Last checked at 30 Sep 2008 07:00
Capital Lease Aviation Plc
("CLA" or "the Company")
Final Results for the Year Ended 30 June 2008
The Board of CLA, the AIM quoted aircraft leasing company, is pleased to announce its final audited results for the year ended 30 June 2008.
Highlights:
Revenues from aircraft rental activity £1,751,816 achieved mainly in Q4. The annualised base rental revenues for the aircraft on hand as at 30 June 2008 increased to £7.45m.
Group net post tax profits of £814,439
Total assets of £56,501,961
Acquisition of six aircraft valued at £55.9m since commencing an acquisition process in September 2007
EPS (fully diluted) 0.81 pence
Shares admitted to trading on AIM
The results were achieved in a difficult period of the aviation industry cycle and economic climate, particularly with the tightening of credit.
Commenting on this set of results, Jeff Chatfield, CLA Chairman, said:
"I am pleased to report the year ending 30 June 2008. The performance of the period was satisfactory with the group increasing its asset base to £56.5m and generating net profits after tax of £814,439 on revenues of £1,751,816. Our first year results indicate that the Company has commenced profitable operations. Profit levels are as expected given our limited history, especially as they were achieved with only a limited number of aircraft in the portfolio with the bulk of the revenues generated during the last quarter. The Company is well placed to continue to grow and acquire aircraft."
--ENDS--
Enquiries:
Capital Lease Aviation Plc 07783 942 553 Jeff Chatfield, Executive Chairman
Nominated Adviser James Joyce/David Porter, 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
Financial Public Relations
Bishopsgate Communications 0207 562 3350 Maxine Barnes, Nick Farmer
Websiteswww.capitalleaseaviation.com
PLEASE SEE BELOW FOR CHAIRMAN'S STATEMENT
Dear Shareholder,
I am pleased to report the year ending 30 June 2008. CLA's performance over the year was entirely satisfactory with the group increasing its asset base to £56.5m and generating net profits after tax of £814,439 on revenues of £1,751,816.
Our first year's results indicate that the Company has commenced profitable operations. Profit levels are entirely satisfactory given our limited history, especially as they were achieved with only a limited number of aircraft in the portfolio with the bulk of the revenues generated during the last quarter. The Company is well placed to continue to grow and acquire aircraft. The annualised base rental revenues for the aircraft on hand as at 30 June 2008 increased to £7.45m.
The fleet currently comprises three F100s, two A321-200s and one A320. CLA is looking to acquire additional aircraft and the current turmoil in the aviation industry may provide it with the opportunity to acquire aircraft at attractive valuations relative to previous periods. The Board believes that aircraft at reduced prices could be available as some over-leveraged leasing companies and / or airlines seek to dispose of aircraft or require last minute financing. The Company is therefore preparing to expand and build on what we believe is an impressive start.
The Company will focus on acquiring the latest generation narrow body aircraft such as the A320 series and B737 family of aircraft. This focus is one the key performance indicators for the group, in this respect the recent acquisition of 3 Airbus A320 series aircraft is satisfactory. A second key performance indicator is geographic diversification of the overall fleet, the geographic diversification of the fleet is that one aircraft is in the United States, two are deployed in Europe and three are in Australia.
The Company strives to debt fund the aircraft at fixed interest rates for periods of time that match the lease term of the aircraft - a key differential from several lessors.
The Company has had the support of two European banks, which have provided debt funding for its fleet of aircraft on an ad-hoc basis as and when acquisition candidates have been identified. The Company may seek to lock in additional funding, including equity funding, in advance of identifying target aircraft. The Company has secured the bulk of its debt funding at a cost of around 6% over fixed terms which approach the terms of lease of its aircraft. While the Company believes that it can obtain access to further funding for the purchase of aircraft, access to capital nevertheless remains a risk. Other risks include the costs of capital, industry specific risks associated with the aviation industry and the credit worthiness of client airlines. CLA seeks to manage these risks by diversifying its client base.
In due course an annual report and notice of meeting for the Annual General Meeting will be sent out to shareholders and will be available on the company website at www.capitalleaseaviation.com.
