Avation plc
LSE : AVAP

August 27, 2013 02:30 ET

Unaudited Prelimary Financial Results For Year Ended 30 June 2013

                                            AVATION PLC (the "Company")
                                                         
                         Unaudited Prelimary Financial Results For Year Ended 30 June 2013



Avation  PLC  (LSE:AVAP) the aircraft procurement and leasing company is pleased to announce  its  final  results
extracted from the unaudited financial statements for the Company and its subsidiaries for the year ended  30  June
2013.

Highlights:

    *       Earnings per share increased by 88% to 23.25 US cents;
    *       Fleet value increased to US$347 million;
    *       EBITDA increased by 46% to US$38.3 million;
    *       Revenue increased by 22% to US$42.7 million;
    *       Dividends increased by 10% to 1.78 US cents per share;
    *       Consolidated net profit after tax increased by 110% to US$10.5 million;
    *       Delivery of six new ATR 72-600 aircraft, an Airbus A321 and an Airbus A320;
    *       Number of aircraft in fleet increased to 23 from 15;
    

Jeff Chatfield, Chairman, said:

"This has been an excellent year for Avation with impressive financial and operational growth. I am delighted that
we are able to announce results which are well ahead of market expectations. The outlook for the next calendar year
looks very strong, with contracted fleet growth of 43 per cent already locked in, including the delivery of eight
aircraft."

Further information on Avation PLC can be seen at: www.avation.net Avation PLC is registered in England and Wales
with an Operational Headquarters in Singapore.

It has been agreed that the current senior statutory auditor will continue for one additional year in addition to
the recommended five. This is permitted under the ethical guidelines to safeguard the quality of the audit in
certain circumstances.


Enquiries:

Avation PLC                                       
Jeff Chatfield, Chairman                          +65 9735 4151
                                                  
Liberum Capital Limited                           
Chris Bowman/Richard Bootle                       +44 20 3100 2222
                                                  
W H Ireland Limited                               
James Joyce                                       +44 20 7220 1666
                                                  
Blythe Weigh Communications                       
Tim Blythe, Eleanor Parry                         +44 20 7138 3204
                                                  



Chairman's Statement on Results and Interim Management Statement

Dear Fellow Shareholder,
        
Your  Board  is pleased to report that in respect of the year ended 30 June 2013 the consolidated net profit  after
tax  was  US$10,515,901 (2012: US$5,009,457) on revenues of US$42,739,991 (2012: US$35,001,218) with  earnings  per
share  of 23.25 US cents (2012: 12.36 US cents). Total returns comprise income from cash yield from aircraft  lease
payments  plus the net asset value (capital) realisable from the sale of the aircraft after repayment of associated
debt obligations.

In  the  period  to  30 June 2013, the Group delivered six new ATR 72-600 aircraft, acquired an  Airbus  A321  and,
pursuant  to a finance lease, an Airbus A320.  Avation is scheduled to deliver eight ATR 72-600 before the  end  of
FY2014 and an additional two ATR 72-600 in the second half of calendar year 2014.

The  Avation fleet of 23 aircraft has an average age and lease term of 8.7 years and 5.7 years respectively with  a
current  customer base of airlines in Australia, Europe and North America. The Company has also recently  announced
the securing of Fiji Airways as a new airline customer for a new aircraft in 2014.

Avation's fleet is diverse, comprising the new ATR aircraft and other aircraft including Airbus A321 and A320 along
with  a  small number of older aircraft. Avation targets continual fleet renewal and financial management to ensure
the retention of asset values and maximisation of earnings.

As of June 30th, total assets increased by US$147,274,204 to US$394,383,300. Corresponding liabilities increased by
US$131,212,593 to US$296,146,941 resulting in net assets at year end of US$98,236,359.

