Half year report for six months ended 31 Decemb...
AVATION PLC
('Avation' or the 'Company')
CONSOLIDATED UNAUDITED RESULTS FOR THE
SIX MONTHS ENDED 31 DECEMBER 2009
Avation, the aircraft leasing company, presents its interim results for the six months to 31 December
2009.
HIGHLIGHTS
* Revenue for the period: GBP 7,556,268
* Profits attributable to shareholders: GBP 801,941
* Earnings per share: 3.14p
Enquires:
Avation PLC
Jeff Chatfield, Chairman 07783 942 553
Advisor
Frank Lucas, Loeb Aron & Co. 0207 628 1128
Financial Public Relations
Nick Rome, Will Tindall, Bishopsgate Communications 0207 562 3350
Websites: www.avation.net
CHAIRMAN'S STATEMENT
On behalf of your Board of Directors I am pleased to present Avation's un-audited interim results for
the six months ended 31 December 2009 (the "Period"). The Group results were in line with
expectations.
The business is profitable and cash flow positive and its balance sheet is continuing to improve, in
spite of the difficult general economic conditions.
For the interim period the Group's revenue was GBP 7,556,268 with net profit after income tax
attributable to the shareholders recorded as GBP 801,941.
The Group owns a portfolio of A320 series and F100 type aircraft, currently these are worth
approximately GBP 86m. A focus of the operations in the last twelve months has been a continuing
reduction of the debt associated with acquiring these aircraft. The long term debt position against
the GBP 86m in aircraft is now down to GBP 38.3m compared with GBP 51.7m one year ago, representing a
45% reduction in debt levels.
As the business's primary operation is as an aircraft lessor, risk management on the airline lessees
is critical. All of our airline clients are performing well in their businesses and are regularly
monitored by your Board. The fleet is being properly maintained. Maintenance reserve claims have
increased during the period to over GBP 1m, however, in our opinion this is positive in the sense that
the aircraft are proceeding through the correct maintenance cycle. The Company has incorporated a new
wholly owned subsidiary called MSN 429 Limited in order to facilitate a potential aircraft
acquisition.
The Group is subject to the typical risks associated with the aviation business, including but not
limited to, any downturn in the global aviation industry, fuel costs, finance costs, war and terrorism
and the like which may affect our airline customers' ability to fulfill their lease obligations.
The business also relies on its ability to source finance on favorable terms. Should this supply of
finance contract, it would limit our fleet expansion and therefore growth.
I would like to take this opportunity of thanking you, the owners of the business, for your support
over this busy period and look forward to further updating you.
Jeff Chatfield
Executive Chairman,
AVATION PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
In Great Britain Pounds
6 months ended 6 months ended
31 December 31 December
2009 2008
---------------- ----------------
Continuing operations
Revenue 7,556,268 7,828,643
Cost of sales (593,826) (801,086)
---------------- ----------------
Gross profit 6,962,442 7,027,557
Other operating income 2,686 2,383,162
Administrative expenses (408,296) (444,084)
Other operating expenses (3,419,063) (2,353,761)
Finance expense (1,607,074) (1,862,168)
---------------- ----------------
Profit before tax 1,530,695 4,750,706
Income tax (187,155) (499,333)
---------------- ----------------
Total profit 1,343,540 4,251,373
---------------- ----------------
Other comprehensive income:
Revaluation gains on property, plant and equipment 339,982 4,453,572
Foreign currency translation differences 2,339,896 929,176
---------------- ----------------
2,679,878 5,382,748
---------------- ----------------
Total comprehensive income 4,023,418 9,634,121
---------------- ----------------
---------------- ----------------
Profit attributable to:
Equity holders of the Company 801,941 2,578,548
Minority interests 541,599 1,672,825
---------------- ----------------
1,343,540 4,251,373
---------------- ----------------
Total comprehensive income attributable to:
Equity holders of the Company 2,458,990 7,037,291
Minority interests 1,564,428 2,596,830
---------------- ----------------
4,023,418 9,634,121
---------------- ----------------
Earnings per share: 3.14p 10.19p
---------------- ----------------
---------------- ----------------
--------------------------------------------------------------------------------------------------------
Reclassification of Comparative figures
Certain reclassifications have been made to the prior period financial statements to enhance
comparability with the current period financial statements
Adjustment
Dr/(Cr)
GBP
---
Other operating expenses (Maintenance claim expenses) 286,847
Finance expense 115,285
