Air Partner says it freight division’s results were ‘disappointing’ with a downturn in the oil and gas industry, though profits for the whole company were up to £3.2 million ($4.1 million).
The division’s underlying operating profits were £0.2 million for the year ending 31 January 2017, compared to £0.8 million the previous year, which had been a high year boosted by a key contract that was not renewed.
The downturn in the oil and gas industry, which generally involved transporting heavy pipes and other drilling parts meant a less busy period, and Air Partner says the division is subject to unpredictability of just-in-time logistics, moving aircraft or automotive spares to mobilising at a moment’s notice to assist in disaster recovery.
Revenue for the whole company was down to £42.5 million from £49.9 million the previous year though profits increased to £3.2 million from £2.2 million.
Chief executive officer, Mark Briffa says: “I am extremely pleased to be reporting on a year of significant activity and progress. We have delivered an outstanding service for our customers, and in doing so produced strong financial results, with profits and dividend in line with expectations.”
“These results are beginning to reflect the last two years’ hard work and commitment by colleagues across the Group to position Air Partner for the years ahead. With a clear long-term strategy to transform our business mix, we intend to improve the quality and visibility of our earnings and consequently the returns we deliver to the owners of our business.”