Final Results

RNS Number : 5024O

Capital Lease Aviation PLC

11 October 2012

 



Capital Lease Aviation Plc

("CLA" or "the Company")

Audited Results Announcement for the Year Ended 30 June 2012

and Dividend Timetable

Highlights:

·     CLA Group total assets of US$81,022,535;

·     Revenue from continuing operations of US$11,344,315;

·     Group Net post-tax profits of US$2,890,109;

·     Net assets of US$42,686,235;

·     EPS (fully diluted) from continuing operations of 3.61 cents;

·     Interim dividend of 0.45 pence per share gross.

Dividend details:

Announcement:                                               11 October 2012

Ex-Dividend Date:                                           24 October 2012

Associated Record Date:                                26 October 2012

Pay date:                                                         9 November 2012

Rate:                                                               0.45 pence per share gross

The audited results for the Group's full financial year ended 30 June 2012 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US$" are as follows:

Consolidated 12 months ended 30 June 2012	Audited US$	GBP Equivalent (1)
Revenue from continuing operations	11,344,315	7,162,233
Group Net post tax profits	2,890,109	1,824,670
Total assets	81,022,535	51,886,831
Net assets	42,686,235	27,336,265
Net assets value	43.60 cents	27.92 pence
EPS (fully diluted) from continuing operations	3.61 cents	2.28 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: 0.63135 for Income Statement items and 1: 0.6404 for Balance Sheet  items.

Chairman's Statement

For the Year ended 30^th June 2012

Dear Fellow Shareholders,

I am pleased to report that your Group has delivered a year of stable earnings on its continuing operations and is in a sound and liquid financial position for the year ended 30^th June 2012. The Directors are pleased to report a favourable profit result. Consolidated net profit after tax is US$2,890,109 with earnings per share on continuing operations up 4% at 3.61 cents. 

The financial position of the Group remains sound with a continuing focus on capital management and costs. Net debt is a conservative 42% of total assets of US$81,022,535. Net assets of US$42,686,235 represent a decrease of 5.3% compared to the prior year. 

This result was achieved after the sale of the Company's Australian leasing subsidiary Capital Lease Australian Portfolio One Pty Ltd ("C1") on 28 June 2012 to Skywest Airlines Limited. C1 contributed revenues of US$4.59m and a profit before tax of US$0.42m to the Group results prior to its disposal on 28 June 2012. The gross sale price for C1 was US$9.3m and after the repayment of net debt the settlement payable to the Company was US$4.3m (which was comprised of US$1.3m in cash and repayment of US$3m in intra-group debt from C1 to the Company). The rationale for this sale was that the Company could achieve a high cash return and avoid the increasing residual value risk in these particular older aircraft in C1's fleet which were nearing the end of their respective lease terms.

The results for the discontinued operations of C1 are shown separately in the notes to this announcement.

In total, the Group repaid US$9.4m of outstanding debt during the year.

The Group's cash position is considerably enhanced from the sale proceeds of C1 and as announced on 29^th June the Company will pay an interim dividend for the year of US$690,000 (equating to GBP 0.45 pence per share gross). No further dividend is proposed and the total dividend for the year is 0.45 pence per share.

The key performance objectives for the Group for this period were to strengthen our financial position, manage our long-term lease risks, remain profitable and reduce overall debt. The Directors are pleased to advise that we have been successful in achieving these goals.  A new managing director has been appointed with a view to expand the Group's business in a profitable and capital efficient manner.

The Company's strategy remains to expand its portfolio of newer aircraft when transactions with appropriate returns considering associated risks can be achieved. The Company requires a combination of debt and equity to fund most transactions despite our continued strong banking relationships; it remains a risk that such funding may be difficult or costly to raise in the future. Other risks to the Company include credit and general risk relating to the aviation industry.

I would like to take this opportunity to thank all our shareholders for your ongoing support and look forward to creating more value for you as we continue to develop our aircraft leasing and investment business.

The Company's Report and Accounts are being sent to shareholders and a copy will be available on the Company's website at www.capitalleaseaviation.com.

Jeff Chatfield

Chairman

Singapore, 11 October 2012

--END--

Enquiries:

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

Nominated Adviser - WH Ireland Limited                                            0207 220 1666
James Joyce

James Bavister                                                                                      

Company Stockbroker

W H Ireland Limited                                                                                0207 220 1670

Website
www.capitalleaseaviation.com 

Audited Consolidated Statement of Comprehensive Income

		30 June 2012	30 June 2011
			(restated)
		US$	US$
Continuing operations
Revenue		11,344,315	11,236,089
Other income		2,024	1,341
Other operating expenses		(4,205,934)	(3,976,960)
Expenses
- Administrative expenses		(903,928)	(833,046)
- Finance expense		(2,406,648)	(2,942,573)
Profit before taxation		3,829,829	3,484,851
Taxation		(294,928)	(87,367)
Profit after tax from continuing operations		3,534,901	3,397,484
Discontinued operations
(Loss)/ Profit from discontinued operations		(644,792)	1,258,209
Total profit		2,890,109	4,655,693
Other comprehensive income:
Foreign currency translation		(1,007)	-
(Loss)/ Gain on revaluation of property, plant and equipment, net of tax		(4,569,607)	1,279,811
Other comprehensive income, net of tax		(4,570,614)	1,279,811
Total comprehensive income for the year, all attributable to equity holders of the Company		(1,680,505)	5,935,504

