Interim Results

RNS Number : 4186X

Capital Lease Aviation PLC

15 February 2012

 



AIM:CLA for release via RNS

Capital Lease Aviation PLC

("CLA" or the "Company")

HALF YEAR RESULTS - 31 DECEMBER 2011

Highlights:

·     Overall significant increase in net post-tax profits increased 9.8% to US$2.37m with net cash from operating activities generating US$5.04m;

·     Net Assets increased 14.2% to US$47.4m;

·     CLA Group total assets of US$99.02m;

·     Revenues increased 2% to US$8.1m;

·     EPS (fully diluted) increased 10% to 2.42 cents; and

·     NTA per share (fully diluted) increased to 48 cents.

The results for the Group's half year ended 31 December 2011 (pursuant to International Financial Reporting Standards "IFRS") and are presented in United States Dollars "USD" as follows:

Consolidated 6 months ended 31 Dec 2011	USD	GBP Equivalent (1)
Revenue	8,116,215	5,098,606
Group Net post tax profits	2,367,835	1,487,474
Total assets	99,022,660	64,067,661
Net Assets	47,424,451	30,683,620
EPS (fully diluted)	2.42 cents	1.52 pence

Notes:

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

I. In this announcement, the applicable exchange rate between USD and GBP was taken to be the average exchange rate of 1: 0.6282 for Income Statement items and 1:0.6470 for Statement of Financial Position items.

II.    All $, US $ and USD represent the currency of the United States of America.

CHAIRMANS STATEMENT

For the Half Year ended 31 December 2011

Dear Fellow Shareholder,

We are pleased to report that your company has achieved another successful period of trading during the six month period ending on 31 December 2011. The results are in line with expectations, net profits have increased and therefore the earnings per share have increased to 2.42 cents with net tangible assets of 48 cents per share.  Net cash generated from operating activities was in excess of $5 million for the six month period.

The net after-tax profit of $2.37m increased 9.8% due mainly to capital management initiatives aimed at reducing finance costs alongside lower levels of debt within the Group. Revenues were up 2% on the comparative period to $8.1m.

The Group repaid $4.6m of debt during the period and its financial position has been strengthened with net assets at $47.4m; up by $5.9m on the comparative period. As at the balance sheet date, aircraft loan facilities were at a conservative level of 44% of total assets.

Our fleet currently comprises three Fokker F100 jets, two Airbus A321-200's and one Airbus A320. All are currently leased to quality airlines with leases expiring from September 2012 to March 2015. The Company's preferred asset targets are the Airbus A320 series and Boeing 737 family of new generation aircraft as we believe these pose the lowest risk given their liquidity, appeal to operators, and re-marketability. 

In the opinion of the directors, during 2011, equity returns on factory new aircraft were not satisfactory given unfavourable pricing parameters brought about by new entrant leasing companies seeking to build their portfolio, often at any cost. The Group will continue to seek niche deals which generate sufficient returns compensating for the associated risks involved in such transactions.  

The risks to the business include typical aviation-related risks including, but not limited to any downturn in the global aviation industry, fuel costs, finance costs, war and terrorism and associated risks which may affect airline customers' ability to fulfil their lease obligations.

The recent financial turmoil in Europe may limit bank funding capacity from that region so the Group will seek to utilise alternative funding options through partners in Asia and other regions. The overall availability of financing on favourable terms remains a risk to the growth of the business.

I would like to take this opportunity to thank all our shareholders for their continued support.

