Commercial passenger aircraft leasing specialist Avation PLC (LON:AVAP) has estimated that its revenues for the past 12 months will come in at US$94mln – a 32% year-on-year rise and in-line with expectations.
Those numbers are unaudited, it must be said, but London-listed Avation said it has a 0.5% margin for error.
As a result, the board has approved a total dividend of 6 US cents a share, 85% higher than the 3.25 US cents it paid out last year.
New six-year A321 lease deal
It was a pretty packed update from the company, which also revealed it has signed a letter of intent to lease a ‘mid-life’ Airbus A321 jet currently in its fleet to a new customer once its current lease runs out in April.
The new contract will have a duration of six years, which significantly extends the contracted revenue stream attached to the aircraft.
Avation is also set to take delivery of a new ATR 72-600 turbo-prop today, which will become the 19th ATR 72 purchased by the group.
US$31mln now in the bank from plane sale
Speaking of ATR 72s, the world’s leading turbo-prop, Avation confirmed it has now been paid the US$31mln from the sale of six of the planes to Chorus Aviation Corp.
The deal was agreed a couple of months ago but has just completed today.
Avation, as has always been the plan, will look to use the money to add additional aircraft to further diversify its portfolio.
Shares nudged 2% higher on Friday morning to 223.5p.