REG - Avation PLC - Half-year Financial Report
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RNS Number : 5209U Avation PLC 26 February 2026
AVATION PLC
("Avation" or "the Company")
UNAUDITED Results for the SIX MONTHS ended 31 December 2025
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company,
announces unaudited results for the six months ended 31 December 2025.
Financial Highlights
· Revenue and other income increased to US$56.0 million (2024: US$55.4
million);
· Operating profit increased to US$29.3 million (2024: US$18.8
million);
· Total cash was US$104.8 million (30 June 2025: US$130.0 million)
after paying cash for a new ATR 72-600 in December 2025;
· Ten aircraft unencumbered at 31 December 2025 (30 June 2025: six);
· Net indebtedness reduced by US$61.5 million to US$542.7 million (30
June 2025: US$604.2 million), representing 54.7% of total assets (30 June
2025: 54.8%);
· In November 2025 Avation Group (S) Pte Ltd issued US$300 million 8.5%
unsecured notes due May 2031. The proceeds were used to fully redeem the
group's outstanding 8.25% unsecured notes due 2026;
· Ratio of net debt to EBITDA improved to 5.1x (30 June 2025: 5.6x);
and
· Net asset value per share increased by 2.6% to £2.74 (30 June 2025:
£2.67).
Operational Highlights
· In October 2025 the Company agreed a four-year extension to a lease
for an Airbus A330-300 widebody aircraft with EVA Air. The lease will now
run to November 2031;
· In August 2025 Avation sold a Boeing 777-300ER widebody aircraft
realising a gain of US$4.1 million;
· In December 2025 Avation took delivery of a new ATR 72-600 which has
been placed on a 12-year lease to Korean airline Sum Air; and
· Two ATR 72-600 aircraft have recently been transitioned to new 6-year
leases with existing customers PNG Air and Clic Air. A third ATR 72-600
aircraft is due to transition to a new 6-year lease with a Croatian airline in
March.
Overview
Avation PLC is a commercial passenger aircraft leasing company focused on the
acquisition, leasing and management of modern, fuel-efficient commercial
aircraft. The Company's strategy is to generate stable long-term cash flows
through secured lease contracts with airline counterparties globally,
supported by disciplined capital management.
The Company derives the majority of its income from fixed-rate operating lease
rentals and associated maintenance reserve contributions.
Avation continued to focus on:
· Maintaining high fleet utilisation;
· Securing long-term lease agreements with creditworthy
counterparties;
· Active asset management and remarketing;
· Strengthening the balance sheet through refinancing and maturity
extension; and
· Identifying opportunities to acquire new and used aircraft to
grow the portfolio.
This report should be read in conjunction with the Company's Annual Report and
Audited Financial Statements for the year ended 30 June 2025.
Market
According to IATA, in 2025 global passenger traffic grew 5.3% year-on-year.
Both domestic and international passenger traffic growth moderated in 2025.
Domestic traffic increased by 2.4% year-on-year, while international traffic
expanded by 7.1%. Passenger load factors increased to 83.6%, the highest on
record for any year. Continued growth in the overall air travel market is
supportive for commercial aircraft leasing.
Fleet and Leasing Activity
The number of aircraft in Avation's fleet is unchanged since 30 June 2025 at
33 aircraft following the sale of a Boeing 777-300ER in August 2025 and
delivery of a new ATR 72-600 aircraft in December 2025. The fleet is set to
grow through nine further deliveries of ATR 72-600 aircraft on order from the
manufacturer. The nine ordered aircraft are scheduled for delivery between the
second quarter of this year and the second quarter of 2028.
The first of these nine aircraft is scheduled for delivery in April 2026 and
will be placed on lease to Cambodia Airways for 12 years. A second aircraft,
scheduled for delivery later this year, has also been placed with Cambodia
Airways on a 12-year lease. A total of four new aircraft deliveries are
expected this year, based on the manufacturer's current production schedule.
Avation was pleased to conclude a four-year extension to the lease of its
remaining widebody aircraft in October. This extension, which was agreed more
than two years ahead of the scheduled expiry of the lease, is an indicator of
the continued strong demand for leased aircraft.
Two ATR 72-600 aircraft have been transitioned to new lessees recently
following the expiry of their lease to Mandarin Airlines. A third aircraft
will be transitioned to a new lessee in March. Avation has one additional
ATR 72-600 aircraft coming off lease in May and is currently in discussion
with prospective new lessees for the aircraft.
Avation's customer for two ATR 72-600 aircraft Braathens Regional Airways AB
entered administration in October 2025 and the Company has terminated the
leases for both aircraft. The aircraft were both redelivered to Avation
recently and the Company is currently seeking replacement lessees. The
Company is still evaluating the financial impacts, if any, of the termination
of the leases to Braathens.
Avation was recently notified that following a technical failure, one of its
Airbus A220-300 aircraft on lease to Air Baltic has been classified as
unrepairable and is deemed to be a total loss. Avation will receive an
insurance claim settlement of US$33.4 million as compensation for loss of the
aircraft which is in line with its book value. It is expected that the claim
settlement will be paid shortly.
Capital Structure and Financing
The Company was pleased to close the issuance of US$300 million 8.5% unsecured
notes due May 2031 in November 2025 ("Notes"). The new Notes, which
represent just over 50% of Avation's total debt, provide the Company with a
stable long-term capital structure, support operational stability, and remove
the near-term refinancing risk inherent in the group's previous note issue
which was due to mature In October 2026.
The Notes are rated B by Fitch Ratings, B2 by Moody's and B by S&P Global
Ratings. The rating agencies also provide corporate ratings for Avation of B
(outlook stable), B1 (outlook stable) and B (outlook stable) respectively.
During the period the Company repurchased 5,181,996 ordinary shares at an
average price of 147 pence per share and issued a total of 890,978 shares
pursuant to exercises of employee and bondholder warrants. As a result of
these actions the number of shares in issue less treasury shares has been
reduced by 6.4% from 66,588,737 at 30 June 2025 to 62,297,739 at 31 December
2025.
The Company paid an interim dividend of 1.0 US cents per share in respect of
the financial year ended 30 June 2025 in October 2025.
The Group continues to manage leverage levels prudently, with a focus on
maintaining adequate headroom under debt facilities and compliance with
financial covenants.
Executive Chairman, Jeff Chatfield, said:
"We are pleased to present these results for the six-month period ended 31
December 2025 which show continued stable cash flow generation from a fully
utilised fleet with ten unencumbered aircraft.
