AIR PARTNER PLC SHAREHOLDER UPDATE - BBGA Association Limited

Air Partner, the global aviation services group, is today providing an update on trading to 30 June 2020. This is the fifth update released during the COVID-19 pandemic and we anticipate communicating our next update to shareholders at the Group’s Annual General Meeting (AGM) on 15 July 2020.

Current trading overview

The business continued to perform significantly ahead of budget in June and the unaudited management accounts show an expected underlying profit before tax of at least £10.0m for the first five months of the year to 30 June 2020. As has been the case throughout the COVID-19 crisis, this performance has been driven by strong activity in our Freight and Group Charter divisions. Early indications for July are showing an adjustment in our business mix to pre COVID-19 levels, with a recovery in both Private Jets and Safety & Security.

Group Charter

Group Charter had a strong month in June, carrying out repatriation work and corporate shuttles, with the latter particularly strong in Europe and the US as companies continue to prioritise the safety and wellbeing of their employees. The division also benefitted from a significant corporate project, however, this was a one off and will not repeat. Given the impact of COVID-19, we had seen a significant decrease in Sports activity as numerous large sporting events scheduled for 2020, such as the Euros and Olympic Games, were postponed or cancelled. However, we are now seeing a pick-up in demand from this sector across Europe as sporting events have started to resume.

Private Jets

Private Jets has shown positive signs of recovery, especially in the US, and JetCard has delivered strong sales for the month of June. The recovery in Private Jets in Europe has been slightly slower, hampered by the UK’s 14-day quarantine policy for anyone arriving in the country.

Freight

Our Freight division continues to see high demand for the transportation of emergency protective personal equipment (PPE) from Asia to the UK, Europe and US. We expect our core Freight activity, exclusive of PPE flying, to return to pre COVID-19 levels in the second half of the year.

Safety & Security

As announced in June, our Safety & Security division has secured a long-term contract with the Civil Aviation Authority (CAA) and is now also providing consultancy services to private aviation company Jet Edge. On the Security side, covert testing is showing early signs of recovery, while the Safety team delivered over 50 virtual courses during June, as clients adapt to new operating requirements and standards.

Cost management and cash conservation

We have enjoyed a strong first five months of the financial year and we remain confident in our ability to successfully navigate the current economic climate and the uncertainty bought about by the COVID-19 pandemic. However, visibility for the second half of the year remains limited, but we will provide a further update at the time of the AGM.

On 12 June 2020, we announced the successful completion of the Placing of new Ordinary Shares in the capital of the Company, raising gross proceeds of approximately £7.5m. This has enabled us to enter the second half of the year with significantly reduced debt and good working capital to invest in new opportunities arising from COVID-19 that will help drive organic growth.

At the end of June, the Group has normalised cash in the bank of £16.0m, excluding significant customer deposits and JetCard cash. The Group also has access to a total debt facility of £14.5m, comprising a £13.0m revolving credit facility (RCF) and a £1.5m overdraft. As at 30 June 2020, the Group had drawn down £3.0m of its RCF. The RCF is due to expire in February 2023.

A video update with CEO Mark Briffa can be found here: https://plcwebcast.uk/airjuly2020

ENDS

Enquiries:

TB Cardew (Financial PR advisor to Air Partner)	020 7930 0777
Tom Allison	07789 998 020
Alycia MacAskill	07876 222 703
Joe McGregor	07766 231 520

About Air Partner:

Founded in 1961, Air Partner is a global aviation services group providing aircraft charter and aviation safety & security solutions to industry, commerce, governments and private individuals, across civil and military organisations. The Group has two divisions: Air Partner Charter, comprising Group Charter, Private Jets, Freight and Specialist Services; and Air Partner Safety & Security (formerly Consulting & Training), which comprises Baines Simmons, Redline Assured Security and Managed Services.

Group Charter charters large airliners to move groups of any size. Private Jets offers the Company’s unique pre-paid JetCard scheme and on-demand charter for up to 19 people. Freight charters aircraft of every size to fly almost any cargo anywhere, at any time. Specialist Services comprises Air Partner’s other aviation services that complement its Charter business: Remarketing, ACMI, scheduled group travel, tour operations, air evacuation and flight operations.

Baines Simmons offers aviation safety management and fatigue risk management. Redline Assured Security delivers government-standard security training, consultancy and solutions to regulated, high value and high threat environments. Managed Services offers wildlife hazard management and aircraft registry services.

Air Partner has 16 locations across three continents, with its headquarters located alongside Gatwick airport in the UK. The group employs around 450 aviation professionals globally and operates 24/7. Air Partner is listed on the London Stock Exchange (AIR) and is the only publicly listed air charter broker and aviation safety & security consultancy. It is ISO 9001:2015 compliant for commercial airline and private jet solutions worldwide.

