5th Sep 2019 12:19
(Alliance News) - Commercial passenger aircraft leasing company Avation PLC on Thursday reported recorded annual revenue, profit and fleet assets.
For the financial year ended June, Avation's pretax profit jumped 35% to USD25.6 million from USD18.9 million the year before.
The company's revenue grew 8.5% to USD119.1 million from USD109.8 million. Aviation's lease rental revenue increased by 21% to a record USD117.7 million.
Avation's operating profit margin improved to 65% from 52% the year before.
Avation upped its full year dividend by 45% to 10.5 US cents compared to 7.25 cents the year before.
The company's fleet assets increased 22% year on year to USD1.27 billion from USD1.04 billion the year before. As at June 30, Avation's fleet comprised 48 aircraft, including seven aircraft on finance lease. The weighted average age of the fleet is 3.4 years and the weighted average remaining lease term is 7.5 years.
Twelve aircraft were added to the fleet in the year including six ATR 72-600 aircraft, five Airbus A220-300 and the company's first Boeing 737-800. Two narrowbody aircraft were sold during the year. Narrowbody aircraft make up 48% of the company's fleet assets.
Executive Chairman, Jeff Chatfield said: "Avation posted record revenue, profit, earning per share and fleet assets for the year ended June 30".
He continued: "The company acquired twelve aircraft during the year and continued to diversify aircraft types and add new customers to reduce revenue concentration."
Avation's ended the year with a debt to assets ratio of 77.4% compared to 75.4% at the same point a year before.
"Avation will continue to source secured and unsecured debt finance to fund fleet growth with the overriding objective of lowering the weighted average cost of finance," the company explained.
The company's weighted average cost of total debt decreased to 4.6% versus 5.0% the year before.
Chatfield added: "Avation will continue to focus on growing the fleet and adding new airline customers in the coming financial year. The company is currently assessing jet aircraft for acquisition, in addition to scheduled deliveries of new ATR 72 turboprop aircraft from our order book."
Avation has orders for nine additional ATR 72-600 aircraft for delivery by 2022 and has purchase rights for a further 25 aircraft.
Shares in Avation were 2.0% higher in London on Wednesday at 299.50 pence each.
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