Last checked at 9 Sep 2013 07:00
Capital Lease Aviation PLC
("CLA" or "the Company")
Unaudited Preliminary Results Announcement for the Year Ended 30 June 2013
CLA, the aircraft lessor is pleased to announce its preliminary results for the Company for the year ending 30 June 2013.
Highlights:
· Revenue from continuing operations of US$10,835,000;
· Group Net post-tax profits up 14 per cent to US$4,041,666;
· CLA Group total assets of US$97,668,841;
· Net assets of US$45,068,658; and
· EPS (fully diluted) from continuing operations of 4.13 cents.
Jeff Chatfield, Chairman, said "It is pleasing that CLA has an enhanced growth profile with both growth in aircraft fleet and profits. A conservative strategy is leading to consistent asset growth."
The unaudited preliminary results for the Group's full financial year ended 30 June 2013 (pursuant to International Financial Reporting Standards "IFRS") and reported in United States Dollars "US$" are as follows:
Consolidated 12 months ended 30 June 2013 |
US$ | GBP Equivalent (1) |
Revenue from continuing operations | 10,835,000 | 6,910,780 |
Group Net post tax profits | 4,041,666 | 2,577,855 |
Total assets | 97,668,841 | 64,187,962 |
Net Assets | 45,068,658 | 29,619,122 |
EPS (fully diluted) from continuing operations | 4.13 cents | 2.63 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: 0.63782 for Income Statement items and 1: 0.6572 for Balance Sheet items.
Chairman's Statement
For the Year ended 30 June 2013
We are pleased to report that your Group has delivered a year of stable earnings and is in a sound and liquid financial position for the year ended 30th June 2013. The Directors are pleased to report favourable profit results. Consolidated net profit after tax from continuing operations was US$4,041,666 with earnings per share of 4.13 cents, an increase of 14 per cent compared with the previous year.
In the last year, CLA fully repaid the loan for an Airbus A320 which is on lease to US Airways and as a consequence, the asset has provided an increased and significant cash contribution to the Company. The financial position of the group has improved in the past year with a cash position at the end of the year of US$ 5.7m vs. US$ 2.8m in 2012.
For the first time in several years, CLA has selected and acquired an aircraft, an Airbus A321 on lease to Condor operated in Germany, and as a result total assets have increased by 20.5 per cent to US$ 97.7m. Consequential to the aircraft purchase net debt increased by 33.6 per cent to US$ 45.4m.
Total Equity in the company has increased to US$ 45.1m, an increase of 5.6 per cent - the current Gearing Ratio of the company is now 50.2 per cent which in the director's view is in line with market practices.
The Company is diligently pursuing new aircraft acquisitions and is in active discussions with our current lessees to extend the current leases. In the coming years, it is possible that the refinancing of some of our assets may allow CLA to increase the Gearing Ratio and therefore use the cash released to allow for further aircraft acquisitions.
The risks in the business include the typical airline industry related risks along with the financial risks associated with leveraged business. The strategy determined by the board of the Company results in the conservative and judicious use of retained earnings and free cash flow, along with gearing, to acquire selected aircraft and lease them to commercial airlines.
The Directors would like to take this opportunity to thank all our shareholders for your continued support and look forward to creating more value for you as we continue to develop our aircraft leasing and investment business.
Robert Jeffries Chatfield
Chairman
Singapore, 6 September 2013
Enquiries:
Capital Lease Aviation Plc +65 97354151Jeff Chatfield, Executive Chairman
Nominated AdviserJames Joyce, W H Ireland Limited 0207 220 1666
Company Stockbroker
W H Ireland Limited 0207 220 1690
Blythe Weigh Communications 020 7138 3204
Paul Weigh
Website www.capitalleaseaviation.com
Unaudited Consolidated Statement of Comprehensive Income
30 June 2013 | 30 June 2012 | ||
US$ | US$ | ||
Continuing operations | |||
Revenue | 10,835,000 | 11,344,315 | |
Other income | 12,375 | 2,024 | |
Other operating expenses | (3,469,953) | (4,205,934) | |
Expenses | |||
- Administrative expenses | (1,218,831) | (903,928) | |
- Finance expense | (2,076,857) | (2,406,648) | |
Profit before taxation | 4,081,734 | 3,829,829 | |
Taxation | (40,068) | (294,928) | |
Profit after tax from continuing operations | 4,041,666 | 3,534,901 | |
Discontinued operations | |||
