Unaudited Prelimary Financial Results For Year ...
AVATION PLC (the "Company")
Unaudited Prelimary Financial Results For Year Ended 30 June 2013
Avation PLC (LSE:AVAP) the aircraft procurement and leasing company is pleased to announce its final results
extracted from the unaudited financial statements for the Company and its subsidiaries for the year ended 30 June
2013.
Highlights:
* Earnings per share increased by 88% to 23.25 US cents;
* Fleet value increased to US$347 million;
* EBITDA increased by 46% to US$38.3 million;
* Revenue increased by 22% to US$42.7 million;
* Dividends increased by 10% to 1.78 US cents per share;
* Consolidated net profit after tax increased by 110% to US$10.5 million;
* Delivery of six new ATR 72-600 aircraft, an Airbus A321 and an Airbus A320;
* Number of aircraft in fleet increased to 23 from 15;
Jeff Chatfield, Chairman, said:
"This has been an excellent year for Avation with impressive financial and operational growth. I am delighted that
we are able to announce results which are well ahead of market expectations. The outlook for the next calendar year
looks very strong, with contracted fleet growth of 43 per cent already locked in, including the delivery of eight
aircraft."
Further information on Avation PLC can be seen at: www.avation.net Avation PLC is registered in England and Wales
with an Operational Headquarters in Singapore.
It has been agreed that the current senior statutory auditor will continue for one additional year in addition to
the recommended five. This is permitted under the ethical guidelines to safeguard the quality of the audit in
certain circumstances.
Enquiries:
Avation PLC
Jeff Chatfield, Chairman +65 9735 4151
Liberum Capital Limited
Chris Bowman/Richard Bootle +44 20 3100 2222
W H Ireland Limited
James Joyce +44 20 7220 1666
Blythe Weigh Communications
Tim Blythe, Eleanor Parry +44 20 7138 3204
Chairman's Statement on Results and Interim Management Statement
Dear Fellow Shareholder,
Your Board is pleased to report that in respect of the year ended 30 June 2013 the consolidated net profit after
tax was US$10,515,901 (2012: US$5,009,457) on revenues of US$42,739,991 (2012: US$35,001,218) with earnings per
share of 23.25 US cents (2012: 12.36 US cents). Total returns comprise income from cash yield from aircraft lease
payments plus the net asset value (capital) realisable from the sale of the aircraft after repayment of associated
debt obligations.
In the period to 30 June 2013, the Group delivered six new ATR 72-600 aircraft, acquired an Airbus A321 and,
pursuant to a finance lease, an Airbus A320. Avation is scheduled to deliver eight ATR 72-600 before the end of
FY2014 and an additional two ATR 72-600 in the second half of calendar year 2014.
The Avation fleet of 23 aircraft has an average age and lease term of 8.7 years and 5.7 years respectively with a
current customer base of airlines in Australia, Europe and North America. The Company has also recently announced
the securing of Fiji Airways as a new airline customer for a new aircraft in 2014.
Avation's fleet is diverse, comprising the new ATR aircraft and other aircraft including Airbus A321 and A320 along
with a small number of older aircraft. Avation targets continual fleet renewal and financial management to ensure
the retention of asset values and maximisation of earnings.
As of June 30th, total assets increased by US$147,274,204 to US$394,383,300. Corresponding liabilities increased by
US$131,212,593 to US$296,146,941 resulting in net assets at year end of US$98,236,359.
In the period to 30 June 2013, the Company secured committed debt funding of over US$100 million covering aircraft
deliveries to January 2014 from traditional aircraft financing banks and other institutional lenders. Debt
facilities are primarily asset based and matched to the leases in terms of currency, term and loan servicing
ensuring there is no "through lease term" re-financing risk. The Company believes that it can obtain access to the
necessary debt for the future purchase of aircraft. Access to funding nevertheless remains a risk, which is common
to all businesses that are capital intensive. Specific aviation based industry risks are also present and include
the creditworthiness of client airlines.
The Company has been significantly cash generative this financial year. The EBITDA increased by 46% to
US$38,329,167. Purchasing aircraft typically requires a mixture of senior debt, a junior debt tier and equity which
may be self generated. The directors seek to minimize the cost of funds and hence may seek to refinance existing
debt facilities. The Company continues to evaluate the state of both debt and equity along with choice of market
for equity capital, in the context of its ongoing requirements.
The Directors believe they have demonstrated that the Group has a sustainable business model and are committed to
develop the Avation business as a differentiated aircraft operating lease business to provide constant and defined
internal rates of return, cash yields and predictive capital returns from investment in the narrow body and
regional aircraft market and more particularly in the Australian and South East Asian sector.