We are particularly pleased to report the successful refinancing of our
near-term unsecured debt obligations with a new long-dated issue of US$300
million unsecured Notes in November 2025. The extended maturity for the new
Notes creates stability in our capital structure and provides a platform for
future fleet growth.
The result for the period includes the final expenses recorded in relation to
amortisation of the 2021 accounting gain on modification of the terms of our
previous bond issue and the full redemption of the bonds in November 2025.
These non-cash expenses, totalling US$13.0 million, are non-recurring and
stripping their impact from our half-year results reveals the underlying
strength of the Company's financial performance.
Demand for passenger air travel continues to grow steadily and long OEM order
backlogs, supply chain issues and delays to new aircraft deliveries are all
supportive for aircraft lessors such as Avation. These factors have
contributed to increased demand for lease extensions, which is notably
illustrated by our agreement of a four-year lease extension with EVA Air for
an Airbus A330-300 widebody aircraft in October 2025. This extension was
negotiated over two years ahead of the scheduled expiry date for the lease.
Avation enters the second half of the financial year with a contracted lease
portfolio providing visibility of cash flows, extended debt maturities
following the successful refinancing of our unsecured debt obligations and
continued demand for leased aircraft amid constrained new aircraft supply.
Management remains focused on portfolio optimisation, disciplined capital
allocation and maintaining financial flexibility.
The Board believes that the Company is well positioned to navigate prevailing
market conditions while continuing to generate long-term shareholder value."
Financial Summary
US$ '000s Six months ended 31 December,
2025 2024
Revenue 55,547 52,980
Other income 454 2,468
56,001 55,448
EBITDA (1) 54,027 55,553
Operating profit 29,258 18,816
Profit/(loss) before tax (5,681) (9,769)
Profit/(loss) after tax (4,901) 868
EPS (7.56c) 1.23c
US$ '000s 31 December 2025 30 June
2025
Fleet assets (2) 744,836 819,807
Total assets 992,512 1,101,935
Cash and bank balances (3) 104,788 129,975
Unrestricted cash and cash equivalents 46,004 48,102
Net asset value per share (US$) (4) $3.70 $3.66
Net asset value per share (GBP) (5) £2.74 £2.67
1. EBITDA is a non-GAAP financial measure used as an indicator of a
company's ability to incur and service debt. EBITDA has been calculated as the
sum of profit before tax, finance expenses, depreciation and impairment and
unrealised losses on aircraft purchase rights and deposits paid for aircraft.
EBITDA presented herein may not be comparable to similarly titled measures
presented by other companies.
2. Fleet assets are defined as property, plant and equipment plus assets
held for sale plus finance lease receivables.
3. Cash and bank balances as at 31 December 2025 comprise cash and cash
equivalents of US$46.0 million (30 June 2025: US$48.1 million), restricted
cash balances of US$58.8 million (30 June 2025: US$80.8 million) and
investment in fixed term deposits US$nil (30 June 2025: US$1.0 million).
4. Net asset value per share is total equity divided by the total number
of shares in issue, excluding treasury shares.
5. Based on GBP:USD exchange rate as at 31 December 2025 of 1.35 (30 June
2025:1.37).
Aircraft Fleet
Aircraft Type 31 December 2025 30 June 2025
Boeing 777-300ER - 1
Airbus A330-300 1 1
Airbus A321-200 6 6
Airbus A320-200 3 3
Airbus A220-300 5 5
ATR 72-600 14 13
ATR 72-500 4 4
Total 33 33
At 31 December 2025, Avation's fleet comprised 33 aircraft, including three
aircraft on finance lease. Avation currently serves 16 customers in 15
countries. The weighted average age of the fleet is 8.8 years (30 June 2025:
8.5 years) and the weighted average remaining lease term is 4.3 years (30 June
2025: 3.9 years).
Avation sold a Boeing 777-300ER widebody aircraft during the period generating
a gain on sale of US$4.1 million. The Company also acquired a new ATR 72-600
turboprop aircraft in late December which has been placed on a 12-year fixed
rate lease agreement with an airline in Korea. Avation's fleet comprises 61%
narrowbody, 31% turboprop and 8% widebody aircraft by book value as at 31
December 2025. Fleet assets have decreased 9.1% to US$744.8 million (30 June
2025: US$819.8 million) principally due to the Boeing 777-300ER sale noted
above. During the six months ended 31 December 2025 all aircraft were on
lease.
Avation has nine new ATR 72-600 aircraft on order for delivery between Q2 2026
and Q2 2028 and purchase rights for a further 24 aircraft as at 31 December
2025.
Debt summary
US$ '000s 31 December 2025 30 June
2025
Current loans and borrowings 45,638 70,084
Non-current loans and borrowings 543,086 582,253
Total loans and borrowings 588,724 652,337
Unrestricted cash and bank balances 46,004 48,102
Net indebtedness (1) 542,720 604,235
Net debt to total assets 54.7% 54.8%
Net debt to EBITDA 5.1x 5.6x
Weighted average cost of secured debt (2) 5.1% 5.2%
Weighted average cost of total debt (3) 6.8% 6.6%
1. Net indebtedness is defined as loans and borrowings less unrestricted
cash and bank balances.
2. Weighted average cost of secured debt is the weighted average interest
rate for secured loans and borrowings at period end.
3. Weighted average cost of total debt is the weighted average interest
rate for total loans and borrowings at period end.
Net indebtedness was reduced by 10.2% to US$542.7 million (30 June 2025:
US$604.2 million).
The weighted average cost of total debt has increased to 6.8% at 31 December
2025 (30 June 2025: 6.6%) largely due to an increase in the Company's
unsecured debt coupon from 8.25% to 8.50% following the successful issue of
US$300 million unsecured notes due May 2031 in November 2025. The weighted
average cost of secured debt decreased to 5.1% at 31 December 2025 (30 June
2025: 5.2%).
At the end of the period, Avation's net debt to total assets ratio improved
slightly to 54.7% (30 June 2025: 54.8%). At 31 December 2025, 84.0% of total
debt was at fixed or hedged interest rates (30 June 2025: 84.2%). The ratio of
unsecured debt to total debt was 50.1% (30 June 2025: 45.3%).
