash equivalents		16,952	18,419
Total cash and cash equivalents		18,794	18,419
		40,980	39,896
Total assets		44,456	42,154
Current liabilities
Trade and other payables		(2,660)	(5,746)
Current tax liabilities		(87)	(128)
Other liabilities		(4,067)	(4,071)
Deferred income		(23,669)	(18,916)
Provisions	12	(512)	(734)
Derivative financial instruments		(150)	(46)
		(31,145)	(29,641)
Net current assets		9,835	10,255
Total liabilities		(31,145)	(29,641)
Net assets		13,311	12,513
Equity
Share capital		513	513
Share premium account		4,518	4,518
Own shares		(1,051)	(1,154)
Translation reserve		1,093	1,101
Share option reserve		1,485	1,430
Retained earnings		6,753	6,105
Total equity		13,311	12,513

 

Consolidated statement of changes in equity
for the year ended 31 January 2015

	Share capital £'000	Share premium account £'000	Own shares £'000	Translation reserve £'000	Share option reserve £'000	Retained earnings £'000	Total equity £'000
Opening equity as at 1 August 2012	513	4,518	-	941	1,238	6,903	14,113
Profit for the period	-	-	-	-	-	2,766	2,766
Exchange differences on translation of foreign operations	-	-	-	138	-	-	138
Exchange differences on liquidation of foreign operations	-	-	-	22	-	-	22
Total comprehensive income for the period	-	-	-	160	-	2,766	2,926
Share option movement for the period	-	-	-	-	192	-	192
Deferred tax on share-based payment transactions	-	-	-	-	-	68	68
Own shares acquired during the period	-	-	(2,000)	-	-		(2,000)
Share options exercised during the period	-	-	846	-	-	(271)	575
Dividends paid	-	-	-	-	-	(3,361)	(3,361)
Closing equity as at 31 January 2014	513	4,518	(1,154)	1,101	1,430	6,105	12,513

 

	Share capital £'000	Share premium account £'000	Own shares £'000	Translation reserve £'000	Share option reserve £'000	Retained earnings £'000	Total equity £'000
Opening equity as at 1 February 2014	513	4,518	(1,154)	1,101	1,430	6,105	12,513
Profit for the year	-	-	-	-	-	2,780	2,780
Exchange differences on translation of foreign operations	-	-	-	(8)	-	-	(8)
Total comprehensive income for the year	-	-	-	(8)	-	2,780	2,772
Share option movement for the year	-	-	-	-	55	-	55
Deferred tax on share-based payment transactions	-	-	-	-	-	8	8
Share options exercised during the year	-	-	103	-	-	(22)	81
Remeasurements of post-employment benefit obligations	-	-	-	-	-	(41)	(41)
Dividends paid	-	-	-	-	-	(2,077)	(2,077)
Closing equity as at 31 January 2015	513	4,518	(1,051)	1,093	1,485	6,753	13,311

 

 

Consolidated statement of cash flows
for the year ended 31 January 2015

	Note	Year ended 31 January 2015 £'000	18 months ended 31 January 2014 £'000
Net cash inflow from operating activities	6	4,405	7,245
Investing activities
Continuing operations
- Interest received		25	37
- Dividends received from subsidiaries		-	-
- Purchases of property, plant and equipment		(820)	(87)
- Purchases of intangible assets		(705)	(920)
- Purchases in respect of asset held for sale		-	(10)
- Proceeds on disposal of property, plant and equipment		-	8
- Proceeds on disposal of asset held for sale		-	815
Net cash (used in)/generated by investing activities		(1,500)	(157)
Financing activities
Continuing operations
- Dividends paid	4	(2,077)	(3,361)
- Proceeds on exercise of share options		81	575
- Purchase of own shares		-	(2,000)
Net cash used in financing activities		(1,996)	(4,786)
Net (decrease)/increase in cash and cash equivalents		909	2,302
Opening cash and cash equivalents		18,419	15,716
Effect of foreign exchange rate changes		(534)	401
Closing cash and cash equivalents		18,794	18,419

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 and Company in respect of its JetCard product) and 'non-JetCard cash' as follows:

	2015 £'000	2014 £'000
JetCard cash restricted in its use	1,842	-
Jetcard cash unrestricted in its use	12,251	8,752
JetCard cash	14,093	8,752
Non-JetCard cash	4,701	9,667
Cash and cash equivalents	18,794	18,419

 

1          GENERAL INFORMATION, BASIS OF PREPARATION AND ACCOUNTING POLICIES

 

General information

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.

