A share price gain of over 10% on the back of an in-line trading update from Air Partner (AIR) suggests that investors have overcome their anxiety about the company following last year's challenges.

Stock in the £43.4 million cap has advanced 56.7% since the start of the year and the group is on course to almost double profit before tax to £2 million when the group reports interims on 23 September.


Today's update, while thin on detail, has prompted a 'Buy' note from Liberum with a 480p target. While the broker's estimates remain unchanged, its confidence in Air Partner hitting Liberum's full year 2016 forecast of £3.3 million pre-tax profit has improved.

The group's 2016 PE of 16.6 looks relatively attractive but Liberum sees the 2016 dividend yield of 6.3% with annual dividend growth of 10% as the real sweetener in terms of valuation metrics.

Liberum's Gerald Khoo sees 'further opportunities to broaden the group's revenue streams to exploit continued growth in high-end private aviation, underpinned by strong cash flow, a net cash balance sheet and an attractive dividend yield.'

Issue Date: 31 Jul 2015