Last checked at 15 Feb 2012 07:00
AIM:CLA for release via RNS
Capital Lease Aviation PLC
("CLA" or the "Company")
HALF YEAR RESULTS - 31 DECEMBER 2011
Highlights:
·; Overall significant increase in net post-tax profits increased 9.8% to US$2.37m with net cash from operating activities generating US$5.04m;
·; Net Assets increased 14.2% to US$47.4m;
·; CLA Group total assets of US$99.02m;
·; Revenues increased 2% to US$8.1m;
·; EPS (fully diluted) increased 10% to 2.42 cents; and
·; NTA per share (fully diluted) increased to 48 cents.
The results for the Group's half year ended 31 December 2011 (pursuant to International Financial Reporting Standards "IFRS") and are presented in United States Dollars "USD" as follows:
Consolidated 6 months ended 31 Dec 2011 | USD | GBP Equivalent (1) |
Revenue | 8,116,215 | 5,098,606 |
Group Net post tax profits | 2,367,835 | 1,487,474 |
Total assets | 99,022,660 | 64,067,661 |
Net Assets | 47,424,451 | 30,683,620 |
EPS (fully diluted) | 2.42 cents | 1.52 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 USD and GBP was taken to be the average exchange rate of 1: 0.6282 for Income Statement items and 1:0.6470 for Statement of Financial Position items.
II. All $, US $ and USD represent the currency of the United States of America.
CHAIRMANS STATEMENT
For the Half Year ended 31 December 2011
Dear Fellow Shareholder,
We are pleased to report that your company has achieved another successful period of trading during the six month period ending on 31 December 2011. The results are in line with expectations, net profits have increased and therefore the earnings per share have increased to 2.42 cents with net tangible assets of 48 cents per share. Net cash generated from operating activities was in excess of $5 million for the six month period.
The net after-tax profit of $2.37m increased 9.8% due mainly to capital management initiatives aimed at reducing finance costs alongside lower levels of debt within the Group. Revenues were up 2% on the comparative period to $8.1m.
The Group repaid $4.6m of debt during the period and its financial position has been strengthened with net assets at $47.4m; up by $5.9m on the comparative period. As at the balance sheet date, aircraft loan facilities were at a conservative level of 44% of total assets.
Our fleet currently comprises three Fokker F100 jets, two Airbus A321-200's and one Airbus A320. All are currently leased to quality airlines with leases expiring from September 2012 to March 2015. 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 re-marketability.
In the opinion of the directors, during 2011, equity returns on factory new aircraft were not satisfactory given unfavourable pricing parameters brought about by new entrant leasing companies seeking to build their portfolio, often at any cost. The Group will continue to seek niche deals which generate sufficient returns compensating for the associated risks involved in such transactions.
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 associated risks which may affect airline customers' ability to fulfil their lease obligations.
The recent financial turmoil in Europe may limit bank funding capacity from that region so the Group will seek to utilise alternative funding options through partners in Asia and other regions. The overall availability of financing on favourable terms remains a risk to the growth of the business.
I would like to take this opportunity to thank all our shareholders for their continued support.
