17th Feb 2014 11:57
LONDON (Alliance News) - Capital Lease Aviation PLC said Monday it remains in a strong financial position, despite pre-tax profit dropping by nearly USD1 million during the period.
In its results for the six months to December 31 2013, the aircraft leasing company said revenue was up at USD6.15 million, from USD5.61 million for the comparable period in 2012.
For the six months period, pre-tax profit came in at USD1.3 million, down from USD2.2 million last year. Profit after tax declined to USD1.2 million from USD2.0 million.
During the half-year, Capital Lease Aviation said it extended two key aircraft leases to 2021, contracts which, "provide both short and long term financial support for the company strategy, which is to expand the asset portfolio by buying aircraft, when transactions with a balance of high returns and acceptable risk can be achieved," said Jeff Chatfield, Executive Chairman.
These leases resulted in a slightly lower income yield from the aircraft, however the extensions secured long term benefit for the Company, it said.
Capital Lease Aviation said it focused on a number of management targets during the period, in order to strengthen its financial position, including extending leases on key aircraft assets in order to supports its variability as a long-term business, remain profitable, while pursuing new aircraft acquisitions.
Earnings per share for the period came in at 1.26 cents.
Looking ahead, Chatfield said, "The risks remain the typical risks of the aircraft leasing industry along with the risks associated with obtaining finance and the residual value risk and impairment in aircraft assets."
Shares in the aviation were were trading down 9.13% at 14.88 pence per share, one of the biggest fallers on the London market.
By Alice Attwood; [email protected]; @AliceAtAlliance
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