Financial Analysis
Revenue
US$ '000s Six months ended 31 December,
2025 2024
Lease rental revenue 44,108 44,558
Less: amortisation of lease incentive assets (1,540) (1,628)
42,568 42,930
Interest income from finance leases 420 780
Maintenance reserves revenue 10,299 9,270
End of lease compensation 2,260 -
55,547 52,980
Lease rental revenue decreased by 1.0% from US$44.6 million in the six months
ended 31 December 2024 to US$44.1 million in the six months ended 31 December
2025. The decrease was principally due to the sale of a Boeing 777-300ER
aircraft in August 2025 partially offset by an increase in the US dollar
equivalent value of the Company's Euro-denominated lease revenue. All of
Avation's aircraft were on-lease throughout the period.
Interest income from finance leases decreased by 46.2% from US$0.8 million in
the six months ended 31 December 2024 to US$0.4 million in the six months
ended 31 December 2025. The reduction was principally due to fewer aircraft on
average leased on finance leases during the six months ended 31 December 2025.
There were three aircraft leased on finance leases at 31 December 2025.
Other income
US$ '000s Six months ended 31 December,
2025 2024
Fees for late payment 269 753
Foreign currency exchange gain - 1,002
Claim recovery - 442
Others 185 271
454 2,468
Fees charged for late payments reduced by 64.3% from US$0.8 million in the six
months ended 31 December 2024 to US$0.3 million in the six months ended 31
December 2025. The reduction is due to reduced levels of arrears throughout
the period.
Claim recoveries recognised in other income in the six months ended 31
December 2024 are distributions paid to creditors of Virgin Australia in
excess of amounts allocated to trade receivables.
Foreign currency exchange gains in the six months ended 31 December 2024 arose
principally from the revaluation of Euro-denominated loans during the period.
Administrative expenses
Six months ended 31 December,
US$ '000s
2025 2024
Staff costs 3,055 2,875
Other administrative expenses 2,551 1,725
5,606 4,600
Staff costs increased by 6.8% from US$2.9 million in the six months ended 31
December 2024 to US$3.1 million in the six months ended 31 December 2025
principally as a result of inflationary salary increments.
Other administrative expenses increased by 47.9% from US$1.7 million in the
six months ended 31 December 2024 to US$2.6 million in the six months ended 31
December 2025. The increase in the six months ended 31 December 2025 was
principally due to additional audit and accounting fees of US$0.4 million
associated with the update of the Company's GMTN programme documentation and
US$0.2 million of fees paid to retained contractors for commercial marketing
services.
Finance income
US$ '000s Six months ended 31 December,
2025 2024
Interest income 2,116 2,752
Fair value gain on financial derivatives - -
Finance income from discounting non-current deposits to fair value 317 315
Gain on early full repayment of borrowings - 1,084
2,433 4,151
Interest income was US$2.1 million in the six months ended 31 December 2025.
Interest income includes distributions from investments in money-market funds.
The group deploys surplus cash balances into fixed term deposits and
money-market funds while maintaining sufficient liquidity to meet near-term
payment obligations.
A gain of US$1.1 million on early full repayment of borrowings arose when
in-the-money interest rate swaps were terminated concurrently with repayment
of two loans on the sales of aircraft in August 2024.
Finance expenses
US$ '000s Six months ended 31 December,
2025 2024
Amortisation of IFRS 9 gain on debt modification 4,188 7,440
Interest expense on secured borrowings 8,139 8,447
Interest expense on unsecured notes 12,477 13,677
Amortisation of loan transaction costs 575 699
Amortisation of interest expense on non-current borrowings 324 314
Loss on repurchases and redemption of unsecured notes 8,790 -
Fair value loss on financial derivatives 2,800 2,002
Others 79 157
33,184 25,296
Amortisation of IFRS 9 gain on debt modification of US$4.2 million represents
the non-cash accretion in the book value of Avation Capital S.A. 8.25%/9.0%
unsecured notes resulting from the accounting treatment of the extension and
changes to the terms of the notes agreed with noteholders in March 2021. The
extension was accounted for as a substantial modification of a debt instrument
in accordance with IFRS 9.
Avation Capital S.A. 8.25%/9.0% unsecured notes were fully redeemed in
November 2025. The Company has recognised a loss of US$8.8 million on the
redemption of these notes to write off the difference between the accreted
value of the notes and the amount paid on redemption.
Interest expense on secured borrowings reduced by 3.6% to US$8.1 million in
the six months ended 31 December 2025 from US$8.4 million in the six months
ended 31 December 2024 as a result of repayments of secured loans. Secured
loans have been reduced by US$34.9 million from US$328.7 million at 31
December 2024 to US$293.8 million at 31 December 2025.
Interest expense on unsecured notes reduced by 8.8% from US$13.7 million in
the six months ended 31 December 2024 to $12.5 million in the six months ended
31 December 2025. The reduction principally results from repurchases of notes
which reduced the average outstanding principal amount.
A non-cash mark-to-market loss of US$2.8 million arose on the revaluation of
interest rate swap agreements as a result of changes in floating interest
rates in the six months ended 31 December 2025.
Results Conference Call
Avation's senior management team will host an investor update call on 26
February 2026, at 12:00 PM GMT (UK) / 7:00 AM EST (US) / 8:00 PM SGT
(Singapore), to discuss the Company's financial results.
A replay of the investor update call will be made 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 six
months ended 31 December 2025.
Financial information presented in this announcement is being published for
the purposes of providing preliminary Group financial results for the six
months ended 31 December 2025. 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 25
February 2026. 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 2025, upon which the auditors have given an unqualified audit,
were published on 1 October 2025 and have been annexed to the annual return
and delivered to the Registrar of Companies.
All "US$" amounts in this release are US Dollar amounts unless stated
otherwise. Certain comparative amounts have been reclassified to conform with
current year presentation.
