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Avation PLC

Avation PLC - FINANCIAL RESULTS AND INTERIM MANAGEMENT REPORT

RNS Number : 2893F
Avation PLC
19 February 2015
 

RNS: AVAP

19 February 2015

 

AVATION PLC

(the "Company")

 

FINANCIAL RESULTS AND INTERIM MANAGEMENT REPORT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 

"Record number of new ATR 72 deliveries and significant reduction to cost of debt capital"

 

Avation PLC (LSE: AVAP) the commercial passenger aircraft leasing company is pleased to announce unaudited consolidated financial results for the six-month period ended 31 December 2014.

 

Highlights for the period are as follows:

 

•     Revenue increased by 13% to US$27.7m compared with US$24.6m in the six months ended 31 December 2013;

•     Avation generated earnings per share of 11.4 U.S. cents;

•     The fleet increased to 29 aircraft (as at the date of this report), with five new ATR 72-600 aircraft delivered in the six month period ended 31 December 2014;

•     The average cost of debt capital across the group further reduced to 4.6% (31 December 2013: 5.5%); and

•     Avation established a medium term business pipeline and exercised options to place a firm order for five additional ATR 72-600 aircraft for delivery in 2016.

 

Avation expects to continue fleet growth with a minimum of 13 new aircraft scheduled to be delivered by the end of 2016. These aircraft represent an investment equivalent to approximately 61% of total assets as at 31 December 2014.

 

Commenting today, Avation PLC Chairman, Jeff Chatfield said:  

 

"The Directors are pleased with the growth in Avation's core leasing business driven by a rapid rate of deliveries of new aircraft in the period. This growth has also seen the introduction of new airline customers that has further diversified the company's sources of revenue.

 

"The latest half-year period also saw the announcement of a sale and leaseback with Thomas Cook for two new Airbus A321 aircraft delivering in early 2016.  This is the company's first sale and leaseback transaction of brand new aircraft."

 

"Avation also secured long term fleet growth by firming five delivery options for ATR72 aircraft for delivery in 2016. This takes the number of firm aircraft scheduled to be delivered between now and the end of 2016 to 13 aircraft. In addition to this Avation has 22 further options for future deliveries for ATR 72 aircraft for delivery from 2017 onwards."

 

"Growth in core leasing revenue and total fleet assets will through the execution of these contracted deliveries of aircraft. The Board is confident that this increase in the scale of the business combined with the significant reduction in average cost of debt across the fleet will continue to provide sustainable growth and drive future earnings."

 

Further information on Avation PLC can be seen at: www.avation.net. Avation PLC is registered in England and Wales with its operational headquarters in Singapore.

 

Enquiries:

 

Avation Plc - Jeff Chatfield, Executive Chairman                                                                          +65 97354151

 

WH Ireland - Harry Ansell / James Joyce                                                                                        +44 207 220 1666

 

Blytheweigh- Tim Blythe / Alex Shilov / Andrea Benton                                                               +44 207 138 3204


 

Statement and Interim Management Report

by the Executive Chairman, Jeff Chatfield:

 

 

Dear Fellow Shareholder,

 

Introduction

Your Board is pleased to report that during the six month period ended 31st December 2014 the group generated consolidated profit after tax of US$6,289,523 and earnings per share of 11.4 cents on increased revenues of US$27,677,505. As at 31 December 2014, total assets increased to US$503,207,871. Corresponding liabilities increased to US$381,549,170 resulting in net assets and total equity of US$121,658,701.

 

The Company enjoyed a 13% increase in revenue to US$27,677,505 ($24,560,737 in the comparable prior period). This revenue increase is consistent with expectations and is a consequence of the continued expansion in the aircraft fleet.

 

 

Fleet Development

The Company's aircraft fleet currently comprises 29 aircraft which generates a gross rental yield of approximately 13 per cent, calculated from the book value as at 31 December 2014.  The Company has a customer base of airlines in Europe and Asia/Pacific. Avation understands that it is the now the second largest lessor of turbo-prop aircraft in Asia/Pacific.

 

The fleet is comprised of a diverse range of commercial passenger aircraft, including ATR 72 turbo-prop and Airbus A320, Airbus A321 and Fokker 100 jet aircraft.

 

The Company took a significant step forward during the period by securing the sale and leaseback of two new Airbus A321 jet aircraft with Thomas Cook, with delivery of these aircraft scheduled for early 2016. Sale and leaseback is one of the key acquisition opportunities for new aircraft for an aircraft lessor such as Avation. The ATR 72 turbo-prop fleet will continue to grow, with five additional ATR 72 aircraft scheduled for delivery by December 2015 and a further six aircraft in 2016.

