Air Touring Group plc
LSE : ATGO

September 29, 2009 02:00 ET

Interim Results for the 6 months ended 30 June 2009

                                                                                       29/09/2009
                                                                        GB00B1FYZ312/GBP/PLUS-exn

                                       Air Touring Group plc
                                                 
                              ("Air Touring Group" or the "Company")
                                                 
                        Interim Results for the 6 months ended 30 June 2009


Air  Touring  Group plc, a leading distributor of business and general aviation  aircraft  in  the
United  Kingdom  and Europe, is pleased to announce unaudited Interim Results for the  six  months
ended 30 June 2009.

Financial Highlights
                                  
                                          6 months ended                            6 months ended
                                           30 June 2009                              30 June 2008
                                            unaudited                                 unaudited
                                          
                                               £                                          £
*         Revenue                            1,230,058                                  5,273,961
*         Gross Profit                         352,443                                    805,876
*         Operating Profit/(Loss)              346,079)                                    90,372
*         EPS (pence)                            (3.63)                                      0.23


Business Highlights

     *   Ownership of Air Touring GmbH allows full consolidation of its results in the Group

     *   Air Touring GmbH continues to be positively accretive to turnover and earnings

     *   Gross profitability of the Group relatively strong on a margin basis (28.6 % of turnover)

     *   However, UK sales of new aircraft has plummeted in Air Touring Ltd

     *   Overhead  costs  of the Group compounded by no significant aircraft  sales  for  the  UK
         market  and  an unfavorable UK banking environment. This has eroded profits  in  the  UK
         business, thereby affecting the Group

"The  first  half of 2009 has been dismal in terms of aircraft sales including new TBM sales,  for
the UK business (i.e. Air Touring Ltd). We are also very concerned about the lack of progress made
in  setting up new credit facilities with a new bank, whilst concurrently facing pressure from our
present bankers on our existing facilities."

"The  Company  is  reviewing its overseas businesses (i.e. Middle East  and  Germany)  which  have
remained less affected by the economic downturn than the UK."

Michael Pearce,
Chief Executive


STATEMENT BY THE CHIEF EXECUTIVE, MICHAEL PEARCE

INTRODUCTION

At  the time of writing this statement, Air Touring Ltd, a trading subsidiary of Air Touring Group
Plc,  is  in administration, as a result of the company not being able to find alternative banking
arrangements,  despite  intense efforts to do so over the past several  months.  Barclays  finally
called in their facilities at the beginning of August 2009 and the Directors decided that the only
course  of action was to place Air Touring Ltd into administration, which they did on the 4 August
2009. Baker Tilly LLP were appointed by the board of Air Touring Ltd, as the administrators.

Sales and Marketing

Demand for executive turboprop aircraft was nil in the UK for the first half of 2009. Many of  the
leads we have for new aircraft are adopting a wait-and-see attitude to purchasing aircraft, in the
hope that prices will fall depress further in the coming months.

The  Company,  as  a  pre-emptive  measure, has developed a  number  of  new  business  activities
principally  with our Middle-East partner (e.g. defence spares procurement and large business  jet
sales). These activities are on-going and hopefully will bear fruit later in the year.

Our  German subsidiary has done reasonably well in terms of pre-owned sales as well as in new  TBM
aircraft  sales brokerage. Of note, they have achieved 2 new TBM brokerages so far in 2009,  under
their new agency agreement with our principal, Daher-Socata.

Engineering Activities

The Engineering business in the UK has also declined in terms of avionic modifications and upgrade
sales,  which  reflects the same trend as for new aircraft sales. However, we have  done  well  in
maintaining our maintenance activity turnover, as customers continue to service and maintain their
aircraft in line with of regulatory requirements.

In  order  to  reduce  headcount  and overheads in this business area,  we  have  allowed  natural
attrition  without new staff replacement to take place. Some tasks were either shared out  amongst
the managers or outsourced to part time contractors.

Air Touring GmbH

As  Air  Touring GmbH is now a wholly owned subsidiary of the Group, we can now fully  consolidate
its results. Our German company continues to be positively accretive in turnover and earnings. For
the  first  half of 2009, it had earnings of Euro 43,933 on sales of Euro 724,786 (net  margin  of
6%).

Profitability

In  the  6 months ended 30 June 2009, revenues were £1.23 million, which were significantly  lower
than the previous comparable period (2008: £5,273,961)

Gross margins were £352,443 for the 6 months, a decrease from (2008: £805,876). This is because of
the lower turnover figures as a result of no new TBM sales in the UK and a reduced margin on the 2
new TBM sales in Germany following the new agency agreement with Daher-Socata.

Net Loss After Tax for the 6 months ended 30 June 2009 was £443,597 (2008: Profit £29,272).

EPS for the 6 months ended 30 June 2009 was (3.63)p (2008: 0.23p).


Dividend

The Directors will not be recommending the payment of a dividend for this period.


People

I  would  like  to thank all our employees and Non-Executive Directors, and staff  of  our  German
companies, for their continued hard work and dedication to the Company for the first part of  this
year and look forward to their continued dedication for the remaining months.


Post- interim results Situation

The  Directors are reviewing options for restructuring of the remaining business activities of the
Group and will report to the shareholders when practical to do so.


The Directors of Air Touring Group plc are responsible for the content of this announcement.


Michael Pearce
Chief Executive




                          UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                 For the period ended 30 June 2009
                                                 
                                                      6 Months                           6 Months
                                                      ended                              ended
                                                      June 2009                          June 2008

                                                           £                                  £

TURNOVER                                               1,230,058                          5,273,961

Cost of sales                                            877,615                          4,468,084

GROSS PROFIT                                             352,443                            805,876


Selling and distribution costs                           163,865                             46,992

Administrative expenses                                  552,844                            668,513

Share based payment (FRS 20)                                   -                                  -

Other operating income                                    18,188                                  -



OPERATING PROFIT/(LOSS)                                 (346,079)                            90,372

Income from investments in
related companies                                              -                                  -

Interest receivable                                        13,795                             8,690

Interest payable                                          111,313                            69,790

PROFIT/(LOSS) ON ORDINARY
ACTIVITIES BEFORE TAXATION                               (443,597)                           29,272

Tax on loss on ordinary                                         -                                 -
activities

PROFIT/(LOSS) ON ORDINARY
ACTIVITIES AFTER TAXATION                                 (443,597)                          29,272

Earnings per share (pence)                                    (3.63)                           0.23


For further information:
Air Touring Group Plc:
Michael Pearce - CEO
Telephone: 01959 579710

Corporate Adviser:
St Helens Capital Partners LLP:
Duncan Vasey or Mark Anwyl
Telephone: 020 7368 6959

Contact Information

  • Air Touring Group plc