Avation profits soar on fleet deliveries

Singapore aircraft leasing company Avation on Monday reported a 38.7 per cent rise in net profits for the last half of 2012, buoyed by fleet deliveries.

Singapore aircraft leasing company Avation on Monday reported a 38.7 per cent rise in net profits for the last half of 2012, buoyed by fleet deliveries.

The group posted £2.85m consolidated net profit after tax for the six months to December 31st. Earnings per share grew 21.7% to 6.44p.

Revenues climbed 2.6% to $12.71m for the period, in line with expectations as a result of its investment in the ATR72 fleet.

Avation delivered 10 of the aircraft to the Australian Regional Airline Network Alliance with five more scheduled for distribution this year and another four in 2014.

The company secured $82m funding to cover senior debt requirements for

five ATR72 deliveries in 2013 and is well positioned to purchase seven further aircraft in 2014.

The fleet comprises of 19 commercial passenger aircraft including ATR72s, Airbus A320s, Airbus A321s and Fokker 100s. They are currently 100% utilised and generate a rental yield of 14.6% from a current customer base of airlines in Australia, Europe and North America.

During the six month period, the group increased the number of aircraft in the fleet from 15 to 19 - a value of £174m.

By year-end, total assets increased by £46.64m to £204.77m.

Corresponding liabilities rose by £43.17m to £148.78m resulting in a net asset incline of 6.6% to £55.99m.

Chairman Jeff Chatfield said Avation showed strong performance, particularly in its delivery of ATR72 aircraft.

"Looking forward, we are confident that our business provides for

continued and sustainable growth in 2013 and beyond," he added.

Shares grew 2.31% to 88.50p at 8:53 on Monday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Negative interest rates and the end of free bank accounts
Bank accounts

Negative interest rates and the end of free bank accounts

Negative interest rates are likely to mean the introduction of fees for current accounts and other banking products. But that might make the UK bankin…
19 Oct 2020
UK post-Covid recovery stocks: these 20 companies could be set to rocket
Share tips

UK post-Covid recovery stocks: these 20 companies could be set to rocket

Finding stocks with the potential to rise tenfold or even further is far easier said than done. But the pandemic has produced the most promising backd…
22 Oct 2020
Big spending government is here to stay – just ask Rishi Sunak
UK Economy

Big spending government is here to stay – just ask Rishi Sunak

Governments around the world are splashing huge amounts of cash as they do “whatever it takes” to prop up their economies. John Stepek looks at where …
23 Oct 2020