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Avation plc LSE: AVAP |
Nov 03, 2008 05:26 ET
Final Results
AVATION PLC
('Avation' or the 'Company')
CONSOLIDATED AUDITED RESULTS FOR THE
TWELVE MONTHS ENDED 30 JUNE 2008
Avation, the aircraft leasing company, presents its consolidated audited results for the twelve months to 30 June
2008.
HIGHLIGHTS
* A final dividend for the year of 0.5p per ordinary share has been proposed by the directors;
* The group has obtained a $150,000,000 finance facility for the acquisition of additional aircraft;
* Group operating revenues increased by 179% to GBP 5,031,679 (2007 : GBP 1,806,251);
* Earnings per share were 28.75 pence; and
* Profits attributable to shareholders increasing to GBP 6,965,915 (2007: GBP 547,585), this includes
extraordinary gains and ongoing business.
Enquires:
Avation PLC
Jeff Chatfield, Chairman 07783 942 553
Advisor
Frank Lucas, Loeb Aron & Co. 0207 628 1128
Financial Public Relations
Bishopsgate Communications 0207 562 3350
Maxine Barnes
Nick Rome, Nick Farmer
Websites: www.avation.net
AVATION PLC (the "Company")
CHAIRMAN'S STATEMENT
Dear Fellow Shareholders,
On behalf of your board of directors I present to you the audited financial statements for Avation PLC and its
subsidiaries for the year ended 30th June 2008 and seek to appraise you of the progress that the Avation group has
made.
Your board is pleased to report that in respect of the year ending 30th June 2008 the consolidated net profit after
tax was GBP 6,965,915 with earnings per share of 28.75 pence.
The numbers in the foregoing paragraph speak for themselves and are all the more satisfactory as your company is in
its early growth stage. Nevertheless a substantial fraction of the profit increase resulted from the creation of
Capital Lease Aviation PLC ("CLA") as a subsidiary and the gains therefrom. The operating businesses also had a
satisfactory year with excellent and robust cash flows being recorded across the group.
Despite a challenging economic backdrop for the world economy as a whole, some firms continue to prosper and your
Company - Avation Plc - is one such extraordinary business. As at June 30th the asset base of the group had grown
to GBP 70,365,393 which is representative of the value of the aircraft owned by the Company.
The Avation group currently owns 11 aircraft. This number is likely to increase as one of its subsidiaries, CLA, is
looking to acquire additional aircraft. CLA has recently announced that it has secured a further USD $150,000,000
of revolving credit to be used for aircraft acquisitions, this funding is in the form of a "warehouse facility".
The Company and all its subsidiaries, including CLA, manages to mitigate credit maturation risk by closely aligning
the finance for aircraft acquisitions to match the corresponding lease term of the aircraft - this is a key
differential from some other aircraft lessors.
The Company was formed via a special dividend from Skywest Airlines Ltd with shares distributed in specie to all of
the then Skywest Airlines Ltd shareholders. Avation PLC was intended to support Skywest Airlines Ltd by providing
aircraft leasing facilities and continues to do so. Your Company is now growing in all senses inasmuch as its
universe of customers now includes large international airlines and the aircraft owned by the group are of diverse
types.
Your Board recognises the importance of rewarding shareholders - the owners of the Company and second only in
importance to our customers. Avation Plc has paid dividends and conducted a capital management program by buying in
shares for cancellation. Despite the current economic and financial problems extant, the Company continues to
prosper, and therefore your board is recommending to shareholders a final dividend payment of 0.5p per share and it
hopes to maintain a progressive dividend policy going forward. The record date for this final dividend is the 11th
of November 2008 and the proposed payment date, subject to shareholder approval at the Annual General Meeting, is
the 5th January 2009.
The Company and its subsidiaries have secured the bulk of its debt funding at a cost of around 6% per annum.
Whilst the Company believes that it can obtain access to further funds for the purchase of aircraft, access to
funding nevertheless remains a risk, this risk is common to all businesses that are capital intensive such as your
business. Specific aviation risks are also present and include the credit worthiness of client airlines in the wake
of the unprecedented surge in the price of jet fuel and the crisis of confidence in world financial structures and
institutions.
My colleagues and I will continue to work tirelessly to build this Company into a well respected, highly
profitable, diversified, cash generative aircraft leasing enterprise. Your board would like to thank you - the
shareholders and all other stakeholders - for their continued support and good will and look forward with
confidence to another year in the development of Avation PLC.