Administrative expenses (402,132)
--------------------------------------------------------------------------------------------------------
AVATION PLC
UNAUDITED CONSOLIDATD STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
In Great Britain Pounds
As at As at
ASSETS 31 Dec 2009 31 Dec 2008
-------------- --------------
Current assets:
Cash and cash equivalents 1,737,101 2,446,203
Trade and other receivables 1,690,986 1,378,786
Inventories 512 11,382
-------------- --------------
Total current assets 3,428,599 3,836,371
-------------- --------------
Non-current assets
Property, plant and equipment 85,631,466 95,527,442
Goodwill 1,324,541 1,324,541
-------------- --------------
Total non-current assets 86,956,007 96,851,983
Total assets 90,384,606 100,688,354
-------------- --------------
-------------- --------------
LIABILITIES AND EQUITY
Current liabilities:
Trade and other payables 4,608,132 4,033,950
Provision for taxation 299,414 1,178,631
Loans and borrowings 8,000,510 8,372,297
Short-term provisions 1,695,889 560,670
-------------- --------------
Total current liabilities 14,603,945 14,145,548
-------------- --------------
Non-current liabilities:
Trade and other payables 570,761 738,635
Loans and borrowings 38,384,142 51,718,349
Deferred tax liabilities 3,538,404 3,343,083
-------------- --------------
Total non-current liabilities 42,493,307 55,800,067
Equity attributable to shareholders:
Share capital 256,190 255,805
Share premium 1,231,258 1,223,086
Reserves 9,585,449 8,918,932
Retained earnings 10,699,714 9,837,345
-------------- --------------
21,772,611 20,235,168
Minority Interest 11,514,743 10,507,571
-------------- --------------
33,287,354 30,742,739
-------------- --------------
Total liabilities and equity 90,384,606 100,688,354
-------------- --------------
-------------- --------------
AVATION PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
In Great Britain Pounds
6 months ended 6 months ended
31 December 31 December
2009 2008
---------------- ----------------
Cash flows from operating activities
Profit before tax 1,530,695 4,750,706
Adjustments for:
Depreciation expenses 2,244,704 2,066,914
Claim on maintenance reserve 1,053,876 -
Interest expense 1,498,315 1,746,883
Interest income (2,686) (10,305)
---------------- ----------------
Operating profits before working capital changes 6,324,904 8,554,198
Trade and other receivables (115,208) (1,015,920)
Inventories (19) (10,647)
Trade and other payables 776,927 2,205,829
Short term provisions (501,976) 261,334
---------------- ----------------
Cash generated from operations 6,484,628 9,994,794
Interest paid (1,498,315) (1,746,883)
Interest received 2,686 10,305
Income tax paid (130,155) (85,084)
---------------- ----------------
Net cash generated from operating activities 4,858,844 8,173,132
---------------- ----------------
Cash flow from investing activities
Purchase of property, plant and equipment (1,171) (4,492,740)
---------------- ----------------
Net cash used in investing activities (1,171) (4,492,740)
---------------- ----------------
Cash flow generated from financing activities
Proceeds from borrowings - 3,537,715
Repayment of borrowings (4,195,171) (4,187,760)
Net proceeds from issuance of subsidiary's shares to minority 21,800 -
Proceeds from issuing shares (net of cost) 15,557 12,421
---------------- ----------------
Net cash used in financing activities (4,157,814) (637,624)
---------------- ----------------
Net effect of exchange rates in consolidating subsidiaries (2,079) (1,854,090)
Net increase in cash 697,780 1,188,678
Cash and cash equivalent at beginning of period 1,039,321 1,257,525
---------------- ----------------
Cast and cash equivalent at end of period 1,737,101 2,446,203
---------------- ----------------
---------------- ----------------
Notes:
1) The results for the Period are derived from continuing activities.
2) The calculation of earnings per share has been on a weighted average number of 25,565,173
(2008: 25,303,751) ordinary shares in issue during the 6 months period.
3) The un-audited results have been prepared on a going concern basis and on the basis of the
accounting policies adopted in the audited accounts for the period ended 30 June 2009 and 30 June
2008. The interim figures have not been audited.
4) The interim statement for 2009 was approved by the board of Directors. Copies of this
statement will be available to shareholders and members of the public, free of charge, from its
corporate adviser (Loeb Aron & Co, Georgian House, 63 Coleman Street, London, EC2 5BB) and the
Company's registered office and the Company website at www.avation.net.
5) The exchange rate applying at 31 December 2009 was USD - GBP 0.6279. The average rate
applied during the six month period ended 31 December 2009 was USD - GBP 0.6111.
Avation plc
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