TIDMAVAP
RNS Number : 8676N
Avation PLC
28 September 2023
AVATION PLC
("Avation" or "the Company")
UNAUDITED Results for the YEAR ended 30 JUNE 2023
Avation PLC (LSE: AVAP), the commercial passenger aircraft
leasing company, announces unaudited results for the year ended 30
June 2023.
Financial Highlights
-- Revenue and other income for the year was $99.3 million,
fleet assets were $898.6 million and total assets were $1,179.6
million;
-- Net indebtedness reduced by 7.8% to $731.2 million (2022: $792.9 million);
-- Total cash and bank balances of $116.9 million (2022: $119.2 million);
-- Operating profit of $70.6 million (2022: $90.2 million);
-- Profit after tax of $12.2 million (2022: $17.1 million);
-- Earnings per share of 17.4 cents (2022: 24.7 cents); and
-- South-East Asian airline reduces arrears by $5.1 million since 30 June 2023.
Operational Activity
-- Two ATR 72-600 turboprop aircraft and a Boeing 737-800 aircraft were sold during the year;
-- One ATR 72-600 aircraft was repossessed from an airline in
Myanmar and subsequently commenced a new lease with an airline in
Tahiti;
-- One off-lease ATR 72-500 started a lease with a new airline customer in Nepal;
-- Avation received a creditors distribution of $3.4 million from Virgin Australia;
-- Two Airbus A220-300 aircraft were re-financed with fixed rate
long-term loans, reducing Avation's exposure to interest rate
changes;
-- The Company entered into an agreement to sell an eleven-year-old off-lease ATR 72-600; and
-- The Company entered into a lease agreement for a second
eleven-year-old off-lease ATR 72-600 which is expected to commence
in November 2023.
Executive Chairman, Jeff Chatfield, said:
"During the year ended 30 June 2023 Avation reduced the number
of off-lease aircraft in the fleet from six to two by transitioning
or selling off-lease aircraft. Avation has agreed to sell or lease
both remaining off-lease aircraft and on completion of these
transactions will have a fully utilised fleet.
Avation has continued to de-lever its balance sheet, achieving a
reduction to 62.0% in the ratio of net debt to total assets as at
30 June 2023. A significant portion of the cashflow generated by
the fleet is directed towards repayments of debt. Scheduled loan
repayments for the 2024 financial year, amounting to around US$62
million, exceed expected depreciation of the fleet over the same
period. The Company is hedged against further interest rate changes
on 95.8% of its loans and borrowings.
A bond repurchase tender was concluded in February, resulting in
the repurchase and retirement of US$7.1m of Avation Capital S.A.
8.25%/9.0% unsecured notes. The Company may pursue other liability
management exercises from time to time with the aim of further
reducing the cost and/or outstanding amount of unsecured debt in
issue.
After the recovery from the COVID-19 pandemic, Avation plans to
re-grow its business in a prudent and sensible manner. We will
target organic growth, which includes leasing the two ATR aircraft
we have on order for delivery in 2024. We have paid all
pre-delivery payments for the two ordered aircraft and believe that
the balance due on delivery can be funded with senior secured debt.
Avation has a significant purchase rights position on a stream of
new ATR 72 aircraft. The manufacturer expects that, with a new
engine variant, these aircraft will be approved for use with
sustainable aviation fuel in 2025. The Company believes that the
ATR 72 aircraft is the most sustainable commercial aircraft type
currently available.
The Company has significantly lowered overheads by reducing
headcount and actively managing legal expenses and other
expenditure.
Few aircraft were built during the COVID-19 pandemic so lessors
that own them have seen positive developments in valuations. As a
result, Avation has been able to reverse around US$3.3 million of
previously recognised impairment charges and has seen a positive
impact on the valuation of our 28 purchase rights for ATR
aircraft.
We are reasonably confident that the Company will be able to
arrange leases for the two new aircraft ordered for delivery in
2024."
