Commercial passenger aircraft leasing company Avation PLC (LON:AVAP) made rapid progress in the second half of 2016.
The first half of the group’s financial year saw the key metrics improve markedly year-on-year.
Lease revenue rose 43% to US$45.11mln from US$31.49mln the year before.
Profit before tax jumped 51% to US$8.39mln from US$5.57mln, while earnings per share climbed 46% to 12.9 cents from 8.8 cents in the second half of 2015.
Book value per share rose 41% to US$3.10 from US$2.20. Avation shares currently trade at just below £2.
In October 2016 Avation revealed that it had received an expression of interest for 22 of its ATR 72 turboprop aircraft, which prompted to seek competing proposals from the market.
It received eight offers from a range of investors and lessors, with the bid levels indicating a valuation of the fleet above the book value. Avation revealed in today’s statement it is still in discussions with a number of the bidders, and no final bids are yet on the table.
The group ended the year with net indebtedness of US$689,253, up from US$409,498 at the end of 2015. The total loan-to-value ratio remained pretty steady at 76.0%, compared to 75.8% a year earlier.
"Fleet metrics have continued to improve as the fleet has grown, with the weighted average age of the aircraft decreasing to 2.8 years and the weighted average remaining lease term increasing to 7.8 years,” said Jeff Chatfield, executive chairman of Avation.
“Avation's strategy seeks to maintain a low average age of the fleet, lowering risk by maximising the long term earning potential of fleet assets. As at 31 December 2016 the value of the company's jet fleet now exceeds that of the turboprop fleet,” Chatfield revealed.
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