 

Funding

There has been a significant reduction to the weighted average cost of capital which 4.6% as at 31 December 2014 (31 December 2013: 5.5%) on debt funding for the fleet, which remains the largest cash operating expense. During the reporting period the Group secured a $31m re-finance on two existing Airbus A321 aircraft, a transaction that demonstrates the ability of the Group to re-finance core assets and release equity from the balance sheet to fund growth. Access to funding nevertheless remains a risk, which is common to all leveraged and capital intensive businesses. Avation also remains subject to specific aviation based industry risks including the credit worthiness of client airlines.

 

Dividend

As announced at the Annual General Meeting held on 24 November 2014 the Company previously paid a final dividend of 2.01 cents per share on 12 January 2015.

 

Outlook

The Board of Directors is strongly committed to further developing the Avation business and remains confident that it can achieve continued and sustainable growth throughout 2015 and 2016 through the contracted deliveries of new aircraft. The Directors anticipate additional growth in lease revenues arising from future aircraft acquisitions. As at the date of this report the Company has firm orders for 11 new ATR 72 and two new Airbus A321 aircraft and holds further options and purchase rights for an additional 22 ATR 72 aircraft.

 

 

 

Jeff Chatfield,

Executive Chairman

18 February 2015

 


AVATION PLC

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(UNAUDITED)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014


Note

31 December

2014

31 December

2013



US$

US$

Continuing operations




Revenue

4

27,677,505

24,560,737





Cost of sales










Gross profit


27,677,505

24,560,737





Other income

5

609,327

1,652,852





Other operating expenses

6

(9,062,666)

(7,536,993)





Expenses




- Administrative expenses


(3,358,468)

(2,563,604)

- Finance expense

7

(8,887,207)

(8,218,514)









Profit before taxation


6,978,491

7,894,478





Taxation


(688,968)

(1,718,829)









Profit for the financial year


6,289,523

6,175,649





Other comprehensive income:








Items that may be reclassified subsequently to profit or loss:




Currency translation differences arising on consolidation


(12,600)

(48)

















Other comprehensive income, net of tax


(12,600)

(48)









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


6,276,923

6,175,601





Profit attributable to:




Equity holders of the parent


6,028,142

5,625,607

Non-controlling interest


261,381

550,042











6,289,523

6,175,649





Total comprehensive income attributable to:




Equity holders of the parent


6,017,170

5,625,577

Non-controlling interest


259,753

550,024











6,276,923

6,175,601





Earnings per share












- Basic


11.39 cents

11.60 cents





- Fully diluted


11.39 cents

11.60 cents





 

 


AVATION PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

AS AT 31 DECEMBER 2014


Note

31 December 2014

30 June

2014



US$

US$

ASSETS




Current assets:




Cash and cash equivalents


21,938,621

23,394,739

Trade and other receivables


3,377,193

2,804,086

Prepayments


1,907,527

2,156,478

Inventories


2,840,000

-

Total current assets


30,063,341

28,355,303





Non-current assets:




Trade and other receivables


7,273,485

11,268,750

Loan receivables


13,400,000

-

Prepayments


6,832,448

6,295,123

Property, plant and equipment

8

443,254,589

367,325,131

Goodwill


2,384,008

2,384,008

Total non-current assets


473,144,530

387,273,012





Total assets


503,207,871

415,628,315





LIABILITIES AND EQUITY




Current liabilities:




Trade and other payables


6,601,609

6,141,301

Deferred lease income


380,831

273,110

Provision for taxation


1,389,294

1,098,664

Loans and borrowings


42,315,717

62,173,186

Short-term provisions


491,607

-

Total current liabilities


51,179,058

69,686,261





Non-current liabilities:




Trade and other payables


10,971,049

8,188,983

Deferred lease income


1,561,627

1,579,332

Loans and borrowings


311,157,264

218,984,900

Deferred tax liabilities


6,680,172

6,421,855

Total non-current liabilities


330,370,112

235,175,070





Equity attributable to shareholders:




Share capital

9

990,758

891,301

Treasury shares

9

(682,333)

(682,333)

Share premium


45,686,299

31,424,215

Assets revaluation reserve


10,158,496

10,158,496

Capital redemption reserve


11,564

11,564

Warrant reserve


90,004

-

Capital reserve


7,882,078

3,856,141

Foreign currency translation reserve


(9,826)

