Investor presentations & reports

Half year results for the six months to 30th June 2020

Financial highlights (2019 on a pre IFRS 16 basis, comparatives restated)

• Adjusted Revenue $93.7m (H1 2019: $121.8m), down 23%, at constant currency down 22%.
• Adjusted Gross Profit $16.7m (H1 2019: $23.1m), down 28%, at constant currency down 27%
• Adjusted Gross Profit Margin 17.8% (H1 2019: 19.0%), down 1.2ppts, at constant currency down 1.2ppts
• Adjusted EBIT loss of $2.2m (H1 2019: profit of $5.2m), down 141%, at constant currency down 142%
• Adjusting items of $0.2m profit (H1 2019: loss of $4.2m), up 105% largely due to disposal accounting of the US Air Associate partially offset by impairments and net of taxation
• Net Debt, inclusive of obligations under leases, decreased to $87.9m from $98.0m at 31 December 2019

despite the challenges and focus on the pandemic and its impact, we have continued to drive our business forward with pleasing and long term contract wins in the special mission division and sizeable maintenance inputs into our Bournemouth maintenance facility.

Marwan Khalek CEO

Commenting on the half year results, Marwan Khalek, CEO said:
“Over the years we have strategically evolved resilience into our business and robustness into our business model to ensure that we can overcome the challenges of an inevitable periodic downturn. This pandemic and the significantly detrimental economic consequences that flow from it will continue to test us.

The H1/20 results we are announcing today show that the Group is fairing relatively well in this very difficult business and operating environment. Notwithstanding the share of associate investment loss of $2.0m, the Group has delivered a near breakeven Adjusted EBIT performance from its core operations and the activities where it can exercise full management and operation control. The Group has also preserved its healthy liquidity position throughout this crisis. We have, however, recognised the potential consequences of these challenging times in considering the future prospects for our investments and have also re-assessed the allocation of income from the sale of the US Air Associate and the carrying value of other investments.

The Group’s ability to deliver such a performance, both in terms of profits and cash generation, in the most challenging market, economic and operating environment it has ever faced is reflective of the prompt actions of management, the support and confidence of our clients and the dedication and commitment of our people, of whom I am very proud.

I am also very pleased that, despite the challenges and focus on the pandemic and its impact, we have continued to drive our business forward with pleasing and long term contract wins in the special mission division and sizeable maintenance inputs into our Bournemouth maintenance facility.

I have no doubt that our resilience will continue to be severely tested by this evolving pandemic and the resulting uncertainty that it generates. However, I believe that with good control of the cost base and a healthy liquidity, the Group is well placed to navigate through this crisis and emerge stronger.”