Our business provides for continued and sustainable growth in 2014 and beyond. The outlook for calendar year 2014
is 43% growth in the fleet contracted by way of committed deliveries.
Avation continues to actively evaluate further aircraft acquisition investment opportunities. As a result, the
Company is well advanced with respect the funding of its 2014 deliveries and is developing formalised capital
funding programmes to provide a diversified funding base with access to both debt and equity markets.
Whilst the business is engaged in funding the continued aggressive asset growth of the fleet, your Board
overwhelmingly recognises the importance of rewarding shareholders and is recommending to shareholders a final
dividend payment of 1.78 US cents per share. Accordingly, the Company hopes to maintain a progressive dividend
policy going forward. The record date for this final dividend will be announced in the meeting materials for the
upcoming annual general meeting.
My colleagues and I are committed to continue working tirelessly to build your Company into a respected,
profitable, diversified and cash generative aircraft leasing business. The Board would like to thank you - the
shareholders for your continued support and goodwill and look forward to the future with confidence in the
successful development of Avation PLC.
R. J. (Jeff) Chatfield,
Executive Chairman
27th of August 2013
AVATION PLC
REGISTERED NUMBER: 05872328 (ENGLAND & WALES)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2013
2013 2012
Continuing operations US$ US$
Revenue 42,739,991 35,001,218
Cost of sales (822,887) (1,129,525)
-------------------------------
Gross profit 41,917,104 33,871,693
Other income 1,846,538 120,079
Other operating expenses (13,236,614) (14,601,919)
Expenses
- Administrative expenses (3,564,798) (3,474,177)
- Finance expenses (12,992,553) (7,842,062)
-------------------------------
Profit before taxation 13,969,677 8,073,614
Taxation (2,004,684) (1,710,080)
-------------------------------
Profit from continuing operations for the year 11,964,993 6,363,534
Other comprehensive income
Items that will not be reclassified to profit or
loss:
Revaluation (loss) / gain on property, plant and
equipment, net of tax (1,780,368) (5,569,535)
-------------------------------
(1,780,368) (5,569,535)
-------------------------------
Items that may be reclassified subsequently to
profit or loss:
Currency translation differences arising on
consolidation 603 (1,007)
-------------------------------
603 (1,007)
-------------------------------
Other comprehensive income for the year, (net of
tax) (1,779,765) (5,570,542)
-------------------------------
Total comprehensive income for the year 10,185,228 792,992
-------------------------------
-------------------------------
Profit attributable to:
Equity holders of the parent 10,515,901 5,009,457
Non-controlling interest 1,449,092 1,354,077
-------------------------------
11,964,993 6,363,534
-------------------------------
Total comprehensive income attributable to:
Equity holders of the parent 9,365,487 1,172,549
Non-controlling interest 819,741 (379,557)
-------------------------------
10,185,228 792,992
-------------------------------
Earnings per share
- Basic - continuing and total operations 23.25 cents 12.36 cents
-------------------------------
-------------------------------
- Fully diluted - continuing and total operations 23.25 cents 12.31 cents
-------------------------------
-------------------------------
AVATION PLC
REGISTERED NUMBER: 05872328 (ENGLAND & WALES)
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2013
30 June 2013 30 June 2012 30 June 2011
US$ US$ US$
ASSETS
-------
Current assets:
Cash and cash equivalents 19,623,244 9,094,470 9,012,916
Trade and other receivables 6,337,909 9,021,165 12,116,192
Prepayments 1,094,380 465,183 -
Inventories 438 14,316 3,117
--------------------------------------------
Total current assets 27,055,971 18,595,134 21,132,225
--------------------------------------------
Non-current assets:
Trade and other receivables 9,300,261 8,437,828 -
Prepayments 8,442,671 3,829,823 -
Property, plant and equipment 347,200,389 213,862,303 135,621,485
Goodwill 2,384,008 2,384,008 2,384,008
--------------------------------------------
Total non-current assets 367,327,329 228,513,962 138,005,493
--------------------------------------------
Total assets 394,383,300 247,109,096 159,137,718
--------------------------------------------
--------------------------------------------
LIABILITIES AND EQUITY
------------------------
Current liabilities:
Trade and other payables 12,088,802 5,073,257 5,376,057
Deferred lease income 207,132 91,379 -
Provision for taxation 986,556 519,083 62,067
Loans and borrowings 24,243,718 19,553,681 15,802,427
Short-term provisions 3,757,081 2,969,169 4,564,855