Financial Summary
US$ '000s Year ended 30 June,
------------------------------
2023 2022
---------------------------------------- ---------- ------------------
Revenue 91,861 112,232
---------- ------------------
Other income 7,389 4,152
---------------------------------------- ---------- ------------------
99,250 116,384
---------- ------------------
Operating profit 70,633 90,184
---------- ------------------
Profit before tax 13,000 22,502
---------- ------------------
Profit after tax 12,192 17,127
---------- ------------------
EPS (basic) 17.43c 24.65c
---------- ------------------
US$ '000s 30 June,
------------------------------
2023 2022
---------------------------------------- ---------- ------------------
Fleet assets (1) 898,616 987,995
---------- ------------------
Total assets 1,179,596 1,217,020
---------- ------------------
Cash and bank balances (2) 116,905 119,171
---------- ------------------
Unrestricted cash and cash equivalents 24,816 35,267
---------- ------------------
Net asset value per share (US$) (3) US$3.41 US$3.27
---------- ------------------
Net asset value per share (GBP) (4) GBP2.69 GBP2.68
---------- ------------------
1. Fleet assets are defined as property, plant and equipment
plus assets held for sale plus finance lease receivables.
2. Cash and bank balances as at 30 June 2023 comprise cash and
cash equivalents of US$24.8 million (30 June 2022: US$35.3
million), investment in fixed deposits of US$1.2 million (2022:
nil) and restricted cash balances of US$90.9 million (30 June 2022:
US$83.9 million) .
3. Net asset value per share is total equity divided by the
total number of shares in issue, excluding treasury shares.
4. Based on GBP:USD exchange rate as at 30 June 2023 of 1.27 (30 June 2022:1.22).
Aircraft Fleet
Aircraft Type 30 June 2023 30 June 2022
------------- -------------
ATR 72-600 16 18
ATR 72-500 5 5
Airbus A220-300 5 5
------------- -------------
Airbus A320-200 2 2
------------- -------------
Airbus A321-200 6 6
------------- -------------
Airbus A330-300 1 1
------------- -------------
Boeing 777-300ER 1 1
------------- -------------
Boeing 737-800NG - 1
------------------ ------------- -------------
Total 36 39
------------------ ------------- -------------
At 30 June 2023, Avation's fleet comprised 36 aircraft,
including five aircraft on finance lease. Avation serves 17
customers in 14 countries. The weighted average age of the fleet is
6.4 years (30 June 2022: 5.6 years) and the weighted average
remaining lease term is 5.0 years (30 June 2022: 5.7 years).
Two ATR 72-600 and one Boeing 737-800 aircraft were sold during
the period. Turboprop and narrowbody aircraft make up 82% of fleet
assets as at 30 June 2023. Fleet assets have decreased 9.0% to
US$898.6 million (30 June 2022: US$988.0 million) as a result of
aircraft sales and depreciation. As at the date of this report,
Avation has two off-lease aircraft. One of these aircraft is
expected to commence a new lease in November 2023 and the remaining
aircraft is subject to an agreed sale which is expected to complete
shortly.
Avation has orders for two new ATR 72-600 aircraft and purchase
rights for a further 28 aircraft as at 30 June 2023. The order-book
and purchase rights provide a pathway to organic fleet growth.
Debt summary
US$ '000s 30 June,
2023 2022
------------------------------------------- -------- --------
Current loans and borrowings 61,401 63,900
-------- --------
Non-current loans and borrowings 694,575 764,230
------------------------------------------- -------- --------
Total loans and borrowings 755,976 828,130
-------- --------
Unrestricted cash and bank balances 24,816 35,267
-------- --------
Net indebtedness (1) 731,160 792,863
-------- --------
Net debt to total assets (2) 62.0% 65.1%
-------- --------
Weighted average cost of secured debt (3) 4.5% 4.0%
-------- --------
Weighted average cost of total debt (4) 6.1% 5.7%
-------- --------
1. Net indebtedness is defined as loans and borrowings less unrestricted cash and bank balances.
2. Net debt to assets is defined as net indebtedness divided by total assets.
3. Weighted average cost of secured debt is the weighted average
interest rate for secured loans and borrowings at period end.
4. Weighted average cost of total debt is the weighted average
interest rate for total loans and borrowings at period end.
During the period net indebtedness was reduced by 7.8% to
US$731.2 million (30 June 2022: US$792.9 million). Two aircraft
previously financed under the Group's floating rate warehouse loan
facility were re-financed with long-term fixed rate debt, reducing
exposure to changes in interest rates.