1,146

Retained earnings


55,355,778

50,446,477



119,482,818

96,107,007

Non-controlling interest


2,175,883

14,659,977

Total equity 


121,658,701

110,766,984





Total liabilities and equity


503,207,871

415,628,315

                                                                                                                                             

 


AVATION PLC

STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 


Share capital

Treasury shares

Share premium

Assets

Revaluation reserve

Capital

Redemption reserve

Warrant reserve

Capital reserve

Foreign currency

Translation reserve

Retained earnings

Total

Non-controlling Interest

Total equity


US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$














 

Balance at 1 July  2014

 

891,301

 

(682,333)

 

31,424,215

 

10,158,496

 

11,564

 

-

 

3,856,141

 

1,146

 

50,446,477

 

96,107,007

 

14,659,977

 

110,766,984














Profit for the year

-

-

-

-

-

-

-

6,028,142

6,028,142

261,381

6,289,523

Other comprehensive income

-

-

-

-

-

-

-

(10,972)

-

(10,972)

(1,628)

(12,600)

Total comprehensive income

-

-

-

-

-

-

(10,972)

6,028,142

6,017,170

259,753

6,276,923














Dividend related to 2014 paid

-

-

-

-

-

-

-

-

(1,118,841)

(1,118,841)

-

(1,118,841)

Treasury shares of a subsidiary

 

-

 

-

 

-

 

-

 

-

 

-

 

366,263

 

-

 

-

 

366,263

 

17,500

 

383,763

Increase in issued share capital

 

99,457

 

-

 

14,585,803

 

-

 

-

 

-

 

-

 

-

 

-

 

14,685,260

 

-

 

14,685,260

Share issue expenses

-

-

(323,719)

-

-


-

-

-

(323,719)

-

(323,719)

Warrant expense

-

-

-

-

-

90,004

-

-

-

90,004

-

90,004

Changes in ownership interest in a subsidiary - acquisition of non-controlling interest without a change in control

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,659,674

 

 

 

-

 

 

 

-

 

 

 

3,659,674

 

 

 

(12,761,347)

 

 

 

(9,101,673)

Balance at 31 December 2014

990,758

(682,333)

45,686,299

10,158,496

11,564

90,004

7,882,078

(9,826)

55,355,778

119,482,818

2,175,883

121,658,701

 

Balance at 1 July  2013

 

878,137

 

(214,498)

 

29,809,334

 

10,158,496

 

11,564

 

103,565

 

2,530,212

 

(251)

 

37,949,162

 

81,225,721

 

17,010,638

 

98,236,359














Profit for the year

-

-

-

-

-

-

-

5,625,607

5,625,607

550,042

6,175,649

Other comprehensive income

-

-

-

-

-

-

-

(30)

-

(30)

(18)

(48)

Total comprehensive income

-

-

-

-

-

-

(30)

5,625,607

5,625,577

550,024

6,175,601














Dividend related to 2013 paid

-

-

-

-

-

-

-

-

(866,621)

(866,621)

-

(866,621)

Purchase of treasury shares

-

(467,835)

-

-

-

-

-

-

-

(467,835)

-

(467,835)

Warrant expired

-

-

-

-

-

(103,565)

-

-

103,565

-

-

-














Balance at 31 December 2013

878,137

(682,333)

29,809,334

10,158,496

11,564

-

2,530,212

(281)

42,811,713

85,516,842

17,560,662

103,077,504


 

.


AVATION PLC

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 


31 December

2014

31 December 2013


US$

US$

Cash flows from operating activities:



Profit before taxation

6,978,491

7,894,478

Adjustments for:



Depreciation expense

8,489,141

7,466,753

Property, plant and equipment written off

12,238

Claim on maintenance reserve

70,240

Amortisation of loan premium

539,120

539,120

Amortisation of interest expense on deposit collected

162,894

Warrant expense

90,004

Interest expense

8,185,193

7,679,394

Finance income

(155,908)

Interest income

(72,713)

(11,003)

Operating profit before working capital changes

24,228,460

23,638,982

Movement in working capital:



Trade and other receivables and prepayments

6,444,664

(640,261)

Deferred lease income

(72,878)

Trade and other payables

2,524,968

6,443,812

Short-term provisions

491,607

(3,827,321)

Cash from operations

33,616,821

25,615,212

Interest paid

(7,311,879)

(7,321,594)

Interest received

72,713

11,003

Corporation tax paid

(140,021)

(788,451)

Net cash from operating activities

26,237,634

17,516,170




Cash flows from investing activities:



