Financial Results

RNS Number : 1289A

Capital Lease Aviation PLC

17 February 2014

 



Capital Lease Aviation Plc

('CLA' or 'the Company')

FINANCIAL RESULTS

HALF YEAR RESULTS - 31 DECEMBER 2013

And Interim Management Report

17 February 2013

Capital Lease Aviation Plc (LSE: CLA), the aircraft leasing company, today announces

unaudited financial statements for the Company and its subsidiaries for the six month period ended 31 December 2013.

Highlights:

·     Two key aircraft leases extended to 2021;

·     CLA Group total assets of US$96,025,245;

·     Revenue of US$6,150,000;

·     Group Net post-tax profits of US$1,228,918;

·     Net assets of US$46,297,527;

·     EPS (fully diluted) of 1.26 cents.

The results for the Group's half year ended 31 December 2013 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US$" are as follows:

Consolidated 6 months ended 31 Dec 2013	US$	GBP Equivalent (1)
Revenue	6,150,000	3,884,340
Group Net post tax profits	1,228,918	776,185
Total assets	96,025,245	58,229,709
Net Assets	46,297,527	28,074,820
EPS (fully diluted)	1.26 cents	0.80 pence

Jeff Chatfield, Executive Chairman, said: "The Company has continued to grow net assets and has secured long term lease extensions on two key aircraft assets. These achievements provide both short and long term financial support for the company strategy, which is to expand the asset portfolio by buying aircraft, when transactions with a balance of high returns and acceptable risk can be achieved."

Notes: For the convenience of international shareholders, an additional column is included to show an equivalent value in Pounds Sterling "GBP".

1. In this announcement, the applicable exchange rate between US$ and GBP was taken to be the average exchange rate of 1: 0.6316 for Income Statement items and 1: 0.6064 for Statement of Financial Position items.

Directors' Review of Operations and Strategy

Background and Outcome

The strategic targets for the management over the past six months were to strengthen our financial position, extend leases on key aircraft assets, confirm the long term sustainable business model, remain profitable, actively assess aircraft and pursue new aircraft acquisitions.

The period profit was in excess of US$1.2m for the period; earnings per share are 1.26 cents for the period. The financial position of the group remains strong and it has been able to maintain an adequate cash position of US$6.0m at the end of the period.

Key achievements in the period included:

-    The leases of the two most valuable aircraft in the fleet were extended out to 2021;

-    Operational, management and Board restructure;

-    Adoption of a management information system that improves lease management capabilities.

The leases extensions to 2021 resulted in a slightly lower income yield from the aircraft however secured long term benefit for the Company. There were also non-recurring finance costs (legal fees) in the amount of US$114,810 associated with the addition of an aircraft to the fleet at the beginning of the period.

Outlook and Risks

To further develop CLA, we are taking a number of initiatives:

-    Re-leveraging existing assets to free cash with a view to acquiring additional assets;

-    Re-financing existing debt where the outcome is to lower the cost of capital;

-    Prioritising repayment of junior debt to lower the cost of capital;

-    Pursue individual and portfolio aircraft acquisitions in line with core strategy.

The risks remain the typical risks of the aircraft leasing industry along with the risks associated with obtaining finance and the residual value risk and impairment in aircraft assets.

I would like to take this opportunity to thank all the shareholders for their continued support and look forward to creating more value for CLA as we continue on our development path.

