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 30^th 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                                                                    [phone]
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.

 

END

 

 

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