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Air Partner (AIR)


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Final Results

Air Partner PLC
11 October 2007

                                Air Partner PLC
               ("Air Partner" or "the Group" or "the Company")
             Year end results for the 12 months ended 31 July 2007


* Sales                            up 32% to £185.8m (£140.4m)

* Profit before tax                up 49% to £7.6m (£5.1m)

* Diluted EPS                      up 46% to 50.3p (34.4p)

* Proposed final dividend          up 10% to 13.3p (12.1p)

* Net Cash                         up 64% to £19.5m (£11.9m)

* Proposed Special dividend        60p per share, equal to £6 million 
                                   (5th in 12 years)

* 38% increase in new clients

* Strategy to diversify revenue performing well - all sectors and geographies
  extremely buoyant

* UK, Germany and Italy show strongest growth.  France and USA remain
  significant contributors

* Investment in market for high net worth ("HNW") jet usage producing good

* Platform for growth strengthened by new operational boards

* Two new offices opened in Sweden and Benelux

* Over 10 years TSR has grown by an average of 30% per annum

* Current trading is strong and 15% ahead of the comparative period

* Shift to private aviation set to continue

David Savile, Chief Executive of Air Partner commented: "These record results
demonstrate the Group's ability to provide outstanding service and client
satisfaction over the long term.  I am delighted to be announcing the group's
13th consecutive 10% increase in dividend and our fifth special dividend in 12
years.  Over the last 12 months Air Partner has grown its business by geography,
clients and products, and invested to produce a stronger platform from which we
can win further market share in the rapidly growing private aviation market."

11th October 2007


Air Partner PLC                                           Tel: 01293 844 805
David Savile           On 11th October                    Tel: 0207 002 1080
                       Thereafter                         Tel: 01293 844 805

Temple Bar Advisory                                       Tel: 0207 002 1080
Tom Allison                                               Tel: 0778 999 8020
Nicola Flynn

Notes to editors: please ensure "Air Partner" is written in its correct singular
form, not in the plural.

                                Air Partner PLC
                ("Air Partner" or "the Group" or "the Company")
             Year end results for the 12 months ended 31 July 2007

Chairman's statement

I am pleased to report that Air Partner has, once again, enjoyed a buoyant year,
producing significant growth in both sales and profits. The significant progress
in the year under review has been driven by five principal factors: an undivided
focus on the Group's core corporate and government business; further expansion
into the private high net worth market; continued diversification of the Group's
revenue by product, geography and clients; a commitment to maintaining the
highest of client service levels; and a back drop of near-perfect trading

In the twelve months to 31 July, turnover grew 33% to £185.8 million (2006:
£140.4m), increasing the profit before tax to £7.6 million (2006: £5.1m) and
raising basic earnings per share to 51.8p (2006: 35.5p).  The Group's cash
position at the end of this period was £19.5 million (2006: £11.9 m) -
particularly impressive considering we used £5.1 million to fund the acquisition
of Gold Air International Limited in the year. With such strong results, the
Board of directors is proposing a final dividend of 13.3p and a special dividend
of 60p per ordinary share, both to be paid on 5 December 2007 to shareholders on
the register on 2 November 2007.  We are confident that the cash reserves, and
other sources of funds, are more than adequate for our strategic goals to be
achieved as the company continues to grow.

Over the last five years, Air Partner has made excellent progress in an industry
that is enjoying rapid growth, and the company is very different now to the
business founded almost 50 years ago. Today, Air Partner services an
ever-growing array of clients as diverse as heads of state and government
departments to large corporates and high net worth individuals.  Air Partner
offers clients all aspects of private aviation(1) service from commercial jet
charters to private jet charter, sales, management and JetCards, and freight
aircraft. In line with our tried and tested strategy we have opened two more
European offices during the year bringing the total to 23 offices in 15
countries worldwide.

