29th Sep 2015 11:34
LONDON (Alliance News) - Aircraft leasing company Capital Lease Aviation PLC on Tuesday said its pretax profit fell in the year to the end of June, in line with declining lease revenue.
The company said its pretax profit for the year to June 30 was USD2.1 million, down from USD3.0 million a year earlier, as its lease revenue in the year declined to USD10.8 million from USD11.7 million and it was hit by higher depreciation costs which offset a decline in financing costs.
Capital Lease said the decline in revenue was due to lease extensions on two of its Airbus contracts, which were agreed at a lower net income yield for the company. It said it decided to agree the deal in order to secure the longer duration on the leases, but said the two aircraft represent around 70% of revenue, meaning the less favourable yield has hit its overall revenue.
The group is paying a total dividend of 2.0 pence per share, having not paid a dividend the year earlier.
Capital Lease said it is actively pursuing further aircraft acquisitions and have evaluated a number of aircraft over the year.
"Our strategy remains to grow the fleet of mid-life narrow-body jets in Asia and Europe, the cash generated through the sale of an asset and refinancing will facilitate future growth. Our goal, for 2016, is to invest the capital in assets that create value for our shareholders," said Jeff Chatfield, Capital Lease's executive chairman.
Shares in Capital Lease were untraded Tuesday, having last traded at 23.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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