Avation plc
LSE : AVAP

March 10, 2008 03:27 ET

Avation PLC ('Avation' or the 'Company'): Consolidated Unaudited Results for the Six Months Ended 31 December 2007

LONDON, UNITED KINGDOM--(Marketwire - March 10, 2008) - Avation, the aircraft leasing company, presents its interim results for the six months to 31 December
2007.

HIGHLIGHTS

- A maiden interim dividend will be payable to shareholders on 10 April 2008 to shareholders of record as at 28th March 2008. The dividend has been fixed at 0.5p per ordinary share;

- Group operating revenues increased by 266% to GBP 2,164,417 (six months to 31 December 2006 : GBP 591,219);

- Profits attributable to shareholders increasing to GBP 6,445,624 (six months to 31 December 2006: GBP 174,169), this includes an extraordinary gain of GBP 5,500,181 recorded as a result of the successful listing on the AIM market of Capital lease Aviation PLC;

- Management remain modestly confident that there will be augmentations to both the revenue and profit figures for 2008 and looks forward to continue to deliver value for all shareholders over the coming years.

CHAIRMAN'S STATEMENT

I am pleased to present Avation's interim results for the six months ended 31 December 2007 (the 'Period'). The Company announces that the aircraft leasing business has resulted in improved Group operating results with ordinary Group revenues for the half year increasing to GBP 2,164,417 (2006: GBP 591,219).

The Group's net profit after income tax was recorded as GBP 6,622,291 compared to GBP 174,169 for the same period last year. A substantial proportion of the profit was attributable to gains related to the Capital Lease Aviation PLC spin off and listing on the Alternative Investment Market of the London Stock Exchange. Ongoing and sustainable operating revenues increased substantially which led to increased profits from continuing operations.

I am particularly pleased to be able to announce a maiden interim dividend payment of 0.5p per ordinary share. Shareholders will note that the Board has declared the details for this dividend to be payable on the 10th of April 2008 to shareholders on the share register at close of business on the 28th of March 2008.

The Company's results are presented and prepared in accordance with IFRS and are un-audited.

TRADING

From continuing operations the overwhelming contributor to profits are activities relating to the leasing of aircraft to various commercial airlines. The Company has acquired and owns four aircraft, three of which are leased to Skywest Airlines Pty Ltd. The timing of the acquisition of these aircraft could be most fortuitous, given that the market value of aircraft have risen significantly since the purchases together with a concomitant firming of the leasing market and an environment of aircraft shortages, especially in respect of narrow body aircraft such as those owned by your Company.

RISKS

There are, in addition to the multitude of normal commercial risks, specific and substantial risks extant in the aircraft leasing industry. Investors should be aware of such risks and their potential impact on operations.

I would like to take this opportunity of thanking you - the shareholders - for your continued support and encouragement and look forward to keeping you updated on the progress of our Company.

Jeff Chatfield, Executive Chairman



UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
In Great Britain Pounds

6 months ended 6 months ended
31 December 31 December
2007 2006


Revenue 2,164,417 591,219
Cost of sales (27,215) (280,364)

Gross profit 310,855
2,137,202

Other operating income 5,741,223 22

Selling, general and administrative
expenses (279,363) (62,702)

Other operating expenses - (1,429)

Earnings before depreciation/finance
cost 7,599,062 246,746

Depreciation (409,897) (503)

Interest expense (259,644) -

Earnings after depreciation/finance
cost 6,929,521 246,243

Income tax (307,230) (72,074)

Profit after income tax 6,622,291 174,169

Minority Interest (176,667) -

Profit attributable to shareholders
of the company 6,445,624 174,169

Earnings per share 27.55p 0.93p


UNAUDITED CONSOLIDATED BALANCE SHEET
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
In Great Britain Pounds

As at As at
31 Dec 2007 31 Dec 2006
ASSETS
Non-current assets
Property, plant and equipment 16,944,199 1,716
Intangible assets 1,324,541 1,344,889
Total non-current assets 18,268,740 1,346,605

