REG - Avation PLC Avation PLC - AVAW - UNAUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2022
29/09/2022 08:15
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RNS Number : 0656B Avation PLC 29 September 2022
AVATION PLC
("Avation" or "the Company")
UNAUDITED Financial Results for the YEar ended 30 june 2022
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company,
announces preliminary unaudited financial results for the year ended 30 June
2022.
Key Financial Results
· Profit after tax of $17.1 million (2021: $84.9 million loss);
· Earnings per share of 24.7 cents (2021: Loss per share 131.2 cents);
· Net asset value per share increased 63% to £2.68 (2021: £1.64);
· Revenue and other income reduced by 3% to $116.4 million (2021:
$120.1 million);
· Net indebtedness was reduced by 14% to $792.9 million (2021: $922.6
million);
· Unrestricted cash and cash equivalents increased by 41% to $35.3
million (2021: $25.1 million), with total cash and bank balances of $119.2
million (2021: $122.5 million); and
· Profit before tax (before non-cash loan modification charges) of
$34.9 million (2021: Loss before tax $120.5 million).
Operational Highlights
· Warehouse loan facility maturity date extended to 30 September 2026;
· Five aircraft were sold during the year, comprising an Airbus
A220-300, an Airbus A321-200 and three ATR 72 turboprops;
· Placed one ex-Virgin Australia ATR 72 aircraft on lease;
· Three leases extended including two ATR 72 turboprops and one Airbus
A320 jet aircraft;
· Transitioned an Airbus A320 to a new customer;
· Repossessed a Boeing 737-800;
· Philippine Airlines restructuring completed with a Boeing 777-300ER
remaining on lease with the airline.
Executive Chairman, Jeff Chatfield, said:
"In the year ended 30 June 2022 Avation has returned to profitability,
increased net asset value per share, maintained liquidity, materially lowered
net indebtedness and clearly enunciated its new low CO2 strategy. The Company
is well positioned to execute its business strategy as the aviation sector
returns to pre-pandemic levels of activity.
"The 2022 financial results reflect the end of the pandemic and the return to
a high level of utilisation for Avation's aircraft fleet. There has been a
significant recent recovery in passenger numbers and the airline industry. The
Company is optimistic about a future for the leasing industry characterised by
high demand for aircraft as the global fleet builds and transitions to low CO2
technology in the coming years.
"Fleet utilisation has improved as unutilised aircraft have been repositioned
or sold. The significant impacts of airline insolvencies and the restructuring
of some of Avation's customers have mostly been reflected in previous periods
and distributions to creditors from these insolvencies are being received.
"The Company is seeing increased levels of interest from airlines to buy or
lease aircraft at sustainable lease rates, senior lenders willing to lend
against aircraft assets and improved utilisation of aircraft. These factors
confirm the emergence of the industry from the pandemic.
"The Company's strategy will focus on leasing modern, low CO2 emissions,
fuel-efficient aircraft in the future. Avation is supportive of the aviation
industry's goal of becoming more sustainable through a transition to new
technology more fuel-efficient aircraft engines and the use of sustainable
aviation fuel to reduce CO2 emissions.
"The Company will position itself for a return to growth through opportunistic
aircraft trading and deliveries from its orderbook in the post pandemic
environment."
