Avation PLC (LON:AVAP) has made good on its forecasts as it reported record profits and revenues for the first half of its financial year.
The aircraft leasing firm, which counts airlines like Thomas Cook and easyJet among its customers, reported a pre-tax profit for the six months ended 31 December of US$14.2mln, up 95% on a year ago, while revenues from its lease rentals jumped 40% to a record US$58.2mln.
WATCH: Avation makes good on forecasts as it hits record profit in first half
Earnings per share (EPS) also essentially doubled to US$0.21 from US$10.9, with an interim dividend of US$0.02 declared in light of the “robust” performance.
Profits had been boosted by the sale of one of Avation’s Airbus A321-200 aircraft in October, for a price the group said was 10% above the planes book value.
The record-setting revenues were pretty much in line with the company’s forecasts, having predicted around US$58mln in a February update.
Fleet growth targeted for second half
In an outlook statement, Avation said “continued fleet growth” was its key goal for the second half of the year with seven aircraft expected for delivery on top of the “potential acquisition of further assets”.
READ: Avation first-half profits set to soar
Jeff Chatfield, the company’s executive chairman, added that the seven new aircraft were expected before 30 June this year and that going forward the group had “sufficient liquidity” to fund more additions to its fleet.
The company also said that the risks to its portfolio, which now numbers 41 aircraft including a Boeing 777 and an Airbus A330, had been “reduced through growth and diversification of customers”.
In early trading Thursday, Avation shares were down 0.2% at 286.5p.
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