REG - Avation PLC - Annual Financial Report
Thu 07:00
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RNS Number : 7243B Avation PLC 01 October 2025
AVATION PLC
("Avation" or "the Company")
AUDITED Results for YEAR ended 30 JUNE 2025
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company,
has published its annual report for the year ended 30 June 2025.
Financial Highlights
· Revenue increased by 19.2% to $110.1 million (2024: $92.4 million);
· Lease yield was 11.3% (2024: 10.7%);
· EBITDA increased by 20.3% to $107.1 million (2024: $89.0 million);
· Operating cashflow increased by 12.2% to $91.5 million (2024: $81.6
million);
· Net indebtedness reduced by 7.3% to $604.2 million (2023: $651.5
million);
· Net debt: EBITDA reduced to 5.6x (2024: 7.3x);
· Total year-end cash and bank balances were $130.0 million (2024:
$117.9 million) and $148.5 million (unaudited) at 26 September 2025;
· Operating profit was $46.4 million (2024: $83.2 million);
· Loss after tax was $7.7 million (2024: profit $19.7 million);
· Basic earnings per share were (11.22) cents (2024: 27.85 cents);
· Net asset value per share increased to $3.66 (2024: $3.62); and
· Dividend of 1.0 US cents per share declared.
Operational Activity
· The Company acquired an Airbus A320-200 aircraft on lease to Etihad
Airways;
· Two new ATR 72-600 aircraft were sold on delivery to an airline
customer generating a $3.5 million gain on sale;
· The lease for an Airbus A320-200 aircraft to easyJet was extended to
March 2029;
· An ATR 72-600 was transitioned to a six-year lease with a new
customer Clic Air;
· The first two ATR 72-600 aircraft in Avation's ten aircraft orderbook
were placed on lease with new airline customers in South Korea and Cambodia.
The aircraft are scheduled for delivery in November 2025 and February 2026
respectively;
· The Company was granted a 5-year extension to its Singapore Aircraft
Leasing Scheme tax incentive;
· The Company agreed to sell a Boeing 777-300ER aircraft in a
transaction generating a material profit above book value in the 2026
financial year; and
· The Company obtained new corporate credit ratings from Moody's and
Fitch of B1 (stable) and B (stable) respectively.
Executive Chairman, Jeff Chatfield, said:
"The financial year ended 30 June 2025 was a period of consolidation for
Avation. The fleet performed well with all aircraft on lease throughout the
period. We successfully transitioned an ATR 72-600 to a new lessee customer
Clic Air, extended the lease of an A320-200 aircraft with easyJet and recently
signed leases for the first two aircraft to be delivered from our ten aircraft
orderbook with ATR. We also added Etihad Airways to our customer list in
March 2025 with the purchase of an Airbus A320-200 and sold two ATR 72-600
aircraft to their lessee pursuant to the exercise of purchase options.
Further fleet optimisation was achieved in early September 2025 with the sale
of a Boeing 777-300ER widebody aircraft at a material profit above book
value. We intend to use the sale proceeds to reduce debt and to reinvest
into popular narrowbody aircraft types.
Cash generation was strong, enabling the Company to further reduce debt,
achieving a reduction to 54.8% in the ratio of net debt to total assets as at
30 June 2025. We have made significant repurchases of the Avation Capital
S.A. 8.25% October 2026 unsecured notes issue, reducing the outstanding amount
to US$310.0 million at 30 June 2025 and to US$298.0 million as of today's
date.
The Company now has a strong focus on refinancing the remaining outstanding
unsecured notes which are currently due to mature in October 2026. In
preparation for a refinancing transaction, we recently updated our Global
Medium Term Note programme documentation and engaged Moody's and Fitch Ratings
to provide additional credit ratings on the Company. We are pleased to note
that Moody's assigned the Company a first-time B1 Corporate Family Rating
(CFR) and B2 issuer rating with a stable outlook, and Fitch Ratings assigned
the Company a B long-term issuer default rating. We believe that we are now
well positioned to achieve a successful refinancing of the Notes.
