Capital Lease Regulatory News (CLA)

Via RNS AIM: CLA

Capital Lease Aviation Plc

("CLA" or "the Company")

UNAUDITED HALF YEAR RESULTS - 31 DECEMBER 2010

Highlights:

·     CLA Group total assets of US $103,432,154;

·     Group Net post-tax profits increased by 18.7% to US $2,156,246;

·     Net assets increased by 10.5% to US $41,518,952;

·     EPS (fully diluted) increased to 2.20 cents;

·     NTA per share increased 42 cents.

The unaudited results for the Group's half year ended 31 December 2010 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US $" are as follows:

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: 0.63905 for Income Statement items and 1:0.6465 for Statement of Financial Position items.

Directors' Review of Operations and Strategy

The Group results for the six month period were in line with expectations and the directors are pleased to report a substantial 18.7% increase in profits.  These increased profits of US $2,156,246 were delivered on marginally higher revenues and substantially decreased costs, mostly from lower finance costs.

The final tranche of the Group's expensive mezzanine finance facilities was refinanced during the period which will make further cost savings going forward. A loan facility of US $2,000,000 was refinanced and drawn down to replace a higher cost AUD 2,089,967 guarantee facility which was originally arranged to complete the purchase of two Airbus A321s and one Airbus A320 aircraft in June 2008. This refinancing was particularly pleasing given the market tensions in obtaining debt finance.  

The Group repaid US $4.3m of debt during the period and Company's financial position has been strengthened with Net Assets at US $41.5m, up by US $3.9m compared to the comparative period last year.

The aircraft fleet currently comprises two Airbus A321-200's, three Fokker F100 jets and one Airbus A320. All are currently leased to quality airlines with lease expiries ranging from September 2012 to March 2015. 

Given the activity of some large lessor entrants in the market place during the period, pricing on transactions has been competitive which has detracted from the economics of potential transactions. As this 'new entrant' activity returns to a more normal level, and while airline industry parameters continue to improve, we aim to complete further transactions to expand our portfolio of aircraft. 

The Company's preferred asset targets are the Airbus A320 series and Boeing 737 family of new generation aircraft as we believe these pose the lowest risk given their liquidity, appeal to operators, and ability to remarket.

The risks to the business include typical aviation related risks, 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 will limit our fleet expansion opportunities and therefore growth.

Richard Sinclair

Chief Executive Officer

On behalf of the Board of Directors of Capital Lease Aviation PLC

--ENDS-

Enquiries:

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

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

Company Stockbroker

W H Ireland Limited                                                                                0207 220 1670

Share Register

Computershare Investor Services Plc                                                0870 702 0003

Website
www.capitalleaseaviation.com 

CAPITAL LEASE AVIATION PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD 1 JULY 2010 TO 31 DECEMBER 2010

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2010

CAPITAL LEASE AVIATION PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD 1 JULY 2010 TO 31 DECEMBER 2010

Approved by the board of Capital Lease Aviation PLC on 14 February 2011.

The above financial information has been extracted from the management accounts and has not been audited.

These interim statements have been prepared on a basis consistent with International Financial Reporting Standards (IFRS) except that IAS34 "Interim Financial Reporting" which is not mandatory for AIM companies, has not been adopted in the preparation of this statement.