Financial Highlights and Analysis
30 June 2022 30 June 2021 Change
US$ 000s
US$ 000s
Revenue 112,232 117,738 (5%)
Other income 4,152 2,406 73%
116,384 120,144 -
Depreciation (39,304) (46,332) (15%)
Loss on disposal of aircraft (2,396) (6,948)
Unrealised gain on aircraft purchase rights 38,320 (150)
Impairment loss on aircraft (6,158) (87,394)
Expected credit loss on receivables and accrued revenue 1,980 (25,428) (108%)
Administrative expenses (9,465) (9,485) -
Legal and professional fees (5) (3,698) (2,561) 44%
Other expenses (5,479) (4,560) 20%
Operating Profit/(Loss) 90,184 (62,714) (244%)
Finance income 3,344 2,441 37%
Finance expenses (net of Amortisation of gain on loan modification) (58,676) (60,218) (3%)
Profit/(Loss) before taxation (before non-cash loan modification charges) 34,852 (120,491) (129%)
(Loss)/gain on loan modification (3,545) 50,270
Amortisation of gain of loan modification (8,805) -
Profit/(loss) before taxation 22,502 (70,221) (132%)
Taxation (5,375) (14,664) (63%)
Total profit after tax 17,127 (84,885) (120%)
EPS 24.7 cents (131.2) cents (119%)
30 June 2022 30 June 2021
US$ 000s
US$ 000s
Fleet assets (1) 987,995 1,079,594 (8%)
Total assets 1,217,020 1,282,934 (5%)
Cash and bank balances (2) 119,171 122,471 (3%)
Cash and cash equivalents 35,267 25,067 41%
Net asset value per share (US$) (3) $3.27 $2.26 45%
Net asset value per share (GBP) (4) £2.68 £1.64 63%
1. Fleet assets are defined as property, plant and equipment plus assets
held for sale plus finance lease receivables.
2. Cash and bank balances as at 30 June 2022 comprise cash and cash
equivalents of $35.3 million (30 June 2021: $25.1 million) and restricted cash
balances of $83.9 million (30 June 2021: $97.4 million).
3. Net asset value per share is total equity divided by the total number
of shares in issue, excluding treasury shares.
4. Based on GBP:USD exchange rate as at 30 June 2022 of 1.22 (30 June
2021:1.38).
5. Legal and professional fees were included within administrative
expenses in the financial statements for the year ended 30 June 2021. Legal
and professional fees are disclosed as a separate line item in the financial
statements for the year ended 30 June 2022 and the comparative figures have
been restated to conform presentation.
Aircraft Fleet
Aircraft Type 30 June 2022
Boeing 777-300ER 1
Airbus A330-300 1
Airbus A321-200 6
Boeing 737-800NG 1
Airbus A320-200 2
Airbus A220-300 5
ATR 72-600 18
ATR 72-500 5
Total 39
At 30 June 2022, Avation's fleet comprised 39 aircraft, including six aircraft
on finance lease. Avation serves 17 customers in 14 countries. The weighted
average age of the fleet is 5.6 years (30 June 2021: 4.8 years) and the
weighted average remaining lease term is 5.7 years (30 June 2021: 6.4 years).
One Airbus A220-300, one Airbus A321-200 and three ATR 72-600 aircraft were
sold during the period. Turboprop and narrowbody aircraft make up 83% of fleet
assets as at 30 June 2022. Fleet assets decreased 8.0% to $988.0 million (30
June 2021: $1,079.6 million). Three aircraft in the fleet were unencumbered at
30 June 2022. As at the date of this report, Avation has four unutilised
aircraft as a result of re-positioning or selling 17 of the 20 aircraft that
were returned from customers during the pandemic and the repossession of an
ATR 72-600 since 30 June 2022.
Avation has orders for two ATR 72-600 aircraft and purchase rights for a
further 28 aircraft as at 30 June 2022. The order-book represents a growth
opportunity as purchase rights provide a visible pathway to fleet growth.
Avation has no current, and has never had any, direct exposure to Russia or
any Russian airline. Avation is currently not aware of any sanctions resulting
from the events in Ukraine that will impact the Company.
Fleet Valuation Review
Avation has impaired the value of its aircraft fleet by over $132.8 million
over the past two years, due to significant airline customer failures and
uncertainty created by the pandemic, including $9.9 million in the results for
the six months to 31 December 2021. The rapid recovery in global air travel
and improvements in airline credit worthiness now support an improvement in
the overall value of Avation's fleet.
Avation has reviewed the values of aircraft in its fleet and reversed some of
the previous impairment charges and increased the overall value of the fleet.