Jeff Chatfield

Chairman

On behalf of the Board of Directors of Capital Lease Aviation PLC

14 February 2012

--ENDS-

Enquiries:

Capital Lease Aviation Plc                                                                    07783 942 553
Jeff Chatfield, Executive Chairman

Nominated Adviser
James Joyce, W H Ireland Limited                                                       0207 220 1666

Company Stockbroker

W H Ireland Limited                                                                                0207 220 1670

Website
www.capitalleaseaviation.com 

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD 1 JULY 2011 TO 31 DECEMBER 2011

	31 December		31 December
	2011		2010
	US$		US$
Continuing operations
Revenue	8,116,215		7,954,897
Gross profit	8,116,215		7,954,897
Other income	5,871		414
Other operating expenses	(3,333,286)		(3,135,918)
Expenses:
- Administrative expenses	(529,870)		(493,178)
- Finance expense	(1,448,113)		(1,815,765)
Profit before taxation	2,810,817		2,510,450
Taxation	(442,982)		(354,204)
Profit after tax from continuing operations	2,367,935		2,156,246
Profit for the period, all attributable to equity holders of the Company	2,367,835		2,156,246
Other comprehensive income:
Currency translation differences arising on consolidation	(124)		-
Other comprehensive income, net of tax	(124)		-
Total comprehensive income for the period, all attributable to equity of holders of the Company	2,367,711		2,156,246
Earnings per share
Basic - continuing and total operations	2.42 cents		2.20 cents
Fully diluted - continuing and total operations	2.42 cents		2.20 cents

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2011

	31 December		31 December
	2011		2010
	US$		US$
ASSETS
Current assets:
Cash and cash equivalents	2,593,050		3,748,327
Trade and other receivables	1,628,068		884,963
Total current assets	4,221,118		4,633,290
Non-current assets:
Plant and equipment	94,801,542		98,798,864
Total non-current assets	94,801,542		98,798,864
Total assets	99,022,660		103,432,154
LIABILITIES AND EQUITY
Current liabilities:
Trade and other payables	1,424,505		3,990,482
Provision for taxation	463,452		212,916
Loans and borrowings	9,593,120		9,377,952
Short term provisions	2,551,655		1,807,664
	14,032,732		15,389,014
Non-current liabilities:
Trade and other payables	596,000		596,311
Loans and borrowings	34,019,089		43,483,392
Deferred tax liabilities	2,950,388		2,444,485
Total non-current liabilities	37,565,477		46,524,188
Capital and reserves:
Share capital	196,393		196,393
Share premium	21,696,406		21,696,406
Reserves	10,069,252		9,031,035
Retained earnings	15,462,400		10,595,118
Net equity	47,424,451		41,518,952
Total liabilities and equity	99,022,660		103,432,154

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD 1 JULY 2011 TO 31 DECEMBER 2011

	31 December		31 December
	2011		2010
	US$		US$
Cash flow from operating activities:
Profit before tax	2,810,817		2,510,450
Adjustments for:
Maintenance reserves provisions	642,882		548,458
Depreciation expense	2,690,404		2,488,687
Interest expense	1,448,113		1,690,932
Interest income	(359)		(414)
Operating profit before working capital changes	7,591,857		7,238,113
Movements on:
Trade and other receivables	(387,155)		(332,626)
Trade and other payables	(477,774)		(129,937)
Short term provisions	(230,875)		(128,773)
Cash from operations	6,496,053		6,646,777
Interest paid	(1,448,113)		(1,690,932)
Interest received	359		414
Corporation tax paid	(12,347)		(166,417)
Net cash from operating activities	5,035,952		4,789,842
Cash flows used in investing activities:
Purchase of plant and equipment	-		(21,228)
Net cash used in investing activities	-		(21,228)
Cash flows used in financing activities:
Proceeds from borrowings	-		2,000,000
Repayment of borrowings	(4,582,922)		(4,316,049)
Net cash used in financing activities	(4,582,922)		(2,316,049)
Effects of exchange rates on cash and cash equivalents	(124)		-
Net increase in cash and cash equivalents	452,906		2,452,565
Cash and cash equivalents at beginning of period	2,140,144		1,295,762
Cash and cash equivalents at end of period	2,593,050		3,748,327

Approved by the board of Capital Lease Aviation PLC on the 14th of February 2012.

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.

 

END

 

 

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