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
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
Note 31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Continuing operations
Revenue 5 55,547 52,980
Other income 6 454 2,468
56,001 55,448
Depreciation 11 (18,102) (18,599)
Gain on disposal of aircraft 4,145 1,713
Unrealised loss on aircraft purchase rights and pre-delivery aircraft deposits 16,17 (4,234) (15,389)
paid
Unrealised loss on equity investment 18 (1,093) (124)
Reversal of impairment loss on aircraft 11 - 1,402
Aircraft transition expenses (50) (180)
(Provision for)/reversal of expected credit losses (54) 85
Administrative expenses (5,606) (4,600)
Legal and professional fees (1,640) (940)
Other expenses 7 (109) -
Operating profit 29,258 18,816
Finance income 8 2,433 4,151
Amortisation of IFRS 9 gain on debt modification of the unsecured notes (4,188) (7,440)
Finance expenses 9 (33,184) (25,296)
Loss before taxation (5,681) (9,769)
Taxation 780 10,637
(Loss)/profit from continuing operations (4,901) 868
(Loss)/profit attributable to:
Shareholders of Avation PLC (4,901) 868
Non-controlling interests - -
(4,901) 868
Earnings per share for (loss)/profit
attributable to shareholders of Avation PLC
Basic earnings per share (US cents) (7.56) 1.23
Diluted earnings per share (US cents) (7.36) 1.18
AVATION PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
31 Dec 31 Dec
2025 2024
US$'000s US$'000s
(4,901) 868
(Loss)/profit from continuing operations
Other comprehensive loss:
Items may be reclassified subsequently to profit or loss:
Net profit/(loss) on cash flow hedge, net of tax 1,468 (2,003)
1,468 (2,003)
Items may be reclassified subsequently to profit or loss:
Revaluation loss on property, plant and equipment, net of tax - (561)
Other comprehensive loss, net of tax (3,433) (2,564)
Total comprehensive loss for the period (3,433) (1,696)
Total comprehensive loss attributable to:
Shareholders of Avation PLC (3,433) (1,696)
Non-controlling interests - -
(3,433) (1,696)
AVATION PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
Note 31 Dec 30 Jun
2025 2025
ASSETS US$'000s US$'000s
Non-current assets
Property, plant and equipment 11 732,665 725,134
Finance lease receivables 13 3,546 11,129
Trade and other receivables 12 820 1,005
Pre-delivery aircraft deposits paid 16 13,086 18,218
Derivative financial assets 15 393 836
Aircraft purchase rights 17 86,050 91,740
Lease incentive assets 3,319 4,831
Goodwill 14 1,902 1,902
841,781 854,795
Current assets
Finance lease receivables 13 8,625 1,734
Trade and other receivables 12 11,952 9,912
Pre-delivery aircraft deposits paid 16 14,443 10,960
Derivative financial assets 9 714
Investment in equity, fair value through profit or loss 18 8,022 9,115
Lease incentive assets 2,892 2,920
Restricted cash 58,784 80,831
Cash investment in fixed term bank deposits - 1,042
Cash and bank balances 46,004 48,102
150,731 165,330
Assets held for sale - 81,810
150,731 247,140
Total assets 992,512 1,101,935
EQUITY AND LIABILITIES
Equity
Share capital 19 1,098 1,234
Share premium 78,924 79,447
Treasury shares 19 (8,484) (16,003)
Merger reserve 6,715 6,715
Asset revaluation reserve 62,158 62,158
Capital reserve 8,876 8,876
Other reserves (206) (1,406)
Retained earnings 81,265 102,818
Equity attributable to shareholders of Avation PLC 230,346 243,839
Non-controlling interests 7 7
Total equity 230,353 243,846
Non-current liabilities
Loans and borrowings 20 543,086 582,253
Trade and other payables 19,996 18,843
Derivative financial liabilities 15 3,044 3,142
Maintenance reserves 21 35,646 31,360
Deferred tax liabilities 29,775 31,637
631,547 667,235
Current liabilities
Loans and borrowings 20 45,638 70,084
Trade and other payables 18,911 19,595
Maintenance reserves 21 63,197 69,423
Income tax payable 2,866 1,314
130,612 160,416
Liabilities associated with assets held for sale - 30,438
130,612 190,854
Total equity and liabilities 992,512 1,101,935
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$'000s
Balance at 1 July 2025 1,234 79,447 (16,003) 6,715 62,158 8,876 (1,406) 102,818 243,839 7 243,846
Loss for the period - - - - - - - (4,901) (4,901) - (4,901)
Other comprehensive income - - - - - - 1,468 - 1,468 - 1,468
Total comprehensive loss - - - - - - 1,468 (4,901) (3,433) - (3,433)
Issue of shares 19 1 85 - - - - - 86 - 86
Purchase of treasury shares 19 - - (10,132) - - - - - (10,132) - (10,132)
Treasury shares re-issue - (608) 1,648 - - - (648) - 392 - 392
Cancellation of treasury shares (137) - 16,003 - - - 137 (16,003) - - -
Share warrant expense - - - - - - 243 - 243 - 243
Dividend paid 24 - - - - - - - (649) (649) - (649)
Total transactions with owners recognised directly in equity
(136) (523) 7,519 - - - (268) (16,652) (10,060) - (10,060)
Balance at 31 December 2025 1,098 78,924 (8,484) 6,715 62,158 8,876 (206) 81,265 230,346 7 230,353
AVATION PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
Capital reserve comprises acquisitions with non-controlling interests that do
not result in a change of control.
Other reserves consist of capital redemption reserve, share warrant reserve,
fair value reserve and foreign currency hedge reserve.
The merger reserve arose on acquisition of additional shares of the Company's
subsidiary Capital Lease Aviation Limited through the allotment of ordinary
shares in the year ended 30 June 2015. The merger reserve represents the
difference between the fair value and the nominal value of the shares issued
by the Company.
