Avation plc

June 22, 2012 02:00 ET

Trading Update

                                              AVATION PLC
                                            (the "Company")

22 June 2012
                                            Trading Update

Revenues grow as aircraft fleet increases

The  Directors  of  Avation PLC, (LSE: AVAP) the aircraft leasing company, which purchases  commercial
passenger aircraft and simultaneously leases them to airlines, is pleased to give a trading update for
the financial year ending June 30th 2012.


    *       Anticipated to report material increase in Group revenues of about 30%.
    *       Expected to end the financial year with approximately USD 218 million in aircraft assets in
            the portfolio, an increase of 60% year-on-year.
    *       Six new ATR 72 aircraft delivered to Skywest Airlines/Virgin Australia.
    *       Revenues are progressively increasing as aircraft numbers grow.
    *       Successful share placing completed raising £2 million, subject to prospectus being approved
            and issued.
    *       The Company is considering a dual listing on the Singapore Stock Exchange.
    *       Appointment of Cadogan PR for investor relations.

Trading Outlook
The  directors  have an expectation of a substantial and material increase in Group revenues  for  the
year ending 30 June 2012. These are expected to increased by 30% over the previous year to around  £21
million. These are Directors unaudited estimates and are not intended to be a profit forecast.

Several aircraft deliveries are expected in the next 12 months. The Company already has firm long term
commitments in place for six new ATR 72 aircraft for the Skywest/Virgin Australia Australian  Regional
Network  Agreement  ("ARAN")  and  is  actively evaluating  further  aircraft  acquisition  investment
opportunities.  Long-term  debt  financing is also already in place for  all  of  the  remaining  2012

The  ARAN  is  a long-term agreement signed in January 2011 between the Company, Skywest Airlines  and
Virgin  Australia,  under which the Company will procure and supply a fleet  of  ATR  72  aircraft  to
operate  a  regional airline network on behalf of Virgin Australia. This ARAN agreement has  now  been
implemented and the network has been operational since October 2011 when the first ATR 72-500  entered
service. All aircraft are delivered on 10-year terms.

Following  the  successful delivery of these 6 aircraft under the ARAN agreement, the Company  is  now
seeing  a  sustained  increase in revenues and this is likely to continue as the Group  completes  the
delivery of further aircraft over the coming months and years.

In addition the company has successfully raised £2 million through a conditional placing of shares and
is therefore in a strong financial position to accelerate the delivery of aircraft under the agreement
should these become available, which would increase the level of revenues further. Completion of  this
prospectus is expected to be in June 2012.

Tax Regime
The  Company confirms that it will be a Singapore Taxpayer for the 2012 financial year, the  Corporate
headline tax rate for Singapore is 17%, compared to 24% in the United Kingdom.

Australian Regional Airline Network (ARAN)
As  part  of  the "ARAN" Agreement with Skywest Airlines and Virgin Australia signed in January  2011,
Avation  entered  into an agreement to provide a fleet of up to 20 new aircraft to  operate  primarily
along the length of the Eastern Coast of Australia.

The  Company  has  now  successfully delivered four new ATR 72 aircraft  as  part  of  the  originally
scheduled  deliveries  under the agreement and, in addition, has acquired two  additional  ATR  72-500
aircraft and delivered these into the ARAN.

The  Company has a further nine firm new aircraft orders to be delivered under its purchase  agreement
with  ATR ("Firm Aircraft"), as well as a further eight aircraft options and seventeen purchase rights
with price protection, taking the total potential number of deliveries to 40 aircraft.

Of  the  nine Firm Aircraft yet to be delivered, six will be delivered during the next financial  year
and will drive an expected continued growth in revenues and profitability.

On 30 May 2012, the Company announced that it was raising £2 million before expenses from a placing of
2,000,000  new ordinary shares of the Company at a price of 100 pence per share, through W  H  Ireland
Limited.  Proceeds of the placing will be used by the Company to fund a proportion of the pre-delivery
payments relating to the Firm Aircraft not yet delivered.

Listing on Singapore Stock Exchange
Given  the operational focus of the company and the residence of the management, the Directors believe
a  listing  on  the Singapore Stock Exchange (SGX) may raise the profile of the Company amongst  Asian
investors. Accordingly, it is evaluating the merits of a dual listing on the Singapore Stock  Exchange
of its ordinary shares.

Cadogan PR
The  Company has appointed Cadogan PR as Investor and Financial Public Relations adviser to help raise
the  profile  of  Avation  amongst  investors and the investment media  working  alongside  its  other
financial advisers.

Commenting Today, Jeff Chatfield, Chairman and Founding Director said:
"The  growth  in  revenues and profits we are now seeing is directly proportional  to  the  number  of
aircraft we are delivering and will continue to grow as more aircraft go to Skywest / Virgin Australia
over  the coming months with four further aircraft being delivered before the end of 2012. At the same
time,  our  strengthened balance sheet gives us greater flexibility in the way we are able to  acquire
aircraft and therefore our ability to accelerate the growth of revenues."


More information on Avation PLC can be seen at: www.avation.net

Certain statements made in this announcement are forward-looking statements. Such statements are based
on current expectations and are subject to a number of risks and uncertainties that could cause actual
results to differ materially from any expected future results in forward-looking statements. All  data
included  in  this  trading update is unaudited and preliminary in nature. Avation PLC  undertakes  no
obligation  to update these forward-looking statements and will not publicly release any revisions  it
may  make  to  these  forward-looking statements that may result from events or circumstances  arising
after  the  date  of  this  document. All persons, wherever located,  should  consult  any  additional
disclosures that Avation PLC may make in any regulatory announcements or documents which it publishes.
All  persons,  wherever  located, should take note of these disclosures. This  announcement  does  not
constitute  an invitation to underwrite, subscribe for or otherwise acquire or dispose of any  Avation
PLC shares, in the UK, or in the US, or under the US Securities Act 1933 or in any other jurisdiction.


Avation PLC                                       
Jeff Chatfield, Chairman                          +44 7783 942 553
W H IRELAND                                       
Harry Ansell /James Joyce                         +44 20 7220 1666
Cadogan PR                                        
Alex Walters / Lavinia Fiamma                     +44 20 7839 9260
                                                  +44 (0) 7771 713 608

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