The increase in valuation represents a small proportion of the impairments
taken during the pandemic. The review resulted in $3.7 million of impairment
being reversed in the six months ended 30 June 2022 with a further $17.5
million recorded as an increase in the asset revaluation reserve. The value of
aircraft purchase rights has also increased. Purchase rights represent an
opportunity for access to the popular, new technology, fuel efficient ATR 72
turboprop aircraft.
As the world continues to emerge from the pandemic, demand for aircraft is
expected to continue increasing. As airline travel continues to recover,
expected improvements in lease rates may lead to further increases in aircraft
values in the future.
Airline Customers subject to Restructuring or Insolvency
Insolvency proceedings impacted two airlines during the period, Virgin
Australia and Philippine Airlines
Virgin Australia
Avation's claim against Virgin Australia has been adjudicated by the Trustee
of the Creditors Trust in the sum of AUD101.4 million. Avation was notified of
an initial distribution from the Creditors Trust of 5.4 cents in the dollar on
15 September 2022. A further distribution based on funds withheld by the
Trustee is expected. In addition to this distribution further funds may be
made available to creditors should Virgin Australia meet performance targets
in the financial year ended 30 June 2023. The potential total of these
additional distributions is estimated to be in the range of 1.0 - 2.0 cents in
the dollar.
Philippine Airlines
The Philippine Airlines ("PAL") restructuring plan became effective on 31
December 2021. Pursuant to the restructuring plan, PAL has retained a Boeing
777-300ER aircraft on lease from Avation. The lease for this aircraft will
continue until the original scheduled termination date. PAL has met its
commitments under the restructuring agreement and continues to meet the
ongoing lease terms. Avation has received shares in PAL as part of the
restructuring arrangement and may seek to realise the value of these shares in
the future.
Debt summary
30 June 2022 30 June 2021 Change
US$000s
US$000s
Current loans and borrowings 63,900 442,622 (86%)
Non-current loans and borrowings 764,230 505,018 51%
Total loans and borrowings 828,130 947,640 (13%)
Unrestricted cash and bank balances 35,267 25,067 41%
Net indebtedness (1) 792,863 922,573 (14%)
Net debt to assets (2) 65.1% 71.9%
Weighted average cost of secured debt (3) 4.0% 3.9%
Weighted average cost of total debt (4) 5.7% 5.4%
1. Net indebtedness is defined as loans and borrowings less unrestricted
cash and bank balances.
2. Net debt to assets is defined as net indebtedness divided by total
assets.
3. Weighted average cost of secured debt is the weighted average interest
rate for secured loans and borrowings at period end.
4. Weighted average cost of total debt is the weighted average interest
rate for total loans and borrowings at period end.
During the period net indebtedness was reduced by 14.1% to $792.9 million (30
June 2021: $922.6 million). In addition to this the Company was able to
successfully extend the maturity date of its aircraft warehouse loan facility
to 30 September 2026 resulting in a material reduction in current liabilities.
The weighted average cost of total debt is 5.7% as at 30 June 2022 (30 June
2021: 5.4%). The weighted average cost of secured debt was stable at 4.0% at
30 June 2022 (30 June 2021: 3.9%).
At the end of the financial period, Avation's net debt to total assets ratio
had improved to 65.1% (30 June 2021: 71.9%). As at 30 June 2022, 89.2% of
total debt was at fixed or hedged interest rates (30 June 2021: 90.9%). The
proportion of unsecured debt to total debt was 35.8% (30 June 2021: 29.9%).
Accounting impact (non-cash) of Bond extension and Warehouse Facility
Extension
In the year ended 30 June 2021 Avation completed a process to extend the
maturity date of Avation Capital S.A.'s Senior Notes ("Notes") from May 2021
to October 2026. The extension of the maturity date and other revisions to the
terms and conditions of the Notes were accounted for as a substantial
modification of the terms of a debt instrument in accordance with IFRS 9 which
led to a non-cash gain of $50.3 million being recognised in the statement of
profit or loss in the year ended 30 June 2021. Under IFRS 9 this gain is
required to be amortised over the term of the extension of the Notes.