Loan receivables

(13,400,000)

Purchase of property, plant and equipment

(91,120,837)

(17,803,062)

Purchase of additional shares in a subsidiary from NCI

(842,648)

Repurchase of a subsidiary's treasury shares

(383,763)

Net cash used in investing activities

(105,747,248)

(17,803,062)




Cash flows from financing activities:



Net proceeds from issuance of ordinary shares

6,870,041

Dividends paid

(1,118,841)

(866,621)

Repurchase of treasury shares

(467,835)

Proceeds from loans and borrowings

88,490,242

16,602,575

Repayment of loans and borrowings

(16,175,347)

(11,474,086)

Capital element of finance lease repayments

(1,313,494)

Net cash from financing activities

78,066,095

2,480,539

Effects of exchange rates on cash and cash equivalents

(12,599)

(48)

Net (decrease) / increase in cash and cash equivalents

(1,456,118)

2,193,599

Cash and cash equivalents at beginning of financial year

23,394,739

19,623,244

Cash and cash equivalents at end of financial year

21,938,621

21,816,843



AVATION PLC

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 

 

 

The Interim Report for Avation PLC for the six months ended 31 December 2014 was approved by the Directors on 18 February 2015.

 

 

1          CORPORATE INFORMATION

 

Avation PLC (the Company) is a public limited company incorporated and domiciled in England and Wales under the Companies Act 2006 (Registration Number 05872328).

 

The principal activities of the Company and its subsidiaries are the holding of investments involved in owning, leasing aircraft and trading of broadcasting equipment and procurement business.  The Company also owns and leases aircraft in its own right.

 

 2         BASIS OF PREPARATION AND ACCOUNTING POLICIES

 

This Interim Report has been prepared in accordance with the Disclosure and Transparency Rules (DTR) of the Financial Services Authority and in accordance with International Accounting Standard (IAS) 34 'Interim Reporting'.

 

The Interim Report does not include all the notes of the type normally included within the annual report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financial and investing activities of the consolidated entity as the full financial report.

 

It is recommended that the Interim Report be read in conjunction with the annual report for the year ended 30 June 2014 and considered together with any public announcements made by Avation PLC during the six months ended 31 December 2014.

 

The accounting policies and methods of computation are the same as those adopted in the annual report for the year ended 30 June 2014. 

 

The preparation of the Interim Report requires management to make estimates and assumptions that affect the reported income and expense, assets and liabilities and disclosure of contingencies at the date of the interim Report, actual results may differ from these estimates.

 

The statutory financial statements of Avation PLC for the year ended 30 June 2014, which carried an unqualified audit report, have been delivered to the Registrar of Companies and did not contain section 498 of the Companies Act 2006.

 

The Interim Report is unaudited and not reviewed by the auditors.

 

The Interim Report does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006.



AVATION PLC

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 

3          SEGMENT INFORMATION

 

Management has determined the operating segments based on the reports reviewed by the Executive Chairman ("Chief Operating Decision Maker" or "CODM") that are used to make strategic decisions.

 

The CODM considers the business from a business segment perspective.  Management manages and monitors the business in the 2 primary business areas: aircraft leasing and business procurement.

 

 

a)          Segment reporting policy

 

A segment is a distinguishable component of the Group within a particular economic environment (geographical segment) and to a particular industry (business segment) which is subject to risks and rewards that are different from those of other segments.

 

The business segments, is based on the Group's management and internal reporting structure. In presenting information on the basis of business segments, segment revenue and segment assets are based on the nature of the products or services provided by the Group, information for geographical segments is based on the geographical areas where the customers are located.

 

Inter-segment pricing is determined on an arm's length basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly of corporate assets and liabilities or profit or losses items that are not directly attributable to a segment or those that cannot be allocated on a reasonable basis. Common expenses were allocated based on revenue from the Group.

 

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one year.

 

b)            Business segments

 

During the six months ended 31 December 2014, the Group was organised into two main business segments which are aircraft leasing and business procurement.

 

Other operations of the Group mainly comprise investment holding which does not constitute a separate reportable segment. There are no inter-segment transactions recorded during the financial period.

 

The business procurement segment does not meet the quantitative thresholds and is not separately disclosed.

