Air Touring Group plc

June 26, 2008 03:00 ET

Interim Results for the six months ended 31st March 2008


                                               Air Touring Group plc
                                      ("Air Touring Group" or "the Company")
                                                  Interim Results
                                     for the six months ended 31st March 2008

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 31st March 2008.

Financial Highlights
                                                                       Half year ended             Half year ended
                                                                       31st March 2008             31st March 2007
                                                                                     £                           £
    *       Revenue                                                          2,026,476                  6,604, 839
    *       Gross Profit                                                       311,364                     721,996
    *       Operating Profit                                                 (167,385)                     350,380
    *       Earnings per Share (pence)                                          (1.68)                        2.62

Business Highlights

    *       Six orders for new TBM 850 turbo prop aircraft have been taken for delivery in 2008 (H1 FY07: three), with
        a total value of $18 million. Only one of these sales has been included in the first half year results.

    *        Three orders for pre owned TBM 700 aircraft have been secured on a brokerage basis. None of these are
        included in the first half year results.

    *       New exclusive UK distribution contract signed with Mooney Aircraft Company for its piston-engine aircraft.
        The first demonstrator aircraft arrived in the UK on 13th June 2008 and is already generating considerable

    *       Our Engineering business is now a positive contributor to the overall Company performance.

"2008 will be the best year to date for Socata TBM sales with six new aircraft and three pre-owned booked to date.
The market for turboprops and jet aircraft has been strong in the early part of the financial year.

"The  Company is committed to optimising profit margins and pursuing new business opportunities, whilst  remaining
firmly  focussed on extending operational growth. At the same time, it is our intent to deliver an ever  improving
service to all our customers during what will be a far stronger second half of the financial year."

                                                                                   Michael Pearce, Chief Executive



Despite  the current economic climate and higher oil prices, I am able to report that Air Touring Group  has  made
significant progress during the first half of the current financial year, with strong demand for the TBM  850  and
TBM 700 turbo prop aircraft.

For  the six months ended March 2008, the Company performed in line with management expectations. All of our  five
TBM  850  aircraft allocations for 2008 were sold during the period, with an extra position being secured,  making
six  in  total  - this additional aircraft was sold almost immediately. This clearly reflects strong marketability
and underlying demand for the TBM aircraft across the European market.

These orders will be completed and aircraft delivered to customers during the second half of the current financial
year, with sales recognition only occurring on delivery of each aircraft to the customer. For this reason, results
for the second half of the financial year will be significantly better than the first half.

Sales and Marketing

Demand  for executive turboprop aircraft during the period was excellent. This demonstrates the robustness of  our
client  base,  which consists mainly of high net-worth individuals who have no or limited direct exposure  to  the
current economic issues.

As  at the time of compiling this statement, the Company has just finished exhibiting at the Aeroexpo air show  at
High  Wycombe,  one  of the premier general and business aviation shows in Europe. Turnout  at  the  Aeroexpo  was
excellent and Air Touring Group had many enquiries for the new Mooney Acclaim S, exhibited for the first time.  In
addition,  we  displayed  a new TBM 850 Glass Cockpit aircraft and a pre-owned TBM 700. Both  of  these  executive
turboprops also generated encouraging sales leads for the coming months.

During  the  first half of the current financial year, the Company has undertaken initial research and study  into
establishing a sales and marketing operation located within the Middle East.

With  a high concentration of very high net-worth individuals residing in this area of the world, it is our belief
that  by  setting up an office 'on the ground' we will be better placed to identify and develop appropriate  sales
opportunities with potential customers. The focus of the Middle East office will be the sale of jet and turbo prop
aircraft under brokerage and the sourcing of such aircraft for local clients.

Engineering Activities

The  Company  has previously expressed a long-term intention to further increase and enhance the design,  retrofit
and modification service offering within our engineering business.

During  the  first half of the financial year, we have remained firmly focused on proving our competence  in  this
specialist  area of engineering and have completed several avionics retrofit jobs on a range of small  and  medium
sized general aviation aircraft.

I  am  delighted  to say that our efforts have resulted in extremely positive customer feedback overall,  and  the
revenues of the engineering business doubled compared to the first half of last financial year. This business also
made its first profit contribution with a double digit gross profit margin. It is our intention to build upon this
extremely  positive  performance further throughout the remainder of the financial year and  we  look  forward  to
updating shareholders on our progress at the full year stage.

Socata Deutschland GmbH

Socata Deutschland GmbH is the German company in which Air Touring Group has a 50% equity stake.

Subsequent  to  the  period  end,  EADS  Socata has terminated the existing  distribution  agreement  with  Socata
Deutschland.  Despite  this  however, Air Touring remains firmly committed to  the  German  and  Central  European
markets; and has now formed a wholly owned new company within Germany, Air Touring GmbH.

The new subsidiary will initially act as a distributor for Mooney Aircraft Company for the territories of Germany,
Austria and Switzerland.

Air  Touring  GmbH  will  also  be one of the key aircraft marketing and trading  nodes  in  Air  Touring  Group's
geographical  expansion  plan, which will also include the new Middle East office being  planned  for  later  this
financial year.