This condensed consolidated financial information was approved for issue on 22 April 2015.

This condensed consolidated financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 January 2015 were approved by the board of directors on 22 April 2015, but have not yet been delivered to the Registrar of Companies. The auditor's reports on the financial statements for the periods ended 31 January 2015 and 31 January 2014 were unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The financial statements for the period ended 31 January 2014 have been delivered to the Registrar of Companies.

Basis of preparation         

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted for use in the European Union in accordance with EU law (IAS regulation EC1606/2002) and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The Company expects to publish full financial statements that comply with IFRS in May 2015.

Accounting policies

The accounting policies adopted are consistent with those of the previous financial year, except as described in the following sections:

Restatement of prior period

During the year the management reviewed the accounting for certain contracts relating to its Aircraft, Crew, Maintenance and Insurance (ACMI) and travel agency departments. Following this review, revenue and cost of sales in the prior period was restated as shown below.

In addition, as detailed in note 13, management announced the closure of its Fuel department. Accordingly, results of the Fuel department have been presented as discontinued operations. The table below reconciles the income statement as previously stated to the current position.

Period ended 31 January 2014	As previously Stated £'000	ACMI / Travel agency £'000	Fuel £'000	As restated £'000
Revenue	326,125	(9,701)	(8,167)	308,257
Cost of sales	(291,823)	9,701	7,557	(274,565)
Gross profit	34,302	-	(610)	33,692
Administrative expenses	(30,151)	-	411	(29,740)
Operating profit	4,151	-	(199)	3,952

 

Adoption of new and revised Standards

The following standards and interpretations have been adopted in the current financial year, none of which has resulted in a restatement of the prior financial period's results:

-       Annual Improvements 2009-2011 cycle

-       IAS 19 Employee Benefits (2011)

-       IFRS 10 Consolidated Financial Statements ("IFRS 10") and IAS 27 (2011) Separate Financial Statements ("IAS 27")

-       IFRS 11 Joint Arrangements ("IFRS 11") and IAS 28 (2011) Investment in Associates and Joint Ventures ("IAS 28")

-       IFRS 12 Disclosure of Interests in Other Entities ("IFRS 12")

-       IFRS 13 Fair Value Measurement ("IFRS 13")

-       Amendments to IFRS 7 (Offsetting Financial Assets and Financial Liabilities) and Amendments to IAS 32 (Offsetting - Financial Assets and Financial Liabilities)

-       Amendments to IAS 36 (Recoverable Amount Disclosures for Non-Financial Assets)

-       Amendments to IAS 39 (Novation of Derivatives and Continuation of Hedge Accounting)

-       Amendments to IFRS 1 (Government Loans)

-       Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance

-       Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)

 

2          SEGMENTAL ANALYSIS

 

The services provided by the Group consist of chartering different types of aircraft and related aviation services.

Following a change in management structure, and the closure of the Fuel department, results of the Emergency Planning division have been aggregated with Commercial Jets. In addition, overheads, with the exception of Corporate costs, are allocated to the Group's operating segments in relation to operating activities. As a result, prior year segmental analysis has been restated to reflect the current segmental reporting of continuing operations.

Sales transactions between operating segments are carried out on an arm's length basis. All revenues, 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 assets and 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:

Year ended 31 January 2015 Continuing operations	Commercial Jet Broking £'000	Private Jet Broking £'000	Freight £'000	Corporate costs £'000	Total £'000
Total revenues	117,543	52,208	24,980	-	194,731
Revenues from transactions with other operating segments	(1,672)	(70)	(889)	-	(2,631)
Revenues from external customers	115,871	52,138	24,091	-	192,100
Depreciation and amortisation	(177)	(84)	-	-	(261)
Underlying operating profit	2,693	791	368	(1,220)	2,632
Non-trading items	-	-	-	-	-
Segment result	2,693	791	368	(1,220)	2,632
Finance income					25
Finance expense					(21)
Profit before tax					2,636
Tax					151
Profit after tax					2,787
Discontinued operations					(7)
Profit for the year					2,780

 