The weighted average cost of total debt has increased to 6.1% as
at 30 June 2023 (30 June 2022: 5.7%) due to repayments of lower
cost secured loans in the period. The weighted average cost of
secured debt also increased to 4.5% at 30 June 2023 (30 June 2022:
4.0%).
At the end of the financial period, Avation's net debt to total
assets ratio improved to 62.0% (30 June 2022: 65.1%). As at 30 June
2023, 95.8% of total debt was at fixed or hedged interest rates (30
June 2022: 90.0%). The ratio of unsecured debt to total debt was
40.1% (30 June 2022: 35.8%).
Financial Analysis
Revenue
US$ '000s Year ended 30 June,
----------------------
2023 2022
---------------------------------------------- ---------- ----------
Lease rental revenue 85,936 93,352
---------- ----------
Less: amortisation of lease incentive assets (1,368) (1,383)
---------------------------------------------- ---------- ----------
84,568 91,969
---------- ----------
Interest income from finance leases 2,230 2,918
---------- ----------
Maintenance reserves revenue 5,063 13,207
---------- ----------
End of lease compensation revenue - 4,138
---------------------------------------------- ---------- ----------
91,861 112,232
---------------------------------------------- ---------- ----------
Lease rental revenue decreased by 7.9% from US$93.4 million in
the year ended 30 June 2022 to US$85.9 million in the year ended 30
June 2023. The decrease was principally due to the reduction in the
number of aircraft in the fleet from 39 at 30 June 2022 to 36 at 30
June 2023.
Interest income from finance leases decreased by 23.6% from
US$2.9 million in the year ended 30 June 2022 to US$2.2 million in
the year ended 30 June 2023. The decrease was principally due to
the reduction in the number of aircraft leased on finance leases
from 6 at 30 June 2022 2021 to 5 at 30 June 2023.
Other income
US$ '000s Year ended 30 June,
----------------------
2023 2022
------------------------------------- ---------- ----------
Foreign currency exchange gain 3,154 1,018
---------- ----------
Claim recovery 3,137 -
---------- ----------
Fees for late payment 966 1,940
---------- ----------
Aircraft late delivery compensation - 540
---------- ----------
Deposit released - 200
---------- ----------
Others 132 454
------------------------------------- ---------- ----------
7,389 4,152
------------------------------------- ---------- ----------
Foreign currency exchange gains in the year ended 30 June 2023
arose principally from the release of deferred hedged foreign
currency exchange gains on two Euro loans that were refinanced
during the period.
The claim recovery recognised in other income is the balance of
a distribution paid to creditors of Virgin Australia in excess of
amounts allocated to trade receivables.
Administrative expenses
US$ '000s Year ended 30 June,
----------------------
2023 2022
------------------------------- ---------- ----------
Staff costs 5,587 6,771
---------- ----------
Other administrative expenses 3,173 2,694
------------------------------- ---------- ----------
8,760 9,465
------------------------------- ---------- ----------
Staff costs reduced by 17.5% from US$6.8 million in the year
ended 30 June 2022 to US$5.6 million in the year ended 30 June 2023
principally due to a reduced average headcount, lower bonus
payments and lower charges for employee share warrants.
Other administrative expenses increased by 17.8% from US$2.7
million in the year ended 30 June 2022 to US$3.2 million in the
year ended 30 June 2023 principally due to increased marketing
related travel expenses.
Other operating income and expense items
US$ '000s Year ended 30 June,
----------------------
2023 2022
--------------------------------------------- ---------- ----------
Depreciation (38,566) (39,304)
---------- ----------
Gain on derecognition of a finance lease 2,792 -
---------- ----------
Loss on disposal of aircraft and aircraft
engine (1,000) (2,396)
---------- ----------
Unrealised gain on aircraft purchase rights 20,540 38,320
---------- ----------
Unrealised gain on equity investment 7,520 -
---------- ----------
Reversal of/impairment (loss) on aircraft 3,287 (6,158)
---------- ----------
Aircraft transition expenses (11,389) (5,479)
---------- ----------
Expected credit losses (659) 1,980
---------- ----------
Legal and professional fees (2,382) (3,698)
---------- ----------
Depreciation reduced by 1.9% from US$39.3 million to US$38.6
million due to a reduction in the fleet.