AVATION PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2024
Attributable to shareholders of Avation PLC
Share capital Share Treasury Merger reserve Asset revaluation reserve Capital reserve Other Retained earnings Total Non-controlling interest Total
premium Shares reserves equity
US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s
Balance at 1 July 2024 1,182 70,120 - 6,715 47,343 8,876 11,210 110,944 256,390 7 256,397
Profit for the period - - - - - - - 868 868 - 868
Other comprehensive loss - - - - (561) - (2,003) - (2,564) - (2,564)
Total comprehensive loss - - - - (561) - (2,003) 868 (1,696) - (1,696)
Issue of shares 19 48 8,847 - - - - (2,753) - 6,142 - 6,142
Purchase of treasury shares 19 - - (14,962) - - - - - (14,962) - (14,962)
Share warrant expense - - - - - - 222 - 222 - 222
Dividend paid 24 - - - - - - - (450) (450) - (450)
Total transactions with owners recognised directly in equity
48 8,847 (14,962) - - - (2,531) (450) (9,048) - (9,048)
Balance at 31 December 2024 1,230 78,967 (14,962) 6,715 46,782 8,876 6,676 111,362 245,646 7 245,653
AVATION PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
Note 31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Cash flows from operating activities:
Loss before taxation (5,681) (9,769)
Adjustments for:
Amortisation of lease incentive asset 5 1,540 1,628
Depreciation expense 11 18,102 18,599
Depreciation of right-of-use assets 144 141
Provision for/(reversal of) expected credit losses 54 (85)
Finance income 8 (2,433) (4,151)
Finance expense 9 33,184 25,296
Amortisation of IFRS 9 gain on debt modification of the unsecured notes
4,188 7,440
Gain on disposal of aircraft (4,145) (1,713)
Interest income from finance lease 5 (420) (780)
Reversal of impairment loss on aircraft 11 - (1,402)
Maintenance reserves income 5 (10,299) (9,270)
Share warrants expense 243 222
Foreign currency exchange loss/(gain) 74 (1,231)
Unrealised gain on aircraft purchase rights and pre-delivery aircraft 16,17
deposits paid
4,234 15,389
Unrealised loss on equity investments 18 1,093 124
Operating cash flows before working capital changes 39,878 40,438
Movement in working capital:
Trade and other receivables and finance lease receivables (1,026) 29,685
Pre-delivery aircraft deposits paid (1,134) (4,536)
Trade and other payables 1,286 806
Maintenance reserves (22,079) 5,438
Cash from operations 16,925 71,831
Finance income received 2,727 5,236
Finance expense paid (20,787) (21,972)
Income tax refund/paid 98 (514)
Net cash (used in)/from operating activities (1,037) 54,581
Cash flows from investing activities:
Cash investment in fixed term bank deposits 1,042 (39,274)
Purchase of aircraft and aircraft engine (21,394) (15,682)
Proceeds from disposal of aircraft 85,814 19,790
Net cash from/(used in) investing activities 65,462 (35,166)
Cash flows from financing activities:
Net proceeds from issuance of ordinary shares 86 6,142
Purchase of treasury shares 19 (10,132) (14,962)
Dividend paid 24 (649) (450)
Decrease of restricted cash balances 22,047 40,217
Proceeds from loans and borrowings, net of transactions costs 302,141 -
Repayment of loans and borrowings (380,016) (41,747)
Net cash used in financing activities (66,523) (10,800)
Net (decrease)/increase in cash and cash equivalents (2,098) 8,615
Cash and cash equivalents at beginning of financial period 48,102 23,561
Cash and cash equivalents at end of financial period 46,004 32,176
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
This interim condensed consolidated financial statements for Avation PLC for
the six months ended 31 December 2025 were authorised for issue in accordance
with a resolution of the Directors on 25 February 2026.
1 CORPORATE INFORMATION
Avation PLC is a public limited company incorporated in England and Wales
under the Companies Act 2006 (Registration Number 05872328) and its shares are
traded on the Standard Segment of the Main Market of the London Stock
Exchange.
The Group's principal activity is aircraft leasing.
2 BASIS OF PREPARATION AND ACCOUNTING POLICIES
These interim condensed consolidated financial statements have been prepared
in accordance with the Disclosure and Transparency Rules (DTR) of the
Financial Conduct Authority and in accordance with UK-adopted International
Accounting Standard (IAS) 34 'Interim Financial Reporting'.
The interim condensed consolidated financial statements do not include all the
notes of the type normally included within the annual report and therefore
cannot be expected to provide as full an understanding of the financial
performance, financial position and financial and investing activities of the
consolidated entity as the annual report.
It is recommended that the interim condensed consolidated financial statements
be read in conjunction with the annual report for the year ended 30 June 2025
and considered together with any public announcements made by Avation PLC
during the six months ended 31 December 2025.
The accounting policies and methods of computation are the same as those
adopted in the annual report for the year ended 30 June 2025.
The preparation of the interim condensed consolidated financial statements
requires management to make estimates and assumptions that affect the reported
income and expenses, assets and liabilities and disclosure of contingencies at
the date of the Interim Report, actual results may differ from these
estimates.
The statutory financial statements of Avation PLC for the year ended 30 June
2025, which carried an unqualified audit report, have been delivered to the
Registrar of Companies and did not contain any statements under section 498 of
the Companies Act 2006.
The interim condensed consolidated financial statements are unaudited.
The interim condensed consolidated financial statements do not constitute
statutory financial statements within the meaning of section 434 of the
Companies Act 2006.
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
3 NEW STANDARDS AND INTERPRETATIONS NOT APPLIED AND
STANDARDS IN EFFECT IN 2026
(a) New standards and interpretations not applied
The Group has not adopted the following new or amended standards and
interpretations which are relevant to the Group that have been issued but are
not yet effective:
(b)
Description Effective date
(period beginning)
Amendments to IFRS 9 and IFRS 7 : Classification and Measurement of Financial 1 January 2026
Instruments
IFRS 18 - Presentation and Disclosure in Financial Statements 1 January 2027
Annual Improvement Volume 11 1 January 2026
IFRS 18 - Presentation and Disclosure in Financial Statements 1 January 2027
IFRS 19 - Subsidiaries without Public Accountability: Disclosures 1 January 2027
Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Postponed indefinitely
Investor and its Associate or joint venture
Based on a preliminary assessment using currently available information, the
Group does not expect the adoption of the above standards to have a material
impact on the financial statements in the period of initial application. These
preliminary assessments may be subject to changes arising from ongoing
analyses when the Group adopts the standards. The Group plans to adopt the
above standards on the effective date.
(b) Standards in effect in 2026
The Group has adopted all new standards that have come into effect during the
six months ended 31 December 2025. The adoptions do not have a material impact
on the Group's interim condensed consolidated financial statements.
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
4 FAIR VALUE MEASUREMENT
The fair value of a financial instrument is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The carrying amounts of cash and bank balances, trade and other receivables,
finance lease receivables - current, trade and other payables - current, loans
and borrowings - current and maintenance reserves are a reasonable
approximation of fair value either due to their short-term nature or because
the interest rate charged closely approximates market interest rates or that
the financial instruments have been discounted to their fair value at a
current pre-tax interest rate.
31 Dec 2025 30 Jun 2025
Carrying amount Fair value Carrying amount Fair value
US$'000s US$'000s US$'000s US$'000s
Financial assets:
Finance lease receivables - non-current 3,546 3,295 11,129 10,301
Pre-delivery aircraft deposits paid 27,529 27,529 29,178 29,178
Derivative financial assets 402 402 1,550 1,550
Aircraft purchase rights 86,050 86,050 91,740 91,740
Investment in equity, fair value through profit or loss 8,022 8,022 9,115 9,115
Financial liabilities:
Deposits collected - non-current 16,977 15,608 15,313 13,379
Loans and borrowings other than unsecured notes - non-current 248,159 235,827 264,290
286,565
Unsecured notes 294,927 293,754 295,688 301,549
Share warrants 3,044 3,044 3,142 3,142
The fair values (other than for unsecured notes, investment in debt
instrument, fair value through profit or loss) above are estimated by
discounting expected future cash flows at market incremental lending rate for
similar types of lending, borrowing or leasing arrangements at the end of the
reporting period, which is classified under level 2 of the fair value
hierarchy.