Over the coming months work will commence on the Group's new high security
private jet enclave at Biggin Hill - providing another step in the Group's
progression towards becoming the pre-eminent global private aviation company.
Planning for growth is an enviable task and it is encouraging to report that the
Group's re-structuring into two core operating divisions, Air Partner Private
Jets and Air Partner Commercial Jets has been well received internally and
externally.  The Board is confident that the Group has put in place the
structure and the management team to best lead the business forward and provide
a focused and global approach to client service.

Pleasingly too, we continue to attract new clientele across all of the Group's
product offerings and geographic areas, with the active number of clients up 38%
on the previous year - 21% organically and 17% through acquisition. Client
retention is also very solid.

The last 18 months have provided Air Partner with unprecedented trading, driven
by a strong global economy, further deterioration of the scheduled airline
experience and the continued rapid growth of the high net worth segment. Recent
capital market turmoil is a reminder that trading conditions can be volatile;
Air Partner has not experienced any effect from this and I am pleased to report
that our forward bookings as at 31 July 2007 compared with last year (which were
also very good) are currently 15% higher and showing signs of getting better.
Whilst our corporate markets can be volatile, we believe our diversified spread
of earnings is a good buffer against significant flux, and we remain confident
in the Group's future prospects, inasmuch as our limited visibility permits.

Importantly, Air Partner is confident that it is maximising the opportunities
presented to the Group, and the business has made significant progress that the
directors believe will stand it in good stead if a significant economic slowdown
does materialise.

On 4 September we bought the 45% shareholding that we did not already own in Air
Partner International SAS, our French subsidiary. This is a sound investment and
earnings enhancing.

Lastly, I would like to thank both the team and my fellow Board directors for
all their unstinting hard work, support and commitment during the 2007 financial

Chief Executive's Review

Financial Year 2007 has proved to be another great year for Air Partner. Just 12
months ago the Group announced profits before tax of £5m for the first time,
with expectations to remain ahead of that landmark. Today, Air Partner is almost
50% ahead of last year.

For the second consecutive year the Group has traded ahead of both internal and
external expectations.  Sales, margin, gross profit and net profit improvements
have been exceptionally strong, with trading sustained at unprecedented levels
for each and every one of the twelve months, in near perfect trading conditions

The main challenge this year has been to maintain our front line reputation for
"delivering successful flights", given an extreme workload one third higher than
last year, and no 'quieter months' to devote to supporting the new levels.
Hence, I am particularly pleased to report that the team has maintained and
improved our operational reputation with regular clients, broadened our client
base, and created new systems and structures to maintain these new levels.

In addition, Air Partner has furthered its stated strategy to continue
diversifying its revenues across the three geographic, client, and product axes
- this being a hallmark of the Group in recent years.

Air Partner is a people business, and its strength stems from the team that
chooses to work here. This year we have had over 97% desired retention of the
team, whilst attracting many new key post holders and fee earners in the
process. Today, the team size is now almost 250 employees.

During the year the Group restructured and now operates and reports as two core
divisions: Air Partner Private Jets ("PJ"), and Air Partner Commercial Jets 
("CJ") collectively accounting for 93% of the Group's activity.

Private Jets

The PJ division accounts for 30% of Group sales and comprises two sub divisions.
The larger part is the traditional air charter business, selling private jet
usage and JetCards. This business is based in our head office in Gatwick, but
operates throughout the global network, generating the bulk of the Group's PJ
revenues.  The second part is the PJ Operating Company (formerly Gold Air),
managing the largest fleet of Learjets in western Europe from London (Biggin
Hill), and offering charter, jet management, jet sales, and jet maintenance.
Total sales for the PJ division grew 62% to £55.3m, of which 31% came from
organic growth, and 31% from the acquisition. Operating profit rose 73% to
£2.78m, as Air Partner benefited from the halo effect of being broker and

A key theme of the year has been an improvement of the balance of demand, such
that it is more evenly spread across every month of the year. This stems from
the successful growth of the Group's jet-for-leisure business which services
high net worth (HNW) clients, who traditionally travel at times when existing
corporate flying is reduced. With business emanating from corporate, government
and private sectors we have achieved a more even flow of business as a result.
Pleasingly, demand is not only more balanced, but it is currently at record
levels. Our focus now switches to sustainability of this even and strong demand
across the traditionally quieter winter months.