A gain of US$2.8 million was recognised on derecognition of a
finance lease for an aircraft repossessed from a defaulting airline
in Myanmar. The gain represents the positive difference between the
outstanding value of the finance lease receivable and the broker
valuation of the aircraft's market value at the date of termination
of the lease.
A loss of US$1.0 million was recognised on the sale of two ATR
72-600 aircraft during the year. A loss of US$ 2.4 million was
recognised in the year ended 30 June 2022 on the sales of an Airbus
A220-300, an Airbus A321-200, three ATR 72-600 aircraft and an
engine.
The Company's 28 aircraft purchase rights were revalued at 30
June 2023 using a Black-Scholes option pricing model. The principal
factors leading to the recognition of a gain of US$20.5 million
(2022: US$ 38.2 million) were increases in the appraised value of
the ATR 72-600 aircraft and increases in risk-free interest
rates.
The Company recorded an unrealised gain of US$7.5 million on its
holding of shares in Philippine Airlines, Inc. The Company received
these shares as part of the settlement awarded to creditors in the
bankruptcy restructuring of the airline in December 2021.
Aircraft transition expenses of US$11.4 million (2022: US$5.5
million) represent repairs and maintenance expenditure on aircraft
repossessed following airline defaults resulting from the COVID-19
pandemic. The Company expects transition expenses to be
substantially reduced in future periods as most aircraft which were
repossessed as a result of the COVID-19 pandemic have now been
transitioned to new lessees or sold.
Expected credit losses of US$0.7 million primarily relate to
rent arrears and a payment plan agreement loan granted to an
airline in South-East Asia. In a trading update issued on 6 July
2023 the Company advised that it was reviewing its provisions
against trade receivables. Between 30 June 2023 and the date of
this report the airline has reduced its total arrears and loan
balance by US$5.1 million.
Legal and professional fees reduced by 35.6% from US$3.7 million
in the year ended 30 June 2022 to US$ 2.4 million in the year ended
30 June 2023 due to a reduction in transaction activity.
Finance income
US$ '000s Year ended 30 June,
----------------------
2023 2022
--------------------------------------------- ---------- ----------
Interest income 3,129 281
---------- ----------
Fair value gain on financial derivatives 1 2,492
---------- ----------
Finance income from discounting non-current
deposits to fair value 611 571
---------- ----------
Gain on repurchase of unsecured notes 508 -
---------- ----------
Gain on early full repayment of borrowings 1,657 -
---------- ----------
5,906 3,344
--------------------------------------------- ---------- ----------
Interest income increased in the year ended 30 June 2023 due to
an improved interest rate environment for depositors. The group has
proactively transferred funds into term deposit accounts to take
advantage of increased deposit interest rates.
Interest income includes US$1.1 million interest on payment plan
agreement loans granted to a customer.
Avation generated a gain of US$0.5 million on the repurchase of
US$11.4 million of Avation Capital S.A. 8.25%/9.0% unsecured notes
at a discount during the year.
A gain of US$1.7 million on early full repayment of borrowings
arose when two loans were refinanced in November 2022.
Finance expenses
US$ '000s Year ended 30 June,
----------------------
2023 2022
-------------------------------------------------- ---------- ----------
Interest expense on secured borrowings 21,170 24,062
---------- ----------
Interest expense on unsecured notes 30,976 29,913
---------- ----------
Interest expense on borrowings from related 271 -
parties
---------- ----------
Amortisation of loan transaction costs 1,057 2,226
---------- ----------
Amortisation of IFRS 9 gain on debt modification 8,711 8,805
---------- ----------
Fair value loss on financial derivatives 577 -
---------- ----------
Amortisation of interest expense on non-current
borrowings 571 539
---------- ----------
Finance charges on early full repayment of
borrowings - 731
---------- ----------
Others 206 1,205
---------- ----------
63,539 67,481
-------------------------------------------------- ---------- ----------
Interest expense on secured borrowings reduced by 12.0% to
US$21.2 million in the year ended 30 June 2023 from US$24.1 million
in the year ended 30 June 2022 as a result of net repayments of
secured loans. Secured borrowings have been paid down by US$79.4
million from US$531.9 million at 30 June 2022 to US$452.5 million
at 30 June 2023.
