PRELIM FINANCIAL RESULTS FOR 2018 YEAR
AVATION PLC
("Avation" or "the Company")
PRELIMINARY UNAUDITED Financial Results for the YEar ended 30 june 2018
and Interim Management Statement
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, announces preliminary unaudited financial results for the year ending 30 June 2018.
Key Financial Metrics
· Fleet assets increased by 38% to $1.030 billion since 30 June 2017;
· Revenue increased by 16% to $109.1 million;
· Total profit after tax decreased by 5.9% to $20.0 million;
· Earnings per share ("EPS") decreased by 11% to 32.20 US cents;
· Dividend per share of 7.25 US cents, an increase of 21% year on year; and
· Net asset value per share increased 12% year on year to $3.64 per share.
Operational Highlights
· Redeployment of the proceeds from sales of aircraft in 2017 supported the acquisition of $323 million in aircraft;
· Five aircraft added to the fleet, including three new aircraft types;
· An Airbus A320 aircraft was transitioned from Air Berlin to easyJet;
· Six new customers added taking total airline customers to thirteen at 30 June 2018;
· Credit enhancement with upgrades in credit ratings by Standard & Poor's ("S&P") and Fitch Ratings; and
· Extension of debt maturity duration with an issue of $300 million 6.5% Senior Notes due 2021 under the Company's Global Medium Term Note programme.
Executive Chairman, Jeff Chatfield, said:
"The performance of Avation showed growth consistent with an increase in fleet assets and record high monthly lease rental collections as at 30 June 2018. The leasing business delivered the highest revenue and profit in the history of the Company when excluding one-off gains from trading. The Directors are pleased to declare an increased interim dividend of 7.25 US cents per share. Net asset value per share increased to $3.64.
"Avation was successful at redeploying the proceeds generated by sales of aircraft in the previous financial year, adding new aircraft and customers to further grow the fleet and diversify the revenue base. This included investments in twin-aisle Boeing 777-300ER and Airbus A330-300 aircraft alongside new technology narrow-body Airbus A220-300 aircraft.
"Fleet metrics improved with the average age of the fleet reduced to 3.2 years and the average remaining lease term increased to 7.7 years as at 30 June 2018 with no operating leases expiring until 2021.
"Added scale and diversification delivered credit enhancement that saw credit rating upgrades from both S&P and Fitch Ratings and also allowed the issuance of $300 million 6.5% Senior Notes due 2021, which extended debt maturity duration and lowered Avation's average cost of debt compared to the previous financial year.
"Avation will continue to focus on growing the fleet and adding new airline customers in the coming financial year. The Company is currently assessing jet aircraft for acquisition, in addition to the scheduled deliveries of new ATR 72 turboprop aircraft from our order book."
Financial Highlights
|
|
30 June 2018 |
30 June 2017 |
Change
|
|
Revenue |
109,053 |
94,173 |
16% |
|
Operating profit (EBIT) |
58,613 |
60,199 |
(3%) |
|
Operating profit margin |
53.8% |
63.9% |
|
|
Administrative expense |
10,202 |
8,046 |
27% |
|
Administrative expense/lease revenue |
9.4% |
8.5% |
|
|
Pre-tax profit |
18,915 |
21,363 |
(11%) |
|
Total profit after tax |
20,000 |
21,257 |
(6%) |
|
EPS |
32.20 cents |
36.27 cents |
(11%) |
|
Dividend per share |
7.25 cents |
6.00 cents |
21% |
|
|
|
|
|
|
Operating cash flows |
102,696 |
63,020 |
63% |
|
|
|
|
|
|
Fleet assets (1)