In  the period to 30 June 2013, the Company secured committed debt funding of over US$100 million covering aircraft
deliveries  to  January  2014  from  traditional aircraft financing banks and  other  institutional  lenders.  Debt
facilities  are  primarily  asset based and matched to the leases in terms of currency,  term  and  loan  servicing
ensuring there is no "through lease term" re-financing risk. The Company believes that it can obtain access to  the
necessary debt for the future purchase of aircraft. Access to funding nevertheless remains a risk, which is  common
to  all  businesses that are capital intensive. Specific aviation based industry risks are also present and include
the creditworthiness of client airlines.

The  Company  has  been  significantly  cash  generative this financial  year.  The  EBITDA  increased  by  46%  to
US$38,329,167. Purchasing aircraft typically requires a mixture of senior debt, a junior debt tier and equity which
may  be  self generated.  The directors seek to minimize the cost of funds and hence may seek to refinance existing
debt  facilities.  The Company continues to evaluate the state of both debt and equity along with choice of  market
for equity capital, in the context of its ongoing requirements.

The  Directors believe they have demonstrated that the Group has a sustainable business model and are committed  to
develop  the Avation business as a differentiated aircraft operating lease business to provide constant and defined
internal  rates  of  return, cash yields and predictive capital returns from investment  in  the  narrow  body  and
regional aircraft market and more particularly in the Australian and South East Asian sector.
    
Our  business provides for continued and sustainable growth in 2014 and beyond. The outlook for calendar year  2014
is 43% growth in the fleet contracted by way of committed deliveries.

Avation  continues to actively evaluate further aircraft acquisition investment opportunities.  As  a  result,  the
Company  is  well  advanced  with respect the funding of its 2014 deliveries and is developing  formalised  capital
funding programmes to provide a diversified funding base with access to both debt and equity markets.

Whilst  the  business  is  engaged  in funding the continued aggressive asset  growth  of  the  fleet,  your  Board
overwhelmingly  recognises the importance of rewarding shareholders and is recommending  to  shareholders  a  final
dividend  payment  of  1.78 US cents per share. Accordingly, the Company hopes to maintain a  progressive  dividend
policy  going forward. The record date for this final dividend will be announced in the meeting materials  for  the
upcoming annual general meeting.

My  colleagues  and  I  are  committed  to continue working tirelessly to build  your  Company  into  a  respected,
profitable,  diversified and cash generative aircraft leasing business. The Board would like to  thank  you  -  the
shareholders  for  your  continued  support and goodwill and look forward to the  future  with  confidence  in  the
successful development of Avation PLC.


R. J. (Jeff) Chatfield,
Executive Chairman

27th of August 2013


AVATION PLC
REGISTERED NUMBER: 05872328 (ENGLAND & WALES)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2013


                                                                    2013            2012 
Continuing operations                                                US$             US$ 
                                                                                         
Revenue                                                       42,739,991      35,001,218 
                                                                                         
Cost of sales                                                   (822,887)     (1,129,525)
                                                          -------------------------------
                                                                                         
Gross profit                                                  41,917,104      33,871,693 
                                                                                         
Other income                                                   1,846,538         120,079 
                                                                                         
Other operating expenses                                     (13,236,614)    (14,601,919)
                                                                                         
Expenses                                                                                 
- Administrative expenses                                     (3,564,798)     (3,474,177)
- Finance expenses                                           (12,992,553)     (7,842,062)
                                                          -------------------------------
                                                                                         
Profit before taxation                                        13,969,677       8,073,614 
                                                                                         
Taxation                                                      (2,004,684)     (1,710,080)
                                                          -------------------------------
                                                                                         
Profit from continuing operations for the year                11,964,993       6,363,534 
                                                                                         
Other comprehensive income                                                               
Items that will not be reclassified to profit or                                         
 loss:                                                                                   
Revaluation (loss) / gain on property, plant and                                         
 equipment, net of tax                                        (1,780,368)     (5,569,535)
                                                          -------------------------------
                                                              (1,780,368)     (5,569,535)
                                                          -------------------------------
Items that may be reclassified subsequently to                                           
 profit or loss:                                                                         
Currency translation differences arising on                                              
 consolidation                                                       603          (1,007)
                                                          -------------------------------
                                                                     603          (1,007)
                                                          -------------------------------
Other comprehensive income for the year, (net of                                         
 tax)                                                         (1,779,765)     (5,570,542)
                                                          -------------------------------
                                                                                         