As part of the Board's continued focus on adding structure to support growth of
the business, a review of recruitment, training, career development and
management structure was undertaken earlier in the year. The key aim of the
review was to develop the very best private jet team at all levels, from new
hires and senior traders, to operations teams and management. It is pleasing to
report that much has been achieved on these fronts, and the Group now has a PJ
Board fully responsible for the operational control of all PJ products and

The Group has benefited greatly from the acquisition of Gold Air last October,
and its conversion into Air Partner Private Jets as an operating company. With
seven private jets under the Air Partner brand, and under our direct control(2),
the market now identifies Air Partner as an end-supplier of private aviation
services, as much as the market-leading broker. This significant change in
perception has strengthened the brand immensely and has been a key factor in the
performance in the year under review.  Moreover, this broadening of the Group's
focus will play a core part in the Group's future growth.

JetCard sales have similarly grown, providing many new clients, better forward
visibility of earnings, and the ability for us to sell different PJ products to
clients, as their changing use and need dictates.

The total PJ sector rewards have been high, with record levels of flights,
record positive client feedback, referrals, and new client acquisitions. In just
four years we have tripled the PJ sector earnings. Looking forward there is much
headroom for growth both in absolute and market share terms.

The integration of Gold Air proved to be more challenging than expected. Gold
Air historically made its profits in the summer, and lost money in certain
winter months.  We acquired it in October (as it entered its weak season) and
after reviewing the business, the decision was taken to restructure earlier than
planned, re-brand it to incorporate the Air Partner name and strengthen the key
team members. This led to one one-off costs of £275,000 in the process.  The
outcome of the restructuring has been pleasing and six months of winter losses
were more than offset in the last four months to establish a small operating
profit by the year-end(3), whilst writing off all the one-off costs into this
year. Moreover, the business is now placed on a stronger footing, better geared
towards optimised utilisation of its assets than before.

Given the progress in the first six months, in May we were able to announce
planned investment of £5m to develop our base at London's Biggin Hill airport
into a high security private jet enclave. The plan includes the construction of
a new hangar complex alongside the Group's existing facility and increasing its
area from 25,000 to 150,000 sq ft.  This endorses the Board's view that Biggin
is the ideal airport for Air Partner's longer term strategies and its clients'
requirements. Located just 14 miles from the City, it is the least constrained
of all London airports, with significant available runway capacity, and offers
owners, users, and the company the most flexible access to the South East's
crowded skies, together with the least constraints on future growth.

There is much debate whether today's unprecedented private jet demand, driven by
the ever-deteriorating scheduled air experience, oppressive and intrusive
airport security, and rising personal wealth is a transient phenomenon awaiting
the next cycle, or whether there has been a sea-change in users' attitude and
today's demand is to become the norm.  Anecdotal evidence from both the users
and the industry itself supports the latter view, and the Group's focus remains
on sustained growth. However Air Partner is prepared for either eventuality and
is confident that it can perform well in either scenario.

Commercial Jets

The performance of the Commercial Jets team has been no less impressive and no
less easy. CJ is the largest Group division and currently accounts for 63% of
total sales. This year CJ sales were up 26% to £117.5m and operating profit was
up 41% to £3.72m; average margin was up 175 base points.

Similarly rebranded and with a tighter management structure in the form of a CJ
Board, the focus has also been to grow the structural integrity of the business
as much as the financial results. Notably we have found that average client
spend is significantly increased, with the 'top 100 client spend' up 24%, and we
are uncovering and winning more medium term contracts than in the past. This
provides for better visibility of earnings, but in supporting this increased
activity, it stretched the team and restricted our ability to grow the total
number of active clients as we would have liked; new recruitment is already
having a positive impact.