|
1,029,921 |
744,731 |
38% |
|
Total assets |
1,152,205 |
895,927 |
29% |
|
Cash and bank balances |
91,102 |
87,692 |
4% |
|
|
|
|
|
|
Net asset value per share (US$) (2) |
$3.64 |
$3.21 |
13% |
|
Net asset value per share (GBP) (3) |
£2.76 |
£2.47 |
12% |
1. Fleet assets is property, plant and equipment plus assets held for sale
2. Net asset value per share is total equity divided by the total number of shares in issue at period end.
3. Based on GBP:USD exchange rate as at 30 June 2018 of 1.321 (30 June 2017 : 1.300).
Aircraft Fleet
|
Aircraft Type |
30 June 2018 |
|
Boeing 777-300ER |
1 |
|
Airbus A330-300 |
1 |
|
Airbus A321-200 |
8 |
|
Airbus A320-200 |
3 |
|
Airbus A220-300 |
1 |
|
ATR 72-600 |
13 |
|
ATR 72-500 |
6 |
|
Fokker 100 |
5 |
|
Total |
38 |
As at 30 June 2018 Avation's fleet comprised 38 aircraft. Fleet metrics have continued to improve, the weighted average age of the fleet (excluding aircraft on finance lease) is 3.2 years (2017: 3.3 years) and the weighted average remaining lease term is 7.7 years (2017: 7.5 years). As at 30 June 2018, all aircraft owned by the Company were fully utilised. Avation has three ATR 72 turboprop aircraft on order for delivery during calendar year 2018 and three aircraft in calendar year 2019.
Avation has signed leases for two ATR 72 turboprop aircraft for delivery to Danish Air Transport in September and October 2018. In June 2018, Avation advised that it had been selected to supply one ATR 72 turboprop aircraft to Far Eastern Air Transport subject to the completion of definitive documentation. Avation advises that the parties were not able to finalise the lease documentation and that the aircraft remains in the order book.
Fleet Summary
Fleet assets increased 38% to $1.030 billion (2017: $744.7 million) during the period. Fleet changes included the additions of an Airbus A330-300 on lease to EVA Air, a Boeing 777-300ER on lease to Philippine Airlines, two ATR 72-600 turboprop aircraft on lease to Mandarin Airlines and an Airbus A220-300 on lease to airBaltic. No aircraft were sold during the period.
By net book value, 46% of Avation's fleet are narrow-body jet aircraft, 31% are ATR 72 turboprop aircraft and 23% are twin-aisle aircraft.
In addition to aircraft on operating leases, finance lease receivables totalled $8.7 million (2017: $45.4 million).
In December 2017 Avation transitioned an Airbus A320 aircraft to easyJet which had previously been operated by Air Berlin. Air Berlin announced insolvency in August 2017 and subsequently defaulted on the lease. Avation recovered $10.5 million from Air Berlin in security deposits and maintenance reserves while recording an impairment of $7.1 million to reflect the maintenance adjusted value of the aircraft following its repossession from Air Berlin.
One narrow-body aircraft with a book value of $48.7 million is classified as an asset held for sale as at 30 June 2018.
Debt summary
|
30 June 2018 |
30 June 2017 |
|
|
Loans and borrowings |
868,600 |
643,605 |
|
Unrestricted cash and bank balances |
57,950 |
56,849 |
|
Net indebtedness |
810,650 |
586,756 |
|
Total loan to value ratio (1) |
70.4% |
65.5% |
|
Weighted average cost of secured debt (2) |
4.3% |
4.5% |
|
Weighted average cost of total debt (3) |
5.0% |
5.1% |
1. Total loan to value ratio is net indebtedness divided by total assets.
2. Weighted average cost of secured debt is the weighted average interest rate for secured loans and borrowings as at the period end.
3. Weighted average cost of total debt is the weighted average interest rate for total loans and borrowings as at the period end.
The weighted average cost of secured debt facilities decreased to 4.3% as at 30 June 2018 (2017: 4.5%) principally due to retirements of certain higher cost secured loans following the issuance of $300 million 6.5% Senior Notes due 2021 under the Company's Global Medium Term Note programme in May 2018.