Interest expense on unsecured notes includes US$8.6 million
(2022: US$4.3 million) of non-cash interest paid in kind by
increasing the face value of Avation Capital S.A. 8.25%/9.0%
unsecured notes.
Amortisation of IFRS 9 gain on debt modification of US$8.7
million (2022: US$ 8.8 million) represents the non-cash accretion
in the book value of Avation Capital S.A. 8.25%/9.0% unsecured
notes resulting from the accounting treatment of the extension and
changes to the terms of the notes agreed with noteholders in March
2021. The extension was accounted for as a substantial modification
of a debt instrument in accordance with IFRS 9. The face value of
Avation Capital S.A. 8.25%/9.0% unsecured notes outstanding as of
30 June 2023 is US$345.2 million.
Interim Management Statement
The global aviation industry has continued to recover strongly
from the pandemic in 2023. In its latest update IATA reported that
industry-wide revenue passenger-kilometres (RPKs) increased 26.2%
year-on-year in July, reaching 95.6% of the traffic numbers seen in
2019. IATA also reports that domestic air travel, a driving force
in the recovery of global passenger demand since the onset of the
pandemic, reached a new all-time RPK high in July 2023 surpassing
the previous record set in July 2019.
Avation has primarily focussed on transitioning or disposing of
unutilised aircraft, maintaining liquidity, and reducing leverage
in the year ended 30 June 2023. The Company recently agreed to sell
one of its last two remaining unutilised aircraft and to lease the
other to a new customer airline. On completion of these two
transactions the Company's fleet will be fully utilised for the
first time since early in 2020.
The company's focus will now shift towards leasing two ATR
72-600 aircraft from its orderbook, which are currently scheduled
for delivery in April and May 2024, and identifying opportunities
to lease, finance and deliver additional ATR aircraft by exercising
purchase rights.
Avation aims to gradually transition to a more sustainable,
lower CO2 emissions aircraft fleet. Aircraft delivered from
Avation's orderbook and exercised purchase rights will be fitted
with the new Pratt and Whitney Canada PW127XT engine. The PW127XT
engine promises 20% lower maintenance costs, extended time on wing,
3% lower fuel consumption and 5% more power compared with the
current engine variant. The manufacturer expects that the PW127XT
engine will be certified to operate with 100% sustainable aviation
fuel from 2025. Net emissions of CO2 will be reduced by 80% when
using sustainable aviation fuel.
We also anticipate gradually trading out of older aircraft types
and focussing on aircraft types such as the Airbus NEO and A220
series in addition to ATR turboprop aircraft. The Company's
portfolio already includes a significant proportion of Airbus A220
and ATR 72 aircraft.
Market Positioning
Avation's long-term strategy is to target growth and
diversification by adding new airline customers, while maintaining
a low average aircraft age and long remaining lease term metrics.
Avation focuses on new and relatively new commercial passenger
aircraft on long-term leases.
Avation supports the transition of the aircraft industry towards
aircraft capable of using sustainable aviation fuel to produce
lower CO2 emissions on a net basis. Reducing CO2 emissions is key
to providing a sustainable future for the global aviation industry
and in addressing climate-change risks.
The Company's business model involves rigorous investment
criteria that seeks to mitigate the risks associated with the
aircraft leasing sector. Avation will typically sell mid-life and
older aircraft and redeploy capital to newer assets. This approach
is intended to mitigate technology change risk, operational and
financial risk, support sustained growth and deliver long-term
shareholder value.
Avation will consider the acquisition or sale of individual or
smaller portfolios of aircraft, based on prevailing market
opportunities and consideration of risk and revenue
concentrations.
Funding for aircraft acquisitions is traditionally sourced from
capital markets, asset-backed lending, operational cash flows and
disposals of aircraft. The ability to access acceptably priced
funding is key profit driver in aircraft leasing.
Principal risks factors facing the aircraft leasing industry
include, but are not limited to, exposure to the airline industry
and the risk of deterioration in the financial condition of airline
customers, asset value risk driven by changing patterns of supply
and demand and technological change, operational risks including
risks resulting from war, acts of terrorism and natural disasters,
regulatory risks from changes to government regulations and tax
laws and climate-change risks.
