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Wednesday 25 April 2018

Air Partner shares slump over £3.3m accounting error

The issue occurred when some invoiced money was put through as deferred income rather than being dealt with directly.

Air Partner employs 250 staff across 20 countries (Steve Parsons/PA)
Air Partner employs 250 staff across 20 countries (Steve Parsons/PA)

By Ben Woods, Press Association Chief City Correspondent

Shares in Air Partner have plunged after the private jet firm discovered a £3.3 million accounting error dating back seven years.

The group was down more than 22% on the London Stock Exchange after updating investors about the problem, which spans July 31 2011 to January 31 2018.

The issue occurred when some invoiced money was put through as deferred income rather than being dealt with directly.

However, the firm said “at no point” did the mistake impact or disadvantage customers, operators, or suppliers.

Liberum analyst Gerald Khoo said: “Although this issue is clearly concerning, with the overstatement equating to potentially more than 10% of cumulative profit before tax over the period since 2011, the absence of a cash impact is a mitigating factor.”

Air Partner announced in January that it expected annual pre-tax profits to be no less than £6.4 million, beating the £5.1 million booked the year before.

The group, which employs 250 staff across 20 countries, provides services ranging from luxury private jet charter flights to cargo transport.

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