Today's broking businesses need to offer real added value on every contract and
this is where the Air Partner team excels through its sheer volume of
experience. Not only does Air Partner provide the best in-house logistics
service, but the Group's growing reputation is starting to score more
consistently against perceived look-alikes.  Increasingly, Government and
established corporates know that Air Partner provides a quality result on every
one of its contracts, irrespective of the vagaries of today's airline and
airport services.

Government sector business continues to be a significant part of the Group in
all divisions and this year sales have exceeded £60 million. There is some sense
that this may be a peak, and whilst we are prepared for this market to mature,
we are also conscious that in today's volatile geo-political and security
environment, new demand can emerge very quickly. For example, just over half of
today's contracts are driven by ongoing pervasive instability. To counterbalance
this, the Group's sales are spread over a wide range of different world powers,
earnings diversification being an important theme of the Group's strategy.

This year has seen the CJ team enter new markets: early penetration into the
specialised European tour operator markets has been growing in France over
recent years, but now is established in Italy as a result of a key business
alliance with a local Italian airline. Acting as the commercial arm for smaller
carriers provides the Group with an excellent opportunity for new business
growth and we will explore further opportunities in niche markets around the

The Global Network - Regional variations

Whilst the bias of the PJ business is firmly towards the UK, the CJ business is
strongly enhanced by its spread through the rest of the global network. Despite
58% of Group activity originating from the UK, and growth here still being the
strongest, the international operation is crucial to the success of the Group.
During the final quarter we opened two new offices, the first in Amsterdam which
will cover the whole of the Benelux area, and the second in Malmo - the Group's
first entry into the Scandinavian market. These bring the total number of
offices to 23.

The main businesses accounting for the bulk of non-UK earnings have
traditionally been the US, France, Germany and the UAE. The smaller offices
remain essential for our global reach, not only in sales, but also in flight
logistics, support and execution.  The fastest growing offices were Germany and,
notably, Italy, which have seen quantum growth in both sales and profitability.
After many strong years, the performance of both France and the USA has reduced
a little this year, but they remain significant profit contributors, and offices
we are very proud of. It is this geographic, product, and industry spread that
has assisted the Group to deliver outstanding results year on year.

After the financial year end, the Group purchased the 45% equity stake of the
French office, held by the founder Mr Claude Giunta, for €1.38m. This removes
the only piece of locally-held minority interest, and leaves all businesses(4)
wholly-owned by the Group. Mr Giunta had stood down from the French business in
2001 and subsequently had no direct involvement with the business.

Other Divisions

Outside the core activities we continue to grow with smaller, but equally
strong, support divisions. These include the Freight team, Travel business,
Emergency Planning, and 'Air Planner' - the global flight support team.
Combined, these businesses contribute an important final 7% of revenue, with
similar growth rates to the rest of the Group. They are well integrated with the
rest of group activities, providing opportunities of support, client
cross-selling, and repackaging of the core group skills to address niche
markets. Air Partner also maintains the historic small aircraft lease contract
in Australia which started in 2000 and remains profitable today.

Strategic Update

The Group continues to use geographic, product and client diversification to
expand its revenue streams and reduce the vulnerability of its business to any
particular line of earnings. Significant progress has been made this year in all
areas, but notably in the development of a wider portfolio of earnings from the
private jet sector, and the development of the Biggin Hill facility is also
expected to create a range of new opportunities over the next 5 years. CJ
continues to deliver strong cash flow that helps to fuel the strategic
investments into long term growth.

The key drivers for our business growth remain globalisation, ongoing
deterioration of the scheduled air experience, the instability of the
geo-political environment, increasing corporate and private wealth, and an
increasing value placed on time. It is hard to see any of these drivers changing
to the detriment of the Group in the coming months.