Total comprehensive income for the year                       10,185,228         792,992 
                                                          -------------------------------
                                                          -------------------------------
                                                                                         
Profit attributable to:                                                                  
Equity holders of the parent                                  10,515,901       5,009,457 
Non-controlling interest                                       1,449,092       1,354,077 
                                                          -------------------------------
                                                              11,964,993       6,363,534 
                                                          -------------------------------
                                                                                         
Total comprehensive income attributable to:                                              
Equity holders of the parent                                   9,365,487       1,172,549 
Non-controlling interest                                         819,741        (379,557)
                                                          -------------------------------
                                                              10,185,228         792,992 
                                                          -------------------------------
Earnings per share                                                                       
- Basic - continuing and total operations                    23.25 cents     12.36 cents 
                                                          -------------------------------
                                                          -------------------------------
- Fully diluted - continuing and total operations            23.25 cents     12.31 cents 
                                                          -------------------------------
                                                          -------------------------------
                                                                                         
                                                                            
AVATION PLC                                                                 
REGISTERED NUMBER: 05872328 (ENGLAND & WALES)                               
CONSOLIDATED BALANCE SHEET                                                  
AS AT 30 JUNE 2013                                                          
                                                                            
                                           30 June 2013   30 June 2012   30 June 2011
                                                    US$            US$            US$
ASSETS                                                                               
-------                                            
                                                                                     
Current assets:                                                                      
Cash and cash equivalents                    19,623,244      9,094,470      9,012,916
Trade and other receivables                   6,337,909      9,021,165     12,116,192
Prepayments                                   1,094,380        465,183              -
Inventories                                         438         14,316          3,117
                                         --------------------------------------------
Total current assets                         27,055,971     18,595,134     21,132,225
                                         --------------------------------------------
                                                                                     
Non-current assets:                                                                  
Trade and other receivables                   9,300,261      8,437,828              -
Prepayments                                   8,442,671      3,829,823              -
Property, plant and equipment               347,200,389    213,862,303    135,621,485
Goodwill                                      2,384,008      2,384,008      2,384,008
                                         --------------------------------------------
Total non-current assets                    367,327,329    228,513,962    138,005,493
                                         --------------------------------------------
                                                                                     
Total assets                                394,383,300    247,109,096    159,137,718
                                         --------------------------------------------
                                         --------------------------------------------
                                                                                     
LIABILITIES AND EQUITY                                                               
------------------------                                            
                                                                                     
Current liabilities:                                                                 
Trade and other payables                     12,088,802      5,073,257      5,376,057
Deferred lease income                           207,132         91,379              -
Provision for taxation                          986,556        519,083         62,067
Loans and borrowings                         24,243,718     19,553,681     15,802,427
Short-term provisions                         3,757,081      2,969,169      4,564,855
                                         --------------------------------------------
Total current liabilities                    41,283,289     28,206,569     25,805,406
                                         --------------------------------------------
                                                                                     
Non-current liabilities:                                                             
Trade and other payables                      9,088,610      6,064,744      1,508,902
Deferred lease income                         1,381,260        731,037              -
Loans and borrowings                        239,205,865    123,988,798     44,996,626
Deferred tax liabilities                      5,187,917      5,943,200      7,724,794
                                         --------------------------------------------
Total non-current liabilities               254,863,652    136,727,779     54,230,322
                                         --------------------------------------------
                                                                                     
Equity attributable to shareholders:                                                 
Share capital                                   878,137        779,618        720,917
Treasury shares                                (214,498)             -              -
Share premium                                29,809,334     23,047,234     17,365,391
Assets revaluation reserve                   10,158,496     11,309,284     15,145,567
Capital redemption reserve                       11,564         11,564         11,564
Warrant reserve                                 103,565        192,946        119,143
Capital reserve                               2,530,212      2,530,212              -
Foreign currency translation reserve               (251)          (625)             -
Retained earnings                            37,949,162     28,113,618     23,742,715
                                         --------------------------------------------
                                             81,225,721     65,983,851     57,105,297
Non-controlling interest                     17,010,638     16,190,897     21,996,693
                                         --------------------------------------------
                                             98,236,359     82,174,748     79,101,990
                                         --------------------------------------------
                                                                                     
