Avation profits soar on fleet deliveries

published 11 February 2013

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.

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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.