Environmental Issues

We have made further progress towards meeting our green ambitions, and are on
target to be carbon neutral by the end of 2008. The consequences of the growth
in global air travel has been much in the news, and we have the ability to
improve the impact our client's flying has on the environment, as well as our
own corporate footprint.

Current Trading

The Group has benefited from near-perfect trading conditions in recent years. As
the nature of the business is meeting ad hoc need, the Group will always suffer
from a small forward order book.   Average lead-in periods for key divisions are
just two months for CJ, two days for PJ, and as low as two hours for the Freight
team. However, where medium term contracts come to the surface, the Group has
shown its adeptness in winning them. This, in conjunction with increasing
revenues emanating from JetCard and Jet Management revenue lines, improves
visibility. We are therefore encouraged by forward bookings that are currently
15% ahead of the comparable time last year.

Your directors have used the favourable trading conditions over the last two
years to re-inforce the structural integrity of the Group and today Air Partner
has a fantastic team of skilled traders, managers, and support teams. The
Group's internal services (finance, logistics, marketing, IT, training, and HR)
are equally strong and scaled for the current growth rates, and the PJ Operating
Company has made good progress in its first 10 months post acquisition. We
believe that your company remains well-placed for the future.

My personal thanks go out to a team that I know to be the best within the

                                Air Partner PLC
                         ("the Group" or "the Company")
 Preliminary Announcement of audited Results for the year ended 31st July 2007
                         Consolidated income statement

Continuing operations                                                   Note              2007              2006
                                                                                         £'000             £'000
Revenue                                                                                185,780           140,368

Cost of sales                                                                         (160,600)         (124,819)
Gross profit                                                                            25,180            15,549

Administrative expenses                                                                (18,233)          (10,948)
Operating profit                                                                         6,947             4,601

Finance income                                                             2               668               534

Finance costs                                                              2                (9)               (6)
Profit before tax                                                                        7,606             5,129

Taxation                                                                   3            (2,511)           (1,537)
Profit for the period                                                                    5,095             3,592
Attributable to:

Equity holders of the parent                                                             5,089             3,429

Minority interests                                                                           6               163
                                                                                         5,095             3,592
Earnings per share:

Basic                                                                                    51.8p             35.5p

Diluted                                                                                  50.3p             34.4p

                                Air Partner PLC
                         ("the Group" or "the Company")
 Preliminary Announcement of audited Results for the year ended 31st July 2007
            Consolidated statement of recognised income and expense

                                                                                           2007             2006
                                                                                          £'000            £'000
Exchange differences on translation of foreign operations                                  (175)            (271)
Net expense recognised directly in equity                                                  (175)            (271)

Profit for the period                                                                     5,095            3,592
Total recognised income and expense for the period                                        4,920            3,321
Attributable to:

Equity holders of the parent                                                              4,909            3,158

Minority interests                                                                           11              163
                                                                                          4,920            3,321

                                Air Partner PLC
                         ("the Group" or "the Company")
 Preliminary Announcement of audited Results for the year ended 31st July 2007
                           Consolidated balance sheet

Assets                                                                Note                2007              2006
                                                                                         £'000             £'000
Non-current assets

Goodwill                                                                                 3,619                 -

Other intangible assets                                                                    379                 -

Property, plant and equipment                                                            1,421               425

Deferred tax assets                                                                        157               315
                                                                                         5,576               740

Current assets

Inventories                                                                                395                 -

Trade and other receivables                                                             26,675            23,613

Financial assets                                                                             -                28

Cash and cash equivalents                                                               19,479            11,931
                                                                                        46,549            35,572
Non-current assets held for sale                                                             -             1,582
Total assets                                                                            52,125            37,894

Current liabilities

Trade and other payables                                                                (9,763)           (7,928)

Financial liabilities                                                                     (170)                -

Current tax liabilities                                                                 (1,164)             (796)

Other liabilities                                                                      (23,605)          (15,819)
                                                                                       (34,702)          (24,543)
Net current assets                                                                      11,847            11,029

