Avation PLC (LON:AVAP) shares gained some altitiude on Monday after the company expected its leasing business to report record revenues in the financial year just ended as its portfolio and client list continued to grow.
In an update for the year ended 30 June, the commercial aircraft lessor estimated that its rental revenue would increase 20% on the prior year to US$117.7mln.
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Over the year, the company said it had increased the size of its fleet to 48 aircraft from 38 in 2018, having acquired 12 aircraft and sold two, while the number of airlines leasing its planes had risen to 17 from 13.
The group added that it was continuing to focus on growing its fleet and was currently assessing more aircraft for acquisition. It had also managed to lower the estimated average cost of its debt to 4.6% from 5% last year.
Avation said that if its full results for the year, which are due on 5 September, were in line with expectations, it expected to pay an additional interim dividend which when taken with the initial payout of US$0.02 was expected to exceed the US$0.0725 paid out for its 2018 financial year.
Jeff Chatfield, Avation’s executive chairman, said the company’s fleet assets and monthly lease rental collections were at “record levels” while the weighted average age and lease term metrics remained strong.
He added that going into the new financial year the firm was “well placed to continue to grow”.
In lunchtime trading, Avation's shares were 3.8% higher at 276p.
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