--------------------------------------------
Total current liabilities 41,283,289 28,206,569 25,805,406
--------------------------------------------
Non-current liabilities:
Trade and other payables 9,088,610 6,064,744 1,508,902
Deferred lease income 1,381,260 731,037 -
Loans and borrowings 239,205,865 123,988,798 44,996,626
Deferred tax liabilities 5,187,917 5,943,200 7,724,794
--------------------------------------------
Total non-current liabilities 254,863,652 136,727,779 54,230,322
--------------------------------------------
Equity attributable to shareholders:
Share capital 878,137 779,618 720,917
Treasury shares (214,498) - -
Share premium 29,809,334 23,047,234 17,365,391
Assets revaluation reserve 10,158,496 11,309,284 15,145,567
Capital redemption reserve 11,564 11,564 11,564
Warrant reserve 103,565 192,946 119,143
Capital reserve 2,530,212 2,530,212 -
Foreign currency translation reserve (251) (625) -
Retained earnings 37,949,162 28,113,618 23,742,715
--------------------------------------------
81,225,721 65,983,851 57,105,297
Non-controlling interest 17,010,638 16,190,897 21,996,693
--------------------------------------------
98,236,359 82,174,748 79,101,990
--------------------------------------------
Total liabilities and equity 394,383,300 247,109,096 159,137,718
--------------------------------------------
--------------------------------------------
AVATION PLC
REGISTERED NUMBER: 05872328 (ENGLAND & WALES)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2013
2013 2012
US$ US$
Cash flows from operating activities:
Profit before taxation 13,969,677 8,073,614
Adjustments for:
Depreciation expense 11,366,937 10,299,139
Claim on maintenance reserve 1,860,732 1,991,753
Impairment loss on property plant and equipment 8,945 1,569,532
Amortisation of loan premium 904,658 356,827
Amortisation of interest expense on deposit
collected 570,267 6,663
Loss on disposal of subsidiary - 627,565
Warrant expense - 103,535
Interest expense 11,517,628 7,478,572
Finance income (582,844) (21,137)
Interest income (28,727) (94,470)
--------------------------------
Operating profit before working capital changes 39,587,273 30,391,593
Movement in working capital:
Trade and other receivables and prepayments (4,868,068) (7,183,814)
Inventories 13,878 (11,199)
Deferred lease income 765,976 822,416
Trade and other payables 3,044,789 8,250,757
Short-term provisions (1,072,820) (1,034,835)
--------------------------------
Cash from operations 37,471,028 31,234,918
Interest paid (11,093,273) (7,478,572)
Interest received 28,727 94,470
Corporation tax paid (999,556) (472,882)
--------------------------------
Net cash from operating activities 25,406,926 23,377,934
--------------------------------
Cash flows from investing activities:
Cash inflow (outflow) from disposal of a
subsidiary - See Note A 1,125,032 (199,839)
Purchase of property, plant and equipment (134,087,044) (73,277,102)
--------------------------------
Net cash used in investing activities (132,962,012) (73,476,941)
--------------------------------
Cash flows from financing activities:
Net proceeds from issuance of ordinary shares 6,836,498 3,076,471
Dividends paid (745,618) (638,554)
Repurchase of treasury shares (214,498) -
Proceeds from borrowings 140,263,472 67,569,065
Repayment of borrowings (23,882,635) (17,360,286)
Capital element of finance lease repayments (4,173,733) (2,465,353)
--------------------------------
Net cash used in financing activities 118,083,486 50,181,343
--------------------------------
Effects of exchange rates on cash and cash
equivalents 374 (782)
--------------------------------
Net increase in cash and cash equivalents 10,528,774 81,554
Cash and cash equivalents at beginning of financial
year 9,094,470 9,012,916
--------------------------------
Cash and cash equivalents at end of financial year 19,623,244 9,094,470
--------------------------------
--------------------------------
AVATION PLC
REGISTERED NUMBER: 05872328 (ENGLAND & WALES)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2013
Note A - Disposal of a subsidiary, Capital Lease Australian Portfolio One Pty Ltd:
The aggregate cash inflows arising from the disposal of Capital Lease Australian Portfolio One Pty Ltd
during the previous year were:
US$
Cash 199,839
Trade and other receivables 1,864,684
Property, plant and equipment 10,695,308
Trade and other payables (4,004,378)
Borrowings (3,735,866)
Provisions (2,552,604)
Income tax payable (514,547)
----------------
Identifiable net assets disposed 1,952,436
Loss on disposal (627,565)
----------------
Cash proceeds from disposal 1,324,871
Less: cash and cash equivalents in subsidiary disposed (199,839)
----------------
Net cash inflow on disposal, received during the year ended 30 June 2013 1,125,032
----------------
----------------
Avation plc
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