Unaudited Preliminary Results

RNS Number : 4549N
Capital Lease Aviation PLC
09 September 2013
 



Capital Lease Aviation PLC

 

("CLA" or "the Company")

 

Unaudited Preliminary Results Announcement for the Year Ended 30 June 2013

 

CLA, the aircraft lessor is pleased to announce its preliminary results for the Company for the year ending 30 June 2013.

 

Highlights:

 

·     Revenue from continuing operations of US$10,835,000;

·     Group Net post-tax profits up 14 per cent to US$4,041,666;

·     CLA Group total assets of US$97,668,841;

·     Net assets of US$45,068,658; and

·     EPS (fully diluted) from continuing operations of 4.13 cents.

 

Jeff Chatfield, Chairman, said "It is pleasing that CLA has an enhanced growth profile with both growth in aircraft fleet and profits.  A conservative strategy is leading to consistent asset growth."

 

The unaudited preliminary results for the Group's full financial year ended 30 June 2013 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US$" are as follows:

 

Consolidated

12 months ended 30 June 2013

 

US$

GBP

Equivalent (1)




Revenue from continuing operations

10,835,000

6,910,780




Group Net post tax profits

4,041,666

2,577,855




Total assets

97,668,841

64,187,962




Net Assets

45,068,658

29,619,122




EPS (fully diluted) from continuing operations

4.13 cents

2.63 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: 0.63782 for Income Statement items and 1: 0.6572 for Balance Sheet  items.

 



Chairman's Statement

For the Year ended 30 June 2013

 

 

We are pleased to report that your Group has delivered a year of stable earnings and is in a sound and liquid financial position for the year ended 30th June 2013. The Directors are pleased to report favourable profit results. Consolidated net profit after tax from continuing operations was US$4,041,666 with earnings per share of 4.13 cents, an increase of 14 per cent compared with the previous year.

 

In the last year, CLA fully repaid the loan for an Airbus A320 which is on lease to US Airways and as a consequence, the asset has provided an increased and significant cash contribution to the Company. The financial position of the group has improved in the past year with a cash position at the end of the year of US$ 5.7m vs. US$ 2.8m in 2012.

 

For the first time in several years, CLA has selected and acquired an aircraft, an Airbus A321 on lease to Condor operated in Germany, and as a result total assets have increased by 20.5 per cent to US$ 97.7m. Consequential to the aircraft purchase net debt increased by 33.6 per cent to US$ 45.4m.

 

Total Equity in the company has increased to US$ 45.1m, an increase of 5.6 per cent - the current Gearing Ratio of the company is now 50.2 per cent which in the director's view is in line with market practices.

 

The Company is diligently pursuing new aircraft acquisitions and is in active discussions with our current lessees to extend the current leases. In the coming years, it is possible that the refinancing of some of our assets may allow CLA to increase the Gearing Ratio and therefore use the cash released to allow for further aircraft acquisitions.

 

The risks in the business include the typical airline industry related risks along with the financial risks associated with leveraged business. The strategy determined by the board of the Company results in the conservative and judicious use of retained earnings and free cash flow, along with gearing, to acquire selected aircraft and lease them to commercial airlines.

 

The Directors 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 aircraft leasing and investment business.

 

 

 

 

Robert Jeffries Chatfield

Chairman 

Singapore, 6 September 2013

 

 

 

 

 

 

Enquiries:

 

Capital Lease Aviation Plc                                                                    +65 97354151
Jeff Chatfield, Executive Chairman

 

Nominated Adviser
James Joyce, W H Ireland Limited                                                       0207 220 1666

 

Company Stockbroker

W H Ireland Limited                                                                                0207 220 1690

 

Blythe Weigh Communications                                                             020 7138 3204

Paul Weigh

 

 

Website                                                                   www.capitalleaseaviation.com 

 

 


Unaudited Consolidated Statement of Comprehensive Income

 



30 June 2013

30 June 2012



US$

US$

Continuing operations




Revenue


10,835,000

11,344,315





Other income


12,375

2,024





Other operating expenses


(3,469,953)

(4,205,934)





Expenses




- Administrative expenses


(1,218,831)

(903,928)

- Finance expense


(2,076,857)

(2,406,648)





Profit before taxation


4,081,734

3,829,829





Taxation


(40,068)

(294,928)





Profit after tax from continuing operations

4,041,666

3,534,901





Discontinued operations



Loss from discontinued operations


-

(644,792)




Total profit 

4,041,666

2,890,109





Other comprehensive income:




Items that will not be reclassified to profit or loss:




Loss on revaluation of property, plant and equipment, net of tax

(1,659,846)

(4,569,607)



(1,659,846)