Jeff Chatfield
Perth Australia September 29, 2008
Financial Statements
Audited Consolidated Group Income Statement
| Year ended | Month ended | |
| 30 June 2008 | 30 June 2007 | |
| In Great Britain Pounds | ||
| Continuing operations and acquisitions | ||
| Revenue | 1,751,816 | - |
| Cost of sales | - | - |
| Gross profit | 1,751,816 | - |
| Other operating income | 407,093 | - |
| Administrative expenses | (526,747) | (12) |
| Other operating expenses | (389,958) | - |
| Finance expense | (130,847) | - |
| Profit/(loss) before taxation | 1,111,357 | (12) |
| Taxation | (296,918) | - |
| Profit/(loss) after tax for continuing operations | 814,439 | (12) |
| Profit/(loss) for the period from continuing operations | 814,439 | (12) |
| Attributable to the shareholders | 814,439 | (12) |
| Earnings per share | ||
| -Basic | 0.84 pence | (0.02) pence |
| -Diluted | 0.81 pence | (0.02) pence |
Audited Consolidated Group Balance Sheet
| As at June 2008 | As at June 2007 | |
| In Great Britain Pounds | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | 554,457 | 50,088 |
| Trade and other receivables | 76,460 | - |
| Total current assets | 630,917 | 50,088 |
| Non-current assets : | ||
| Property, plant and equipment | 55,871,044 | - |
| Total assets | 56,501,961 | 50,088 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Trade and other payables | 2,173,993 | - |
| Provision for income tax | 108,899 | - |
| Loan and borrowings | 4,931,395 | - |
| Short term provisions | 110,308 | - |
| Deferred income | 131,167 | - |
| Total current liabilities | 7,455,762 | - |
| Non-current liabilities: | ||
| Loan and borrowings | 31,952,517 | - |
| Deferred tax liabilities | 875,641 | - |
| Total non-current liabilities | 32,828,158 | - |
| Capital and reserves: | ||
| Share capital | 97,808 | 50,100 |
| Share premium | 10,743,621 | - |
| Assets revaluation reserve | 4,536,088 | - |
| Share option reserve | 24,968 | - |
| Foreign currency translation reserve | 1,129 | - |
| Retained earnings | 814,427 | (12) |
| Net equity | 16,218,041 | 50,088 |
| Total liabilities and equity | 56,501,961 | 50,088 |
Audited Consolidated Group Cash Flow Statements
| Year ended 30 June 2008 | Year ended 30 June 2007 | |
| In Great Britain Pounds | ||
| Cash flows from operating activities: | ||
| Total profit (loss) | 814,439 | (12) |
| Adjustment for: | ||
| Income tax | 296,918 | - |
| Share option expense | 24,968 | - |
| Depreciation expense | 389,958 | - |
| Interest expense | 130,847 | - |
| Interest income | (311,349) | - |
| Operating profit before working capital changes | 1,345,781 | (12) |
| Trade and other receivables | (76,460) | |
| Trade and other payables | 2,173,993 | |
| Short term provisions | 110,308 | |
| Deferred income | 131,167 |
|
| Cash from operations | 3,684,789 | (12) |
|
| ||
| Interest paid | (130,847) | - |
| Interest received | 311,349 | - |
| Corporation tax paid | - | - |
| Net cash from operating activities | 3,865,291 | (12) |
| Cash flows from investing activities | ||
| Purchase of property, plant and equipment | (50,973,873) | - |
| Net cash used in investing activities | (50,973,873) | - |
| Cash flows from financing activities | ||
| Net proceeds from issuance of ordinary shares | 10,791,329 | 50,100 |
| Proceeds from borrowings | 37,490,014 | - |
| Repayment of borrowings | (606,102) | - |
| Net cash from financing activities | 47,675,241 | 50,100 |
| Net effect of exchange rate changes in consolidating subsidiaries | (62,290) | - |
| Net increase in cash | 504,369 | 50,088 |
| Cash and cash equivalent at beginning of financial year | 50,088 | - |
| Cash and cash equivalent at end of financial year | 554,457 | 50,088 |
Notes:
The results for the period are derived from continuing activities.
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 2008