REG - Amedeo Air Four Plus - Factsheet

Amedeo Air Four PlusAnnouncement

21/11/2022 14:45

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RNS Number : 0937H  Amedeo Air Four Plus Limited  21 November 2022

21 November 2022

 

AMEDEO AIR FOUR PLUS LIMITED (the "Company")
(LSE: AA4, LEI: 21380056PDNOTWERG107)

Factsheet

The Company announces that its factsheet for the period to 30 September 2022
is now available on its website at http://www.aa4plus.com
(http://www.aa4plus.com) . An extract from the Chairman's statement within
the factsheet is reproduced below.

The half year to 30 September 2022 has passed somewhat uneventfully compared
with last year. Dividends have been maintained and indeed increased at the
most recent review, however the Directors believe that the share price
continues to undervalue the Company. How to unlock that value is an ongoing
concern and we will explore all avenues that will assist in this.

The Board continue to consider the values of the A350s, now that they have
leases attached out to 2035/6. It is fair to say that there have been material
differences in opinions of appraisers, industry leasing professionals and
market analysts as to what they are worth and the Board continues to keep this
under review. At a macro level, long haul flying is still no more than 75% of
its pre-pandemic level with strong Transatlantic traffic contrasted to slower
Asia Pacific recovery. Many observers are predicting a worldwide recession
next year as negative real interest rates and quantitative easing are revealed
to have been maintained for far too long. Some airlines will be at risk over
the winter. Pre-covid, Chinese and Russian tourists represented a significant
share of tourism to Thailand and they are yet to return in previous numbers,
although in the case of Russian tourists, this situation is improving as the
key winter season arrives. Against that, at least in the second and third
quarters, the A350s have been flown a lot.

At a more specific level, the A350-900 is regarded as an excellent fuel
efficient aircraft which according to Ishka has recovered to about 87-90% of
its "Base" (that is, long term trend value) whereas Thai Airways,
notwithstanding the progress made over the last two years, is a credit that
many investors and financiers will treat with caution and discount more
heavily or require a higher return, at least until it has emerged from
bankruptcy protection and shown that its rehabilitation plan is viable. The
prospect of income returns to shareholders from the A350s are minimal due to
lender constraints and, in light of the above, the equity return remains
difficult to quantify.

The A380s have been enjoying their steady return to service, and Emirates plan
to reconfigure 67 of their A380 fleet to Premium Economy is a positive. At
this stage we do not know whether this number represents Emirates future fleet
size.

For further information, please contact:

JTC Fund Solutions (Guernsey) Limited

+44 (0) 1481 702 400

 

Liberum Capital Limited

Chris Clarke / Darren Vickers / Owen Matthews

+44 (0) 20 3100 2000

 

About the Company

The Company is a Guernsey-domiciled company, with shares admitted to trading
on the Specialist Fund Segment of the London Stock Exchange's Main Market
(LSE: AA4).

The Company's investment objective is to obtain income returns and a capital
return for its Shareholders by acquiring, leasing and then selling aircraft.

 

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