 



AVATION PLC

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 

3          SEGMENT INFORMATION (CON'T)

 

c)          Geographical analysis

        


Europe

North America

Australia and Oceania

Asia

Total


US$

US$

US$

US$

US$

31 December 2014












Revenue

6,445,452

146,667

20,106,708

978,678

27,677,505







31 December 2014












Net book value - aircraft

95,181,843

-

293,638,704

54,255,791

443,076,338







Total assets

120,164,162

16,277,160

294,975,756

71,790,793

503,207,871







 


Europe

North America

Australia and Oceania

Asia

Total


US$

US$

US$

US$

US$

31 December 2013












Revenue

5,800,000

350,000

18,410,737

-

24,560,737







30 June 2014












Net book value - aircraft

79,215,923

6,841,366

281,207,642

-

367,264,931







Total assets

96,652,653

6,841,366

307,695,428

4,438,868

415,628,315













 

 



AVATION PLC

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 

 

4          REVENUE

 






31 December

2014

31 December

2013



US$

US$





Rental income


27,677,505

24,560,737













 

 

5          OTHER INCOME

 






31 December 2014

31 December 2013



US$

US$





Interest income


72,713

11,003

Foreign currency exchange adjustment gain


-

208,003

Finance income from the discounting of non-current deposits to present value


155,908

-

Profit from sale of property, plant and equipment


-

1,433,784

Others


380,706

62











609,327

1,652,852













 

 

6          OTHER OPERATING EXPENSES

 






31 December

2014

31 December

2013



US$

US$





Claim on maintenance reserve expense


-

70,240

Foreign currency exchange adjustment loss


573,525

-

Depreciation of property, plant and equipment


8,489,141

7,466,753











9,062,666

7,536,993













 



AVATION PLC

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 

7          FINANCE EXPENSES

 






31 December

2014

31 December

2013



US$

US$





Interest expense on borrowings


8,185,193

7,679,394

Amortisation of loan insurance premium


539,120

539,120

Notional interest on deposit collected


162,894

-











8,887,207

8,218,514













 

 

8          PROPERTY, PLANT AND EQUIPMENT

 


Furniture and equipment

Jet

Turbo Props

Total


US$

US$

US$

US$

31 December 2014





Cost or valuation:










At 1 July 2014

133,151

177,595,796

252,999,855

430,728,802

Additions

161,011

-  

90,959,826

91,120,837

Disposal/written off

(87,297)

-  

-  

(87,297)

Reclassification

-  

(13,477,625)

-  

(13,477,625)











At 31 December 2014

206,865

164,118,171

343,959,681

508,284,717











Representing:





At cost

206,865

-  

-  

206,865

At valuation

-  

164,118,171

343,959,681

508,077,852












206,865

164,118,171

343,959,681

508,284,717
















Accumulated depreciation and impairment:










At 1 July 2014

72,951

48,129,215

15,201,505

63,403,671

Depreciation charge

30,722

3,414,208

5,044,211

8,489,141

Disposal/written off

(75,059)

-  

-  

(75,059)

Reclassification

-  

(6,787,625)

-  

(6,787,625)











At 31 December 2014

28,614

44,755,798

20,245,716

65,030,128
















Net carrying amount:










At 1 July 2014

60,200

129,466,581

237,798,350

367,325,131











At 31 December 2014

178,251

119,362,373

323,713,965

443,254,589
















 



AVATION PLC

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 

8          PROPERTY, PLANT AND EQUIPMENT (CONT'D)

 


Furniture and equipment

Jet

Turbo Props

Total


US$

US$

US$

US$

30 June 2014





Cost or valuation:










At 1 July 2013

20,120

177,595,796

217,015,882

394,631,798

Additions

113,031

71,662,590

71,775,621

Disposal

(35,678,617)

(35,678,617)











At 30 June 2014

133,151

177,595,796

252,999,855

430,728,802











Representing:





At cost

133,151

-  

-  

133,151

At valuation

-  

177,595,796

252,999,855

430,595,651












133,151

177,595,796

252,999,855

430,728,802
















Accumulated depreciation and impairment:










At 1 July 2013

12,411

39,646,096

7,772,902

47,431,409

Depreciation charge

60,540

7,769,869

7,428,603

15,259,012

Impairment

-  

713,250

-  

713,250











At 30 June 2014

72,951

48,129,215

15,201,505

63,403,671
















Net carrying amount:










At 1 July 2013

7,709

137,949,700

209,242,980

347,200,389











At 30 June 2014

60,200

129,466,581

237,798,350

367,325,131
















 



AVATION PLC

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 

9          SHARE CAPITAL AND TREASURY SHARES

 

a)         Share capital

 


31 December 2014

30 June 2014


No of shares

US$

No of shares

US$






Allotted, called up and fully paid

Ordinary shares of 1 penny each





At 1 July

49,604,639

891,301

48,822,960

878,519

Issue of shares

6,059,088

99,457

781,679

12,782











At 31 December/30 June

55,663,727

990,758

49,604,639

891,301
















 

The holders of ordinary shares (except for treasury shares) are entitled to receive dividends as and when declared by the Company.  All ordinary shares carry one vote per share without restrictions.