The fair value of the unsecured notes and share warrants are based on level 1
quoted prices (unadjusted) in an active market that the Group can access at
measurement date.
The fair value of pre-delivery aircraft deposits paid are classified under
level 2 of the fair value hierarchy for which the inputs are observable for
the determination of fair value using the discounted cashflow model.
The fair value of the derivative financial instruments is determined by
reference to marked-to-market values provided by counterparties. The fair
value measurement of all derivative financial instruments is classified under
level 2 of the fair value hierarchy, for which inputs other than quoted prices
that are observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices) are included as inputs
for the determination of fair value.
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
4 FAIR VALUE MEASUREMENT (continued)
Assets measured at fair value classified under level 3:
31 Dec 30 Jun
2025 2025
US$'000s US$'000s
Fair value measurement using significant unobservable inputs:
Aircraft and engines 732,647 725,116
5 REVENUE
31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Lease rental revenue 44,108 44,558
Less: amortisation of lease incentive asset (1,540) (1,628)
42,568 42,930
Interest income on finance leases 420 780
Maintenance reserves revenue 10,299 9,270
End of lease compensation 2,260 -
55,547 52,980
Geographical analysis
Europe South America Asia Pacific Total
US$'000s US$'000s US$'000s US$'000s
31 Dec 2025 10,198 819 44,530 55,547
31 Dec 2024 10,031 - 42,949 52,980
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
5 REVENUE (continued)
Operating lease commitments
The Group leases out aircraft under operating leases. The maturity analysis of
the undiscounted lease payments to be received under operating leases are as
follows:
31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Within one year 84,463 87,878
One to two years 79,934 80,822
Two to three years 57,980 75,315
Three to four years 41,424 48,408
Four to five years 37,996 31,482
Later than five years 36,158 26,245
6 OTHER INCOME
31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Fees for late payment 269 753
Foreign currency exchange gain - 1,002
Recovery of claims from customer - 442
Others 185 271
454 2,468
7 OTHER EXPENSES
31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Foreign currency exchange loss 109 -
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
8 FINANCE INCOME
31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Interest income from financial institutions 1,467 2,555
Interest income from non-financial institutions 28 197
Dividend income (money market funds) 621 -
Finance income from discounting non-current deposits to fair value 317 315
Gain on repurchases of unsecured notes - -
Gain on early full repayment of borrowings - 1,084
2,433 4,151
9 FINANCE EXPENSES
31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Interest expense on borrowings 8,139 8,447
Interest expense on unsecured notes 12,477 13,677
Amortisation of loan transaction cost 575 699
Amortisation of interest expense on non-current deposits 324 314
Fair value loss on financial derivatives 2,800 2,002
Loss on repurchase/redemption of unsecured notes 8,790 -
Others 79 157
33,184 25,296
10 RELATED PARTY TRANSACTIONS
Significant related party transactions:
31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Entities controlled by key management personnel
(including directors):
Lease liability paid (159) (175)
Consulting fee expense (349) (221)
Service fee income 47 41
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
11 PROPERTY, PLANT AND EQUIPMENT
Furniture and equipment Jet Turboprop aircraft Total
Engines aircraft
US$'000s US$'000 US$'000s US$'000s US$'000s
31 December 2025:
Cost or valuation:
At 1 July 2025 64 - 751,883 291,277 1,043,224
Additions 4 2,619 - 23,010 25,633
At 31 December 2025 68 2,619 751,883 314,287 1,068,857
Representing:
At cost 68 - - - 68
At valuation - 2,619 751,883 314,287 1,068,789
68 2,619 751,883 314,287 1,068,857
Accumulated depreciation and impairment:
At 1 July 2025 46 - 226,758 91,286 318,090
Depreciation expense 4 49 13,313 4,736 18,102
At 31 December 2025 50 49 240,071 96,022 336,192
Net book value:
At 1 July 2025 18 - 525,125 199,991 725,134
At 31 December 2025 18 2,570 511,812 218,265 732,665
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
11 PROPERTY, PLANT AND EQUIPMENT (continued)
Furniture and equipment Jet Turboprop aircraft Total
aircraft
US$'000s US$'000s US$'000s US$'000s
30 June 2025:
Cost or valuation:
At 1 July 2024 102 850,755 289,411 1,140,268
Additions 16 31,922 38,101 70,039
Disposals (54) - (38,101) (38,155)
Revaluation recognised in equity - 14,260 1,866 16,126
Reclassified to assets held for sale - (145,054) - (145,054)
At 30 June 2025 64 751,883 291,277 1,043,224
Representing:
At cost 64 - - 64
At valuation - 751,883 291,277 1,043,160
64 751,883 291,277 1,043,224
Accumulated depreciation and impairment:
At 1 July 2024 91 264,402 84,355 348,848
Depreciation expense 9 28,282 9,221 37,512
Disposals (54) - - (54)
(Reversal of)/impairment loss - (2,541) (2,290) (4,831)
Reclassified to assets held for sale - (63,385) - (63,385)
At 30 June 2025 46 226,758 91,286 318,090
Net book value:
At 1 July 2024 11 586,353 205,056 791,420
At 30 June 2025 18 525,125 199,991 725,134
Assets pledged as security
The Group's aircraft and aircraft held under asset for sale with carrying
values of US$555.5 million (30 June 2025: US$651.2 million) are mortgaged to
secure the Group's borrowings (Note 20).
Additions and Disposals
During the period, the Group purchased 1 turboprop aircraft, 1 aircraft engine
and sold 1 jet aircraft held under asset held for sale and recognised a gain
on disposal of US$4.1 million.