Eighteen months to 31 January 2014   Continuing operations	Commercial Jet Broking £'000	Private Jet Broking £'000	Freight £'000	Corporate costs £'000	Total £'000
Total revenues	212,810	78,699	19,970	-	311,479
Revenues from transactions with other operating segments	(2,736)	(162)	(324)	-	(3,222)
Revenues from external customers	210,074	78,537	19,646	-	308,257
Depreciation and amortisation	(203)	(105)	-	-	(308)
Underlying operating profit	5,024	1,985	389	(2,054)	5,344
Non-trading items (see note 5)	(220)	(155)	(33)	(984)	(1,392)
Segment result	4,804	1,830	356	(3,038)	3,952
Finance income					37
Finance expense					(32)
Profit before tax					3,957
Tax					(1,343)
Profit after tax					2,614
Discontinued operations					152
Profit for the year					2,766

 

The Company is domiciled in the UK but, due to the nature of the Group's operations, a significant amount of revenue from external customers is derived from overseas countries. The Group reviews revenue based upon the location of the assets used to generate those revenues. Apart from the UK and France, no single country is deemed to have material non-current asset levels.

The Group's revenue from external customers by geographical location is as follows:

Continuing operations	United Kingdom £'000	Europe £'000	United States of America £'000	Rest of the World £'000	Total £'000
Year ended 31 January 2015
Revenues from external customers	85,290	82,333	21,902	2,575	192,100
Non-current assets (excluding deferred tax assets)	2,094	1,017	66	-	3,177
Eighteen months to 31 January 2014
Revenues from external customers	139,001	119,388	45,446	4,422	308,257
Non-current assets (excluding deferred tax assets)	968	736	280	27	2,011

 

Europe can be further analysed as:

Continuing operations	France £'000	Germany £'000	Italy £'000	Other £'000	Total £'000
Year ended 31 January 2015
Revenues from external customers	29,586	26,328	19,103	7,316	82,333
Eighteen months to 31 January 2014
Revenues from external customers	57,238	31,487	15,612	15,051	119,388

 

The Group did not have any customers who accounted for more than 10% of the Group's external revenue during the year (2014: nil).

 

3          NON-TRADING ITEMS

 

Continuing operations	2015 £'000	2014 £'000
Impairment of intangible assets	-	(774)
Restructuring costs	-	(618)
Non-trading items before taxation	-	(1,392)
Tax effect of non-trading items	-	332
Non-trading items after taxation	-	(1,060)

 

In the prior period, management conducted a review of ongoing intangible asset related projects and identified that an impairment of £774,000 was required to write down the assets to their recoverable amount.

The reorganisation of the Group to report on a product-led basis resulted in restructuring costs of £618,000 in the prior period. These costs comprised redundancy payments, external legal advice, outplacement costs and were included within administrative expenses.

 

4          DIVIDENDS

 

	2015 £'000	2014 £'000
Amounts recognised as distributions to owners of the parent company
Final dividend for the eighteen month period ended 31 January 2014 of 14.0 pence
(Final dividend for year ended 31 July 2012 of 12.7 pence) per share	1,407	1,303
Interim dividend for the year ended 31 January 2015 of 6.66p per share
(First interim dividend for eighteen month period ended 31 January 2014 of 6.05 pence) per share	670	621
Second interim dividend for the eighteen month period ended 31 January 2014 of 14.0 pence per share	-	1,437
	2,077	3,361

 

The Air Partner Employee Benefit Trust, which held 199,236 (2014: 224,932) ordinary shares at 31 January 2015 representing 1.9% (2014: 2.2%) of the Company's issued share capital is not entitled to receive dividends.

 

5          EARNINGS PER SHARE

 

The calculation of the basic and diluted earnings per share is based on the following data:

Continuing and discontinued operations	2015 £'000	2014 £'000
Earnings for the calculation of basic and diluted earnings per share
Profit attributable to owners of the parent company	2,780	2,766
Non-trading items	-	1,081
Underlying profit attributable to owners of the parent company	2,780	3,847

 

Number of shares	Number	Number
Weighted average number of ordinary shares for the calculation of basic earnings per share	10,056,276	10,216,004
Effect of dilutive potential ordinary shares: share options	75,764	105,414
Weighted average number of ordinary shares for the calculation of diluted earnings per share	10,132,040	10,321,418

 

From continuing operations	2015  £'000	2014 £'000
Earnings
Profit attributable to equity holders owners of the parent company	2,780	2,766
Adjustment to exclude loss/(profit) for the year/period from discontinued operations	7	(152)
Earnings for the calculation of continuing underlying basic and diluted earnings per share	2,787	2,614
Non-trading items	-	1,060
Earnings for the calculation of basic and diluted earnings per share	2,787	3,674

 

From discontinued operations	2015  £'000	2014 £'000
Earnings
Earnings for the calculation of basic and diluted earnings per share	(7)	152
Non-trading items	-	21
Earnings for the calculation of continuing underlying basic and diluted earnings per share	(7)	173

 

The denominators used are the same as those above for both basic and diluted earnings per share from continuing and discontinued operations.