Jeff Chatfield

Executive Chairman

Singapore, 14 Feb 2013

Enquiries:

Capital Lease Aviation PLC                                                                
Jeff Chatfield, Executive Chairman                                                           [phone]

Nominated Adviser
James Joyce, W H Ireland                                                                  [phone]

Company Stockbroker

W H Ireland                                                                                       [phone]

Blythe Weigh Communications

Tim Blythe / Eleanor Parry                                                                  [phone]

www.cl-aviation.com 

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD 1 JULY 2013 TO 31 DECEMBER 2013

	31 December			31 December
	2013			2012
	US$			US$
Continuing operations
Revenue	6,150,000		5,610,000
Gross profit	6,150,000		5,610,000
Other income	5,527		6,897
Other operating expenses	(2,248,226)		(1,881,591)
Expenses:
- Administrative expenses	(1,065,547)		(484,800)
- Finance expense	(1,535,427)		(1,067,463)
Profit before taxation	1,306,327		2,183,043
Taxation	(77,409)		(136,034)
Profit after tax from continuing operations	1,228,918		2,047,009
Profit for the period, all attributable to equity holders of the Company	1,228,918		2,047,009
Other comprehensive income: Items that maybe reclassified subsequently to profit or loss:
Foreign currency translation (loss) gain	(49)		3,858
Other comprehensive income, net of tax	(49)		3,858
Total comprehensive income for the period, all attributable to equity of holders of the Company	1,228,869		2,050,867
Earnings per share
Basic - continuing and total operations	1.26 cents		2.09 cents
Fully diluted - continuing and total operations	1.26 cents		2.09 cents

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2013

	31 December		31 December
	2013		2012
	US$		US$
ASSETS
Current assets:
Cash and cash equivalents	5,994,980		6,258,216
Trade and other receivables	1,016,855		1,095,451
Total current assets	7,011,835		7,353,667
Non-current assets:
Plant and equipment	89,013,410		72,077,895
Total non-current assets	89,013,410		72,077,895
Total assets	96,025,245		79,431,562
LIABILITIES AND EQUITY
Current liabilities:
Trade and other payables	2,602,772		1,131,684
Provision for taxation	65,603		103,039
Loans and borrowings	11,715,805		6,599,452
Total current liabilities	14,384,180		7,834,175
Non-current liabilities:
Loans and borrowings	33,837,703		25,256,752
Deferred tax liabilities	1,505,835		1,603,532
Total non-current liabilities	35,343,538		26,860,284
Capital and reserves:
Share capital	196,393		196,393
Share premium	21,696,406		21,696,406
Reserves	3,839,470		5,502,621
Retained earnings	20,565,258		17,341,683
Net equity	46,297,527		44,737,103
Total liabilities and equity	96,025,245		79,431,562

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD 1 JULY 2013 TO 31 DECEMBER 2013

	31 December		31 December
	2013		2012
	US$		US$
Cash flow from operating activities:
Profit before tax	1,306,327		2,183,043
Adjustments for:
Depreciation expense	2,241,570		1,855,549
Interest expense	1,535,427		1,067,463
Interest income	(5,527)		(6,897)
Operating profit before working capital changes	5,077,797		5,099,158
Movements on:
Trade and other receivables	(318,003)		3,185,070
Trade and other payables	811,276		(756,531)
Cash from operations	5,571,070		7,527,697
Interest paid	(1,395,152)		(885,535)
Interest received	5,527		6,897
Corporation tax paid	(31,416)		(17,184)
Net cash from operating activities	4,150,029		6,631,875
Cash flows used in investing activity:
Purchase of property plant and equipment	(2,004)		-
Net cash used in investing activity	(2,004)		-
Cash flows used in financing activity:
Repayment of borrowings	(3,870,009)		(3,186,091)
Net cash used in financing activity	(3,870,009)		(3,186,091)
Effects of exchange rates on cash and cash equivalents	(49)		3,862
Net increase in cash and cash equivalents	277,967		3,449,646
Cash and cash equivalents at beginning of period	5,717,013		2,808,570
Cash and cash equivalents at end of period	5,994,980		6,258,216

Approved by the board of Capital Lease Aviation PLC on 13 February 2014.

The above financial information has been extracted from the management accounts and has not been audited.

These interim statements have been prepared on a basis consistent with International Financial Reporting Standards (IFRS) except that IAS34 "Interim Financial Reporting" which is not mandatory for AIM companies, has not been adopted in the preparation of this statement.

 

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