(4,569,607)

Items that may be reclassified subsequently to profit or loss:




Foreign currency translation gain (loss)

603

(1,007)



603

(1,007)

Other comprehensive income, net of tax


(1,659,243)

(4,570,614)





Total comprehensive income for the year, all attributable to equity holders of the Company


2,382,423

(1,680,505)





Earnings per share








- Basic - continuing operations


4.13 cents

3.61 cents

- Fully diluted - continuing operations


4.13 cents

3.61 cents





- Basic - discontinued operations


-

(0.66) cents

- Fully diluted - discontinued operations


-

(0.66) cents



Unaudited Consolidated Statement of Financial Position

 



30 June 2013

30 June 2012



US$

US$

ASSETS








Current assets:




Cash and cash equivalents


5,717,013

2,808,570

Trade and other receivables


698,852

4,280,521

Total current assets


6,415,865

7,089,091





Non-current assets:




Property, plant and equipment


91,252,976

73,933,444

Total non-current assets


91,252,976

73,933,444





Total assets


97,668,841

81,022,535









LIABILITIES AND EQUITY








Current liabilities:




Trade and other payables


6,651,059

1,706,284

Provision for taxation


101,346

148,117

Loans and borrowing


7,077,245

7,363,089

Total current liabilities


13,829,650

9,217,490





Non-current liabilities:




Loan and borrowings


37,346,434

27,679,206

Deferred tax liabilities


1,424,099

1,439,604

Total non-current liabilities


38,770,533

29,118,810





Capital and reserves:




Share capital


196,393

196,393

Share premium


21,696,406

21,696,406

Asset revaluation reserve


3,839,923

5,499,769

Foreign currency translation reserve


(404)

(1,007)

Retained earnings


19,336,340

15,294,674

Net equity


45,068,658

42,686,235





Total liabilities and equity


97,668,841

81,022,535





 

 

 



Unaudited Consolidated Statement of Cash Flows

 


2013

2012


US$

US$

Cash flows from operating activities:



Profit before taxation from continued operations

4,081,734

3,829,829

Loss before taxation from discontinued operations

-

(212,481)

Profit before taxation, total

4,081,734

3,617,348

Adjustments for:



Maintenance reserves provision

-

1,012,301

Depreciation expense

3,425,178

5,249,825

Interest expense

2,076,857

2,785,429

Interest income

(12,375)

(2,853)

Impairment loss on disposal of property, plant and equipment

-

1,569,532

Loss on disposal of a subsidiary

-

627,565

Unrealised foreign exchange differences

603

(1,007)

Operating profit before working capital changes

9,571,997

14,858,140




Movements on :



Trade and other receivables

2,282,991

(3,579,421)

Trade and other payables

387,352

2,346,672

Short term provisions

-

(599,345)

Cash from operations

12,242,340

13,026,046




Interest paid

(1,829,434)

(2,609,718)

Interest received

12,375

2,853

Corporation tax paid

(109,376)

(133,946)

Net cash from operating activities

10,315,905

10,285,235




Cash flows used in investing activities:



Cash inflow (outflow) from disposal of a subsidiary - See Note A

1,125,032

(199,839)

Purchase of property, plant and equipment

(22,479,404) 

Net cash used in investing activities

(21,354,372)

(199,839)




Cash flows used in financing activities:



Dividend paid

(690,000)

Proceeds from borrowings

22,000,000 

Repayment of borrowings

(7,363,090)

(9,416,970)

Net cash from (used in) financing activities

13,946,910

(9,416,970)




Net increase in cash and cash equivalents

2,908,443

668,426

Cash and cash equivalents at beginning of financial year

2,808,570

2,140,144

Cash and cash equivalents at end of financial year

5,717,013

2,808,570

 



Unaudited Consolidated Statement of Cash Flows (con't)

 

 

Note A - Disposal of a subsidiary, Capital Lease Australian Portfolio One Pty. Ltd.:

 

The aggregate cash inflows arising from the disposal of Capital Lease Australian Portfolio One Pty Ltd during the previous year were:

 

Cash

199,839


Trade and other receivables

1,864,684


Property, plant and equipment

10,695,308


Trade and other payables

(4,004,378)


Borrowings

(3,735,866)


Provisions

(2,552,604)


Income tax payable

(514,547)


Identifiable net assets disposed

1,952,436


Loss on disposal

(627,565)


Cash proceeds from disposal

1,324,871

 

Less : cash and cash equivalents in subsidiary disposed

(199,839)

 

Net cash inflow on disposal, received during the year ended 30 June 2013

1,125,032

 

 

 

 

 

Note :

 

 

1.             The unaudited 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 2013.

 

 


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