Last checked at 17 Feb 2014 07:00
Capital Lease Aviation Plc
('CLA' or 'the Company')
FINANCIAL RESULTS
HALF YEAR RESULTS - 31 DECEMBER 2013
And Interim Management Report
17 February 2013
Capital Lease Aviation Plc (LSE: CLA), the aircraft leasing company, today announces
unaudited financial statements for the Company and its subsidiaries for the six month period ended 31 December 2013.
Highlights:
· Two key aircraft leases extended to 2021;
· CLA Group total assets of US$96,025,245;
· Revenue of US$6,150,000;
· Group Net post-tax profits of US$1,228,918;
· Net assets of US$46,297,527;
· EPS (fully diluted) of 1.26 cents.
The results for the Group's half year ended 31 December 2013 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US$" are as follows:
Consolidated 6 months ended 31 Dec 2013 | US$ | GBP Equivalent (1) |
Revenue | 6,150,000 | 3,884,340 |
Group Net post tax profits | 1,228,918 | 776,185 |
Total assets | 96,025,245 | 58,229,709 |
Net Assets | 46,297,527 | 28,074,820 |
EPS (fully diluted) | 1.26 cents | 0.80 pence |
Jeff Chatfield, Executive Chairman, said: "The Company has continued to grow net assets and has secured long term lease extensions on two key aircraft assets. These achievements provide both short and long term financial support for the company strategy, which is to expand the asset portfolio by buying aircraft, when transactions with a balance of high returns and acceptable risk can be achieved."
Notes: For the convenience of international shareholders, an additional column is included to show an equivalent value in Pounds Sterling "GBP".
1. In this announcement, the applicable exchange rate between US$ and GBP was taken to be the average exchange rate of 1: 0.6316 for Income Statement items and 1: 0.6064 for Statement of Financial Position items.
Directors' Review of Operations and Strategy
Background and Outcome
The strategic targets for the management over the past six months were to strengthen our financial position, extend leases on key aircraft assets, confirm the long term sustainable business model, remain profitable, actively assess aircraft and pursue new aircraft acquisitions.
The period profit was in excess of US$1.2m for the period; earnings per share are 1.26 cents for the period. The financial position of the group remains strong and it has been able to maintain an adequate cash position of US$6.0m at the end of the period.
Key achievements in the period included:
- The leases of the two most valuable aircraft in the fleet were extended out to 2021;
- Operational, management and Board restructure;
- Adoption of a management information system that improves lease management capabilities.
The leases extensions to 2021 resulted in a slightly lower income yield from the aircraft however secured long term benefit for the Company. There were also non-recurring finance costs (legal fees) in the amount of US$114,810 associated with the addition of an aircraft to the fleet at the beginning of the period.
Outlook and Risks
To further develop CLA, we are taking a number of initiatives:
- Re-leveraging existing assets to free cash with a view to acquiring additional assets;
- Re-financing existing debt where the outcome is to lower the cost of capital;
- Prioritising repayment of junior debt to lower the cost of capital;
- Pursue individual and portfolio aircraft acquisitions in line with core strategy.
The risks remain the typical risks of the aircraft leasing industry along with the risks associated with obtaining finance and the residual value risk and impairment in aircraft assets.
I would like to take this opportunity to thank all the shareholders for their continued support and look forward to creating more value for CLA as we continue on our development path.