The weighted average cost of total debt was 5.0% at 30 June 2018 (2017: 5.1%)
At the end of the financial period, Avation's overall loan to value ratio was 70.4% (2017: 65.5%) and 94.8% of total debt was at fixed or hedged interest rates (2017: 95.1%). The proportion of unsecured debt to total debt was 34% (2017: 18%).
Upgrades to Credit Rating
In May 2018 both Standard & Poor's Global Ratings and Fitch Ratings advised that Avation's corporate credit ratings had been upgraded. The Company's current credit ratings are as follows:
|
Rating Agency |
Corporate Credit Rating |
Unsecured Notes Rating |
|
Standard & Poor's |
B+ positive outlook |
B |
|
Fitch Ratings |
BB- stable outlook |
BB- |
|
Japan Credit Ratings Company |
BB stable outlook |
NR |
Declaration of Interim Dividend
In order to recognise shareholder ownership as it continues the development of the business, the Board has declared an interim dividend of 7.25 US cents per share in respect of the financial year ended 30 June 2018 (2017: 6.00 US cents), which represents an increase of 21%.
The record date and timetable for this interim dividend are as follows:
Ex-dividend date: 4 October 2018
Record date: 5 October 2018
Payment date: 18 October 2018
Amount: 7.25 US cents
The Company confirms its aim to maintain a progressive dividend policy.
Recognising that the Company's functional currency is US Dollars (USD) and to reduce exchange rate risk, shareholders are reminded that dividend payments are declared in USD. Shareholders who prefer to receive dividends in British Pounds (GBP) can elect to receive GBP by completing a form that can be downloaded at www.avation.net/dividends.html
Market Positioning and Risk
Avation's strategy is to target growth and diversification by adding new airline customers, while maintaining strong average aircraft age and lease term metrics. Avation focuses on new and relatively new commercial passenger aircraft on long-term leases. Avation is able to supply regional, narrow-body and twin-aisle aircraft to the airline industry.
The Company's business model involves rigorous investment criteria and has a history of delivering consistent profitability while seeking to mitigate the risks associated with the aircraft leasing sector. Avation will typically sell mid-life and older aircraft and redeploy capital to newer assets. This approach is intended to mitigate technology-change risk, operational and financial risk, support sustained growth and deliver long-term shareholder value.
Avation is an active trader of aircraft and from time to time will consider the acquisition or sale of individual or smaller portfolios of aircraft, based on market opportunities and considerations of risk and revenue concentrations.
Outlook and Interim Management Statement
For the 2019 financial year the Company is focused on growth in the fleet and the addition of new airline customers.
Management believes that the risks associated with its portfolio of aircraft have been reduced during the 2018 financial year through repositioning of the fleet, growth and diversification. Avation has demonstrated that it has the capability to acquire, finance and deliver multiple aircraft transactions demonstrating the strength of its leasing platform which will support continued future growth.
Management believes that it can attract airline customers, acquire aircraft and obtain the required funding for growth. In addition to operational cash flows, funding is traditionally sourced from capital markets, asset backed bank lending and disposals of selected aircraft. Access to acceptably priced funding is a risk, which is common to all capital-intensive businesses. Specific risks which are inherent to the aircraft leasing industry include, but are not limited to, the creditworthiness of customer airlines, over-production of new aircraft and market saturation, technology-change, residual value risks, competition from other lessors and the risk of impairment of aircraft assets.
In addition to offering fixed rate US Dollar denominated leases, which form the majority of Avation's lease portfolio, the company is also able to offer floating rate and Euro or other currency denominated leases. The ability to offer a variety of financial leasing products provides Avation with an opportunity to attract new customers and to generate value from its aircraft fleet.
Following the issue of $300 million 6.5% Senior Notes due 2021 under the Company's Global Medium Term Note programme during the financial period, Avation has repaid some senior and junior debt to unencumber or refinance existing aircraft. This has created balance sheet flexibility which will support the acquisition of additional aircraft, including the two ATR 72 aircraft to be delivered to Danish Air Transport later this year.
