Trading Update & Dividend Advice

RNS Number : 3791G

Capital Lease Aviation PLC

28 June 2012

 



Capital Lease Aviation PLC

(the "Company")

TRADING UPDATE AND DIVIDEND ADVICE

28 June 2012

The Directors of Capital Lease Aviation PLC, (AIM:CLA) are pleased to give a trading update for the financial year ending June 30th 2012.

Highlights

·      New Managing Director;

·      Total Revenue for the year ending June 2012 of approximately $14.8m;

·          Sale of Subsidiary for $9.3m in enterprise value resulting in net cash proceeds after debt adjustments of $4.3m; and

·      First proposed dividend payment in the form of an Interim Dividend of 0.45 pence per share.

Trading Update

The Company is trading well and expects Total Revenue for the year ending 30 June 2012 to be approximately $14.8m.  These are Directors unaudited estimates and are not intended to be a profit forecast.

Dividend

Given the significantly strengthened cash position of the Company, the directors are pleased to announce a proposed interim dividend to shareholders of 0.45 pence per share. The Company will announce the timetable for the dividend in due course when finalized, however, the dividend is expected to be paid in Q3 of 2012.

Disposal of Non-Core Subsidiary

The Company  has entered into an agreement to dispose of it's non-core Australian subsidiary Capital Lease Australian Portfolio One Pty Ltd to a subsidiary of Skywest Airlines Limited. The company owns three Fokker F100 aircraft approaching the end of their lease term in September 2012 and February 2013.

The gross sales price for the subsidiary company is $9.3m and after net debt is taken into account the Company will receive approximately $4.3m in cash settlement for the Company.

In the year ended 30 June 2011 , C1 had revenues of US$4.6m and profit before tax of US $1.57m. and had net assets of $7.5m.

The Company intends to use the net proceeds of the sale to pay a dividend and consider as available for the purchase of newer aircraft. The directors are extremely satisfied with this pleasing outcome given the difficulties many aircraft lessors are facing in selling older aircraft assets. These assets were useful to the Company, however, are now virtually at the end of the leases and a view was taken that newer aircraft are more attractive.

Management Update

The Chief Executive Officer, Mr Richard Sinclair, has resigned to pursue other interests and his last day of service will be the 17^th of August 2012. The board would like to thank Mr Sinclair for his contribution to the Company during his tenure and wishes him well in the future.

The board is pleased to announce that Mr Soeren Ferre, currently a Non-Executive Director on the board, will commence as Managing Director on the 1^st of July 2012. Mr Ferre is an experienced aviation executive who has previously worked at AerCap, an aircraft leasing company now listed on the New York Stock Exchange, and Airbus, an aircraft manufacturer owned by EADS.

Potential New Market Listing

The directors intend to explore the possibility for the Company's admission to the Standard list of the London Stock Exchange during the second half of 2012.

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

--ENDS--

Enquiries:

Capital Lease Aviation Plc                                                                   [phone]

Jeff Chatfield, Executive Chairman

Nominated Adviser

James Joyce, W H Ireland Limited                                                       0207 220 1666

Company Stockbroker

W H Ireland Limited                                                                               0207 220 1670

Website

www.capitalleaseaviation.com

 

END

 

 

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