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