Half Yearly Report
Via RNS AIM: CLA
Capital Lease Aviation Plc
("CLA" or "the Company")
UNAUDITED HALF YEAR RESULTS - 31 DECEMBER 2010
Highlights:
· CLA Group total assets of US $103,432,154;
· Group Net post-tax profits increased by 18.7% to US $2,156,246;
· Net assets increased by 10.5% to US $41,518,952;
· EPS (fully diluted) increased to 2.20 cents;
· NTA per share increased 42 cents.
The unaudited results for the Group's half year ended 31 December 2010 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US $" are as follows:
|
Consolidated 6 months ended 31 Dec 2010 |
US $ |
GBP Equivalent (1) |
|
|
|
|
|
Revenue |
7,954,897 |
5,083,577 |
|
|
|
|
|
Group net post tax profit |
2,156,246 |
1,377,949 |
|
|
|
|
|
Total assets |
103,432,154 |
66,868,888 |
|
|
|
|
|
Net assets |
41,518,952 |
26,842,002 |
|
|
|
|
|
EPS (fully diluted) |
2.20 cents |
1.42 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: 0.63905 for Income Statement items and 1:0.6465 for Statement of Financial Position items.
Directors' Review of Operations and Strategy
The Group results for the six month period were in line with expectations and the directors are pleased to report a substantial 18.7% increase in profits. These increased profits of US $2,156,246 were delivered on marginally higher revenues and substantially decreased costs, mostly from lower finance costs.
The final tranche of the Group's expensive mezzanine finance facilities was refinanced during the period which will make further cost savings going forward. A loan facility of US $2,000,000 was refinanced and drawn down to replace a higher cost AUD 2,089,967 guarantee facility which was originally arranged to complete the purchase of two Airbus A321s and one Airbus A320 aircraft in June 2008. This refinancing was particularly pleasing given the market tensions in obtaining debt finance.
The Group repaid US $4.3m of debt during the period and Company's financial position has been strengthened with Net Assets at US $41.5m, up by US $3.9m compared to the comparative period last year.
The aircraft fleet currently comprises two Airbus A321-200's, three Fokker F100 jets and one Airbus A320. All are currently leased to quality airlines with lease expiries ranging from September 2012 to March 2015.
Given the activity of some large lessor entrants in the market place during the period, pricing on transactions has been competitive which has detracted from the economics of potential transactions. As this 'new entrant' activity returns to a more normal level, and while airline industry parameters continue to improve, we aim to complete further transactions to expand our portfolio of aircraft.
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.
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 opportunities and therefore growth.
Richard Sinclair
Chief Executive Officer
On behalf of the Board of Directors of Capital Lease Aviation PLC
--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 1670
Share Register
Computershare Investor Services Plc 0870 702 0003
Website
www.capitalleaseaviation.com
CAPITAL LEASE AVIATION PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD 1 JULY 2010 TO 31 DECEMBER 2010
|
|
|
|
|
|
|
31 December |
|
31 December |
|
|
2010 |
|
2009 |
|
|
US $ |
|
US $ |
|
Continuing operations |
|
|
|
|
|
|
|
|
|
Revenue |
7,954,897 |
|
7,843,164 |
|
Gross profit |
7,954,897 |
|
7,843,164 |
|
|
|
|
|
|
Other income |
414 |
|
40 |
|
|
|
|
|
|
Other operating expenses |
(3,135,918) |
|
(3,137,658) |
|
|
|
|
|
|
Expenses: |
|
|
|
|
- Administrative expenses |
(493,178) |
|
(483,654) |
|
|
|
|
|
|
- Finance expense |
(1,815,765) |
|
(2,196,325) |
|
|
|
|
|
|
Profit before taxation |
2,510,450 |
|
2,025,567 |
|
|
|
|
|
|
Taxation |
(354,204) |
|
(208,725) |
|
|
|
|
|
|
Profit after tax from continuing operations |
2,156,246 |
|