Avation's Board of Directors is pleased to deliver solid financial results from its aircraft leasing business while redeploying capital into new fleet additions and improving revenue diversification.
Results Conference Call
Avation's senior management team will host a conference call on 6 September 2018, at 1pm BST (UK) / 8am EST (US) / 8pm SGT (Singapore), to discuss the Company's financial results. Participants should dial: United Kingdom 020 3059 5868; United States +1 855 881 1337; Singapore +65 3157 6417; other locations +44 20 3059 5868 and quote "Avation 2018 Results" when prompted. The conference call will also be webcast live through the following link:
http://avation.emincote.com/results/2018finalresults
To view the webcast investors will be invited to register their name and email address, participants can do this in advance or on the day. A replay of the webcast will be available on the Investor Relations page of the Avation website and a presentation, to support the conference call, will be available on the Avation website prior to the conference call.
Annual General Meeting
The annual general meeting of the Company is expected to be held at the Company's headquarters in Singapore on 15 November 2018 at 10am GMT (UK) / 6pm SGT (Singapore). Notice of the annual general meeting will be issued in due course.
Forward Looking Statements
This release contains certain "forward looking statements". Forward looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for Avation's future business and financial performance. Forward looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks. Further information on the factors and risks that may affect Avation's business is included in Avation's regulatory announcements from time to time, including its Annual Report, Full Year Financial Results and Half Year Results announcements. Avation expressly disclaims any obligation to update or revise any of these forward looking statements, whether because of future events, new information, a change in its views or expectations, or otherwise.
Basis of presentation
This announcement covers the results of Avation PLC for the year ended 30 June 2018.
Financial information presented in this announcement is being published for the purposes of providing preliminary Group financial results for the year ended 30 June 2018. The financial information in this preliminary announcement is not audited and does not constitute statutory financial statements of Avation PLC within the meaning of section 434 of the Companies Act 2006. The Group statutory financial statements for the year ended 30 June 2018 are expected to be delivered to the Registrar of Companies within 28 days of 30 September 2018 (as at the date of this report, such statutory financial statements have not been reported on by independent predecessor auditors of the Company). The Board of Directors approved this financial information on 05 September 2018. Avation PLC most recent statutory financial statements for the purposes of Chapter 7 of Part 15 of the Companies Act 2006 for the year ended 30 June 2017, upon which the auditors have given an unqualified audit report, were published on 25 September 2017 and have been annexed to the annual return and delivered to the Registrar of Companies.
All "$" amounts in this release are US Dollar amounts unless stated otherwise.