Investors should note that in the current financial year ended 30 June 2022
amortisation of this gain led to a non-cash charge of $8.8 million being
recognised in finance expenses. A further non-cash charge of $3.5 million was
recorded when Avation successfully extended the maturity date of its aircraft
warehouse loan facility to 30 September 2026.
Interim Management Statement
The global aviation industry's emergence from the pandemic continues. The
rapid resurgence of passenger numbers has been particularly evident in the
period to the date of this announcement. Current trading and collection of
arrears remain steady. In the Company's opinion, the recent improvement in
travel is due to a combination of the Omicron variant being less severe and
high vaccination rates that have allowed governments to drop mask mandates and
ease travel restrictions. This trend is evident in regional and domestic
travel and is being followed by a recovery in international travel.
Avation's recent focus has necessarily been directed towards maintaining
liquidity, re-positioning or sale of unutilised aircraft and reducing
leverage. In the six-month period to 30 June 2022 material events that have
impacted Avation's financial position include the completion of PAL's
restructuring, completion of the sale of three ex-Virgin Australia ATR 72
aircraft and the extension to 30 September 2026 of the Company's warehouse
loan facility. The Company will maintain focus on these key elements of the
business in the short term. However, given that a significant number of
pandemic related issues have been resolved, the Company is optimistic about
opportunities in the post pandemic environment.
During the period to the date of this announcement, Avation has developed a
sustainable, low emissions aircraft growth strategy. This initiative was
supported by the recent release of the new lower emissions PW127XT engine and
announcement that future variants of the ATR 72 aircraft will include hybrid
technology and use 100% Sustainable Aviation Fuel. In addition, an ATR 72
aircraft has also completed the first 100% Sustainable Aviation Fuel
commercial flight. The Company's future business strategy will be to focus on
leasing modern, low CO2 emissions, fuel-efficient aircraft. We anticipate
gradually trading out of older aircraft types and focussing on aircraft types
such as the Airbus NEO and A220 series in addition to ATR 72 aircraft with the
recently announced new generation engines. The Company's portfolio already
comprises a significant proportion of Airbus A220 and ATR 72 aircraft showing
our commitment to new technology, fuel-efficient aircraft types.
Future ATR 72 deliveries from Avation's orderbook will be powered by the new
Pratt and Whitney Canada PW127XT engine which promises 20% lower maintenance
costs, extended time on wing, 3% lower fuel consumption and 5% more power
compared with the current engine. The manufacturer expects that the PW127XT
engine will be certified to operate with 100% SAF from 2025. When using SAF
net emissions of CO2 will be reduced by 80%.
Industry data suggests that airlines will require significant numbers of
leased aircraft following the pandemic due to the large number of older
aircraft that have been retired and the impact of the pandemic on airline
balance sheets, reducing their ability to purchase aircraft directly. This
supports the Company's strategy of focussing on young and popular commercial
aircraft.
Avation's functional currency is the US Dollar. As at 30 June 2022 the net
asset value per share was $3.27, equivalent to £2.68 based on a GBP:USD
exchange rate of 1.22. As at the date of this report the GBP:USD exchange
rate is 1.07. The 30 June 2022 net asset value per share of $3.27 is
equivalent to £3.06 based on an exchange rate of 1.07.
Market Positioning
Avation's long-term strategy is to target growth and diversification by adding
new airline customers, while maintaining a low average aircraft age and long
remaining lease term metrics. Avation focuses on new and relatively new
commercial passenger aircraft on long-term leases.
Avation supports and recognises the transition of the aircraft industry
towards aircraft using 100% sustainable aviation fuel to produce low CO2
emissions on a net basis. Low CO2 emissions will advantage airlines in terms
of taxes and government imposts and are key to providing a sustainable future
for global aviation.