1,816,842 |
|
|
|
|
|
|
Profit for the period, all attributable to equity holders of the Company |
2,156,246 |
|
1,816,842 |
|
|
|
|
|
|
Other comprehensive income, net of tax |
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period, all attributable to equity of holders of the Company |
2,156,246 |
|
1,816,842 |
|
|
|
|
|
|
Earnings per share |
US Cents |
|
US Cents |
|
|
|
|
|
|
Basic - continuing and total operations |
2.20 |
|
1.86 |
|
|
|
|
|
|
Diluted - continuing and total operations |
2.20 |
|
1.86 |
|
|
|
|
|
CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2010
|
|
|
|
|
|
|
31 December |
|
31 December |
|
|
2010 |
|
2009 |
|
|
US $ |
|
US $ |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
3,748,327 |
|
1,723,472 |
|
Trade and other receivables |
884,963 |
|
155,198 |
|
Total current assets |
4,633,290 |
|
1,878,670 |
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
Plant and equipment |
98,798,864 |
|
103,792,792 |
|
Total non-current assets |
98,798,864 |
|
103,792,792 |
|
|
|
|
|
|
Total assets |
103,432,154 |
|
105,671,462 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
Trade and other payables |
3,990,482 |
|
4,734,102 |
|
Provision for income tax |
212,916 |
|
413,981 |
|
Loans and borrowings |
9,377,952 |
|
9,228,531 |
|
Short term provisions |
1,807,664 |
|
910,626 |
|
|
15,389,014 |
|
15,287,240 |
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
Trade and other payables |
596,311 |
|
- |
|
Loans and borrowings |
43,483,392 |
|
50,861,341 |
|
Deferred tax liabilities |
2,444,485 |
|
1,965,035 |
|
Total non-current liabilities |
46,524,188 |
|
52,826,376 |
|
|
|
|
|
|
Capital and reserves: |
|
|
|
|
Share capital |
196,393 |
|
196,393 |
|
Share premium |
21,696,406 |
|
21,696,406 |
|
Reserves |
9,031,035 |
|
9,080,831 |
|
Retained earnings |
10,595,118 |
|
6,584,216 |
|
Total equity |
41,518,952 |
|
37,557,846 |
|
|
|
|
|
|
Total liabilities and equity |
103,432,154 |
|
105,671,462 |
|
|
|
|
|
CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 JULY 2010 TO 31 DECEMBER 2010
|
|
|
|
|
|
|
31 December |
|
31 December |
|
|
2010 |
|
2009 |
|
|
US $ |
|
US $ |
|
Cash flow from operating activities: |
|
|
|
|
Profit before tax |
2,510,450 |
|
2,025,567 |
|
Adjustments for: |
|
|
|
|
Maintenance reserve provisions |
548,458 |
|
445,164 |
|
Depreciation expense |
2,488,687 |
|
2,537,242 |
|
Interest expense |
1,690,932 |
|
2,018,356 |
|
Interest income |
(414) |
|
(40) |
|
Operating profit before working capital changes |
7,238,113 |
|
7,026,289 |
|
|
|
|
|
|
Movements on: |
|
|
|
|
Trade and other receivables |
(332,626) |
|
896,901 |
|
Trade and other payables |
(129,937) |
|
24,224 |
|
Short term provisions |
(128,773) |
|
(785,399) |
|
Cash from operations |
6,646,777 |
|
7,162,015 |
|
|
|
|
|
|
Interest paid |
(1,690,932) |
|
(2,018,356) |
|
Interest received |
414 |
|
40 |
|
Corporation tax paid |
(166,417) |
|
(56,612) |
|
Net cash from operating activities |
4,789,842 |
|
5,087,087 |
|
|
|
|
|
|
Cash flows used in investing activities: |
|
|
|
|
Purchase of plant and equipment |
(21,228) |
|
- |
|
Net cash used in investing activities |
(21,228) |
|
- |
|
|
|
|
|
|
Cash flows used in financing activities: |
|
|
|
|
Net proceeds from issuance of ordinary shares |
- |
|
36,263 |
|
Proceeds from borrowings |
2,000,000 |
|
- |
|
Repayment of borrowings |
(4,316,049) |
|
(4,821,110) |
|
Net cash used in financing activities |
(2,316,049) |
|
(4,784,847) |
|
|
|
|
|
|
Net increase in cash |
2,452,565 |
|
302,240 |
|
Cash and cash equivalents at beginning of period |
1,295,762 |
|
1,421,232 |
|
Cash and cash equivalents at end of period |
3,748,327 |
|
1,723,472 |
|
|
|
|
|
Approved by the board of Capital Lease Aviation PLC on 14 February 2011.
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.
This information is provided by RNS