29th Jun 2020 14:51
(Alliance News) - Avation PLC on Monday posted a rise in earnings for the first three quarters of financial 2020 as it expressed confidence in its outlook.
Shares in the aircraft leasing company were trading 9.9% higher at 170.30 pence each on Monday afternoon in London, but are down 37% from the start of the year.
For the nine months ended March 31, Avation posted revenue of USD99.6 million, up 14% from USD87.2 million recorded for the comparative period a year prior. Pretax profit was USD46.6 million, multiplying from USD17.1 million.
Turning to current trading, the London-based company said it is in a strong financial position as a result of steps taken to lower costs and, it has reached agreements with its lenders in relation to adjustments to its financing facilities.
"The company is fortunate that some of its largest customers are in countries where there has been comparatively lower impact from the pandemic. We are now observing a gradual return to service of certain customers including VietJet, airBaltic, EVA Air and Mandarin Airlines which presently represent over 60% of Avation's future unearned contracted leasing revenue. Avation is optimistic about the long term opportunity for airline travel particularly the turboprop and narrow-body aircraft sectors," said Executive Chair Jeff Chatfield.
As at the end of March, Avation had cash of USD131.6 million.
By Ife Taiwo; [email protected].
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