Results Conference Call
Avation's senior management team will host an investor update
call on 28 September 2023, at 1:00 pm BST (UK) / 8:00 am EST (US) /
8:00 pm SGT (Singapore), to discuss the Company's financial
results. Investors can participate in the call by using the
following link:
https://www.investormeetcompany.com/avation-plc/register-investor
A replay of the broadcast will be made available on the Investor
Relations page of the Avation PLC website.
Forward Looking Statements
This release contains certain "forward looking statements".
Forward looking statements may be identified by words such as
"expects," "intends," "initiate", "anticipates," "plans,"
"believes," "seeks," "estimates," "will, " or words of similar
meaning and include, but are not limited to, statements regarding
the outlook for Avation's future business and financial
performance. Forward looking statements are based on management's
current expectations and assumptions, which are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Actual outcomes and results may differ
materially due to global political, economic, business,
competitive, market, regulatory and other factors and risks.
Further information on the factors and risks that may affect
Avation's business is included in Avation's regulatory
announcements from time to time, including its Annual Report, Full
Year Financial Results and Half Year Results announcements. Avation
expressly disclaims any obligation to update or revise any of these
forward-looking statements, whether because of future events, new
information, a change in its views or expectations, or
otherwise.
Basis of presentation
This announcement covers the unaudited results of Avation PLC
for the year ended 30 June 2023.
Financial information presented in this announcement is being
published for the purposes of providing preliminary Group financial
results for the year ended 30 June 2023. The financial information
in this preliminary announcement is not audited and does not
constitute statutory financial statements of Avation PLC within the
meaning of section 434 of the Companies Act 2006. The Board of
Directors approved this financial information on 27 September 2023.
Avation PLC's most recent statutory financial statements for the
purposes of Chapter 7 of Part 15 of the Companies Act 2006 for the
year ended 30 June 2022, upon which the auditors have given an
unqualified audit, were published on 3 November 2022 and have been
annexed to the annual return and delivered to the Registrar of
Companies.
All "US$" amounts in this release are US Dollar amounts unless
stated otherwise. Certain comparative amounts have been
reclassified to conform with current year presentation.
-S -
Enquiries:
Avation PLC - Jeff Chatfield, Executive Chairman +65 6252 2077
Avation welcomes shareholder questions and comments and advises
the email address is: investor@avation.net
More information on Avation is available at www.avation.net
.
AVATION PLC
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEARED 30 JUNE 2023
2023 2022
US$'000s US$'000s
Continuing operations
Revenue 91,861 112,232
Other income 7,389 4,152
99,250 116,384
Depreciation (38,566) (39,304)
Gain on derecognition of finance lease 2,792 -
Loss on disposal of aircraft and aircraft
engine (1,000) (2,396)
Unrealised gain on aircraft purchase
rights 20,540 38,320
Unrealised gain on equity investments 7,520 -
Reversal of/impairment (loss) on aircraft 3,287 (6,158)
Aircraft transition expenses (11,389) (5,479)
(Provision for)/reversal of expected
credit losses (659) 1,980
Administrative expenses (8,760) (9,465)
Legal and professional fees (2,382) (3,698)
Operating profit 70,633 90,184
Loss on debt modification - (3,545)
Finance income 5,906 3,344
Finance expenses (63,539) (67,481)
Profit before taxation 13,000 22,502
Taxation (808) (5,375)
Profit from continuing operations 12,192 17,127
--------- ---------
Profit attributable to:
Shareholders of Avation PLC 12,191 17,126
Non-controlling interests 1 1
12,192 17,127
--------- ---------
Earnings per share for profit
attributable to shareholders of Avation
PLC
Basic earnings per share (US cents) 17.43 24.65
Diluted earnings per share (US cents) 17.38 24.65
------ ------
AVATION PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 30 JUNE 2023
2023 2022
