Authorization

Air Partner gets back on course after hitting accounting turbulence

Air Partner’s shares have taken off after the aviation services company reassured investors it would overcome a hole it discovered in its accounts - despite saying the problem was bigger than first thought.
Shares in the Gatwick-based aircraft charter business rose almost a third in mid-morning trade on the back of a statement aimed at easing fears about the company’s finances. 
Earlier this month Air Partner revealed an accounting error relating to collection of payments and how it booked them which meant it could take a ?3.3m hit. The news sent shares in the business diving 20pc as investors bailed out.
On Wednesday, Air Partner said an independent investigation into its troubles by PwC and Rosenblatt Solicitors revealed that the cumulative impact of the error - which had gone undiscovered since 2011 - will not exceed ?4m.
However, Air Partner added that it would be “prudent” to delay its annual results from April 26 until the end of May because of the amount of work required to restate historic accounts and complete an audit.
Air Partner shares
Air Partner also said no customers or suppliers had been “disadvantaged” by the problems.
The company - which provides private jets and cargo aircraft - also took the unusual step of saying ahead of the results that it intends to recommend a final dividend of 3.8p a share. It added there were sufficient cash resources to cover this, though noted the payment is subject to the audit results. 
Air Partner gets back on course after hitting accounting turbulence

The company also charters aircraft for freight transport
The company also stood by an earlier forecast of annual underlying pre-tax profits of “not less than ?6.4m”, though this could be affected by expenses related to accounting problem. Exceptional expenses related to the problems will be expenses in the coming financial year.
Peter Saunders, chairman, said: "Once this issue was identified, we immediately launched a review and engaged independent advisers. Our review will be transparent, thorough and exhaustive and we will allocate as much time and resources as is appropriate to reach a satisfactory conclusion.”
He also thanked investors for their “patience and support”, adding the company was focused on “returning to the normal business agenda as soon as possible”.
Air Partner said it would not comment further on the matter while the review is running, with the exception of regulatory statements.
Analysts at cantor Fitzergerald, who cut their rating on Air Partner from “Buy” to “Hold" when the troubles were first revealed, said “the update should provide investors with some comfort that the matter appears contained”.
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Декабрь 2018    »
ПнВтСрЧтПтСбВс
 12
3456789
10111213141516
17181920212223
24252627282930
31