More information is available on the company’s website (www.airpartner.com).

Charlotte Anderson

Account Executive

Paul Cremer

My name is Paul Cremer, and this marks my 42nd year working within the business and general aviation industry. Over this time, I’ve had the privilege of overseeing a diverse array of sector activities, ranging from aircraft charter and management to air ambulance services, ground operations, air traffic control, airport management, technology implementation, and the outsourcing services I currently manage.

In my role focused on delivering advisory, technology, and outsourcing services to aviation customers, I handle a wide spectrum of responsibilities. This includes overseeing International Trip Support, Operations Control Centre Services (OCC), Continuing Airworthiness Management Service (CAMO), Airworthiness Reviews, ARC Services, Aircraft Delivery and Re-delivery Support Services, Maintenance Coordination Services including AOG, Tech Ops (Maintenance Control Centre), and managing myairops software products. As the Head of Aviation Delivery, I lead the customer-facing delivery of Technology & Outsourcing products and services for the market, drawing upon a wealth of knowledge, expertise, and industry connections within Gama Aviation’s Technology and Outsourcing Strategic Business Unit.

My journey into Business and General Aviation began during my teenage years while still in school. I was fortunate enough to be welcomed into the industry, starting at a flying club, and later working at the Air Traffic Services Unit at Blackbushe Airport. There, I maintained the ATC Movement Logs in the Control Tower during weekends, solidifying my passion for aviation. Upon completing my schooling, I seized opportunities at Fairoaks Airport, where I began as Ground Crew while pursuing my Aerodrome Flight Information Service Officer’s license. Advancements in my career led me to the role of Air Traffic Services Manager.

Since joining Gama Aviation in 1996, I’ve held various positions, including Operations Manager (Post Holder), Operations & Commercial Manager, Commercial Manager, Operations Delivery Manager, Head of Business Aviation Delivery, and currently, Head of Aviation Delivery. This role encompasses Gama Aviation Group’s Gama Aviation, myairops, and FlyerTech companies.

In 2023, I was honoured to be invited to serve as the Chair of the Operations Working Group for the British Business & General Aviation Association. This opportunity allows me to contribute to industry initiatives within BBGA’s membership of nearly 200 industry companies, focusing on challenges such as regulatory compliance, Air Services Agreements, technological advancements, workforce development, operational matters, and sustainability.

Marc Bailey

Marc Bailey has spent his entire career in aviation and has worked in most areas of Aviation Services with scheduled airlines, MRO’s, military contract support and latterly with associations, government, and its agencies.

Marc represents your position in Europe (even post Brexit) – as President of ECOGAS (European Council of General Aviation Support) which maintains a voice with EASA. All the major member states are represented on the ECOGAS board. With EASA restructuring its meetings with industry, ECOGAS is now well positioned to represent our position in all areas following industry partnerships with the European Independent Maintenance Group and with ARPAS the new drone and autonomous association.

Marc is chair of the UKASF (United Kingdom Airworthiness Strategic Forum) as part of an initiative to develop Aviation Services across all aviation activities. The UKASF pulls together airlines, MROs, Rotary, Drones, and commercial GA bodies to work with CAA and DfT. The objective is for industry to take the lead to drive strategic issues to benefit all parties. We are well positioned after four years to continue our good work and with the re-established role of Chief Surveyor in the CAA we have a good focal point to do this.

Marc chairs the CAA Finance and Services Forum which allows industry in the UK to discuss in the financial plans for the CAA and the value for money delivered by those funds paid by industry. This is a new and valuable new platform for all parties.

Under recent developments Marc has formed an alliance with, ARPAS, AOPA, BHA and BBGA so that we can strengthen our voice under a joint ‘GA 4 Biz’ banner. This alliance is working to do everything possible to represent the industry’s business interests with UK government and to help realise the Government’s desire to make UK General Aviation a Global Leader in a post Brexit environment. GA4Biz – GA4Biz

The next Generation initiatives with industry and government have continued to develop with the retention platform now evolving into the “Aviation Skills Recruitment Platform”. The platform now not only offers a vehicle for those offering and seeking posts in aviation, it also provides pathways with its TalentView portion seeking to provide pathways for new entrants into our sector. The recruitment platform is being further developed to include training opportunities across a wide range of providers, from government agencies through academic bodies. Getting our next generation activities right in the UK over the next couple of years is our single most important issue which we in aviation must grab with both hands. Marc is playing a central role to help develop many of these channels.

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