Last checked at 11 Oct 2012 12:15
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 30th 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 30th 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 29th June the Company will pay an interim dividend for the year of US$690,000 (equating to GBP 0.45 pence per share gross). No further dividend is proposed and the total dividend for the year is 0.45 pence per share.
The key performance objectives for the Group for this period were to strengthen our financial position, manage our long-term lease risks, remain profitable and reduce overall debt. The Directors are pleased to advise that we have been successful in achieving these goals. A new managing director has been appointed with a view to expand the Group's business in a profitable and capital efficient manner.
The Company's strategy remains to expand its portfolio of newer aircraft when transactions with appropriate returns considering associated risks can be achieved. The Company requires a combination of debt and equity to fund most transactions despite our continued strong banking relationships; it remains a risk that such funding may be difficult or costly to raise in the future. Other risks to the Company include credit and general risk relating to the aviation industry.
I would like to take this opportunity to thank all our shareholders for your ongoing support and look forward to creating more value for you as we continue to develop our aircraft leasing and investment business.
The Company's Report and Accounts are being sent to shareholders and a copy will be available on the Company's website at www.capitalleaseaviation.com.
Jeff Chatfield
Chairman
Singapore, 11 October 2012
--END--
Enquiries:
Capital Lease Aviation Plc +65 97354151Jeff Chatfield, Executive Chairman
Nominated Adviser - WH Ireland Limited 0207 220 1666James Joyce
James Bavister
Company Stockbroker
W H Ireland Limited 0207 220 1670
Websitewww.capitalleaseaviation.com
Audited Consolidated Statement of Comprehensive Income
30 June 2012 | 30 June 2011 | ||
(restated) | |||
US$ | 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.