Air Partner downgrades profit targets
Aviation group Air Partner has admitted that group profit before tax for the six months ended January 31st 2012 will not meet the board's initial expectations.
Aviation group Air Partner has admitted that group profit before tax for the six months ended January 31st 2012 will not meet the board's initial expectations.
The news is the result of the fact that revenues in the firm's largest division, Commercial Jet broking, have been below management estimates, as overcapacity has led to significantly greater levels of competition within the sector.
The news follows an update in early December in which Air Partner cautioned that revenues for the division were lower year-on-year, but in line with the board's expectations.
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The Freight broking division was significantly ahead of last year, but below initial management forecasts. The same was true of the group's overheads.
Private Jet broking performance is on target, having benefited from existing high net worth clients continuing to travel and new business coming in from a growing number of individuals using private aviation to meet their global travel requirements.
The firm was keen to emphasise that Air Partner remains profitable, cash generative and debt free, saying: "The group's net cash position fluctuates according to the timing of flight payments received and made, but net cash is currently at the upper end of the range, at £13m."
Oriel Securities said in light of the update it has cut its full year pre-tax profit forecast by 11% to £4.0m from £4.5m, giving an earnings per share of 27.7p, while Peel Hunt cut its target price to 360p but retained its buy recommendation, based on underlying growth expectations.
The share price fell 5.12% to 291.75p by 15:12.
NR
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