- ENDS-
More information on Avation PLC can be found at: www.avation.net
Enquiries:
|
Avation PLC Jeff Chatfield, Executive Chairman
|
T: +65 6252 2077 |
AVATION PLC
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
|
|
|
2018 |
2017 |
|
|
|
US$'000s |
US$'000s |
|
|
|
|
|
|
Continuing operations |
|
|
|
|
Revenue |
|
109,053 |
94,173 |
|
Other income |
|
2,777 |
1,086 |
|
|
|
111,830 |
95,259 |
|
|
|
|
|
|
Depreciation |
|
(34,284) |
(32,300) |
|
Gain on disposal of aircraft |
|
- |
5,357 |
|
Impairment loss on aircraft |
|
(7,080) |
- |
|
Administrative expenses |
|
(10,202) |
(8,046) |
|
Other expenses |
|
(1,651) |
(71) |
|
Operating profit |
|
58,613 |
60,199 |
|
|
|
|
|
|
Finance income |
|
5,117 |
1,790 |
|
Finance expenses |
|
(44,815) |
(40,626) |
|
Profit before taxation |
|
18,915 |
21,363 |
|
|
|
|
|
|
Taxation |
|
1,085 |
(106) |
|
Profit from continuing operations |
|
20,000 |
21,257 |
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
Currency translation differences arising on consolidation |
|
27 |
- |
|
Fair value gain on derivative financial instruments |
|
5,239 |
2,804 |
|
|
|
5,266 |
2,804 |
|
Items that may not be reclassified subsequently to profit or loss: |
|
|
|
|
Revaluation gain/impairment on property, plant and equipment, net of tax |
|
3,355 |
(5,568) |
|
Other comprehensive income, net of tax |
|
8,621 |
(2,764) |
|
|
|
|
|
|
Total comprehensive income for the year |
|
28,621 |
18,493 |
|
|
|
|
|
|
Profit attributable to: |
|
|
|
|
Equity holders of the Company |
|
19,992 |
21,262 |
|
Non-controlling interests |
|
8 |
(5) |
|
|
|
20,000 |
21,257 |
|
Total comprehensive income attributable to: |
|
|
|
|
Equity holders of the Company |
|
28,613 |
18,509 |
|
Non-controlling interests |
|
8 |
(16) |
|
|
|
28,621 |
18,493 |
|
Earnings per share for profit |
|
|
|
|
attributable to equity holders of the Company |
|
|
|
|
Basic earnings per share: |
|
32.20 cents |
36.27 cents |
|
Diluted earnings per share |
|
31.84 cents |
35.68 cents |
|
|
|
|
|
AVATION PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
|
|
|
2018 |
2017 |
|
|
|
US$'000s |
US$'000s |
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
981,176 |
744,731 |
|
Trade and other receivables |
|
6,790 |
5,190 |
|
Finance lease receivables |
|
5,529 |
8,728 |
|
Goodwill |
|
1,902 |
1,902 |
|
Derivative financial instruments |
|
7,848 |
2,372 |
|
|
|
1,003,245 |
762,923 |
|
Current assets |
|
|
|
|
Trade and other receivables |
|
3,914 |
5,031 |
|
Finance lease receivables |
|
3,199 |
36,641 |
|
Options held for trading |
|
2,000 |
3,640 |
|
Cash and bank balances |
|
91,102 |
87,692 |
|
|
|
100,215 |
133,004 |
|
Assets held for sale |
|
48,745 |
- |
|
|
|
148,960 |
133,004 |
|
Total assets |
|
1,152,205 |
895,927 |
|
EQUITY AND LIABILITIES |
|
|
|
|
Equity |
|
|
|
|
Share capital |
|
1,080 |
1,058 |
|
Share premium |
|
53,083 |
48,365 |
|
Treasury shares |
|
- |
- |
|
Merger reserve |
|
6,715 |
6,715 |
|
Asset revaluation reserve |
|
27,847 |
24,492 |
|
Capital reserve |
|
8,876 |
8,876 |
|
Other reserves |
|
6,389 |
801 |
|
Retained earnings |
|
124,119 |
105,556 |
|
Equity attributable to equity holders of the parent |
|
228,109 |
195,863 |
|
Non-controlling interests |
|
69 |
61 |
|
Total equity |
|
228,178 |
195,924 |
|
Non-current liabilities |
|
|
|
|
