Avation (AVAP)

Sector:

Commercial Transport

113.68p
   
  • Change Today:
    -0.32p
  • 52 Week High: 128.00
  • 52 Week Low: 100.00
  • Currency: UK Pounds
  • Shares Issued: 70.83m
  • Volume: 7,570
  • Market Cap: £80.53m

Avation sees solid growth in first half

By Josh White

Date: Friday 28 Feb 2020

LONDON (ShareCast) - (Sharecast News) - Commercial passenger aircraft leasing company Avation reported a 15% improvement in its revenue for the first half on Friday, to a record $67.6m (?52.66m).
The London-listed firm said its profit before tax was ahead 218% for the six months ended 31 December, at $45.2m, while its profit after tax rose 180% year-on-year to $38.2m.

Earnings per share were 178% higher at 60 US cents.

Avation said its net asset value per share grew by 15% to $4.29, and its board declared a dividend for the first half of 2.1 cents per share, which was 5% higher than the interim distribution in 2019.

On the operational front, the company noted the repossession of two aircraft from the defunct Thomas Cook, which it had transitioned to a new lessee.

Three new ATR 72-600 regional aircraft were acquired during the half-year, and the firm also completed finance leases and transferred two Fokker 100 aircraft to a lessee.

Leases were signed for five ATR 72-600 aircraft to be delivered to the Swedish regional airline Braathens by 30 June, with the company's total airline customers increasing to 18.

Avation also highlighted that the first ever commercial aircraft financed with a green loan was completed during the half-year, which was recognised by Airline Economics as the 'Deal of the Year for Innovation'.

"Avation posted record lease rental revenue and assets for the period ended 31 December," said executive chairman Jeff Chatfield.

"Most importantly the customer base continued to expand. In response to a proposal from an interested party the company appointed an adviser and announced a strategic review and formal sale process.

"Upon completion of the strategic review and formal sale process the board will consider the recommendations and provide further comment."

Chatfield noted that during the period, Avation repossessed two Airbus A321 aircraft from Thomas Cook and transitioned the aircraft to a new lessee.

"While the airline sector performed profitably as a whole, 2019 saw a record number of airline insolvencies.

"Avation's limited exposure to Thomas Cook and lack of exposure to other airline failures results from increased scale and diversification and the application of stringent investment criteria."

He also said that recognition of its purchase rights for ATR 72-600 aircraft in the financial statements highlighted the value of the previously-unrecorded asset, which generated a one-off unrealised gain of $37m.

"It is important to note that notwithstanding the impact of the recognition of purchase rights for ATR 72-600 aircraft, the leasing business continued to grow.

"The company's strong performance enabled the board to declare an interim dividend of 2.1 US cents per share for the period."

Chatfield said Avation was in a "strong" cash position, with four new aircraft expected to be added to the fleet through deliveries to Braathens and US Bangla between now and 30 June.

"The company believes it has sufficient liquidity to fund further fleet growth which will be sourced from the orderbook for ATR 72-600 aircraft and through aircraft acquisition."

At 1421 GMT, shares in Avation were up 1.52% at 259.9p.

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Avation Market Data

Currency UK Pounds
Share Price 113.68p
Change Today -0.32p
% Change -0.28 %
52 Week High 128.00
52 Week Low 100.00
Volume 7,570
Shares Issued 70.83m
Market Cap £80.53m

Avation Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
88.20% above the market average88.20% above the market average88.20% above the market average88.20% above the market average88.20% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
53.03% above the market average53.03% above the market average53.03% above the market average53.03% above the market average53.03% above the market average
6.67% above the sector average6.67% above the sector average6.67% above the sector average6.67% above the sector average6.67% above the sector average
Income Not Available
Growth
74.61% below the market average74.61% below the market average74.61% below the market average74.61% below the market average74.61% below the market average
87.5% below the sector average87.5% below the sector average87.5% below the sector average87.5% below the sector average87.5% below the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Avation Dividends

  Latest Previous
  Interim Final
Ex-Div 19-Dec-19 03-Oct-19
Paid 09-Jan-20 18-Oct-19
Amount 2.10¢ 8.50¢

Trades for 28-Mar-2024

Time Volume / Share Price
09:18 191 @ 112.00p
09:18 7,000 @ 113.40p
09:01 187 @ 112.00p
08:17 192 @ 112.00p

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