Trading Update

RNS Number : 7970L

Hangar 8 Plc

05 August 2011

 



5th August 2011

HANGAR 8 PLC

("Hangar8" or "the Company")

Trading Update

Hangar8 (AIM: HGR8), one of Europe's largest operators of privately owned passenger jet aircraft, today announces a trading update for the 14 months ended 30 June 2011. The Company's final results for the period, its first as a publicly quoted business, will be released in October 2011.

Turnover for the 14 months to 30 June 2011 is expected to be approximately £18.4 million, an increase of 70% on the year to April 2010.  Gross margin improved to c.20% as a consequence of better management of both the Company's controllable costs and its sales processes. The Company expects to report an operating profit for the period, before the one-off costs associated with the IPO in November, in line with management expectations.  Cash balances at the period end were £2.1 million and the Company has no debt.

Management are delighted with the outstanding operational performance of Hangar8 during the period.  As at 30 June 2011, Hangar8's fleet of managed aircraft totalled 32. This is an increase of four since the Company's announcement of 6 May 2011, and an increase of 68% compared to 19 aircraft at the time of the IPO in November 2010.  Five new aircraft types have been added to the Company's Air Operator Certificates (of which the Company now have 13) and Hangar8 is now the second largest operator of private jet aircraft in the UK and Europe and the largest charter fleet operator of Hawker aircraft in the world.

In addition to the strong organic growth shown above, new bases have been added in Europe and Africa, broadening the Company's geographic presence.  Management continue to examine and evaluate the viability of other operational bases in strategic locations.  

The Company experienced, and is still experiencing, strong charter demand across its fleet. Operators that own their assets, many of which are currently in negative equity, have been forced to charge uneconomic charter rates in order to cover their costs. They have been unable to sustain this and have been falling by the way side allowing Hangar8 to increase its market share with a more competitive pricing structure.

Dustin Dryden, Chief Executive of Hangar8 commented:

"I am delighted with our progress in our first full year as a listed company.  We have invested across the Group, including strengthening and professionalising the Board and senior management team with the appointment of Philip Brady as Chief Financial Officer, as well as our wider operational infrastructure and flight crews.  Financially, we have performed well in a difficult market and we now have a strong platform from which we can continue to expand.  This has all been achieved without abandoning the corporate culture of fun and 'can-do' that brought us our original success.

I am confident there are still good organic growth opportunities in our current markets but with our strong brand and existing platform will continue to investigate expanding our geographical reach by opening bases in new jurisdictions.  We will also review acquisitions on a case by case basis and pursue those which we feel are strategically important to us.     

However, our focus remains on customer service. We believe that quality - in the standard of aircraft, flight crews and service are of more importance to charter customers than absolute price.  This is as true for private sector customers as it is for international government customers (for whom Hangar8 arranged flights for the first time in the year). As we gain critical mass our owners will benefit further from our increased buying power across all areas of aviation expense.  I look forward to providing shareholders with a more detailed review of the year, together with an update on the current financial year, at the time we report full final results."

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

Hangar 8 plc	Tel: [phone]
Philip Brady / Dustin Dryden
Daniel Stewart and Company plc	Tel: [phone]
Paul Shackleton / James Thomas
Tavistock Communications	Tel: [phone]
Simon Hudson / Lydia Eades

NOTES TO EDITORS

About Hangar8:

Hangar8 is one of Europe's largest operators of privately owned passenger jet aircraft.  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 Abuja, Almaty, Amsterdam, Biggin Hill, Dubai, Edinburgh, Farnborough, Guernsey, Jersey, Kiev, Lagos, Luton, Maribor, Moscow, Mumbai, Nice, Oxford and Sochi, 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.

At present, Hangar8 manages and 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, corporate music, sport and government and, all of whom expect and receive the same level of exemplary service.

Established in 2002, Hangar8 manages the largest global fleet of chartered Hawkers and is the first European operator of the Hawker 4000, the most advanced super-midsize jet in the world.  It was also the first operator to take delivery of a European registered Embraer Lineage 1000 private jet, the longest-cabined private jet available for charter in the UK. 

 

END

 

 

TSTBLGDICGGBGBS