The Company's business model involves rigorous investment criteria that seeks
to mitigate the risks associated with the aircraft leasing sector. Avation
will typically sell mid-life and older aircraft and redeploy capital to newer
assets. This approach is intended to mitigate technology change risk,
operational and financial risk, support sustained growth and deliver long-term
shareholder value.
Avation is an active trader of aircraft and from time to time will consider
the acquisition or sale of individual or smaller portfolios of aircraft, based
on prevailing market opportunities and consideration of risk and revenue
concentrations.
Funding of asset acquisitions is traditionally sourced from capital markets,
asset-backed bank lending, operational cash flows and disposals of selected
aircraft. Access to acceptably priced funding is a key factor in aircraft
leasing. Specific risks which are inherent in the aircraft leasing industry
include, but are not limited to, ongoing pandemic impacts on travel,
government regulations, the creditworthiness of airline customers,
over-production of new aircraft and market saturation, technology change,
residual value risks, competition from other lessors and the risk of
impairment of aircraft assets.
Results Conference Call
Avation's senior management team will host an investor update call on 29
September 2022, at 2:30 pm BST (UK) / 9:30 am EST (US) / 9:30 pm SGT
(Singapore), to discuss the Company's financial results. Investors can
participate in the call by using the following link:
https://www.investormeetcompany.com/avation-plc/register-investor
(https://www.investormeetcompany.com/avation-plc/register-investor)
A replay of the broadcast will be available on the Investor Relations page of
the Avation Plc website.
Forward Looking Statements
This release contains certain "forward looking statements". Forward looking
statements may be identified by words such as "expects," "intends,"
"initiate", "anticipates," "plans," "believes," "seeks," "estimates," "will,"
or words of similar meaning and include, but are not limited to, statements
regarding the outlook for Avation's future business and financial performance.
Forward looking statements are based on management's current expectations and
assumptions, which are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Actual outcomes and results may
differ materially due to global political, economic, business, competitive,
market, regulatory and other factors and risks. Further information on the
factors and risks that may affect Avation's business is included in Avation's
regulatory announcements from time to time, including its Annual Report, Full
Year Financial Results and Half Year Results announcements. Avation expressly
disclaims any obligation to update or revise any of these forward-looking
statements, whether because of future events, new information, a change in its
views or expectations, or otherwise.
Basis of presentation
This announcement covers the unaudited results of Avation PLC for the
financial period ended 30 June 2022.
Financial information presented in this announcement is being published for
the purposes of providing preliminary Group financial results for the year
ended 30 June 2022. The financial information in this preliminary announcement
is not audited and does not constitute statutory financial statements of
Avation PLC within the meaning of section 434 of the Companies Act 2006. The
Board of Directors approved this financial information on 28 September 2022.
Avation PLC's most recent statutory financial statements for the purposes of
Chapter 7 of Part 15 of the Companies Act 2006 for the year ended 30 June
2021, upon which the auditors have given an unqualified audit, were published
on 26 October 2021 and have been annexed to the annual return and delivered to
the Registrar of Companies.
All "$" amounts in this release are US Dollar amounts unless stated otherwise.
Certain comparative amounts have been reclassified to conform with current
year presentation.
-ENDS-
Enquiries:
Avation PLC - Jeff Chatfield, Executive
Chairman
+65 6252 2077
Avation welcomes shareholder questions and comments and advises the email
address is: investor@avation.net
More information on Avation is available at www.avation.net
(http://www.avation.net) .