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
11 PROPERTY, PLANT AND EQUIPMENT (continued)
Geographical analysis
31 Dec 2025 Europe South America Asia Pacific Total
US$'000s US$'000s US$'000s US$'000s
Capital expenditure - 2,619 23,014 25,633
Net book value - aircraft and engines 216,118 15,954 500,575 732,647
30 Jun 2025 Europe South America Asia Pacific Total
US$'000s US$'000s US$'000s US$'000s
Capital expenditure 38,031 - 32,008 70,039
Net book value - aircraft 221,200 - 503,916 725,116
12 TRADE AND OTHER RECEIVABLES
31 Dec 30 Jun
2025 2025
US$'000s US$'000s
Current
Trade receivables 7,716 6,262
Less:
Allowance for expected credit losses (484) (432)
7,232 5,830
Accrued revenue 2,036 2,144
Less:
Allowance for expected credit losses (5) (6)
2,031 2,138
Other receivables 1,105 631
Less:
Allowance for expected credit losses - (22)
1,105 609
Interest receivables 261 452
Less:
Allowance for expected credit losses (18) (14)
243 438
Deposits 551 446
Prepaid expenses 790 451
11,952 9,912
Non-current:
Other receivables - 41
Right-of-use assets 820 964
820 1,005
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
13 FINANCE LEASE RECEIVABLES
Future minimum lease payments receivable under finance leases are as follows:
31 Dec 2025 30 Jun 2025
Minimum lease payments Present value of payments Minimum lease payments Present value of payments
US$'000s US$'000s US$'000s US$'000s
Within one year 9,189 8,668 2,632 1,756
Less:
Allowance for expected credit losses (43) (43) (22) (22)
9,146 8,625 2,610 1,734
One to two years 3,589 3,546 11,405 11,129
Two to three years - - - -
Three to four years - - - -
Four to five years - - - -
Later than five years - - - -
Total minimum lease payments 12,735 12,171 14,015 12,863
Less: amounts representing interest income (564) - (1,152) -
Present value of minimum lease payments 12,171 12,171 12,863 12,863
14 GOODWILL
The Group performs its annual impairment test in June and when circumstances
indicate the carrying value may be impaired. For the purpose of these
financial statements there was no indication of impairment. The key
assumptions used to determine the recoverable amount for the different cash
generating units were disclosed in the annual consolidated financial
statements for the year ended 30 June 2025.
15 DERIVATIVE FINANCIAL ASSETS/LIABILITIES
Contract/ Fair value
notional amount
31 Dec 2025 30 June 2025 31 Dec 2025 30 Jun
2025
US$'000s US$'000s US$'000s US$'000s
Derivative financial assets -current
Interest rate swap - current 6,500 58,501 9 714
Derivative financial assets -non- current
Interest rate swap - non-current 75,994 80,183 393 836
Derivative financial liabilities
Warrants - - 3,044 3,142
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
15 DERIVATIVE FINANCIAL ASSETS/LIABILITIES (continued)
Hedge accounting has been applied for interest rate swap contracts and
cross-currency interest rate swap contracts which have been designated as cash
flow hedges.
The Group pays fixed rates of interest of 2.3% to 3.8% per annum and receives
floating rate interest equal to 1 to 3 month SOFR under the interest rate swap
contracts.
The swap contracts mature between 28 January 2026 and 25 September 2031.
Changes in the fair value of these interest rate swap contracts are recognised
in the fair value reserve. The net fair value gain net of tax of US$1.3
million (31 December 2024: loss of US$3.2 million) on these derivative
financial instruments was recognised in the fair value reserve for the period.
The Group entered into Euro denominated lease agreements which create exposure
to variability in cash flows due movements in the EUR:USD exchange rate. To
hedge its exposure to variable cash flows resulting from changes in EUR:USD
spot rates, the Group has arranged Euro denominated financing which reduces
overall exposure to variable cash flows to the extent that lease receipts and
debt service cashflows are matched. The Group is making use of a
non-derivative hedging instrument and has designated the cash flows with
respect to the loan interest and principal repayment (hedging instrument)
against a specific portion of the lease receivable (hedged item).
Unrealised foreign exchange gains and losses arising on Euro denominated loans
designated as cash flow hedges are recognised in the foreign currency hedge
reserve. Unrealised foreign exchange gains and losses recorded in the
foreign currency hedging reserve are systematically re-cycled through profit
or loss over the remaining term of the related loan on a straight-line basis.
The share warrants consist of 5,654,078 (30 June 2025: 5,728,054) share
warrants granted to the holders of the unsecured notes to subscribe for the
ordinary shares of the Company exercisable to 31 October 2026 at a price of
114.5 pence per share (including cashless exercise option).
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
16 PRE-DELIVERY AIRCRAFT DEPOSITS PAID
31 Dec 30 Jun
2025 2025
US$'000s US$'000s
Current 14,443 10,960
Non-current 13,086 18,218
27,529 29,178
Pre-delivery aircraft deposits paid, at fair value:
At 1 July 2025/ 1 July 2024 29,178 30,333
Additions 1,134 6,238
Transfer to property, plant and equipment upon delivery of aircraft (4,239) (6,790)
Unrealised gain/(loss) 1,456 (603)
At 31 December/30 June 27,529 29,178
17 AIRCRAFT PURCHASE RIGHTS
31 Dec 30 Jun
2025 2025
US$'000s US$'000s
Aircraft purchase rights, at fair value:
At 1 July 2025/ 1 July 2024 91,740 112,780
Unrealised loss (5,690) (21,040)
At 31 December/30 June 86,050 91,740
The Group has determined that it would seek to dispose of excess aircraft
purchase rights over and above its requirement to acquire additional aircraft
for its fleet. The Group accounts for aircraft purchase rights at fair value
through profit or loss.
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
18 INVESTMENT IN EQUITY, FAIR VALUE THROUGH PROFIT OR LOSS
31 Dec 30 Jun
2025 2025
US$'000s US$'000s
Listed equity, at fair value
At 1 July 2025/ 1 July 2024 9,115 10,745
Unrealised loss (1,093) (1,630)
At 31 December/30 June 8,022 9,115
The Group received 8,014,602 ordinary shares from an airline customer as part
of the airline's restructuring plan during the year ended 30 June 2022.
The Group exchanged 8,014,602 unlisted ordinary shares in Philippine Airlines,
Inc. with 124,787,353 ordinary shares in PAL Holdings, Inc. during the
previous year.
The Group holds 124,491,353 ordinary shares in PAL Holdings, Inc as of 31
December 2025.
19 SHARE CAPITAL AND TREASURY SHARES
(a) Share capital
31 Dec 2025 30 Jun 2025
No of shares US$'000s No of shares US$'000s
Allotted, called up and fully paid
Ordinary shares of 1 penny each:
At 1 July 2025/ 1 July 2024 74,950,257 1,234 70,878,124 1,182
Issue of shares 47,981 1 4,072,133 52
Cancellation (8,361,500) (137) - -
At 31 December/30 June 66,636,738 1,098 74,950,257 1,234
During the period, the Company issued 47,981 ordinary shares of 1 penny each
at an exercise price of 114.5 pence following the exercise of the Company's
listed warrants by warrant holders.
