6th Sep 2018 12:14
LONDON (Alliance News) - Avation PLC on Thursday said revenue increased in financial 2018, but profit slipped due higher costs and an impairment.
The passenger aircraft leasing company said pretax profit for the year to the end of June declined 11% to USD18.9 million from USD21.4 million reported a year ago, despite revenue rising by 16% to USD109.1 million from USD94.2 million.
Depreciation costs grew to USD34.3 million from USD32.3 million year-on-year, while administrative expenses increased to USD10.2 million from USD8.1 million.
The company also reported an impairment of USD7.1 million, related to the maintenance adjusted value of the aircraft following its repossession from Air Berlin.
In December last year, Avation transitioned an Airbus A320 aircraft to easyJet PLC, which had previously been operated by Air Berlin. Air Berlin announced insolvency in August last year and subsequently defaulted on the lease.
In the prior year, Aviation had no impairments, but reported a USD5.4 million gain on disposal of aircraft the year prior.
"Avation was successful at redeploying the proceeds generated by sales of aircraft in the previous financial year, adding new aircraft and customers to further grow the fleet and diversify the revenue base," Executive Chairman Jeff Chatfield explained.
This included investments in twin-aisle Boeing 777-300ER and Airbus A330-300 aircraft alongside new technology narrow-body Airbus A220-300 aircraft. As at 30 June, Avation's fleet comprised of 38 aircraft.
Fleet assets increased 38% to USD1.03 billion from USD744.7 million during the period.
Aviation lifted its dividend by 21% to 7.25 US cents per share from 6.00 cents paid the year before.
"The performance of Avation showed growth consistent with an increase in fleet assets and record high monthly lease rental collections," said Chatfield.
"Avation will continue to focus on growing the fleet and adding new airline customers in the coming financial year," added Chatfield.
Shares in Avation were trading 1.1% higher on Thursday at 230.00 pence each.
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