(Alliance News) - Air Partner PLC said Wednesday it expects annual profit to be below expectations, affected by the slower fourth-quarter trading of its UK Charter division.
Air Partner shares were down 18% in London at 77.90 pence each early Wednesday.
In a trading update for the financial year ending January 31, the aviation services firm said that, as a result of the slower trading of its UK Charter division, it now expects to report underlying pretax profit of "no less" than GBP4.3 million, which is lower than expected.
In financial 2019, Air Partner reported underlying pretax profit of GBP5.8 million, unchanged from the year before. Revenue rose 4.2% to GBP77.5 million from GBP74.3 million
The UK Charter division was hurt by a single UK customer suspending a complex global flying programme in the first half, which did not revert in the second half as expected, Air Partner said. Also a soft UK private jet market, which worsened in the fourth quarter, affected performance.
Air Partners also said the Charter Division has been further hobbled by political uncertainty in the UK and headwinds in the global economy.
Outside of the UK, the US market continues to perform well, with EU performing "reasonably well".
Meanwhile Air Partner's newly formed Safety & Security division has performed in line with expectations, the company noted, with its revenue growth expected to exceed the year before by at least 10%.
Looking ahead, Air Partner remains confident, encouraged by its strong forward order book in Safety & Security and "sizeable business wins in the Charter division for delivery in the first half of the year" in 2020.
Air Partner had GBP2.8 million in pretax profit in the six months to June 30, 7.7% higher than the GBP2.6 million reported the year before. Revenue, however, slipped 12% to GBP31.7 million from GBP36.0 million.
"While it is disappointing that the last quarter has not traded in line with the board's expectations, we are encouraged by our forward order book and the increasing levels of visibility that we are gaining through the continued growth of our Safety & Security division," the company said.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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