The holders of ordinary shares (except for treasury shares) are entitled to
receive dividends as and when declared by the Company. All ordinary shares
carry one vote per share without restrictions.
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
19 SHARE CAPITAL AND TREASURY SHARES (continued)
(b) Treasury shares
31 Dec 2025 30 Jun 2025
No of shares US$'000s No of shares US$'000s
At 1 July 2025/ 1 July 2024 8,361,500 16,003 - -
Acquired during the period 5,181,996 10,132 8,361,500 16,003
Re-issue during the period (842,997) (1,648) - -
Cancellation (8,361,500) (16,003) - -
At 31 December/30 June 4,338,999 8,484 8,361,500 16,003
During the six months ended 31 December 2025, the Company bought 5,181,996
treasury shares at market prices ranging from 138.0 pence to 160.0 pence per
share, cancelled 8,361,500 shares and re-issued 842,997 treasury shares
through the employee warrants exercise.
(c) Net asset value per share
31 Dec 2025 30 Jun
2025
Net asset value per share (US$)((1)) $3.70 $3.66
Net asset value per share (GBP)((2)) £2.74 £2.67
((1)) Net asset value per share is total equity divided by the total number
of shares issued and outstanding at period end.
((2)) Based on GBP:US$ exchange rate as at 31 December 2025 of 1.35 (30 June
2025: 1.37).
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
20 LOANS AND BORROWINGS
31 Dec 30 Jun
2025 2025
US$'000s US$'000s
Secured borrowings 293,797 356,649
Unsecured notes 294,927 295,688
Total loans and borrowings 588,724 652,337
Less: current portion (45,638) (70,084)
Non-current loans and borrowings 543,086 582,253
Maturity Weighted average interest rate per annum
31 Dec 30 Jun 2025 31 Dec 30 Jun 2025
2025 2025
% %
Secured borrowings 2026-2031 2026-2031 5.09% 5.19%
Unsecured notes 2031 2026 8.50% 8.25%
Secured borrowings are secured by first ranking mortgages over the relevant
aircraft, security assignments of the Group's rights under leases and other
contractual agreements relating to the aircraft, charges over bank accounts in
which lease payments relating to the aircraft are received and charges over
the issued share capital of certain subsidiaries.
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
21 MAINTENANCE RESERVES
31 Dec 30 Jun
2025 2025
US$'000s US$'000s
Current:
Maintenance reserves 50,654 56,880
Maintenance lease contribution 12,543 12,543
63,197 69,423
Non-current:
Maintenance reserves 29,181 24,895
Maintenance lease contribution 6,465 6,465
35,646 31,360
Total maintenance reserves 98,843 100,783
31 Dec 30 Jun
2025 2025
US$'000s US$'000s
At 1 July 2025/ 1 July 2024 100,783 135,423
Contributions 20,981 32,450
Utilisations (12,622) (7,879)
Released to profit or loss (10,299) (22,086)
Transfer to buyer - (6,687)
Transfer to liabilities directly associated with assets held for sale - (30,438)
At 31 December/30 June 98,843 100,783
During the six months ended 31 December 2025, maintenance reserves of US$10.3
million were released to profit or loss as income.
22 CAPITAL COMMITMENTS
Capital expenditure contracted for at the
reporting date but not recognised in the financial statements is as follows:
31 Dec 30 Jun
2025 2025
US$'000s US$'000s
Property, plant and equipment 183,554 207,591
Capital commitments represent amounts due under contracts entered into by the
Group to purchase aircraft. The Company has paid deposits towards the cost of
these aircraft which are included in pre-delivery aircraft deposits paid.
As at 31 December 2025, the Group has commitments to purchase nine ATR 72-600
aircraft from the manufacturer with expected delivery dates ranging from 2026
to 2028.
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
23 CONTINGENT LIABILITIES
There were no material changes in contingent
liabilities since 30 June 2025.
24 DIVIDENDS
31 Dec 31 Dec
2025 2024
US$'000s US$'000s
Paid during the period:
Dividends on ordinary shares
-Interim (one-tier) dividend for 1.0 US cents (31 Dec 2024: Nil US cents) per
share
649 -
-Final (one-tier) dividend for Nil pence (31 Dec 2024: 0.5 pence) per share
- 450
Dividends are recognised as liabilities when they are approved for payment.
25 SUBSEQUENT EVENTS
Subsequent to the period end, the Company repurchased 170,000 ordinary shares,
through the market at prices ranging from 138.0 pence to 141.8 pence per
share. The repurchased shares will be held in treasury.
In January 2026 the Company was notified that one of its Airbus A220-300
aircraft on lease to Air Baltic has been classified as unrepairable and is
deemed to be a total loss. Avation will receive an insurance claim settlement
of US$33.4 million as compensation for loss of the aircraft.
AVATION PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
PRINCIPAL RISKS
The Group's risk management processes bring greater judgement to decision
making as they allow management to make better, more informed and more
consistent decisions based on a clear understanding of risk involved. We
regularly review the risk assessment and monitoring process as part of our
commitment to continually improve the quality of decision-making across the
Group.
The principal risks and uncertainties which may affect the Group in the second
half of the financial year will include the typical risks associated with the
aviation business, including but not limited to any downturn in the global
aviation industry, fuel costs, finance costs, war and extremism and the like
which may affect our airline customers' ability to fulfil their lease
obligations.
The business also relies on its ability to source finance on favourable
terms. Should this supply of finance contract, it would limit our fleet
expansion and therefore growth.
GOING CONCERN
After making enquiries, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. For this reason they continue to adopt the going concern
basis in preparing the financial statements. The financial risk management
objectives and policies of the Group and the exposure of the Group to credit
risk and liquidity risk are discussed in the annual report for the Group for
the year ended 30 June 2025.
DIRECTORS
The directors of Avation PLC are listed in its Annual Report for the year
ended 30 June 2025. A list of the current directors is maintained on the
Avation PLC website: www.avation.net (http://www.avation.net)
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that, to the best of their knowledge, this condensed
consolidated interim financial information have been prepared in accordance
with UK-adopted IAS 34 and that the interim management report herein includes
a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 namely
· an indication of important events that have occurred during the
first six months and their impact on the Interim Report, and a description
required by the principal risks and uncertainties for the remaining six months
of the financial year; and
· material related party transactions in the first six months and
any material changes in the related party transactions described in the last
annual report.
By order of the Board
Jeff Chatfield
Executive Chairman
Singapore, 25 February 2026
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