In  the  first  half year ended 31st March 2008, revenues were £2.0 million, a decrease of 69% on  the  comparable
period  (2007: £6.6 million). Sales for the previous first-half financial reporting period were stronger,  due  to
the bulk of TBM sales occurring in the first half of the 2007 fiscal year inline with the delivery schedule of our
principal  (EADS Socata). In the current fiscal year, our aircraft delivery positions are all biased  towards  the
latter part of the financial year, with the exception of one new TBM delivered in March 2008. The Company's  sales
revenue recognition policy only recognises the revenue and margins for aircraft sales at the point of delivery  to
a customer and hence we shall recognise the five new TBMs for 2008 in the latter half of this fiscal year.

Gross  margins  were £311,364 for the first half, a decrease of 57% on the comparable period (2007:  £721,966)  in
line with the decrease in revenues.

Loss for the first half of the current financial year was £205,205 (2007: Profit £314,000).


The Directors will not be recommending the payment of a dividend at the half year stage.


I  would  like to thank all our employees and non-executive directors for their continued hard work and dedication
to the Company during the period under review.

Distribution Agreement

In  May  2008,  and  therefore  since the half year end, Air Touring Group announced  a  three  year  distribution
agreement with the Mooney Aircraft Company for the distribution of their aircraft across the UK and Ireland.

The  Directors are of the opinion that this new business represents a significant milestone for Air Touring Group,
as  it further demonstrates the Company's ability to attract and secure exclusive sales agreements within our core
market.  It  also reflects well upon the core competencies of Air Touring Group; our excellent infrastructure  and
track record in aircraft sales.

Air  Touring  Group will be the exclusive Mooney Service Centre within the UK and Ireland and also  the  exclusive
supplier  and  distributor  of spare parts to Mooney aircraft owners within this key  territory.  This  additional
service offering has already started to generate additional revenues alongside aircraft sales.

From  14th  to  20th  July  2008,  the  Company will be exhibiting our first  top-of-the-range  Mooney  Acclaim  S
demonstrator  aircraft at the Farnborough air show in the UK. At the same event, Air Touring Group  will  also  be
exhibiting a TBM aircraft.

Subsequent  to the period end, Air Touring Group has been notified that Avtech Group (ATG) Javelin had  filed  for
Chapter  7  bankruptcy proceedings with the U.S. Courts. This is obviously disappointing news for us, but  we  can
report that there are no financial or legal implications for Air Touring Group and that there are no monies  (e.g.
deposits) that are owed to or from Air Touring with any other parties.

As  the time of writing this statement, the Company believes that there are a number of parties who have expressed
an interest in purchasing the assets and re-starting the Javelin development programme.

Current Trading and Prospects

The Company retains a positive outlook for the remainder of the financial year, particularly so, when our pre-sold
aircraft sales start to materialise and translate to higher sales revenues and margins in the latter half  of  the

Our  efforts  to  gain  new distributorships and new distribution territories remain key  to  our  strategy  going
forward.  This  is  to diversify our geographic and product risk. Initial interest for the core TBM  850  aircraft
allocations in 2009 is also proving to be positive.

Finally,  Air  Touring Group is changing its Accounting Reference Date from a 30th September year end  to  a  31st
December year end, with effect from this current financial year. This decision has been made in order to bring our
financial  reporting in-line with our aircraft principals' calendar year sales quota and also with  the  financial
year end of our German company.

                                                                                                    Michael Pearce
                                                                                                   Chief Executive

The Directors of the issuer accept responsibility for this announcement.

                                        For the period ended 31 March 2008
                                           6 Months                   6 Months               Year ended
                                              ended                      ended                September
                                         March 2008                 March 2007                     2007

                                               £                         £                         £                  
                                                                                                                       TURNOVER                                  2,026,476                  6,604,839               10,470,649
Cost of sales                            (1,715,112)                (5,882,873)              (9,517,860)

GROSS PROFIT                                311,364                    721,966                  952,789

Selling and distribution costs               (4,022)                    (2,312)                  (6,790)

Administrative expenses                    (474,727)                  (369,274)                (811,253)

Share based payment (FRS 20)                      -                          -                  (36,235)
Other operating income                            -                          -                   10,500


OPERATING PROFIT/(LOSS)                    (167,385)                    350,380                  109,011

                                                                                                                       Income from investments in related companies                                  -                   49,362

Interest receivable                           7,422                       6,232                   13,809

Interest payable                            (45,242)                    (42,364)                (114,011)

                                                                                                                       PROFIT/(LOSS) ON ORDINARY ACTIVITIES       (205,205)                    314,248                   58,171
BEFORE TAXATION                                                                                               

Tax on loss on ordinary activities                -                          -                        -

PROFIT/(LOSS) ON ORDINARY ACTIVITIES       (205,205)                    314,248                   58,171
Earnings per share (pence)                    (1.68)                       2.62                      0.5


Michael Pearce, Chief Executive           Duncan Vasey                  Katie Dale, Head of Financial PR/IR
Air Touring Group plc                     St Helens Capital plc         Golley Slater
Tel: 01959 579 710                        Tel: 0207 628 5582            Tel: 0121 236 9743
                                                                        Mobile: 07918 716 754

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