Air Partner (AIP LN) is up +15% since our previous post at the end of April. I feel itchy to take at least some of the profit after an insider sale from the honorary chairman Anthony G. Mach who sold all of his 7.3% stake. I also see limited value in the Cabot Aviation deal, where management paid x1.7 times turnover (GBP 1.2m) to buy a Jet broker firm.
Air Partner (AIP LN) reported stellar performance this morning, new management delivers strong results. Share price started reflecting this performance. Net cash stands at 1.83 GBP per share, or 18.7m Thus enterprise value (EV) at today’s 36.7m market cap. is 18. Air Partner reported operating profit of 2.6m GBP, valuing AIP LN at x6.9 EV/EBIT, a significant discount to Easyjet and Ryanair. Management’s confidence in the future is reflected by the 10% increase in final divi. making the total divi for the year 22.06p or a 6.1% divi.
Net cash balance increased, reflecting the success of the JetCard as pre-bookings came higher. CEO says “the group reported underlying profit before tax of GBP 2.6m which is ahead of the revised market expectations…’. ‘the second half provided a great deal o be positive including a major new contract win in Oil & Gas, which commenced in the current financial year”
I think Air Partner share price remains cheap and undervalued comparing to the sector, offering a well supported 6% dividend yield. A more detailed analysis to follow soon ..