Total liabilities and equity                394,383,300    247,109,096    159,137,718
                                         --------------------------------------------
                                         --------------------------------------------
                                                                            

AVATION PLC                                                                 
REGISTERED NUMBER: 05872328 (ENGLAND & WALES)                               
CONSOLIDATED STATEMENT OF CASH FLOWS                                        
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2013                                   
                                                                            
                                                                    2013            2012 
                                                                     US$             US$ 
Cash flows from operating activities:                                                    
Profit before taxation                                        13,969,677       8,073,614 
Adjustments for:                                                                         
  Depreciation expense                                        11,366,937      10,299,139 
  Claim on maintenance reserve                                 1,860,732       1,991,753 
  Impairment loss on property plant and equipment                  8,945       1,569,532 
  Amortisation of loan premium                                   904,658         356,827 
  Amortisation of interest expense on deposit                                            
   collected                                                     570,267           6,663 
  Loss on disposal of subsidiary                                       -         627,565 
  Warrant expense                                                      -         103,535 
  Interest expense                                            11,517,628       7,478,572 
  Finance income                                                (582,844)        (21,137)
  Interest income                                                (28,727)        (94,470)
                                                         --------------------------------
  Operating profit before working capital changes             39,587,273      30,391,593 
Movement in working capital:                                                             
  Trade and other receivables and prepayments                 (4,868,068)     (7,183,814)
  Inventories                                                     13,878         (11,199)
  Deferred lease income                                          765,976         822,416 
  Trade and other payables                                     3,044,789       8,250,757 
  Short-term provisions                                       (1,072,820)     (1,034,835)
                                                         --------------------------------
  Cash from operations                                        37,471,028      31,234,918 
Interest paid                                                (11,093,273)     (7,478,572)
Interest received                                                 28,727          94,470 
Corporation tax paid                                            (999,556)       (472,882)
                                                         --------------------------------
Net cash from operating activities                            25,406,926      23,377,934 
                                                         --------------------------------
                                                                                         
Cash flows from investing activities:                                                    
  Cash inflow (outflow) from disposal of a                                               
   subsidiary - See Note A                                     1,125,032        (199,839)
  Purchase of property, plant and equipment                 (134,087,044)    (73,277,102)
                                                         --------------------------------
Net cash used in investing activities                       (132,962,012)    (73,476,941)
                                                         --------------------------------
                                                                                         
Cash flows from financing activities:                                                    
  Net proceeds from issuance of ordinary shares                6,836,498       3,076,471 
  Dividends paid                                                (745,618)       (638,554)
  Repurchase of treasury shares                                 (214,498)              - 
  Proceeds from borrowings                                   140,263,472      67,569,065 
  Repayment of borrowings                                    (23,882,635)    (17,360,286)
  Capital element of finance lease repayments                 (4,173,733)     (2,465,353)
                                                         --------------------------------
Net cash used in financing activities                        118,083,486      50,181,343 
                                                         --------------------------------
Effects of exchange rates on cash and cash                                               
 equivalents                                                         374            (782)
                                                         --------------------------------
Net increase in cash and cash equivalents                     10,528,774          81,554 
Cash and cash equivalents at beginning of financial                                      
 year                                                          9,094,470       9,012,916 
                                                         --------------------------------
Cash and cash equivalents at end of financial year            19,623,244       9,094,470 
                                                         --------------------------------
                                                         --------------------------------


AVATION PLC
REGISTERED NUMBER: 05872328 (ENGLAND & WALES)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2013

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:


                                                                                        US$ 
                                                                                            
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 
                                                                            ----------------
                                                                            ----------------

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