Last checked at 20 Dec 2017 07:16
AVATION PLC
("Avation" or "the Company")
AGM STATEMENT, INTERIM MANAGEMENT STATEMENT AND TRADING UPDATE
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company advises that the AGM being held today in Singapore will include a Chairman's address, Interim Management Statement and Trading Update.
Addressing the meeting today Mr Jeff Chatfield, Executive Chairman, provides the following commentary: "Fellow Shareholders, the purpose of this statement is to provide all investors with an update on current operations. This statement concerns the period from 1 July 2017 through to today.
"The business is on a growth trajectory. The financial results for the last financial year 2017 included lease revenues increasing 32% to $94.2 million and total profit before tax increasing 18% to $21.4 million year-on-year.
"On a pro-forma basis at 31 December 2017 our monthly lease rental run rate has reached $9.6m (unaudited) and for, the first time, we will have over $1 billion in assets. Avation sold six ATR 72 aircraft at the end of the 2016-2017 financial year and hence the first half of 2017-2018 does not have the benefit of revenue and profits from those aircraft. As a result of the recent acquisitions of new aircraft, we anticipate growth in reported second half 2017-2018 revenues. We expect to publish the first half financial results on 26 February 2018.
"As at 31 Dec 2017, on a pro-forma basis:
- the fleet stands at 37 aircraft;
- assets exceed $1 billion;
- a weighted average fleet age of 2.9 years; and
- the weighted average lease duration is 7.9 years.
"Avation is now a full-service aircraft lessor providing regional, narrowbody and twin aisle aircraft. We have evolved over the last six years from originally being a jet lessor to also leasing out regional turbo-prop aircraft. We have recently expanded our offering to include large twin-aisle aircraft. The rationale for including a small number of twin-aisle aircraft in the fleet is to match the mix of equipment commonly used by airline operators. Airlines operate in some or all segments of regional, narrow body and twin aisle aircraft. Therefore, it is natural for an aircraft lessor to have a broad product offering that matches the real world of business opportunity.
"We welcome Ernst and Young as the new auditor of the Company. We would also like to thank Kingston Smith for their excellent service over the years since the Company's incorporation in 2006.
"The Board observes that Avation's ordinary shares are presently trading at a discount to the net asset value. The Company will endeavour to narrow this discount by utilising capital management techniques when conditions permit. We would like to thank our shareholders for their continuing support."
Important Note:
Please note that certain statements in this meeting, including certain answers to questions, are forward-looking statements including without limitation, statements regarding our future operations and performance, revenues, operating expenses, other income and expense items. These statements and any projection as to the Company's future performance represent management's estimates of future results and speak only as of today, 20 December 2017. These estimates involve risks and uncertainties that could cause actual results to differ materially from expectations. Further information on the factors and risks that may affect Avation's business is included in Avation's regulatory announcements from time to time, including its Annual Report and Half Year Results announcements. Avation assumes no obligation to update any forward-looking statements or information in light of new information or future events.
-ENDS-
Enquiries:
Avation:
Jeff Chatfield, Executive Chairman T: +65 6252 2077
Notes to Editors:
About AvationAvation PLC is a commercial passenger aircraft leasing company, headquartered in Singapore, owning and managing a fleet of jet and turboprop aircraft which it leases to airlines across the world. The Company's customers include Philippine Airlines, Air France, Air India, Condor, Flybe, Fiji Airways, Thomas Cook, Virgin Australia, Mandarin Airlines and Vietjet Air. More information on Avation is available at www.avation.net.