Jeff Chatfield
Executive Chairman
Singapore, 14 Feb 2013
Enquiries:
Capital Lease Aviation PLC Jeff Chatfield, Executive Chairman +65 9735 4151
Nominated AdviserJames Joyce, W H Ireland +44 207 220 1666
Company Stockbroker
W H Ireland +44 207 220 1670
Blythe Weigh Communications
Tim Blythe / Eleanor Parry +44 207 138 3204
www.cl-aviation.com
CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD 1 JULY 2013 TO 31 DECEMBER 2013
31 December | 31 December | |||
2013 | 2012 | |||
US$ | US$ | |||
Continuing operations | ||||
Revenue | 6,150,000 | 5,610,000 | ||
Gross profit | 6,150,000 | 5,610,000 | ||
Other income | 5,527 | 6,897 | ||
Other operating expenses | (2,248,226) | (1,881,591) | ||
Expenses: | ||||
- Administrative expenses | (1,065,547) | (484,800) | ||
- Finance expense | (1,535,427) | (1,067,463) | ||
Profit before taxation | 1,306,327 | 2,183,043 | ||
Taxation | (77,409) | (136,034) | ||
Profit after tax from continuing operations | 1,228,918 | 2,047,009 | ||
Profit for the period, all attributable to equity holders of the Company | 1,228,918 | 2,047,009 | ||
Other comprehensive income: Items that maybe reclassified subsequently to profit or loss: | ||||
Foreign currency translation (loss) gain | (49) | 3,858 | ||
Other comprehensive income, net of tax | (49) | 3,858 | ||
Total comprehensive income for the period, all attributable to equity of holders of the Company | 1,228,869 | 2,050,867 | ||
Earnings per share | ||||
Basic - continuing and total operations | 1.26 cents | 2.09 cents | ||
Fully diluted - continuing and total operations | 1.26 cents | 2.09 cents | ||
CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2013
31 December | 31 December | ||
2013 | 2012 | ||
US$ | US$ | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 5,994,980 | 6,258,216 | |
Trade and other receivables | 1,016,855 | 1,095,451 | |
Total current assets | 7,011,835 | 7,353,667 | |
Non-current assets: | |||
Plant and equipment | 89,013,410 | 72,077,895 | |
Total non-current assets | 89,013,410 | 72,077,895 | |
Total assets | 96,025,245 | 79,431,562 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Trade and other payables | 2,602,772 | 1,131,684 | |
Provision for taxation | 65,603 | 103,039 | |
Loans and borrowings | 11,715,805 | 6,599,452 | |
Total current liabilities | 14,384,180 | 7,834,175 | |
Non-current liabilities: | |||
Loans and borrowings | 33,837,703 | 25,256,752 | |
Deferred tax liabilities | 1,505,835 | 1,603,532 | |
Total non-current liabilities | 35,343,538 | 26,860,284 | |
Capital and reserves: | |||
Share capital | 196,393 | 196,393 | |
Share premium | 21,696,406 | 21,696,406 | |
Reserves | 3,839,470 | 5,502,621 | |
Retained earnings | 20,565,258 | 17,341,683 | |
Net equity | 46,297,527 | 44,737,103 | |
Total liabilities and equity | 96,025,245 | 79,431,562 | |
CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 JULY 2013 TO 31 DECEMBER 2013
31 December | 31 December | ||
2013 | 2012 | ||
US$ | US$ | ||
Cash flow from operating activities: | |||
Profit before tax | 1,306,327 | 2,183,043 | |
Adjustments for: | |||
Depreciation expense | 2,241,570 | 1,855,549 | |
Interest expense | 1,535,427 | 1,067,463 | |
Interest income | (5,527) | (6,897) | |
Operating profit before working capital changes | 5,077,797 | 5,099,158 | |
Movements on: | |||
Trade and other receivables | (318,003) | 3,185,070 | |
Trade and other payables | 811,276 | (756,531) | |
Cash from operations | 5,571,070 | 7,527,697 | |
Interest paid | (1,395,152) | (885,535) | |
Interest received | 5,527 | 6,897 | |
Corporation tax paid | (31,416) | (17,184) | |
Net cash from operating activities | 4,150,029 | 6,631,875 | |
Cash flows used in investing activity: | |||
Purchase of property plant and equipment | (2,004) | - | |
Net cash used in investing activity | (2,004) | - | |
Cash flows used in financing activity: | |||
Repayment of borrowings | (3,870,009) | (3,186,091) | |
Net cash used in financing activity | (3,870,009) | (3,186,091) | |
Effects of exchange rates on cash and cash equivalents | (49) | 3,862 | |
Net increase in cash and cash equivalents | 277,967 | 3,449,646 | |
Cash and cash equivalents at beginning of period | 5,717,013 | 2,808,570 | |
Cash and cash equivalents at end of period | 5,994,980 | 6,258,216 | |
Approved by the board of Capital Lease Aviation PLC on 13 February 2014.
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.