The calculation of underlying earnings per share (before non-trading items) is included as the directors believe it provides a better understanding of the underlying performance of the Group. Non-trading items are disclosed in note 3.

 

 

6          NET CASH INFLOW FROM OPERATING ACTIVITIES

 

	Group
	2015 £'000	2014 £'000
Profit for the year
Continuing operations	2,787	2,614
Discontinued operations	(7)	152
	2,780	2,766
Adjustments for:
Dividends received	-	-
Finance income	(25)	(37)
Finance expense	21	32
Income tax (credit)/expense	(153)	1,390
Depreciation and amortisation	261	308
Impairment of intangible assets	-	774
Impairment of investments	-	-
Loss on disposal of property, plant and equipment	5	4
Profit on disposal of asset held for sale	-	(82)
Fair value (gains)/losses on derivative financial instruments	104	(44)
Share option cost for period	55	192
(Decrease)/increase in provisions	(238)	10
Foreign exchange differences	496	(182)
Operating cash flows before movements in working capital	3,306	5,131
(Increase)/decrease in receivables	(773)	10,351
Increase/(decrease) in payables	2,343	(6,404)
Cash generated from operations	4,876	9,078
Income taxes paid	(463)	(1,801)
Interest paid	(8)	(32)
Net cash flow from operating activities	4,405	7,245

 

 

 

7          TAXATION

 

	Continuing operations		Discontinued operations		Total
	2015  £'000	2014 £'000	2015  £'000	2014 £'000	2015  £'000	2014 £'000
Current tax:
UK corporation tax	207	724	(2)	47	205	771
Foreign tax	513	446	-	-	513	446
Current tax adjustments in respect of prior years	(788)	(108)	-	-	(788)	(108)
	(68)	1,062	(2)	47	(70)	1,109
Deferred tax	(83)	281	-	-	(83)	281
Total tax	(151)	1,343	(2)	47	(153)	1,390
Of which:
Tax on underlying profit	(151)	1,675	(2)	54	(153)	1,729
Tax on non-trading items (see note 3)	-	(332)	-	(7)	-	(339)
	(151)	1,343	(2)	47	(153)	1,390

 

Corporation tax in the UK was calculated at 21.3% (2014: 23.4%) of the estimated assessable profit for the period. Taxation for other jurisdictions was calculated at the rates prevailing in the respective jurisdictions.

The charge for the period can be reconciled to the profit per the consolidated income statement as follows:

	2015 £'000	2014 £'000
Profit from continuing operations before tax	2,636	3,957
(Loss)/profit from discontinued operations before tax	(9)	199
Accounting profit before tax	2,627	4,156
Tax at the UK corporation tax rate of 21.3% (2014: 23.4%)	560	973
Effect of UK corporation tax rate at 23% from 1 February 2014 to 31 March 2014 (2014: 24% from 1 August to 31 March 2013)	-	5
Tax effect of items that are not recognised in determining taxable profit	(24)	219
Tax effect of losses not previously recognised	(82)	(8)
Tax effect of different tax rates of subsidiaries operating in other jurisdictions	181	309
Current tax adjustments in respect of prior years	(788)	(108)
Total tax (credit)/charge	(153)	1,390

 

The UK corporation tax rate decreased from 23% to 21% from 1 April 2014. The impact on the tax charge is shown above.

Further reductions to the UK corporation tax rate have been announced. A reduction to 20% effective from 1 April 2015 was substantively enacted on 17 July 2013 and the deferred tax balance has been adjusted to reflect this change.

 

8          GOODWILL

 

Group	Goodwill £'000
Cost
At 1 August 2012	871
Foreign currency adjustments	47
At 31 January 2014	918
Foreign currency adjustments	(80)
At 31 January 2015	838
Provision for impairment
At 1 August 2012, 31 January 2014 and 31 January 2015	-
Net book value
At 31 January 2015	838
At 31 January 2014	918
At 1 August 2012	871

 

Goodwill has been allocated entirely to one cash generating unit, being Air Partner International SAS.       