Earnings per share
- Basic - continuing operations		3.61 cents	3.47 cents
- Fully diluted - continuing operations		3.61 cents	3.47 cents
- Basic - discontinued operations		(0.66) cents	1.29 cents
- Fully diluted - discontinued operations		(0.66) cents	1.29 cents

Audited Consolidated Balance Sheet

		30 June 2012	30 June 2011
		US$	US$
ASSETS
Current assets:
Cash and cash equivalents		2,808,570	2,140,144
Trade and other receivables		4,280,521	1,240,913
Total current assets		7,089,091	3,381,057
Non-current assets:
Property, plant and equipment		73,933,444	97,491,946
Total non-current assets		73,933,444	97,491,946
Total assets		81,022,535	100,873,003
LIABILITIES AND EQUITY
Current liabilities:
Trade and other payables		1,706,284	1,902,279
Provision for taxation		148,117	62,067
Loans and borrowing		7,363,089	9,472,823
Short term provisions		-	2,139,648
Total current liabilities		9,217,490	13,576,817
Non-current liabilities:
Trade and other payables		-	596,000
Loan and borrowings		27,679,206	38,722,308
Deferred tax liabilities		1,439,604	2,921,138
Total non-current liabilities		29,118,810	42,239,446
Capital and reserves:
Share capital		196,393	196,393
Share premium		21,696,406	21,696,406
Asset revaluation reserve		5,499,769	10,069,376
Foreign currency translation reserve		(1,007)	-
Retained earnings		15,294,674	13,094,565
Net equity		42,686,235	45,056,740
Total liabilities and equity		81,022,535	100,873,003

Audited Consolidated Statement of Cash Flows

	2012	2011
	US$	US$
Cash flows from operating activities:
Profit before taxation from continued operations	3,829,829	3,484,851
(Loss) Profit before taxation from discontinued operations	(212,481)	1,573,763
Profit before taxation, total	3,617,348	5,058,614
Adjustments for:
Maintenance reserves provision	1,012,301	1,003,958
Depreciation expense	5,249,825	5,282,355
Interest expense	2,785,429	3,284,711
Interest income	(2,853)	(2,008)
Impairment loss on disposal of property, plant and equipment	1,569,532	-
Loss on disposal of a subsidiary	627,565	-
Unrealised foreign exchange differences	(1,007)	-
Operating profit before working capital changes	14,858,140	14,627,630
Movements on :
Trade and other receivables	(3,579,421)	(688,576)
Trade and other payables	2,346,672	(2,468,093)
Short term provisions	(599,345)	(252,289)
Cash from operations	13,026,046	11,218,672
Interest paid	(2,609,718)	(3,035,069)
Interest received	2,853	2,008
Corporation tax paid	(133,946)	(337,738)
Net cash from operating activities	10,285,235	7,847,873
Cash flows used in investing activities:
Cash outflow from disposal of a subsidiary - See Note A	(199,839)	-
Purchase of property, plant and equipment	-	(21,229)
Net cash used in investing activities	(199,839)	(21,229)
Cash flows used in financing activities:
Proceeds from borrowings	-	2,000,000
Repayment of borrowings	(9,416,970)	(8,982,262)
Net cash used in financing activities	(9,416,970)	(6,982,262)
Net increase in cash and cash equivalents	668,426	844,382
Cash and cash equivalents at beginning of financial year	2,140,144	1,295,762
Cash and cash equivalents at end of financial year	2,808,570	2,140,144

Audited Consolidated Statement of Cash Flows (con't)

Note A - Disposal of a 100% owned subsidiary, Capital Lease Australian Portfolio One Pty Ltd, on 28 June 2012 for a cash consideration of US$1,324,871.

The aggregate cash inflows arising from the disposal of Capital Lease Australian Portfolio One Pty Ltd 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, receivable after year end	1,125,032

Discontinued operations

On 28 June 2012, the Company disposed of its 100% interest in Capital Lease Australian Portfolio One Pty Ltd for a cash consideration of US $1,324,871.  The carrying amounts of identifiable net assets disposed of amounted to US $1,952,436 at 28 June 2012, resulting in a loss on disposal of US $627,565.

Following the disposal of Capital Lease Australian Portfolio One Pty Ltd, the entire results from Capital Lease Australian Portfolio One Pty Ltd are presented separately on the statement of comprehensive income as "Discontinued Operations".

The results of the Discontinued Operations are as follows:

	Group
	2012	2011
	US$	US$
Revenue	4,588,301	4,562,388
Other income	829	667
Expenses	(4,174,046)	(2,989,292)
Profit before tax from Discontinued Operations	415,084 -4323115	1,573,763
Tax	(432,311)	(315,554)
(Loss)/ profit after tax from Discontinued Operations	(17,227)	1,258,209
Pre-tax loss recognised on the measurement to fair value less cost to
value less cost to sell on disposal group	(627,565)	-
Tax	-	-
After tax loss recognised on the measurement to value
value less cost to sell on disposal group	(627,565)	-
Total (loss) / profit from Discontinued Operations	(644,792)	1,258,209

Note :

1.             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 2012.

 

END

 

 

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