AVATION PLC
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
2022 2021
US$'000s US$'000s
Continuing operations
Revenue 112,232 117,738
Other income 4,152 2,406
116,384 120,144
Depreciation (39,304) (46,332)
Loss on disposal of aircraft and aircraft engine (2,396) (6,948)
Unrealised gain/(loss) on aircraft purchase rights 38,320 (150)
Impairment loss on aircraft (6,158) (87,394)
Expected credit losses 1,980 (25,428)
Administrative expenses (9,465) (9,485)
Legal and professional fees (3,698) (2,561)
Other expenses (5,479) (4,560)
Operating profit/(loss) 90,184 (62,714)
(Loss)/gain on debt modification (3,545) 50,270
Finance income 3,344 2,441
Finance expenses (67,481) (60,218)
Profit/(loss) before taxation 22,502 (70,221)
Taxation (5,375) (14,664)
Profit/(loss) from continuing operations 17,127 (84,885)
Profit/(loss) attributable to:
Shareholders of Avation PLC 17,126 (84,886)
Non-controlling interests 1 1
17,127 (84,885)
Earnings per share for profit/(loss)
attributable to shareholders of Avation PLC
Basic earnings per share (US cents) 24.65 (131.15)
Diluted earnings per share (US cents) 24.65 (131.15)
AVATION PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
2022 2021
US$'000s US$'000s
Profit/(loss) from continuing operations 17,127 (84,885)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Net gain on cash flow hedge, net of tax 35,387 1,686
35,387 1,686
Items that may not be reclassified subsequently to profit or loss:
Revaluation gain on property, plant and equipment, net of tax 16,209 7,440
Other comprehensive income, net of tax 51,596 9,126
Total comprehensive income/(loss) for the year 68,723 (75,759)
Total comprehensive income/(loss) attributable to:
Shareholders of Avation PLC 68,722 (75,760)
Non-controlling interests 1 1
68,723 (75,759)
AVATION PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
2022 2021
US$'000s US$'000s
ASSETS
Non-current assets
Property, plant and equipment 813,908 963,304
Finance lease receivables 55,208 45,836
Trade and other receivables 19,388 8,857
Derivative financial assets 5,920 -
Aircraft purchase rights 65,280 26,960
Lease incentive assets 310 6,661
Goodwill 1,902 1,902
961,916 1,053,520
Current assets
Finance lease receivables 5,624 4,154
Trade and other receivables 13,202 35,112
Investment in equity, fair value through profit or loss 3,715 -
Lease incentive assets 137 1,377
Cash and bank balances 119,171 122,471
141,849 163,114
Assets held for sale 113,255 66,300
255,104 229,414
Total assets 1,217,020 1,282,934
EQUITY AND LIABILITIES
Equity
Share capital 1,203 1,203
Share premium 67,681 67,681
Treasury shares (7,811) (7,811)
Merger reserve 6,715 6,715
Asset revaluation reserve 51,730 37,602
Capital reserve 8,876 8,876
Other reserves 14,174 (21,382)
Retained earnings 84,519 64,058
Equity attributable to shareholders of Avation PLC 227,087 156,942
Non-controlling interests 6 68
Total equity 227,093 157,010
Non-current liabilities
Loans and borrowings 764,230 505,018
Trade and other payables 18,274 16,472
Derivative financial liabilities 1,055 20,161
Maintenance reserves 75,131 89,279
Deferred tax liabilities 25,437 17,138
884,127 648,068
Current liabilities
Loans and borrowings 63,900 442,622
Trade and other payables 15,940 16,449
Maintenance reserves 10,156 12,202
Income tax payable 658 666
90,654 471,939
Liabilities directly associated with assets held for sale 15,146 5,917
105,800 477,856
Total equity and liabilities 1,217,020 1,282,934
AVATION PLC
CONSOLIDATED STATEMENT OF EQUITY CHANGES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Attributable to shareholders of Avation PLC
Share capital Share Treasury Merger reserve Asset revaluation reserve Capital reserve Other Retained earnings Total Non-controlling interest Total
premium Shares reserves equity
US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s
As at 1 July 2021 1,203 67,681 (7,811) 6,715 37,602 8,876 (21,382) 64,058 156,942 68 157,010
Profit for the period - - - - - - - 17,126 17,126 1 17,127