Current assets
Cash 10,591,280 29,374
Trade and other receivables 884,150 409,535
Inventories 700 5,567
Total current assets 11,476,130 444,476

TOTAL ASSETS 29,744,870 1,791,081

EQUITY AND LIABILITIES
Equity
Share capital 243,392 186,392
Share premium 1,309,284 1,203,789
Reserves 2,123,756 (4,537)
Accumulated profits 6,993,209 174,169
10,669,641
1,559,813
Minority interest 5,461,989 -
16,131,630 1,559,813
Current liabilities
Trade and other payables 458,793 159,280
Income tax payables 434,860 13,507
Total current liabilities 893,653 172,787

Non-current liabilities
Borrowings 11,399,732 -
Trade and other payables 323,093 -
Deferred tax liabilities 996,762 58,481
Total 12,719,587 58,481

TOTAL EQUITY AND LIABILITIES 29,744,870 1,791,081


UNAUDITED CONSOLIDATED GROUP CASH FLOW
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
In Great Britain Pounds

6 months ended 6 months ended
31 December 31 December
2007 2006
Cash flows from operating activities
Profit after income tax 6,622,291 174,169
Adjustments for:
Income tax 307,230 72,074
Depreciation expenses 409,897 503
Gain on dilution of subsidiary (5,500,181)
-
Interest expense 259,644 -
Interest income (201,649) (22)
Operation profits before working capital
changes 1,897,232 246,724
Trade and other receivables (514,337)
(315,339)
Inventories (3) 149
Intangible assets - (20,348)
Trade and other payables 226,302 48,807
Cash generated from (used in) operations 1,609,194 (40,007)
Interest paid (259,644) -
Interest received 201,649 22
Income tax paid (21,370) -
Net cash generated from (used in)
operating activities 1,529,829
(39,985)

Cash flow from investing activities
Purchase of property, plant and equipment (7,593,231) -
Additional investment in subsidiary paid
by minority shareholders 10,785,443 -
Net cash generated from investing
activities 3,192,212 -

Cash flow generated from financing
activities
Proceeds from borrowings 5,951,752 -
Repayment of borrowings (857,487) -
Proceeds from issuing shares (net of cost) 206,440 -
Proceeds from advance from director - 73,761
Net cash generated from financing
activities 5,300,705 73,761

Net effect of exchange rates in
consolidating subsidiaries (259,811) (4,402)

Net increase in cash 9,762,935 29,374
Cash at beginning of period 828,345 -
Cast at end of period 10,591,280 29,374


Notes:

1) The financial statements do not reflect this interim dividend payable which will be accounted for in the period when the funds are actually paid to shareholders.

2) The results for the Period are derived from continuing activities.

3) The calculation on earnings per shares have been on a weighted average 23,392,512 (2006: 18,639,195) ordinary shares in issue for the during the 6 months period.

4) The un-audited results have been prepared on a going concern basis and on the basis of the accounting policies adopted in the audited accounts for the period ended 30 June 2007 and 30 June 2006. The interim figures have not been audited.

5) The interim statement for 2007 was approved by the board of Directors. Copies of this statement will be available to shareholders and members of the public, free of charge, from its corporate adviser (Loeb Aron & Co, Georgian House, 63 Coleman Street London EC2 5BB) and the Company's registered office and the Company website at www. avation.net.

6) The exchange rate applying at 31 December 2007 was USD - GBP 0.50092. The average rate applied during the six months period ended 31 December 2007 was USD - GBP 0.49207.

Contact Information

  • Avation PLC
    Jeff Chatfield
    Chairman
    07783 942 553
    Website: www.avation.net
    or
    Advisor
    Loeb Aron & Co.
    Frank Lucas
    0207 628 1128
    or
    Financial Public Relations
    Bishopsgate Communications
    Maxine Barnes
    0207 562 3350
    or
    Financial Public Relations
    Bishopsgate Communications
    Nick Rome
    0207 562 3350
    or
    Financial Public Relations
    Bishopsgate Communications
    Nick Farmer
    0207 562 3350