Loans and borrowings |
|
796,896 |
550,561 |
|
Trade and other payables |
|
12,397 |
11,480 |
|
Derivative financial instruments |
|
- |
1,901 |
|
Maintenance reserves |
|
22,504 |
20,813 |
|
Deferred tax liabilities |
|
2,988 |
3,318 |
|
|
|
834,785 |
588,073 |
|
Current liabilities |
|
|
|
|
Loans and borrowings |
|
71,704 |
93,044 |
|
Trade and other payables |
|
13,390 |
14,920 |
|
Maintenance reserves |
|
1,040 |
451 |
|
Income tax payables |
|
2,608 |
3,515 |
|
|
|
88,742 |
111,930 |
|
Liabilities directly associated with assets held for sale |
|
500 |
- |
|
|
|
89,242 |
111,930 |
|
Total equity and liabilities |
|
1,152,205 |
895,927 |
AVATION PLC
CONSOLIDATED STATEMENT OF EQUITY CHANGES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
|
|
|
Attributable to shareholders of the parent |
|
|
||||||||
|
|
|
Share capital |
Share premium |
Treasury shares |
Merger reserve |
Asset revaluation reserve |
Capital reserve |
Other reserves |
Retained earnings |
Total |
Non-controlling interest |
Total equity |
|
|
|
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 July 2017 |
|
1,058 |
48,365 |
- |
6,715 |
24,492 |
8,876 |
801 |
105,556 |
195,863 |
61 |
195,924 |
|
Profit for the year |
|
- |
- |
- |
- |
- |
- |
- |
19,992 |
19,992 |
8 |
20,000 |
|
Other comprehensive income |
|
- |
- |
- |
- |
3,355 |
- |
5,266 |
- |
8,621 |
- |
8,621 |
|
Total comprehensive income |
|
- |
- |
- |
- |
3,355 |
- |
5,266 |
19,992 |
28,613 |
8 |
28,621 |
|
Issue of new shares |
|
22 |
3,564 |
- |
- |
- |
- |
(348) |
- |
3,238 |
- |
3,238 |
|
Warrant expired |
|
- |
- |
- |
- |
- |
- |
(18) |
18 |
- |
- |
- |
|
Warrants expense |
|
- |
1,154 |
- |
- |
- |
- |
688 |
(1,447) |
395 |
- |
395 |
|
Total transactions with owners recognised directly in equity |
|
22 |
4,718 |
- |
- |
- |
- |
322 |
(1,429) |
3,633 |
- |
3,633 |
|
Balance at 30 June 2018 |
|
1,080 |
53,083 |
- |
6,715 |
27,847 |
8,876 |
6,389 |
124,119 |
228,109 |
69 |
228,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVATION PLC
CONSOLIDATED STATEMENT OF EQUITY CHANGES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2017
|
|
|
Attributable to shareholders of the parent |
|
|
||||||||
|
|
|
Share capital |
Share premium |
Treasury shares |
Merger reserve |
Asset revaluation reserve |
Capital reserve |
Other reserves |
Retained earnings |
Total |
Non-controlling interest |
Total equity |
|
|
|
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
US$'000s |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 July 2016 |
|
993 |
38,925 |
(1) |
6,715 |
41,142 |
8,876 |
(1,814) |
78,679 |
173,515 |
93 |
173,608 |
|
Profit for the year |
|
- |
- |
- |
- |
- |
- |
- |
21,262 |
21,262 |
(5) |
21,257 |
|
Other comprehensive income |
|
- |
- |
- |
- |
(5,557) |
- |
2,804 |
- |
(2,753) |
(11) |
(2,764) |
|
Total comprehensive income |
|
- |
- |
- |
- |
(5,557) |
- |
2,804 |
21,262 |
18,509 |
(16) |
18,493 |
|
Dividend paid during the year |
|
- |
- |
- |
- |
- |
- |
- |
(1,820) |
(1,820) |
- |
(1,820) |
|
Dividend payable |
|
|
|
|
|
|
|
|
(3,664) |
(3,664) |
- |
(3,664) |
|
Re-issue of treasury shares |
|
- |
|
1 |
- |
- |
- |
- |
- |
1 |
- |
1 |
|
Issue of new shares |
|
65 |
9,725 |
- |
- |
- |
- |
(403) |
- |
9,387 |
- |
9,387 |
|
Share issue expenses |
|
- |
(285) |
- |
- |
- |
- |
- |
- |
(285) |
- |
(285) |
|
Transfer of asset revaluation surplus upon sale of aircraft |