Non-current liabilities

Trade and other payables                                                                     -              (110)

Deferred tax liabilities                                                                   (76)              (76)
                                                                                           (76)             (186)

Total liabilities                                                                      (34,778)          (24,729)

Net assets                                                                              17,347            13,165


Share capital                                                            6                 499               483

Share premium account                                                    6               3,475             2,581

Translation reserve                                                      6                (289)             (114)

Share option reserve                                                     6                 454               496

Retained earnings                                                        6              13,023             9,545
Equity attributable to equity holders of the parent                                     17,162            12,991
Minority equity interest                                                                   185               174
Total equity                                                             6              17,347            13,165

                                Air Partner PLC
                         ("the Group" or "the Company")
 Preliminary Announcement of audited Results for the year ended 31st July 2007
                        Consolidated cash flow statement

                                                                     Note                 2007              2006
                                                                                         £'000             £'000
Net cash from operating activities                                      7               12,097               154

Investing activities

Interest received                                                                          668               534

Proceeds on disposal of property, plant and equipment                                    1,638                32

Acquisition of subsidiaries (net of cash acquired)                                      (2,104)                -

Purchases of property, plant and equipment                                                (968)             (208)

Net cash (used in)/generated by investing activities                                      (766)              358

Financing activities

Dividends paid                                                                          (2,030)           (3,586)

Decrease in bank loans                                                                  (2,533)             (343)

Proceeds on issue of shares                                                                910                 -
Net cash used in financing activities                                                   (3,653)           (3,929)

Net increase/(decrease) in cash and cash equivalents                                     7,678            (3,417)

Opening cash and cash equivalents                                                       11,931            15,437

Effect of foreign exchange rate changes                                                   (130)              (89)

Closing cash and cash equivalents                                                       19,479            11,931


The Group prepares its financial statements on the basis of International
Financial Reporting Standards ("IFRS") as adopted by the European Union and in
accordance with the provisions of the Companies Act 1985.  The financial
information presented in this preliminary statement has been prepared in
accordance with the accounting policies used in preparing the annual financial
statementsfor the year ended 31 July 2007, which do not differ significantly
from those used for the most recent annual financial statements.

This preliminary statement was approved by a duly appointed and authorised
committee of the Board of directors on 11 October 2007.  This statement does not
comprise the statutory accounts of the Group, as defined in section 240 of the
Companies Act 1985.   The financial information in this preliminary statement
has, however, has been extracted from statutory accounts for the year ended 31
July 2007 on which an unqualified audit report has been issued.

The 2006 statutory accounts have been filed with the Registrar of Companies. The
2007 statutory accounts will be sent to shareholders in October 2007 and will be
filed with the Registrar of Companies following their adoption at the
forthcoming Annual General Meeting.

2   Finance income and costs

Finance income                                                                           2007               2006
                                                                                        £'000              £'000
Interest on bank deposits                                                                 668                534

Finance costs                                                                            2007               2006
                                                                                        £'000              £'000
Interest on bank overdrafts                                                                 9                  6

3              Tax
                                                                                         2007               2006
                                                                                        £'000              £'000
Current income tax:
UK corporation tax                                                                      1,636                785
Foreign tax                                                                               969                897

Current income tax charge                                                               2,605              1,682

Deferred tax                                                                              (94)              (145)
                                                                                        2,511              1,537

4              Dividends
                                                                                           2007             2006
                                                                                          £'000            £'000
Amounts recognised as distributions to equity holders in the period
Final dividend for year ended 31 July 2006 of 12.1 pence (2005: 11 pence) per share       1,200            1,063

Special dividend for year ended 31 July 2005 of 20.0 pence per share                          -            1,933
Interim dividend for year ended 31 July 2007 of 6.7 pence (2006: 6.1 pence) per share       666              590
                                                                                          1,866            3,586

