Half Yearly Report

RNS Number : 2424Y

Capital Lease Aviation PLC

20 February 2013

 

Capital Lease Aviation Plc

("CLA" or "the Company")

FINANCIAL RESULTS

HALF YEAR RESULTS - 31 DECEMBER 2012

And Interim Management Report

20 February 2013

Capital Lease Aviation Plc (LSE: CLA), the aircraft leasing company, today announces unaudited financial statements for the Company and its subsidiaries for the six month period ended 31 December 2012.

Financial Highlights:

·     Operations in line with expectations;

·     Revenues of US$5,610,000;

·     Group net post-tax profits of US$2,047,009;

·     Soeren Ferre appointed as Managing Director

·     Net assets of US$44,737,103;

·     CLA Group total assets of US$79,431,562; and

·     EPS (fully diluted) of 2.09 cents.

The results for the Group's half year ended 31 December 2012 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US$" are as follows:

Consolidated 6 months ended 31 Dec 2012	$US	GBP Equivalent (1)
Revenue	5,610,000	3,523,248
Group net post tax profits	2,047,009	1,285,583
Total assets	79,431,562	49,176,080
Net assets	44,737,103	27,696,740
EPS (fully diluted)	2.09 cents	1.31 pence

Jeff Chatfield, Chairman, said, "I am pleased with the progress towards each of our strategic goals. The company's strategy remains to expand our portfolio, by buying aircraft, when transactions with a balance of high returns and acceptable risk can be achieved."

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: 0.62803 for Income Statement items and 1:0.6191 for Statement of Financial Position items.

Statement by Chairman Jeff Chatfield

Background and Outcome

The strategic targets for the management over the past six months were to strengthen our financial position, reduce our leverage and overall debt, remain profitable, distribute CLA's maiden dividend to shareholders and reduce our costs. We are pleased with the progress on all fronts. The period profit was in excess of US$ 2m for the period; earnings per share are 2.09 cents for the period.

The financial position of the group has improved and so did its cash position reaching US$ 6.2m at the end of the year.

Key achievements in the period included:

-     A reduction of the size of the board from five to three members.

-     The appointment of a new Managing Director Mr. Soeren Ferre.

-     The Repayment of a US$ 1.5m balloon payment on an aircraft resulting in a saving of approximately US$ 100,000 in total in interest and legal fees.

-     The lease of an aircraft was extended for up to two further periods of eight months.

The company's strategy remains to expand our portfolio, by buying aircraft, when transactions with a balance of  high returns and acceptable risk can be achieved.

Outlook and Risks

To further develop CLA, we are taking a number of initiatives:

-     Further reducing our operating overheads by benchmarking our technical costs.

-     Re-leveraging our unencumbered assets to free cash with a view to acquiring additional assets.

-     Diversifying our funding sources if we manage to identify suitable transactions.

-     Several candidate aircraft are under consideration for purchase.

The risks remain the typical risks of the aviation and finance industry including, but not limited to, the cost and availability of funds and general aviation risks.

I would like to take this opportunity to thank all the shareholders for their continued support and look forward to creating more value for CLA as we continue on our development path.

Jeff Chatfield

Chairman

Singapore , 19 Feb 2013

Enquiries

Blythe Weigh Communications

Tim Blythe, Nathalie Raper, Kawthar Badda                            0207 138 3204

Capital Lease Aviation Plc                                                         
Jeff Chatfield, Executive Chairman                                           [phone]

Nominated Adviser - WH Ireland Limited
James Joyce and James Bavister                                              0207 220 1666

Company Stockbroker

W H Ireland Limited                                                                      0207 220 1690

Website
www.capitalleaseaviation.com 

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD 1 JULY 2012 TO 31 DECEMBER 2012

	31 December			31 December
	2012			2011
	US$			US$
Continuing operations
Revenue	5,610,000		8,116,215
Gross profit	5,610,000		8,116,215
Other income	6,897		5,871
Other operating expenses	(1,881,591)		(3,333,286)
Expenses:
- Administrative expenses	(484,800)		(529,870)
- Finance expense	(1,067,463)		(1,448,113)
Profit before taxation	2,183,043		2,810,817
Taxation	(136,034)		(442,982)
Profit after tax from continuing operations	2,047,009		2,367,835
Profit for the period, all attributable to equity holders of the Company	2,047,009		2,367,835
Other comprehensive income:
Currency translation differences arising on consolidation	3,858		(124)
Other comprehensive income, net of tax	3,858		(124)
Total comprehensive income for the period, all attributable to equity of holders of the Company	2,050,867		2,367,711
Earnings per share
Basic - continuing and total operations	2.09 cents		2.42 cents
Fully diluted - continuing and total operations	2.09 cents		2.42 cents

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2012

	31 December		31 December
	2012		2011
	US$		US$
ASSETS
Current assets:
Cash and cash equivalents	6,258,216		2,593,050
Trade and other receivables	1,095,451		1,628,068
Total current assets	7,353,667		4,221,118
Non-current assets:
Plant and equipment	72,077,895		94,801,542
Total non-current assets	72,077,895		94,801,542
Total assets	79,431,562		99,022,660
LIABILITIES AND EQUITY
Current liabilities:
Trade and other payables	1,131,684		1,424,505
Provision for taxation	103,039		463,452
Loans and borrowings	6,599,452		9,593,120
Short term provisions	-		2,551,655
	7,834,175		14,032,732
Non-current liabilities:
Trade and other payables	-		596,000
Loans and borrowings	25,256,752		34,019,089
Deferred tax liabilities	1,603,532		2,950,388
Total non-current liabilities	26,860,284		37,565,477
Capital and reserves:
Share capital	196,393		196,393
Share premium	21,696,406		21,696,406
Reserves	5,502,621		10,069,252
Retained earnings	17,341,683		15,462,400
Net equity	44,737,103		47,424,451
Total liabilities and equity	79,431,562		99,022,660

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD 1 JULY 2012 TO 31 DECEMBER 2012

	31 December		31 December
	2012		2011
	US$		US$
Cash flow from operating activities:
Profit before tax	2,183,043		2,810,817
Adjustments for:
Maintenance reserve provisions	-		642,882
Depreciation expense	1,855,549		2,690,404
Interest expense	1,067,463		1,448,113
Interest income	(6,897)		(359)
Operating profit before working capital changes	5,099,158		7,591,857
Movements on:
Trade and other receivables	3,185,070		(387,155)
Trade and other payables	(756,531)		(477,774)
Short term provisions	-		(230,875)
Cash from operations	7,527,697		6,496,053
Interest paid	(885,535)		(1,448,113)
Interest received	6,897		359
Corporation tax paid	(17,184)		(12,347)
Net cash from operating activities	6,631,875		5,035,952
Cash flows used in financing activity:
Repayment of borrowings	(3,186,091)		(4,582,922)
Net cash used in financing activity	(3,186,091)		(4,582,922)
Effects of exchange rates on cash and cash equivalents	3,862		(124)
Net increase in cash and cash equivalents	3,449,646		452,906
Cash and cash equivalents at beginning of period	2,808,570		2,140,144
Cash and cash equivalents at end of period	6,258,216		2,593,050

Approved by the board of Capital Lease Aviation PLC on 19 Feb 2013.

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.

 

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