UK's Avation full-year operating profit jumps 38%, returns to profit
UK's Avation full-year operating profit jumps 38%, returns to profit
Overview
UK aircraft lessor's preliminary full-yr revenue was flat, with net income returning to profit
Operating profit rose 38% yr/yr, helped by aircraft sale gains and lower unrealised losses
Company raised interim dividend 50% and cut net indebtedness by 13.3% yr/yr
Outlook
Avation plans to focus on placing ATR 72-600 orderbook and expanding its customer base
Company expects gradual transition to newer, fuel-efficient aircraft and ongoing fleet growth
Result Drivers
AIRCRAFT SALES AND LEASE TRANSITIONS - Co said sale of Boeing 777-300ER and early lease terminations reduced lease rental revenue, but gains on disposal and end-of-lease compensation offset some impact
REDUCED UNREALISED LOSSES - Co said operating profit was helped by lower unrealised losses on aircraft purchase rights and pre-delivery deposits
REVERSAL OF IMPAIRMENT LOSSES - Co said reversal of previously recognised impairment losses on aircraft contributed to profit, reflecting firmer residual values
Company press release: ID:nRSd8532Wa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| $110.09 mln |
|
FY Net Income |
| $8.42 mln |
|
FY Basic EPS |
| $0.13 |
|
FY Operating Income |
| $64.28 mln |
|
FY Pretax Profit |
| $10.04 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)