Final Results

RNS Number : 7837A

Capital Lease Aviation PLC

15 October 2009

 



Capital Lease Aviation Plc

("CLA" or "the Company")

Final Results Announcement for the Year Ended 30 June 2009

Highlights:

• Revenues increased to £10,145,412

• Group Net post tax profits of £3,251,204

• Total assets of £64,614,478

• EPS (fully diluted) 3.15 pence 

Chairman's Statement:

Dear Fellow Shareholder,

We are pleased to report that your company, CLA, has continued to prosper and has weathered the turbulence in the aviation industry. Our consolidated net profit after tax has increased 400% to GBP 3.2m. Earnings per share are 3.32 pence and the Balance Sheet of the group has been strengthened with an augmentation in total assets to GBP 64.6m and Net Assets increasing to GBP20.4m.

In light of the economic conditions, especially in regards to bank liquidity, CLA maintained a conservative approach and used our substantial positive cashflow to repay GBP 6.1m of group debt during the year. This places CLA in a strong position to pursue growth in 2010 when it is possible that selling pressure on some aircraft vendors will create aircraft acquisition opportunities. CLA remains in the market to acquire aircraft and with its improved balance sheet this may be possible in the first half of the 2010 financial year.

The group's strategy is to acquire leased new generation narrow body jet aircraft. We target aircraft operated by reputable airlines with good credit histories. The group currently owns six narrow body jet aircraft. The current fleet comprises two new generation Airbus A321, one Airbus A320 and three Fokker F100 jets.  

Given the economic climate of 2009, which was clearly a difficult operating environment for the Aviation industry, our board operated in a conservative manner. The key performance objectives for the group were to reduce debt, not expose ourselves to weak credit risks, remain profitable, cash flow positive and to protect the value of our assets. We have been successful on all counts.  

Our strategy as the global economy rebounds is to responsibly grow and diversify our aircraft portfolio. We have an excellent working relationship with two European banking partners and maintain a strong presence in the Asian region where the highest growth in the aviation sector is predicted.

The company requires a combination of debt and equity to fund most transactions and although we have been successful in the past, it remains a risk that such funding may be difficult to raise in the future. Other risks to the company include credit and general risk relating to the aviation industry. The company seeks to minimize these risks by the continued diversification of our customer base with creditworthy airlines.

I commend you for your support of CLA as we continue to grow and remain solely focused on the creation of value for you, our shareholders, the owners of our company. We remain your servants.

Jeff Chatfield,

Chairman

--ENDS-

Enquiries:

Capital Lease Aviation Plc                                         07783 942 553
Jeff Chatfield, Executive Chairman

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

Company Stockbroker

W H Ireland Limited                                                      0207 220 1690

Share Register

Computershare Investor Services Plc                      0870 702 0003

Website
www.capitalleaseaviation.com 

Audited Consolidated Group Income Statement 

	2009	2008
In Great Britain Pounds
Continuing operations and acquisitions
Revenue	10,145,412	1,751,816
Cost of sales	-	-
Gross profit	10,145,412	1,751,816
Other operating income	1,217,547	407,093
Administrative expenses	(624,914)	(416,921)
Other operating expenses	(4,001,851)	(499,784)
Finance expense	(3,104,529)	(130,847)
Profit before taxation	3,631,665	1,111,357
Taxation	(380,461)	(296,918)
Profit after tax for continuing operations	3,251,204	814,439
Profit for the period from continuing operations	3,251,204	814,439
Attributable to the shareholders	3,251,204	814,439
Earnings per share
- Basic	3.32 pence	0.84 pence
- Fully Diluted	3.15 pence	0.81 pence

Audited Consolidated Group Balance Sheet

	2009	2008
In Great Britain Pounds
ASSETS
Current assets:
Cash and cash equivalents	860,520	554,457
Trade and other receivables	636,952	76,460
Total current assets	1,497,472	630,917
Non-current assets:
Property, plant and equipment	63,117,006	55,871,044
Total assets	64,614,478	56,501,961
LIABILITIES AND EQUITY
Current liabilities:
Trade and other payables	2,851,710	2,305,160
Provision for taxation	266,950	108,899
Loan and borrowings	6,230,626	4,931,395
Short term provisions	757,396	110,308
Total current liabilities	10,106,682	7,455,762
Non-current liabilities:
Loan and borrowings	33,072,696	31,952,517
Deferred tax liabilities	1,081,439	875,641
Total non-current liabilities	34,154,135	32,828,158
Capital and reserves:
Share capital	97,808	97,808
Share premium	10,743,621	10,743,621
Asset revaluation reserve	4,534,153	4,536,088
Share option reserve	24,968	24,968
Foreign currency translation reserve	887,480	1,129
Retained earnings	4,065,631	814,427
Net equity	20,353,661	16,218,041
Total liabilities and equity	64,614,478	56,501,961

  Audited Consolidated Group Cash Flow Statements

	2009	2008
In Great Britain Pounds
Cash flows from operating activities:
Total profit	3,251,204	814,439
Adjustments for:
Income tax	380,461	296,918
Share option expense	-	24,968
Claim on maintenance reserves	818,271	110,308
Depreciation expense	3,148,565	389,958
Interest expense	2,876,483	130,847
Interest income	(6,252)	(311,349)
Operating profit before working capital changes	10,468,732	1,456,089
Trade and other receivables	(560,492)	(76,460)
Trade and other payables	364,087	2,305,160
Cash from operations	10,272,327	3,684,789
Interest paid	(2,694,020)	(130,847)
Interest received	6,252	311,349
Corporation tax paid	(134,137)	-
Net cash from operating activities	7,450,422	3,865,291
Cash flows used in investing activities:
Purchase of property, plant and equipment	(11,033)	(50,973,873)
Net cash used in investing activities	(11,033)	(50,973,873)
Cash flows from financing activities:
Net proceeds from issuance of ordinary shares	-	10,791,329
Proceeds from borrowings	-	37,490,014
Repayment of borrowings	(6,137,033)	(606,102)
Net cash from financing activities	(6,137,033)	47,675,241
Net effect of exchange rate changes in consolidating subsidiaries	(996,293)	(62,290)
Net increase in cash	306,063	504,369
Cash and cash equivalent at beginning of financial year	554,457	50,088
Cash and cash equivalent at end of financial year	860,520	554,457

Notes :

• The results for the financial period are derived from continuing activities.

• The audited 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 2009.

 

END

 

 

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