LONDON (ShareCast) - Air Partner (LSE: AIP.L - news) said its profits will be below current market expectations and it will undertake
significant cost reductions to positively impact the next financial year.
The group said continuing combination of reduced demand and weaker pricing, overlaid onto fixed costs, has converted last year's earnings into a substantial loss.
"For this reason, the Board expects the Group's profits to be below current market expectations. Accordingly the board has taken action to significantly reduce costs at Biggin Hill, sizing the business to meet the demands of the current market conditions. These cost savings will positively impact the next financial year, and further details will be provided at the year end results," it said.
The group said while the core broking divisions remain profitable and cash generative, group sales are currently down 15%, although there is a wide spread of local variance ranging from sales 44% down in the USA, to up 40% in Germany.
In the UK, which represents half of all the group's activity, sales are currently down 22%.
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