7th Sep 2015 07:27
LONDON (Alliance News) - Avation PLC Monday reported a drop in profit in its recently-ended financial year, despite a rise in lease revenue, as it did not make the one-off gains it achieved the year before and it made a loss on the disposal of an old aircraft.
The commercial passenger aircraft leasing company reported a fall in pretax profit in the year ended June 30 to USD15.5 million from USD17.3 million a year earlier, even though lease revenue grew 17% to USD56.9 million from USD48.7 million.
It said that the profit drop was due to "variability in aircraft trading gains and losses between the respective financial periods" as it did not replicate the one-off gains that it made from the sale of two aircraft in 2014, and as its subsidiary Capital Lease Aviation incurred a USD1.2 million loss from the part out disposal of a 25-year old aircraft.
Avation added that the number of aircraft in the fleet increased to 29 from 25 the year before.
Avation will pay a total dividend of 3.00 cents, up 49% on the 2.01 cents it paid the prior year.
"The key objectives for 2016 are to improve profitability through fleet growth, increase customer diversification and add scale to the business," Chairman Jeff Chatfield said in a statement.
Shares in Avation were trading down 2.5% at 119.00 pence Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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