US$'000s US$'000s
Profit from continuing operations 12,192 17,127
--------- ---------
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss:
Net gain on cash flow hedge, net of tax 410 35,387
410 35,387
Items that may not be reclassified subsequently
to profit or loss:
Revaluation (loss)/gain on property, plant
and equipment, net of tax (966) 16,209
--------- ---------
Other comprehensive income, net of tax (556) 51,596
Total comprehensive income for the year 11,636 68,723
--------- ---------
Total comprehensive income attributable
to:
Shareholders of Avation PLC 11,635 68,722
Non-controlling interests 1 1
--------- ---------
11,636 68,723
--------- ---------
AVATION PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF 30 JUNE 2023
2023 2022
US$'000s US$'000s
ASSETS
Non-current assets
Property, plant and equipment 845,471 813,908
Finance lease receivables 41,213 55,208
Trade and other receivables 14,258 19,388
Derivative financial assets 13,442 5,920
Aircraft purchase rights 85,820 65,280
Lease incentive assets 4,686 310
Goodwill 1,902 1,902
1,006,792 961,916
Current assets
Finance lease receivables 3,932 5,624
Trade and other receivables 31,035 13,202
Derivative financial assets 54 -
Investment in equity, fair value through profit or loss 11,235 3,715
Lease incentive assets 1,643 137
Cash and bank balances 116,905 119,171
164,804 141,849
Assets held for sale 8,000 113,255
---------- ----------
172,804 255,104
---------- ----------
Total assets 1,179,596 1,217,020
---------- ----------
EQUITY AND LIABILITIES
Equity
Share capital 1,182 1,203
Share premium 70,024 67,681
Treasury shares - (7,811)
Merger reserve 6,715 6,715
Asset revaluation reserve 50,764 51,730
Capital reserve 8,876 8,876
Other reserves 15,069 14,174
Retained earnings 88,995 84,519
---------- ----------
Equity attributable to shareholders of Avation PLC 241,625 227,087
Non-controlling interests 7 6
---------- ----------
Total equity 241,632 227,093
---------- ----------
Non-current liabilities
Loans and borrowings 694,575 764,230
Trade and other payables 20,185 18,274
Derivative financial liabilities 1,632 1,055
Maintenance reserves 54,587 75,131
Deferred tax liabilities 26,440 25,437
---------- ----------
797,419 884,127
Current liabilities
Loans and borrowings 61,401 63,900
Trade and other payables 17,167 15,940
Maintenance reserves 61,456 10,156
Income tax payable 521 658
---------- ----------
140,545 90,654
Liabilities directly associated with assets held for sale - 15,146
---------- ----------
140,545 105,800
Total equity and liabilities 1,179,596 1,217,020
---------- ----------
AVATION PLC
CONSOLIDATED STATEMENT OF EQUITY CHANGES
FOR THE YEARED 30 JUNE 2023
Attributable to shareholders of Avation PLC
Share Share Treasury Merger Asset Capital Other Retained Total Non-controlling Total
capital premium shares reserve revaluation reserve reserves earnings interest equity
reserve
US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s
Balance at 1
July 2022 1,203 67,681 (7,811) 6,715 51,730 8,876 14,174 84,519 227,087 6 227,093
Profit for the
year - - - - - - - 12,191 12,191 1 12,192
Other
comprehensive
income - - - - (966) - 410 - (556) - (556)
--------- --------- --------- --------- ------------ --------- --------- ---------- --------- ---------------- ---------
Total
comprehensive
income - - - - (966) - 410 12,191 11,635 1 11,636
--------- --------- --------- --------- ------------ --------- --------- ---------- --------- ---------------- ---------
Issue of shares 18 2,343 - - - - (506) - 1,855 - 1,855
Purchase of
treasury
shares - - (94) - - - - - (94) - (94)
Cancellation of
treasury
shares (39) - 7,905 - - - 39 (7,905) - - -
Share warrant
expense - - - - - - 1,142 - 1,142 - 1,142
--------- --------- --------- --------- ------------ --------- --------- ---------- --------- ---------------- ---------
Total
transactions
with owners
recognised
directly in
equity (21) 2,343 7,811 - - - 675 (7,905) 2,903 - 2,903
--------- --------- --------- --------- ------------ --------- --------- ---------- --------- ---------------- ---------
Expiry of share
warrants - - - - - - (190) 190 - - -
Total others - - - - - - (190) 190 - - -
--------- --------- --------- --------- ------------ --------- --------- ---------- --------- ---------------- ---------
Balance at 30
