Avation PLC (LON:AVAP), the UK-quoted plane leasing specialist, has reported record revenues and profit and says it's upbeat on future growth.
The firm rents out aircraft to airlines around the world, including Thomas Cook and Virgin, and it currently has a fleet of 38 planes.
For the year to June 30, its tenth as a public listed entity, it reported a 25% increase in lease revenue to US$71.2 million, against US$56.9 million last year, while total profit after tax flew 37.6% higher to US$18.3 million compared to US$13.3 million in 2015.
The yield to the firm for the fleet in the year was 12.3%.
EPS (earnings per share) increased an impressive 42.5% to 34.2 cents (2015: 24.0 cents), while the interim dividend will be 3.25 US cents versus 3 US cents last year.
Executive chairman Jeff Chatfield said that the group's increased scale and containment of costs had led to improved profitability, with an operating profit margin increasing to 64%.
"Avation is well positioned for continued growth," he said.
The value of its aircraft assets increased by 67% to $725 million as it added nine aircraft to its fleet.
"As each aircraft was acquired or delivered, monthly lease revenue increased. Revenue growth accelerated during the second half, a period in which six new aircraft were delivered," it added.
Chatfield also noted that the fleet metrics had improved with the weighted average age of the aircraft fleet decreasing from to 4.2 years from 5.3 years and the weighted average remaining lease term increasing to 6.8 years.
Avation's onward strategy includes buying new aircraft and to maintain a low average age of the fleet.
Since the new financial year began, further planes have been aqcquired, the group said, and lease revenue has subsequently continued to increase.
As of today (Sep 8), contracted lease revenue for the 2017 financial period is over US$95 million, it revealed.