Ann: Change in substantial holding, page-10

Hugh Jones succeeded in expanding Airwork NZ into the global market and then selling out to Chinese interests In two stages in 2016 and 2017. Assume this left Hugh pretty well cashed up - the National Business Review 2019 Rich List estimated his net worth at NZ$ 195m. He is listed as having a sizeable residential, commercial and industrial property portfolio. He obviously continues to invest in the aviation sector, including his stakes in PTB and AQZ. I’m taking his continued purchasing of PTB shares as a positive as he obviously has a proven track record of identifying value.

Having said that, I am a little nervous on the implications of Covid-19 for PTB’s business over the next 18 months. The global tourism sector is going to be severely impacted, noting that PTB’s biggest customer (pre the Prime Turbine transaction anyway) was based in the Maldives. While PTB say tourism only represents 20% of pro forma revenue, it was obviously a significant part of the base PTB business. Are the aircraft lease customers in the tourism sector, if so their lack of business presents some impairment risk to the aircraft on the balance sheet in addition to turnover risk. The position post the Prime Turbines transaction is greatly improved from what it otherwise would have been due to the diversification and strengthening of the balance sheet through the equity raise at a significant premium to the current share price. While I tempted to acquire shares, my target purchase price is south of 45 cents.