Half Year Results

RNS Number : 9232H

Capital Lease Aviation PLC

03 March 2010

 



3 March 2010

Capital Lease Aviation PLC

("CLA")

HALF YEAR RESULTS - 31 DECEMBER 2009

The Board of CLA is pleased to announce the unaudited consolidated interim results for the period from 1 July 2009 to 31 December 2009.

HIGHLIGHTS:

·    Net Assets :                                             US $37.56m;

·    Revenue for the period:                       US $7.84m;

·    Profit after tax:                                        US $1.82m;

·    Earnings per share (after tax):           1.86 US cents

Jeff Chatfield, Executive Chairman said:  'Results for the first half of the year are entirely satisfactory given the economic circumstances and current state of the airline industry.  The result is in line with the Board's expectations given the present operating environment. The aircraft that the Company owns and leases have all performed well and the lessees are all performing well. We anticipate that further growth will be available as aircraft valuations may become more attractive to operating lessors such as ourselves, as competitors such as financial institutions and banks leave the sector and release their aircraft into the market. The Board of the CLA group continues to plan to build on the portfolio of aircraft already established.

The Board's strategic plan involves the acquisition of 737 series and Airbus A320 series new generation planes, we will ensure that these aircraft are leased to reliable operators.'

The directors take responsibility for the contents of this announcement.

---ENDS---

Enquiries:

CAPITAL LEASE AVIATION PLC

Jeff Chatfield, Executive Chairman                                                               07783 942 553

STOCKBROKERS

WH Ireland Limited                                                                                          020 7220 1690

NOMINATED ADVISER

James Joyce, David Porter

WH Ireland Limited                                                                                          020 7220 1666

Website http://www.capitalleaseaviation.com/

Directors' Review of Operations and Strategy

The Group results were in line with expectations given the difficulties facing the industry during the period.  Despite this, the business remained profitable and cash flow positive. 

We now report in United States Dollars to reduce the effect of exchange related gains or losses in the income statement and align the reporting currency with our functional currency.  Most group transactions are denominated in US Dollars. 

Revenues were lower by 5% compared to the comparative period due to lower maintenance rent revenues, mainly a result of reduced aircraft usage. After-Tax Profits were down 18% due mainly to foreign exchange losses in the Australian subsidiary whilst the comparative period included foreign exchange gains.  Maintenance Claim expenses were also higher.

The Group repaid $4.82m of debt during the period and the Financial Position has been strengthened with Net Assets at $37.56m, up by $2.98m compared to the comparative period.

Our fleet currently comprises three Fokker F100 jets, two Airbus A321-200's and one Airbus A320. All are currently leased to quality airlines with lease expiries ranging from September 2012 to March 2015. The company's preferred asset targets are the Airbus A320 series and Boeing 737 family of new generation aircraft as we believe these pose the lowest risk given their liquidity, appeal to operators, and ability to remarket.

Given recent signs of recovery in the global economy, particularly in the Asia Pacific region, we remain ready to take advantage of opportunities that may be available when demand in the aviation sector rebounds.

The risks to the business include typical aviation related risks, 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 fulfil their lease obligations.

The business also relies on its ability to source finance on favourable terms. Should this supply of finance contract, it will limit our fleet expansion and therefore growth.

Richard Sinclair

Chief Executive Officer

On behalf of the Board of Directors of Capital Lease Aviation PLC

2 March 2010

CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD 1 JULY 2009 TO 31 DECEMBER 2009
	December		December
	2009		2008
	US$		US$
From Continuing operations
Revenue	7,843,164		8,227,517
Cost of sales	-		-
Gross profit	7,843,164		8,227,517
Other operating income	40		301,654
Administrative expenses	(483,654)		(529,527)
Other operating expenses	(3,137,658)		(2,850,651)
Finance expense	(2,196,325)		(2,608,937)
Profit before tax	2,025,567		2,540,056
Income tax expense	(208,725)		(334,386)
Profit for the period	1,816,842		2,205,670
Other comprehensive income
Revaluation of property plant and equipment	-		(3,864)
Other comprehensive income for the period	-		(3,864)
Total comprehensive income for the period	1,816,842		2,201,806
Profit attributable to:
Ordinary equity shareholders of the parent	1,816,842		2,205,670
Total comprehensive income attributable to :
Ordinary equity shareholders of the parent	1,816,842		2,201,806
Earnings per share	US Cents		US Cents
Basic	1.86		2.26
Diluted	1.86		2.14
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)
			US$
Other operating expenses (Maintenance claim expenses)			271,972
Finance expense (Loan fees)			197,758
Administrative expense			(469,730)

CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2009
	December		December
	2009		2008
	US$		US$
ASSETS
Current assets:
Cash and cash equivalents	1,723,472		1,883,906
Trade and other receivables	155,198		780,944
Total current assets	1,878,670		2,664,850
Non-current assets:
Plant and equipment	103,792,792		108,904,401
Total non-current assets	103,792,792		108,904,401
Total assets	105,671,462		111,569,251
LIABILITIES AND EQUITY
Current liabilities :
Trade and other payables	4,734,102		4,864,970
Loans and borrowings	9,228,531		9,540,591
Short term provisions	910,626		491,972
Provision for income tax	413,981		489,904
Total current liabilities	15,287,240		15,387,437
Non-current liabilities:
Loan and borrowings	50,861,341		59,983,359
Deferred tax liabilities	1,965,035		1,619,367
Total non-current liabilities	52,826,376		61,602,726
Capital and reserves:
Share capital	196,394		196,243
Share premium	21,696,406		21,660,294
Reserves	9,080,831		9,080,831
Retained earnings	6,584,215		3,641,720
Total equity	37,557,846		34,579,088
Total liabilities and equity	105,671,462		111,569,251
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)
			US$
Loans and borrowings - current			(1,083,827)
Loans and borrowings - non current			1,083,827

CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF CASH  FLOWS
FOR THE PERIOD 1 JULY 2009 TO 31 DECEMBER 2009
	December		December
	2009		2008
	US$		US$
Cash flow from operating activities:
Profit before tax	2,025,567		2,540,056
Adjustments for :
Depreciation	2,537,242		2,578,679
Claims on maintenance reserves	445,164		271,972
Interest expense	2,018,356		2,411,179
Interest income	(40)		(9,890)
Operating profit before working capital changes	7,026,289		7,791,996
Trade and other receivables	896,901		(628,501)
Trade and other payables	24,224		264,564
Short term provisions	(785,399)		-
Cash from operations	7,162,015		7,428,059
Interest paid	(2,018,356)		(2,411,179)
Income tax paid	(56,612)		(188,699)
Net cash flows from operating activities	5,087,047		4,828,181
Cash flows from investing activities:
Interest received	40		9,890
Purchase of plant and equipment	0		(22,086)
Net cash from (used in) investing activities	40		(12,196)
Cash flows from financing activities:
Proceeds from issuing of new shares, net of expenses	36,263		-
Repayment of borrowings	(4,821,110)		(4,037,902)
Net cash used in financing activities	(4,784,847)		(4,037,902)
Net increase in cash flow	302,240		778,083
Cash and cash equivalent at beginning of period	1,421,232		1,105,823
Cash and cash equivalent at end of period	1,723,472		1,883,906

Approved by the board of Capital Lease Aviation PLC on the 2nd of March 2010.

The above financial information has been extracted from the management accounts and has not been audited. 

These interim statements have been prepared on a basis consistent with International Financial Reporting Standards (IFRS) except that IAS34 "Interim Financial Reporting", which is not mandatory for AIM companies, has not been adopted in the preparation of this statement.

 

END

 

 

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