Loss from discontinued operations | - | (644,792) | |
Total profit | 4,041,666 | 2,890,109 | |
Other comprehensive income: | |||
Items that will not be reclassified to profit or loss: | |||
Loss on revaluation of property, plant and equipment, net of tax | (1,659,846) | (4,569,607) | |
(1,659,846) | (4,569,607) | ||
Items that may be reclassified subsequently to profit or loss: | |||
Foreign currency translation gain (loss) | 603 | (1,007) | |
603 | (1,007) | ||
Other comprehensive income, net of tax | (1,659,243) | (4,570,614) | |
Total comprehensive income for the year, all attributable to equity holders of the Company | 2,382,423 | (1,680,505) | |
Earnings per share | |||
- Basic - continuing operations | 4.13 cents | 3.61 cents | |
- Fully diluted - continuing operations | 4.13 cents | 3.61 cents | |
- Basic - discontinued operations | - | (0.66) cents | |
- Fully diluted - discontinued operations | - | (0.66) cents | |
Unaudited Consolidated Statement of Financial Position
30 June 2013 | 30 June 2012 | ||
US$ | US$ | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 5,717,013 | 2,808,570 | |
Trade and other receivables | 698,852 | 4,280,521 | |
Total current assets | 6,415,865 | 7,089,091 | |
Non-current assets: | |||
Property, plant and equipment | 91,252,976 | 73,933,444 | |
Total non-current assets | 91,252,976 | 73,933,444 | |
Total assets | 97,668,841 | 81,022,535 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Trade and other payables | 6,651,059 | 1,706,284 | |
Provision for taxation | 101,346 | 148,117 | |
Loans and borrowing | 7,077,245 | 7,363,089 | |
Total current liabilities | 13,829,650 | 9,217,490 | |
Non-current liabilities: | |||
Loan and borrowings | 37,346,434 | 27,679,206 | |
Deferred tax liabilities | 1,424,099 | 1,439,604 | |
Total non-current liabilities | 38,770,533 | 29,118,810 | |
Capital and reserves: | |||
Share capital | 196,393 | 196,393 | |
Share premium | 21,696,406 | 21,696,406 | |
Asset revaluation reserve | 3,839,923 | 5,499,769 | |
Foreign currency translation reserve | (404) | (1,007) | |
Retained earnings | 19,336,340 | 15,294,674 | |
Net equity | 45,068,658 | 42,686,235 | |
Total liabilities and equity | 97,668,841 | 81,022,535 | |
Unaudited Consolidated Statement of Cash Flows
2013 | 2012 | |
US$ | US$ | |
Cash flows from operating activities: | ||
Profit before taxation from continued operations | 4,081,734 | 3,829,829 |
Loss before taxation from discontinued operations | - | (212,481) |
Profit before taxation, total | 4,081,734 | 3,617,348 |
Adjustments for: | ||
Maintenance reserves provision | - | 1,012,301 |
Depreciation expense | 3,425,178 | 5,249,825 |
Interest expense | 2,076,857 | 2,785,429 |
Interest income | (12,375) | (2,853) |
Impairment loss on disposal of property, plant and equipment | - | 1,569,532 |
Loss on disposal of a subsidiary | - | 627,565 |
Unrealised foreign exchange differences | 603 | (1,007) |
Operating profit before working capital changes | 9,571,997 | 14,858,140 |
Movements on : | ||
Trade and other receivables | 2,282,991 | (3,579,421) |
Trade and other payables | 387,352 | 2,346,672 |
Short term provisions | - | (599,345) |
Cash from operations | 12,242,340 | 13,026,046 |
Interest paid | (1,829,434) | (2,609,718) |
Interest received | 12,375 | 2,853 |
Corporation tax paid | (109,376) | (133,946) |
Net cash from operating activities | 10,315,905 | 10,285,235 |
Cash flows used in investing activities: | ||
Cash inflow (outflow) from disposal of a subsidiary - See Note A | 1,125,032 | (199,839) |
Purchase of property, plant and equipment | (22,479,404) | - |
Net cash used in investing activities | (21,354,372) | (199,839) |
Cash flows used in financing activities: | ||
Dividend paid | (690,000) | - |
Proceeds from borrowings | 22,000,000 | - |
Repayment of borrowings | (7,363,090) | (9,416,970) |
Net cash from (used in) financing activities | 13,946,910 | (9,416,970) |
Net increase in cash and cash equivalents | 2,908,443 | 668,426 |
Cash and cash equivalents at beginning of financial year | 2,808,570 | 2,140,144 |
Cash and cash equivalents at end of financial year | 5,717,013 | 2,808,570 |
Unaudited Consolidated Statement of Cash Flows (con't)
Note A - Disposal of a subsidiary, Capital Lease Australian Portfolio One Pty. Ltd.:
The aggregate cash inflows arising from the disposal of Capital Lease Australian Portfolio One Pty Ltd during the previous year 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, received during the year ended 30 June 2013 | 1,125,032 |
|
Note :
1. The unaudited 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 2013.