Other comprehensive income - - - - 16,209 - 35,387 - 51,596 - 51,596
Total comprehensive income - - - - 16,209 - 35,387 17,126 68,722 1 68,723
Dividends paid to non-controlling interest
- - - - - - - - - (63) (63)
Share warrant expense - - - - - - 1,423 - 1,423 - 1,423
Total transactions with owners recognised directly in equity
- - - - - - 1,423 - 1,423 (63) 1,360
Release of revaluation reserve upon sale of aircraft
- - - - (2,081) - - 2,081
Expiry of share warrants - - - - - - (1,254) 1,254 - - -
Total others - - - - (2,081) - (1,254) 3,335 - - -
Balance at 30 June 2022 1,203 67,681 (7,811) 6,715 51,730 8,876 14,174 84,519 227,087 6 227,093
AVATION PLC
CONSOLIDATED STATEMENT OF EQUITY CHANGES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021
Attributable to shareholders of Avation PLC
Share capital Share premium Treasury Merger reserve Asset revaluation reserve Capital reserve Other Retained earnings Total Non-controlling interest Total
shares reserves equity
US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s
As at 1 July 2020 1,108 57,747 (7,811) 6,715 30,162 8,876 (24,302) 148,455 220,950 72 221,022
Loss for the period - - - - - - - (84,886) (84,886) 1 (84,885)
Other comprehensive income - - - - 7,440 - 1,686 - 9,126 - 9,126
Total comprehensive income - - - - 7,440 - 1,686 (84,886) (75,760) 1 (75,759)
Issue of new shares 95 9,934 - - - - - - 10,029 - 10,029
Dividends paid to non-controlling interest
- - - - - - - - - (5) (5)
Share warrant expense - - - - - - 1,723 - 1,723 - 1,723
Total transactions with owners recognised directly in equity
95 9,934 - - - - 1,723 - 11,752 (5) 11,747
Expiry of share warrants - - - - - - (489) 489 - - -
Total others - - - - - - (489) 489 - - -
Balance at 30 June 2021 1,203 67,681 (7,811) 6,715 37,602 8,876 (21,382) 64,058 156,942 68 157,010
AVATION PLC
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
2022 2021
US$'000s US$'000s
Cash flows from operating activities:
Profit/(loss) before income tax 22,502 (70,221)
Adjustments for:
Amortisation of lease incentive asset 1,383 2,069
Depreciation expense 39,304 46,332
Depreciation of right-of-use assets 218 215
Expected credit losses (1,980) 25,428
Finance income (3,344) (2,441)
Finance expense 67,481 60,218
Loss/(gain) on debt modification 3,545 (50,270)
Loss on disposal of aircraft and aircraft engine 2,396 6,948
Interest income from finance leases (2,918) (2,364)
Impairment loss on aircraft 6,158 87,394
Pre-delivery payments expensed - 2,850
Share warrants expense 1,423 1,723
Unrealised (gain)/loss on aircraft purchase rights (38,320) 150
Operating cash flows before working capital changes 97,848 108,031
Movement in working capital:
Trade and other receivables and finance lease receivables 12,923 (40,757)
Trade and other payables 1,562 8,390
Maintenance reserves (7,124) 34,879
Cash from operations 105,209 110,543
Finance income received 1,581 2,172
Finance expense paid (51,700) (49,935)
Income tax paid (610) (495)
Net cash from operating activities 54,480 62,285
Cash flows from investing activities:
Purchase of property, plant and equipment (17) (104)
Proceeds from disposal of aircraft and aircraft engine 65,636 20,187
Net cash from investing activities 65,619 20,083
Cash flows from financing activities:
Net proceeds from issuance of ordinary shares - 10,029
Dividend paid to non-controlling interest of a subsidiary (63) (5)
Decrease/(increase) of restricted cash balances 13,500 (18,109)
Proceeds from loans and borrowings, net of transactions costs 17,060 11,747
Repayment of loans and borrowings (140,396) (88,712)
Transaction costs for modification of unsecured notes - (7,541)
Net cash used in financing activities (109,899) (92,591)
Net increase/(decrease) in cash and cash equivalents 10,200 (10,223)
Cash and cash equivalents at beginning of year 25,067 35,290
Cash and cash equivalents at end of year 35,267 25,067
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