Proposed final dividend for the year ended 31 July 2007 of 13.3 pence         
(2006: 12.1 pence per share)                                                              1,327            1,170
Proposed special dividend for the year ended 31 July 2007 of 60.0 pence (2006: Nil)       5,985                -

The proposed final dividend is subject to approval by shareholders at the Annual
General Meeting and has not been included as a liability in these financial

5              Earnings per share

The calculation of the basic and diluted earnings per share is based on the
following data:
                                                                                                 2007        2006
                                                                                                £'000       £'000


Earnings for the purposes of basic earnings per share being net profit attributable             5,089       3,429
to equity holders of the parent

Earnings for the purposes of diluted earnings per share                                         5,089       3,429

Number of shares

Weighted average number of ordinary shares for the purposes of basic earnings per share     9,818,736   9,665,518

Effect of dilutive potential ordinary shares: share options                                   296,161     314,851

Weighted average number of ordinary shares for the purposes of diluted earnings per share  10,114,897   9,980,369

6              Statement of changes in equity

                                         Share      Share             Transla- 
                              Share    premium     option   Hedging       tion   Retained   Minority      Total  
                            capital    account    reserve   reserve    reserve   earnings   interest     equity         
                              £'000      £'000      £'000     £'000      £'000       £'000     £'000      £'000
Opening equity as at           
1 August 2006                   483      2,581        496       (28)      (114)     9,545        174     13,137
Prior year restatement            -          -          -        28          -          -          -         28
Opening equity as at 1       
August 2006 (restated)          483      2,581        496         -       (114)     9,545        174     13,165
Exchange differences on    
translation of foreign
operations                        -          -          -         -       (175)         -          5       (170)
Net expense recognised           
directly in equity                -          -          -         -       (175)         -          5       (170)

Share option movement        
for period                        -          -        213         -          -          -          -        213

Profit for the period             -          -          -         -          -      5,089          6      5,095
Total recognised income     
and expense for the
period                            -          -        213         -          -      5,089          6      5,308

Dividends                         -          -          -         -          -     (1,866)               (1,866)

Issue of shares under      
share option scheme              16        894       (255)        -          -        255          -        910
Closing equity as at      
31 July 2007                    499      3,475        454         -       (289)    13,023        185     17,347

7              Net cash from operating activities
                                                                                           2007             2006
                                                                                          £'000            £'000
Operating profit for the period                                                           6,947            4,601

Adjustments for:

Depreciation and amortisation                                                               458              445

(Profit) / loss on disposal of property, plant and equipment                               (78)                5

Movement on financial liability/(asset)                                                     198             (38)

Share option cost for period                                                                213              196
Operating cash flows before movements in working capital                                  7,738            5,209

(Increase)/decrease in receivables                                                         (522)         (11,922)

Decrease in inventories                                                                      54                -

Increase in payables                                                                      6,979            8,279
Cash generated from operations                                                           14,249            1,566

Income taxes paid                                                                        (2,143)          (1,406)

Interest paid                                                                                (9)              (6)
                                                                                         12,097              154

8              Analysis of net funds

                                                    31 July        Cash flow  Foreign exchange          31 July
                                                       2006                             effect             2007
Group                                                 £'000            £'000             £'000            £'000

Cash and short-term deposits                         11,931            7,678             (130)           19,479
Net cash and cash equivalents                        11,931            7,678             (130)           19,479
Total net funds                                      11,931            7,678             (130)           19,479


(1) 'Private Aviation' defined as flights operated where one user charters the
    whole aircraft, as opposed to flights where passengers have paid for 
    individual seats on a flight already planned to operate from a timetable

(2) The jets themselves are in private ownership, and are not owned by the Group

(3) With Gold Air adopting the AP financial year dates, we are reporting after
    10 months of trading.

(4) The Delhi, Singapore, and Tokyo offices are sales and logistics outlets, and
    not owned by Group

                      This information is provided by RNS
            The company news service from the London Stock Exchange

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


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