Jeff Chatfield
Chairman
On behalf of the Board of Directors of Capital Lease Aviation PLC
14 February 2012
--ENDS-
Enquiries:
Capital Lease Aviation Plc 07783 942 553Jeff Chatfield, Executive Chairman
Nominated AdviserJames Joyce, W H Ireland Limited 0207 220 1666
Company Stockbroker
W H Ireland Limited 0207 220 1670
Websitewww.capitalleaseaviation.com
CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD 1 JULY 2011 TO 31 DECEMBER 2011
31 December | 31 December | ||
2011 | 2010 | ||
US$ | US$ | ||
Continuing operations | |||
Revenue | 8,116,215 | 7,954,897 | |
Gross profit | 8,116,215 | 7,954,897 | |
Other income | 5,871 | 414 | |
Other operating expenses | (3,333,286) | (3,135,918) | |
Expenses: | |||
- Administrative expenses | (529,870) | (493,178) | |
- Finance expense | (1,448,113) | (1,815,765) | |
Profit before taxation | 2,810,817 | 2,510,450 | |
Taxation | (442,982) | (354,204) | |
Profit after tax from continuing operations | 2,367,935 | 2,156,246 | |
Profit for the period, all attributable to equity holders of the Company | 2,367,835 | 2,156,246 | |
Other comprehensive income: | |||
Currency translation differences arising on consolidation | (124) | - | |
Other comprehensive income, net of tax | (124) | - | |
Total comprehensive income for the period, all attributable to equity of holders of the Company | 2,367,711 | 2,156,246 | |
Earnings per share | |||
Basic - continuing and total operations | 2.42 cents | 2.20 cents | |
Fully diluted - continuing and total operations | 2.42 cents | 2.20 cents | |
CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2011
31 December | 31 December | ||
2011 | 2010 | ||
US$ | US$ | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 2,593,050 | 3,748,327 | |
Trade and other receivables | 1,628,068 | 884,963 | |
Total current assets | 4,221,118 | 4,633,290 | |
Non-current assets: | |||
Plant and equipment | 94,801,542 | 98,798,864 | |
Total non-current assets | 94,801,542 | 98,798,864 | |
Total assets | 99,022,660 | 103,432,154 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Trade and other payables | 1,424,505 | 3,990,482 | |
Provision for taxation | 463,452 | 212,916 | |
Loans and borrowings | 9,593,120 | 9,377,952 | |
Short term provisions | 2,551,655 | 1,807,664 | |
14,032,732 | 15,389,014 | ||
Non-current liabilities: | |||
Trade and other payables | 596,000 | 596,311 | |
Loans and borrowings | 34,019,089 | 43,483,392 | |
Deferred tax liabilities | 2,950,388 | 2,444,485 | |
Total non-current liabilities | 37,565,477 | 46,524,188 | |
Capital and reserves: | |||
Share capital | 196,393 | 196,393 | |
Share premium | 21,696,406 | 21,696,406 | |
Reserves | 10,069,252 | 9,031,035 | |
Retained earnings | 15,462,400 | 10,595,118 | |
Net equity | 47,424,451 | 41,518,952 | |
Total liabilities and equity | 99,022,660 | 103,432,154 | |
CAPITAL LEASE AVIATION PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 JULY 2011 TO 31 DECEMBER 2011
31 December | 31 December | ||
2011 | 2010 | ||
US$ | US$ | ||
Cash flow from operating activities: | |||
Profit before tax | 2,810,817 | 2,510,450 | |
Adjustments for: | |||
Maintenance reserves provisions | 642,882 | 548,458 | |
Depreciation expense | 2,690,404 | 2,488,687 | |
Interest expense | 1,448,113 | 1,690,932 | |
Interest income | (359) | (414) | |
Operating profit before working capital changes | 7,591,857 | 7,238,113 | |
Movements on: | |||
Trade and other receivables | (387,155) | (332,626) | |
Trade and other payables | (477,774) | (129,937) | |
Short term provisions | (230,875) | (128,773) | |
Cash from operations | 6,496,053 | 6,646,777 | |
Interest paid | (1,448,113) | (1,690,932) | |
Interest received | 359 | 414 | |
Corporation tax paid | (12,347) | (166,417) | |
Net cash from operating activities | 5,035,952 | 4,789,842 | |
Cash flows used in investing activities: | |||
Purchase of plant and equipment | - | (21,228) | |
Net cash used in investing activities | - | (21,228) | |
Cash flows used in financing activities: | |||
Proceeds from borrowings | - | 2,000,000 | |
Repayment of borrowings | (4,582,922) | (4,316,049) | |
Net cash used in financing activities | (4,582,922) | (2,316,049) | |
Effects of exchange rates on cash and cash equivalents | (124) | - | |
Net increase in cash and cash equivalents | 452,906 | 2,452,565 | |
Cash and cash equivalents at beginning of period | 2,140,144 | 1,295,762 | |
Cash and cash equivalents at end of period | 2,593,050 | 3,748,327 | |
Approved by the board of Capital Lease Aviation PLC on the 14th of February 2012.
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.