|
- |
- |
- |
- |
(11,093) |
- |
- |
11,093 |
- |
- |
- |
|
Dividend paid to non-controlling interest of a subsidiary |
|
- |
- |
- |
- |
- |
- |
- |
- |
- |
(16) |
(16) |
|
Warrant expired |
|
- |
- |
- |
- |
- |
- |
(6) |
6 |
- |
- |
- |
|
Warrants expense |
|
- |
- |
- |
- |
- |
- |
220 |
- |
220 |
- |
220 |
|
Total transactions with owners recognised directly in equity |
|
65 |
9,440 |
1 |
- |
(11,093) |
- |
(189) |
5,615 |
3,839 |
(16) |
3,823 |
|
Balance at 30 June 2017 |
|
1,058 |
48,365 |
- |
6,715 |
24,492 |
8,876 |
801 |
105,556 |
195,863 |
61 |
195,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVATION PLC
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
|
|
|
2018 |
2017 |
|
|
|
US$'000s |
US$'000s |
|
Cash flows from operating activities: |
|
|
|
|
Profit before income tax |
|
18,915 |
21,363 |
|
Adjustments for: |
|
|
|
|
Depreciation expense |
|
34,284 |
32,300 |
|
Warrants expense |
|
394 |
220 |
|
Impairment loss on aircraft |
|
7,080 |
- |
|
Impairment loss on trade receivables |
|
- |
41 |
|
Amortisation of loan insurance premium |
|
1,078 |
1,078 |
|
Amortisation of interest expense on non-current deposits |
|
349 |
924 |
|
Non-trade receivables written off |
|
- |
30 |
|
Gain on disposal of aircraft |
|
- |
(5,357) |
|
Gain on disposal of subsidiary |
|
(1) |
- |
|
Fair value loss/(gain) on options held for trading |
|
1,640 |
(600) |
|
Fair value gain on derivatives |
|
(2,138) |
(54) |
|
Finance income from discounting non-current deposits to fair value |
|
(359) |
(929) |
|
Interest income |
|
(1,147) |
(861) |
|
Interest expense |
|
42,782 |
37,396 |
|
Operating cash flows before working capital changes |
|
102,877 |
85,551 |
|
Movement in working capital: |
|
|
|
|
Trade and other receivables and finance lease receivables |
|
36,143 |
5,034 |
|
Trade and other payables |
|
2,320 |
(1,269) |
|
Maintenance reserves |
|
2,280 |
10,501 |
|
Cash from operations |
|
143,620 |
99,817 |
|
Interest received |
|
1,163 |
846 |
|
Interest paid |
|
(41,541) |
(36,922) |
|
Income tax paid |
|
(546) |
(721) |
|
Net cash from operating activities |
|
102,696 |
63,020 |
|
Cash flows from investing activities: |
|
|
|
|
Cash inflow from disposal of subsidiary |
|
1 |
- |
|
Purchase of property, plant and equipment |
|
(322,804) |
(275,665) |
|
Proceeds from disposal of aircraft |
|
- |
211,714 |
|
Net cash used in investing activities |
|
(322,803) |
(63,951) |
|
Cash flows from financing activities: |
|
|
|
|
Net proceeds from issuance of ordinary shares |
|
3,238 |
9,102 |
|
Dividends paid to shareholders |
|
(3,664) |
(1,820) |
|
Proceeds from sale of treasury shares |
|
- |
1 |
|
Dividend paid to non-controlling interest of a subsidiary |
|
- |
(16) |
|
Placement of restricted cash balances |
|
(2,309) |
(9,249) |
|
Proceeds from loans and borrowings, net of transactions costs |
|
600,627 |
236,243 |
|
Repayment of loans and borrowings |
|
(376,711) |
(203,154) |
|
Net cash from financing activities |
|
221,181 |
31,107 |
|
Effects of exchange rates on cash and cash equivalents |
|
27 |
- |
|
Net increase in cash and cash equivalents |
|
1,101 |
30,176 |
|
Cash and cash equivalents at beginning of year |
|
56,849 |
26,673 |
|
Cash and cash equivalents at end of year |
|
57,950 |
56,849 |
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