Trading Update

RNS Number : 3017I

Hangar 8 Plc

24 July 2012

 

24 July 2012                                                                                                                             AIM: HGR8

Hangar8 Plc

("Hangar8" or "the Company")

Trading Update

Hangar8 (AIM: HGR8), one of the world's largest operators of privately owned passenger jet aircraft, today announces a trading update for the 12 months ended 30 June 2012.  

The Board of Hangar8 is delighted to announce another strong year in the development of the business.  Turnover for the year is expected to be approximately £20 million, an increase of 10 per cent on the prior year on a like for like basis, and the Company expects to report profit for the year in line with market expectations. Cash balances at the period end were £1.1 million and the Company has no debt. In addition to achieving its targeted profit growth, the Board has also been able to allocate significant financial resources to invest in the future of the business through enhancing its operating and maintenance capabilities.

During the year Hangar8 has made significant investment in its operating capabilities by opening operating bases in Malta, Kazakhstan, Congo and Nigeria. These bases have considerably enhanced Hangar8's geographic reach, further diversified its operations and have provided Hangar8 with key strategic footholds in developing economic countries; being those countries the board consider to be ideally geographically located to augment Hangar8's increasingly global product and service offering.

Whilst market conditions in Europe have remained challenging, Hangar8's geographical diversification has not only insulated the business from economic difficulties in any one market but has also provided a platform for the business to win a number of new lease contracts with large multinational companies, predominately in the natural resources sector. Leveraging off Hangar8's strong European safety standards, training and modern operating practices, Hangar8 has been able to provide these large multinational businesses with the safety and financial security in developing economic counties that they take for granted at home. These contracts also provide stable and recurring income streams and have therefore considerably increased the visibility of future revenues.

Hangar8 has also significantly invested in its maintenance capabilities over the period as it opened and then expanded its maintenance facility in Oxford where the business is now able to maintain over twelve different aircraft types for the major business jet manufactures with approvals from the UK, Malta, IOM, Congo, South Africa and Caymans. In addition to Oxford, Hangar8 has also opened new maintenance facilities in Lagos Nigeria, Pointe Noir Congo, Almaty Kazakhstan and is shortly to open in Abuja Nigeria. In many cases Hangar8 is the sole provider of European approved maintenance in these areas.  

Given the strong performance for the year to 30 June 2012, improvement in visibility of future revenues and the significant investment in operations and maintenance the Directors believe that a robust platform for future growth is now in place.  The Board continues to see substantial organic growth opportunities in our markets and with our strong brand and existing platform we will continue to expand our geographical reach by opening bases in new jurisdictions. The Board looks forward with great confidence.

Dustin Dryden, Chief Executive of Hangar8 commented:

"I am delighted with the progress of the business over the last twelve months. Our financial performance has been strong, but importantly as we have grown we have continued to invest heavily in our infrastructure creating a strong platform from which to offer management services in fast growing parts of the world where currently no supply exists."

Ends

For further information please visit www.hangar8.co.uk or contact:

Hangar8 PLC	Tel: [phone]
Dustin Dryden (Chief Executive)
Philip Brady (Chief Financial Officer)
Seymour Pierce Limited	Tel: [phone]
Freddy Crossley/ Mark Percy (Corporate Finance)	www.seymourpierce.com
David Banks / Katie Ratner (Corporate Broking)

Notes to Editors

About Hangar8:

Established in 2002, Hangar8 is one of Europe's leading operators of private jets. With worldwide capabilities, Hangar8 operates some of the newest, safest and most desirable aircraft available for those who appreciate and understand the value of provenance. With aircraft based worldwide and fleet bases at Oxford, Luton, Biggin Hill, Edinburgh, Guernsey, Jersey, Nice, Almaty, Kiev, Dubai, Krasnodar, Mumbai, Abuja, Lagos and Moscow airports, Hangar8 is not only ideally situated but has at its disposal some of the finest terminal facilities.

Hangar8's ambition is to have the right aircraft within one and a half hours of any customer wherever they are in the World, outside the Americas and Australasia. The Company plans to achieve this through organic growth and through consolidating the fragmented sector in which it operates.  Hangar8 now operates 32 private jets - a modern fleet maintained to the highest standards. Hangar8's aircraft types differ in size and range offering a complement of capabilities from short European hops to trans-continental voyages.

Hangar8's clients come from a wide variety of backgrounds including music, sport and corporate - all of whom expect and receive the same level of exemplary service.

 

END

 

 

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