Avation revenues and profits lift off

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Avation revenues and profits lift off
Master Investor Magazine

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AIM-listed commercial passenger aircraft leasing firm Avation (LON:AVAP) said that net profits after tax for the year ended 30th June increased by 28%. Lease rental revenues for the period were up by 21% and the value of fleet assets rose by 22% as twelve new aircraft were added and two were sold.

Executive chairman Jeff Chatfield commented: “Avation posted record revenue, profit, EPS and fleet assets for the year ended 30 June 2019.

“The Company acquired twelve aircraft during the year and continued to diversify aircraft types and add new customers to reduce revenue concentration.

“Avation sold two narrowbody aircraft during the year, both of which were sold for more than 10% above book value. Narrowbody aircraft represent almost half of the fleet by value. This confirms that Avation’s fleet assets are liquid and supports management’s view that the group’s net realisable value per share exceeds the reported net asset value per share.

“The Company’s strong performance enabled the Board to declare a second dividend of 8.5 US cents per share for the year, which takes the full year dividend to a record 10.5 US cents per share including the initial interim dividend of 2 US cents per share paid in December 2018. This dividend payout results in a yield of 3.1%.

“Avation will continue to focus on growing the fleet and adding new airline customers in the coming financial year. The Company is currently assessing jet aircraft for acquisition, in addition to scheduled deliveries of new ATR 72 turboprop aircraft from our order book“.

Avation shares were priced at 297.70p (as of 13:20 BST).

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