Companies: AIP   

Shareholder returns at Air Partner, the world’s largest aircraft charter broker, continue to soar.

Record results for the year to July revealed a 49% profits rise to £7.6m, on sales up more than 30% at £185.8m, with client numbers increasing by 38%. Cash balances increased from £11.9m to £19.5m, despite Air Partner, whose clients range from heads of state to corporate customers and celebrities, using £5.1m to fund last year’s Gold Air acquisition.

From earnings increased to 50.3p (34.4p), Air Partner proposes both a 13.3p final dividend – a 13th consecutive 10% increase – as well as a 60p special payout equating to £6m.

The group’s recent successes reflect a focus on the core corporate and government business, expansion into the private high-net-worth market, diversification in terms of ‘product, geography and clients’, high levels of client service and ‘a back drop of near-perfect trading conditions’, said chief executive David Savile.

Investors yet to book some profits – GCI was an early backer of Air Partner at 435p – should do so now, since the shares trade on a historic price to earnings ratio of 26 times. Having said that, stay meaningfully exposed, with Air Partner throwing off cash and dividends and thriving in an industry enjoying stellar growth, as wealthier travellers fall out of love with the scheduled airline experience. Reduce.

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