In due course an annual report and notice of meeting for the Annual General Meeting will be sent out to
shareholders and will be available on the Company website at www.avation.net
Jeff Chatfield
Chairman
AVATION PLC
CONSOLIDATED INCOME STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008 (Audited)
Year Period ended
ended
30 June 30 June
2008 2007
£ £
Continuing operations and acquisitions
Revenue 5,031,679 1,806,251
Cost of sales (127,739) (560,242)
Gross profit 4,903,940 1,246,009
Other operating income 53,114 53,457
Administrative expenses (890,923) (175,395)
Exceptional item 5,503,165 -
Other operating expenses (1,115,199) (165,257)
Finance income and expenses (308,885) (179,415)
Profit before taxation 8,145,212 779,399
Taxation (782,035) (231,814)
Profit after tax 7,363,177 547,585
Minority interests (397,262) -
Attributable to the shareholders 6,965,915 547,585
Earnings per share for continuing and total
operations
- Basic 28.75 pence 3.01 pence
- Fully Diluted 25.40 pence 1.96 pence
AVATION PLC
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2008
2008 2007
£ £
ASSETS
Current assets:
Cash and cash equivalents 1,257,525 828,345
Trade and other receivables 362,866 369,813
Inventories 735 697
Total current assets 1,621,126 1,198,855
Non-current assets
Property, plant and equipment 67,419,726 9,473,546
Goodwill 1,324,541 1,324,541
Total non-current assets 68,744,267 10,798,087
Total assets 70,365,393 11,996,942
LIABILITIES AND EQUITY
Current liabilities:
Trade and other payables 1,963,385 192,323
Provision for taxation 586,368 197,458
Loans and borrowings 6,263,715 985,890
Short-term provisions 299,336 -
Deferred income 279,968 121,198
Total current liabilities 9,392,772 1,496,869
Non-current liabilities:
Trade and other payables 323,403 242,063
Loans and borrowings 37,599,720 5,319,577
Deferred tax liabilities 1,825,398 939,018
Total non-current liabilities 39,748,521 6,500,658
Equity attributable to shareholders:
Share capital 252,700 191,142
Share premium 1,213,770 1,155,094
Assets revaluation reserve 4,454,006 2,130,503
Share option reserve 12,788 -
Foreign currency translation reserve (6,605) (24,909)
Retained earnings 7,386,700 547,585
13,313,359 3,999,415
Minority Interest 7,910,741 -
21,224,100 3,999,415
Total liabilities and equity 70,365,393 11,996,942
AVATION PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008
30 June 2008 30 June 2007
£ £
Cash flows from operating activities:
Total profit 7,363,177 547,585
Adjustments for:
Income tax 782,035 231,814
Depreciation expense 1,115,198 163,240
Gain on dilution (5,503,165) -
Share option expense 24,968 -
Interest expense 655,713 186,197
Interest income (346,828) (8,950)
Operating profit before working capital changes 4,091,098 1,119,886
Trade and other receivables 6,947 (369,813)
Inventory (38) (697)
Trade and other payables 1,852,402 434,387
Short-term provisions 299,336 -
Deferred income 158,770 121,198
Cash from operations 6,408,515 1,304,961
Interest paid (655,713) (186,197)
Interest received 346,828 8,950
Corporation tax paid (201,384) (34,356)
Net cash from operating activities 5,898,246 1,093,358
Cash flows from investing activities:
Purchase of property, plant and equipment (53,735,874) (6,585,135)
Net cash used in investing activities (53,735,874) (6,585,135)
Cash flows from financing activities:
Net proceeds from issuance of ordinary shares 251,500 -
Share buyback (131,266) -
Net proceeds from issuance of subsidiary's shares to 10,791,329 -
minority
Dividends paid (126,800) -
Proceeds from borrowings 39,332,659 6,620,655
Repayment of borrowings (1,774,691) (315,188)
Net cash from financing activities 48,342,731 6,305,467
Net effect of exchange rate changes in consolidating subsidiaries (75,923) 14,655
Net increase in cash 429,180 828,345
Cash and cash equivalent at beginning of financial year 828,345 -
Cash and cash equivalent at end of financial year 1,257,525 828,345
For more information, please contact
Avation plc