Final Results

RNS Number : 8307T

Capital Lease Aviation PLC

05 October 2010

 

Capital Lease Aviation Plc

("CLA" or "the Company")

Audited Results Announcement for the Year Ended 30 June 2010

Highlights:

·     NET Profits up 18.5%

·     CLA Group total assets of US$103,114,422;

·     Experiencing a reduction in finance costs;

·     Revenues increased to US$16,383,067;

·     Group Net post-tax profits increased to US$3,768,971;

·     Net assets increased to US$39,362,706;

·     EPS (fully diluted) increased to 3.85 cents.

The audited results for the Group's full financial year ended 30 June 2010 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US$" are as follows:

Consolidated 12 months ended 30 June 2010	Audited $US	GBP Equivalent (1)
Revenue	16,383,067	10,377,854
Group Net post tax profits	3,768,971	2,387,455
Total assets	103,114,422	68,437,042
Net Assets	39,362,706	26,125,028
EPS (fully diluted)	3.85 cents	2.44 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 US$ and GBP was taken to be the average exchange rate of 1: 0.63345 for Income Statement items and 1:0.6637 for Statement of Financial Position items.

Chairman's Statement:

Dear Fellow Shareholder,

I am pleased to report that your Company has had another year of solid financial performance.  Our consolidated net profit after tax has increased by 18.5% to $3,768,971 with Earnings per share at 3.85 cents.  This was achieved through further consolidation of our business and improvements in the operational position of the CLA Group.

The financial position of the group has been strengthened with debts being paid off. The balance sheet has total assets comprising $103,114,422 and with the net assets increasing by 10.7% to $39,362,706.  The group has used its considerable cash flows to repay about $10m in debt during the year including the full payout of the group's largest tranche of high cost mezzanine financing.  Our cost of finance going forward is now lower than last year and the increase in free cash flow places us in a stronger position to take advantage of new opportunities in the future.

The presentational currency used in our financial statements is now the United States Dollar as most transactions and operational revenues are conducted or measured in US Dollars. This change reduces the uncertain impact of exchange rate volatility in presenting financial information and more accurately reflects our operations.

The key performance objectives for the group were to strengthen our financial position, remain profitable and reduce debt in these continued times of uncertainty. We have been successful by all measures in achieving these goals.  

Our strategy is to responsibly grow and diversify our aircraft portfolio when transactions have sufficient reward considering the associated risks. Market conditions during the year remained difficult, however, we remain vigilant in searching for new opportunities to expand our aircraft portfolio.

The company requires a combination of debt and equity to fund most transactions and, despite our continued strong banking relationships; it remains a risk that such funding may be difficult to raise in the future.   Other risks to the company include credit and general risk relating to the aviation industry.

I would like to take this opportunity to thank all our shareholders for your continued support and look forward to creating more value for you as we continue to develop our business.

Jeff Chatfield,

Chairman

--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 1690

Share Register

Computershare Investor Services Plc                                                0870 702 0003

Website
www.capitalleaseaviation.com 

 Audited Consolidated Group Statement of Comprehensive Income

		2010	2009
		US$	US$
Continuing operations
Revenue		16,383,067	16,181,912
Cost of sales		-	-
Gross profit		16,383,067	16,181,912
Other income		2,167	192,097
Other operating expenses		(6,874,693)	(6,514,035)
Expenses
- Administrative expenses		(890,708)	(996,735)
- Finance expense		(4,220,106)	(4,951,718)
Profit before taxation		4,399,727	3,911,521
Taxation		(630,756)	(731,799)
Profit after tax for continuing operations		3,768,971	3,179,722
Profit for the year, all attributable to equity holders of the Company		3,768,971	3,179,722
Other comprehensive income:
Revaluation of property, plant and equipment		-	(3,864)
Other comprehensive income, net of tax		-	(3,864)
Total comprehensive income for the year, all attributable to equity holders of the Company		3,768,971	3,175,858
Earnings per share
- Basic - continuing and total operations		3.85 cents	3.25 cents
- Fully Diluted - continuing and total operations		3.85 cents	3.08 cents

Audited Consolidated Group Statement of Financial Position

		30 June 2010	30 June 2009
ASSETS		US$	US$
Current assets:
Cash and cash equivalents		1,295,762	1,421,232
Trade and other receivables		552,337	1,053,452
Total current assets		1,848,099	2,474,684
Non-current assets:
Property, plant and equipment		101,266,323	106,330,034
Total assets		103,114,422	108,804,718
LIABILITIES AND EQUITY
Current liabilities:
Trade and other payables		4,120,444	4,711,231
Provision for taxation		21,786	440,875
Loans and borrowings		8,670,050	10,290,051
Short term provisions		1,387,979	1,250,861
Total current liabilities		14,200,259	16,693,018
Non-current liabilities:
Trade and other payables		596,286	-
Loans and borrowings		46,507,343	54,620,931
Deferred tax liabilities		2,447,828	1,933,296
Total non-current liabilities		49,551,457	56,554,227
Capital and reserves:
Share capital		196,393	196,243
Share premium		21,696,406	21,660,294
Asset revaluation reserve		9,031,035	9,031,035
Share option reserve		-	49,796
Retained earnings		8,438,872	4,620,105
Net equity		39,362,706	35,557,473
Total liabilities and equity		103,114,422	108,804,718

Audited Consolidated Group Cash Flow Statements

	2010	2009
	US$	US$
Cash flows from operating activities:
Profit before income tax	4,399,727	3,911,521
Adjustments for:
Maintenance reserves provision	1,423,973	1,305,141
Depreciation expense	5,063,711	5,153,045
Interest expense	3,837,145	4,587,985
Interest income	(2,167)	(9,971)
Unrealised exchange difference	-	(106,795)
Operating profit before working capital changes	14,722,389	14,840,926
Movements on :
Trade and other receivables	501,115	(901,009)
Trade and other payables	(256,522)	(180,405)
Short term provisions	(1,286,855)	(274,280)
Cash from operations	13,680,127	13,485,232
Interest paid	(3,575,124)	(4,296,755)
Interest received	2,167	9,971
Corporation tax paid	(535,313)	(213,948)
Net cash from operating activities	9,571,857	8,984,500
Cash flows used in investing activities:
Purchase of property, plant and equipment	-	(18,221)
Net cash used in investing activities	-	(18,221)
Cash flows from financing activities:
Net proceeds from issuance of ordinary shares	36,262	-
Repayment of borrowings	(9,733,589)	(8,650,870)
Net cash from financing activities	(9,697,327)	(8,650,870)
Net (decrease)/increase in cash	(125,470)	315,409
Cash and cash equivalents at beginning of financial year	1,421,232	1,105,823
Cash and cash equivalents at end of financial year	1,295,762	1,421,232

Notes :

1.          The results for the financial period are derived from continuing activities.

2.          The 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 year ended 30 June 2010.

 

END

 

 

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