June 2023 1,182 70,024 - 6,715 50,764 8,876 15,069 88,995 241,625 7 241,632
--------- --------- --------- --------- ------------ --------- --------- ---------- --------- ---------------- ---------
AVATION PLC
CONSOLIDATED STATEMENT OF EQUITY CHANGES
FOR THE YEARED 30 JUNE 2022
Attributable to shareholders of Avation PLC
Share Share Treasury Merger Asset Capital Other Retained Total Non-controlling Total
capital premium shares reserve revaluation reserve reserves earnings interest equity
reserve
US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s
Balance at 1
July 2021 1,203 67,681 (7,811) 6,715 37,602 8,876 (21,382) 64,058 156,942 68 157,010
Profit for the
year - - - - - - - 17,126 17,126 1 17,127
Other
comprehensive
income - - - - 16,209 - 35,387 - 51,596 - 51,596
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------
Total
comprehensive
income - - - - 16,209 - 35,387 17,126 68,722 1 68,723
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------
Dividends paid
to
non-controlling
interest - - - - - - - - - (63) (63)
Share warrant
expense - - - - - - 1,423 - 1,423 - 1,423
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------
Total
transactions
with owners
recognised
directly in
equity - - - - - - 1,423 - 1,423 (63) 1,360
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------
Release of
revaluation
reserve upon
sale
of aircraft - - - - (2,081) - - 2,081 - - -
Expiry of share
warrants - - - - - - (1,254) 1,254 - - -
Total others - - - - (2,081) - (1,254) 3,335 - - -
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------
Balance at 30
June 2022 1,203 67,681 (7,811) 6,715 51,730 8,876 14,174 84,519 227,087 6 227,093
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------
AVATION PLC
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEARED 30 JUNE 2023
2023 2022
US$'000s US$'000s
Cash flows from operating activities:
Profit before income tax 13,000 22,502
Adjustments for:
Amortisation of lease incentive asset 1,368 1,383
Depreciation expense 38,566 39,304
Depreciation of right-of-use assets 233 218
Provision for/(reversal of) expected
credit losses 659 (1,980)
Finance income (5,906) (3,344)
Finance expense 63,539 67,481
Gain on derecognition of finance lease (2,792) -
Loss on debt modification - 3,545
Loss on disposal of aircraft and aircraft
engine 1,000 2,396
Interest income from finance leases (2,230) (2,918)
(Reversal of)/impairment loss on aircraft (3,287) 6,158
Share warrants expense 1,142 1,423
Foreign currency exchange gain (3,107) -
Unrealised gain on aircraft purchase
rights (20,540) (38,320)
Unrealised gain on equity investments (7,520) -
Operating cash flows before working
capital changes 74,125 97,848
Movement in working capital:
Trade and other receivables and finance
lease receivables (3,296) 12,923
Trade and other payables 2,042 1,562
Maintenance reserves 15,503 (7,124)
---------- ----------
Cash from operations 88,374 105,209
Finance income received 4,713 1,581
Finance expense paid (44,091) (51,700)
Income tax paid (610) (610)
---------- ----------
Net cash from operating activities 48,386 54,480
---------- ----------
Cash flows from investing activities:
Investment in fixed term deposits (1,225) -
Purchase of property, plant and equipment (6) (17)
Proceeds from disposal of aircraft and
aircraft engine 39,750 65,636
Net cash from investing activities 38,519 65,619
---------- ----------
Cash flows from financing activities:
Net proceeds from issuance of ordinary 1,855 -
shares
Purchase of treasury shares (94) -
Dividend paid to non-controlling interest
of a subsidiary - (63)
(Increase)/decrease of restricted cash
balances (6,960) 13,500
Proceeds from loans and borrowings, net
of transactions costs 42,958 17,060
Repayment of loans and borrowings (135,115) (140,396)
---------- ----------
Net cash used in financing activities (97,356) (109,899)
---------- ----------
Net (decrease)/increase in cash and
cash equivalents (10,451) 10,200
Cash and cash equivalents at beginning
of year 35,267 25,067
---------- ----------
Cash and cash equivalents at end of
year 24,816 35,267
---------- ----------
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END
FR LRMBTMTMTBRJ
(END) Dow Jones Newswires
September 28, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Avation (LSE:AVAP)
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