 

a)   On 3 July 2014, the Company issued 3,000,000 ordinary shares of 1 penny each at 140 pence following a private placement exercise raising gross proceeds of £4.2 million (equivalent to US$7,193,760).

 

b)  On 24 September 2014, the Company issued 273,027 ordinary shares of 1 penny at each at 164 pence each as consideration for the acquisition of 2,184,216 ordinary shares in its subsidiary, Capital Lease Aviation PLC.

 

c)  On 20 November 2014, the Company issued 2,786,061 ordinary shares of 1 penny at each at 164 pence each as consideration for the acquisition of 21,065,334 ordinary shares in its subsidiary, Capital Lease Aviation PLC.

 

b)      Treasury shares

 


31 December 2014

30 June 2014


No of treasury

shares

US$

No of treasury shares

US$






At 1 July

450,000

682,333

150,000

214,498

Acquired during the period

-

-

300,000

467,835











At 31 December /30 June

450,000

682,333

450,000

682,333
















 

 

 



AVATION PLC

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

 

10         DIVIDENDS PAID

 



31 December 2014

31 December 2013



US$

US$





Declared/paid during the 6 months ended 31 December 2014








Dividends on ordinary shares




- Final exempt (one-tier) dividend for 2014:2.01 US cents (2013:1.78 US cents) per share


1,118,841

866,621













 

            No dividends have been declared subsequent to 31 December 2014.

 

 

11      CONTINGENT LIABILITIES

 

            There were no material changes in contingent liabilities since 30 June 2014.

 

 

12.       TRANSACTIONS WITH RELATED PARTIES

 

Significant related party transactions:

 






31 December 2014

31 December

2013



US$

US$





Entities controlled by key management personnel (including directors):




Interest income


2,383

5,140

Rental expense paid


(9,182)

-

Service fee paid


(36,000)

(4,830)

Interest expense paid


(223,332)

(326,294)









 

Ex-director of a subsidiary:




 

Interest expense paid


-

19,654

 





 

 

            The nature and contractual terms of key management compensation and inter-company transactions during the period are consistent with the disclosures in the Annual Report for the year ended 30 June 2014.

 

 

13        EVENTS AFTER THE BALANCE SHEET DATE

 

On 13 February 2015 the Company announced it had terminated the lease of one aircraft and entered into a conditional sale agreement to sell this and one other aircraft to be delivered in 2015 at prices consistent with current market values.

 



 

PRINCIPAL RISKS

 

The Group's risk management processes bring greater judgement to decision making as they allow management to make better, more informed and more consistent decisions based on a clear understanding of risks involved.  We regularly review the risk assessment and monitoring process as part of our commitment to continually improve the quality of decision-making across the Group.

 

The principal risks and uncertainties which may affect the Group in the second half of the financial year will include the typical risks associated with the aviation business, including but not limited to any downturn in the global aviation industry, fuel costs, finance costs, war and terrorism and the like which may affect our airline customers' ability to fulfil their lease obligations.

 

The business also relies on its ability to source finance on favourable terms.  Should this supply of finance contract, it would limit our fleet expansion and therefore growth.

 

 

GOING CONCERN

 

After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.  For this reason they continue to adopt the going concern basis in preparing the financial statements.  The financial risk management objectives and policies of the Group and the exposure of the Group to credit risk and liquidity risk are discussed in the annual report for the Group for the year ended 30 June 2014.

 

 

DIRECTORS

 

The directors of Avation PLC are listed in its Annual Report for the year ended 30 June 2014.  A list of the current directors is maintained on the Avation PLC website: www.avation.net.

 

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

           

The Directors confirm that, to the best of their knowledge, this condensed consolidated interim financial information have been prepared in accordance with IAS 34 as adopted by the European Union and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 namely

 

·      an indication of important events that have occurred during the first six months and their impact on the Interim Report, and a description required by the principal risks and uncertainties for the remaining six months of the financial year; and

 

·      material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.

 

 

 

By order of the Board

 

 

 

 

Jeff Chatfield

Executive Chairman

 

18 February 2015


This information is provided by RNS
The company news service from the London Stock Exchange
 
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