For the purpose of impairment testing, the recoverable amount of the cash generating unit was measured on the basis of its value in use, by applying cash flow projections based on financial forecasts covering a three-year period. The key assumptions for the value in use calculation were those regarding the discount rates, growth rates and expected changes to selling prices and direct costs during the forecast period. The estimated growth rates were based on past performance and expectation of future changes in the market. The growth rate used to extrapolate cash flow projections beyond the period covered by the financial forecasts was 2% (2014: 2%). The pre-tax rate used to discount the forecast cash flows was 11% (2014: 14%).

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.

 

9          OTHER INTANGIBLE ASSETS

 

Software	Group £'000
Cost
At 1 August 2012	297
Additions	920
At 31 January 2014	1,217
Additions	705
Foreign currency adjustments	(1)
At 31 January 2015	1,921
Amortisation and impairment
At 1 August 2012	10
Charge for the period	37
Impairment loss	774
At 31 January 2014	821
Charge for the year	35
Foreign currency adjustments	(1)
At 31 January 2015	855
Net book value
At 31 January 2015	1,066
At 31 January 2014	396
At 1 August 2012	287

 

Other intangible assets comprise acquired software. Refer to notes 3 for further details regarding the nature of the impairment loss incurred during the prior financial period.

 

10        PROPERTY, PLANT AND EQUIPMENT

 

Group	Short leasehold property and leasehold improvements £'000	Fixtures and equipment £'000	Motor vehicles £'000	Total £'000
Cost
At 1 August 2012	816	1,691	39	2,546
Additions	8	79	-	87
Foreign currency adjustments	7	24	3	34
Disposals	(8)	(8)	(38)	(54)
At 31 January 2014	823	1,786	4	2,613
Additions	71	749	-	820
Foreign currency adjustments	(6)	(20)	(1)	(27)
Disposals	(119)	(88)	(3)	(210)
At 31 January 2015	769	2,427	-	3,196
Depreciation and impairment
At 1 August 2012	180	1,455	21	1,656
Charge for the period	100	164	7	271
Foreign currency adjustments	7	22	2	31
Disposals	(6)	(7)	(29)	(42)
At 31 January 2014	281	1,634	1	1,916
Charge for the year	83	143	-	226
Foreign currency adjustments	(3)	(11)	-	(14)
Disposals	(119)	(85)	(1)	(205)
At 31 January 2015	242	1,681	-	1,923
Net book value
At 31 January 2015	527	746	-	1,273
At 31 January 2014	542	152	3	697
At 1 August 2012	636	236	18	890

 

There were no commitments at year end to purchase any items of property, plant or equipment.

 

11        CONTINGENT LIABILITIES

 

 

The Group had issued the following guarantees at 31 January 2015.

Description	Currency	2015 '000	2014 '000
Passenger sales agency agreement	Sterling	398	376
Dubai employee rights	Sterling	17	17
Aircraft operator	Euros	1,400	-
Aircraft operator	Euros	47	-
Rental deposit	Euros	11	-

 

In addition, the Company's bankers hold a free and floating charge over the Company's assets.

 

12        PROVISIONS

 

	2015 £'000	2014 £'000
Administration claims	478	465
Restructuring	34	269
	512	734

 

 

	Administration claims £'000	Restructuring £'000	Total £'000
At 1 February 2014	465	269	734
Utilisation of provision	-	(238)	(238)
Unwinding of discount	13	-	13
Foreign currency adjustments	-	3	3
At 31 January 2015	478	34	512

 

A provision of £478,000 (2014: £465,000) was held in relation to the potential costs of settlement of claims which have been received from third parties following the closure of Air Partner Private Jets Limited. All remaining claims within this provision are expected to be settled by 31 March 2016.

 

13        DISCONTINUED OPERATIONS

 

On 20 January 2014, management closed the Fuel department. Accordingly, results of the Fuel department, shown below which were previously disclosed as continuing operations, have now been disclosed as discontinued operations:

	2015  £'000	2014 £'000
Revenue	62	8,167
Cost of sales	(64)	(7,557)
Gross (loss)/profit	(2)	610
Administrative expenses	(7)	(411)
(Loss)/profit before tax	(9)	199
Taxation	2	(47)
Net (loss)/profit attributable to discontinued operations	(7)	152

 

Cash flows attributable to the Fuel department were as follows:

	2015 £'000	2014 £'000
Net operating cash flows	(7)	152