Air Partner raises cash to ride out Covid-19 storm

Air Partner's successfully raised cash at the end of the week with the aim of pairing its debt and boosting its working capital position.

The aviation services group conducted a placing and offer among retail investors for 10,037,308 shares, or 18.75% of the company's share capital prior to Friday, at a price of 75.0p for roughly £7.5m in proceeds.

The price of the placing, which was oversubscribed, was at just a 1.45% discount to the middle market closing price of the previous session.

According to Air Partner's boss, Mark Briffa, the company had a "record" start to the financial year, adding that the fresh equity would allow it to "significantly reduce" its debt and invest in organic growth opportunities.

"As an asset light business, with a strong financial position and a clear strategy, we are well placed to continue supporting the diverse aviation requirements of our governmental, corporate and high net worth customers," he said.

The group was split into four reporting segments: Commercial Jet air charter, Private Jet Charter, air freight and Training.

Two of its directors, Ed Warner and Joanne Estell, picked up 101,667 shares as part of the placing.

Canaccord Genuity analysts Gert Zonneveld and Caspar Trenchard said that Air Partner was well placed to benefit from long-term growth trends in the sector.

They also highlighted its move to diversify its revenues and aviation services portfolio, predicting that it would improve its forward long-term contract visibility and boost the quality and visibility of its earnings.

However, the ongoing pandemic, including the risk of a second wave, meant that it was "difficult to publish financial forecasts with any degree of confidence".

"Nevertheless, as we discussed in a note earlier this week, we believe Air Partner is on track to deliver record interim results and full year results substantially above those reported in previous years."

N+1 Singer acted as joint bookrunner for the same placing.