Final Results

RNS Number : 0784Q

Capital Lease Aviation PLC

13 October 2011

 



Capital Lease Aviation Plc

("CLA" or "the Company")

Audited Financial Results for the Year Ended 30 June 2011

Highlights regarding the CLA group's operations and Audited Financial Results

·     The consolidated net profit after tax increased by 23.5% to $4,655,693;

·     The Net assets increased by 15.1% to $45,056,740;

·     Total assets at balance date were $ 100,873,003;

·     An improvement in balance sheet and repayments have resulted in total outstanding loans reducing to a level of 47.8% of the total assets;

·     CLA has experienced a reduction in finance costs; and

·     Fully diluted earnings per share increased to 4.76 cents.

The audited financial results for the CLA group's full financial year ended 30 June 2011 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US$" are as follows:

Consolidated 12 months ended 30 June 2011	Audited $US	GBP Equivalent (1)
Revenue	15,798,477	9,935,662
Group Net post tax profits	4,655,693	2,927,965
Total assets	100,873,003	62,975,016
Net Assets	45,056,740	28,128,923
EPS (fully diluted)	4.76 cents	2.99 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: 0.6289 for Income Statement items and 1:0.6243 for Balance Sheet  items.

CHAIRMAN'S STATEMENT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2010

Dear Fellow Shareholder,

I am pleased to report that your Company has enjoyed a year of solid earnings which has resulted in a stronger financial position for the year ended 30th June 2011. The Directors are pleased to report a record profit result. Consolidated net profit after tax increased by 23.5% to $4,655,693 with earnings per share at 4.76 cents.  This result was achieved through strident cost management, continued focus on reducing finance cost and debt levels and by targeted refinancing of the groups more expensive mezzanine finance facilities so as to achieve lower finance costs.

The financial position of the group has been strengthened with outstanding aircraft finance loans at a conservative level of 47.8% of total assets. Net assets are up by 15.1% to $45,056,740 compared to the prior year with total assets this year at $100,873,003.  Given the difficult financing environment that prevailed throughout the year, it was particularly pleasing to note the group was able to secure a $2,000,000 loan to refinance a mezzanine finance facility which formed part of the original acquisition finance for the group's Airbus aircraft.   

The key performance objectives for the group for this period were to strengthen our financial position, remain profitable and reduce overall debt. The Directors are pleased to advise that we have been successful by all measures in achieving these goals.  

Aircraft prices have remained at relatively high levels despite the economic turmoil, supported by strong demand from airlines, aircraft lessors and the growth in air traffic.  Our strategy remains to expand our portfolio of aircraft when transactions with appropriate return considering the associated risk can be achieved.

The company requires a combination of debt and equity to fund most transactions and, despite our continued strong banking relationships; 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.

I 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 business.

Robert Jeffries Chatfield

Chairman

--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 1690

Share Register

Computershare Investor Services Plc                                                0870 702 0003

Website
www.capitalleaseaviation.com 

Audited Consolidated Statement of Comprehensive Income

		2011	2010
		US$	US$
Continuing operations
Revenue		15,798,477	16,383,067
Other income		2,008	2,167
Other operating expenses		(6,387,338)	(6,874,693)
Expenses
- Administrative expenses		(950,142)	(890,708)
- Finance expense		(3,404,391)	(4,220,106)
Profit before taxation		5,058,614	4,399,727
Taxation		(402,921)	(630,756)
Profit after tax from continuing operations		4,655,693	3,768,971
Profit for the year, attributable to equity holders of the Company		4,655,693	3,768,971
Other comprehensive income:
Revaluation gains on property, plant and equipment, gross of tax		1,486,748	-
Deferred tax on revaluation gains on property, plant and equipment		(206,937)	-
Other comprehensive income, net of tax		1,279,811	-
Total comprehensive income for the year, all attributable to equity holders of the Company		5,935,504	3,768,971
Earnings per share
- Basic - continuing and total operations		4.76 cents	3.85 cents
- Fully diluted - continuing and total operations		4.76 cents	3.85 cents

Audited Consolidated Balance Sheet

		30 June 2011	30 June 2010
			(restated)
ASSETS		US$	US$
Current assets:
Cash and cash equivalents		2,140,144	1,295,762
Trade and other receivables		1,240,913	552,337
Total current assets		3,381,057	1,848,099
Non-current assets:
Property, plant and equipment		97,491,946	101,266,323
Total assets		100,873,003	103,114,422
LIABILITIES AND EQUITY
Current liabilities:
Trade and other payables		1,902,279	4,120,730
Provision for taxation		62,067	21,786
Loan and borrowings		9,472,823	8,670,050
Short term provisions		2,139,648	1,387,979
Total current liabilities		13,576,817	14,200,545
Non-current liabilities:
Trade and other payables		596,000	596,000
Loan and borrowings		38,722,308	46,507,343
Deferred tax liabilities		2,921,138	2,689,298
Total non-current liabilities		42,239,446	49,792,641
Capital and reserves:
Share capital		196,393	196,393
Share premium		21,696,406	21,696,406
Asset revaluation reserve		10,069,376	8,789,565
Retained earnings		13,094,565	8,438,872
Net equity		45,056,740	39,121,236
Total liabilities and equity		100,873,003	103,114,422

Audited Consolidated Statement of Cash Flows

	2011	2010
	US$	US$
Cash flows from operating activities:
Profit before income tax	5,058,614	4,399,727
Adjustments for:
Maintenance reserves provision	1,003,958	1,423,973
Depreciation expense	5,282,355	5,063,711
Interest expense	3,284,711	3,837,145
Interest income	(2,008)	(2,167)
Operating profit before working capital changes	14,627,630	14,722,389
Movements on :
Trade and other receivables	(688,576)	501,115
Trade and other payables	(2,468,093)	(256,522)
Short term provisions	(252,289)	(1,286,855)
Cash from operations	11,218,672	13,680,127
Interest paid	(3,035,069)	(3,575,124)
Interest received	2,008	2,167
Corporation tax paid	(337,738)	(535,313)
Net cash from operating activities	7,847,873	9,571,857
Cash flows used in investing activities:
Purchase of property, plant and equipment	(21,229)	-
Net cash used in investing activities	(21,229)	-
Cash flows used in financing activities:
Net proceeds from issuance of ordinary shares	-	36,262
Proceeds from borrowings	2,000,000	-
Repayment of borrowings	(8,982,262)	(9,733,589)
Net cash used in financing activities	(6,982,262)	(9,697,327)
Net increase/(decrease) in cash and cash equivalents	844,382	(125,470)
Cash and cash equivalents at beginning of financial year	1,295,762	1,421,232
Cash and cash equivalents at end of financial year	2,140,144	1,295,762

Notes :

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

2.          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 2011.

 

END

 

 

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