Avation plans to grow its business in a prudent and strategic manner. The
first two of the ten new ATR 72-600 aircraft on order have been placed with
new customers and we are confident that the Company will be able to place the
remaining ordered aircraft in a timely manner. The order was placed by
exercising ten purchase rights and the company holds another 24 purchase
rights, providing opportunities for further fleet growth.
The Board is pleased to reward shareholders with an interim dividend of 1.0 US
cents per share in respect of the 2025 financial year."
Financial Summary
US$ '000s Year ended 30 June,
2025 2024
Revenue 110,099 92,397
Other income 2,448 3,575
112,547 95,972
Operating profit 46,444 83,218
(Loss)/Profit before tax (9,722) 30,046
(Loss)/Profit after tax (7,716) 19,735
EPS (basic) (11.22c) 27.85c
US$ '000s 30 June,
2025 2024
Fleet assets (1) 819,807 832,818
Total assets 1,101,935 1,142,321
Total cash and bank balances (2) 129,975 117,940
Cash and cash equivalents 48,102 23,561
EBITDA (3) 107,063 88,999
Funds from operations (FFO) (4) 62,186 37,356
Net asset value per share (US$) (5) US$3.66 US$3.62
Net asset value per share (GBP) (6) £2.67 £2.85
1. Fleet assets are defined as property, plant and equipment plus assets
held for sale plus finance lease receivables.
2. Total cash and bank balances as at 30 June 2025 comprise cash and cash
equivalents of US$48.1 million (30 June 2024: US$23.6 million), investment in
fixed deposits of US$1.0 (2024: US$nil) and restricted cash balances of
US$80.8 million (30 June 2024: US$94.4 million).
3. EBITDA is a non-GAAP measure of financial performance calculated as
profit before tax plus finance expenses plus depreciation plus impairment
charges plus unrealised loss on aircraft purchase rights and pre-delivery
deposits paid.
4. FFO is a non-GAAP measure of financial performance calculated as EBITDA
minus interest expense minus current tax expense.
5. Net asset value per share is total equity divided by the total number
of shares in issue, excluding treasury shares.
6. Based on GBP:USD exchange rate as at 30 June 2025 of 1.37 (30 June
2024:1.27).
We use EBITDA and FFO to assess our consolidated financial and operating
performance, and we believe these non-GAAP measures are helpful in identifying
trends in our financial performance.
Aircraft Fleet
Aircraft Type 30 June 2025 30 June 2024
ATR 72-600 13 15
ATR 72-500 4 4
Airbus A220-300 5 5
Airbus A320-200 3 2
Airbus A321-200 6 6
Airbus A330-300 1 1
Boeing 777-300ER 1 1
Total 33 34
At 30 June 2025, Avation's fleet comprised 33 aircraft, including three
aircraft on finance lease. Avation serves 16 customers in 14 countries. The
weighted average age of the fleet is 8.5 years (30 June 2024: 7.3 years) and
the weighted average remaining lease term is 3.9 years (30 June 2024: 4.1
years).
One Airbus A320-200 aircraft was acquired and two ATR 72-600 aircraft were
sold during the period. Turboprop and narrowbody aircraft make up 83% of fleet
assets as at 30 June 2025. Fleet assets have decreased 1.6% to US$819.8
million (30 June 2024: US$832.8 million) as a result of aircraft sales and
depreciation. As at the date of this report, Avation's fleet is fully
utilised. Subsequent to the year-end a Boeing 777-300ER aircraft was sold.
Avation has orders for ten new ATR 72-600 aircraft and purchase rights for a
further 24 aircraft at 30 June 2025. The order-book and purchase rights
provide a pathway to future fleet growth.
Debt summary
US$ '000s 30 June,
2025 2024
Current loans and borrowings 70,084 49,668
Non-current loans and borrowings 582,253 625,426
Total loans and borrowings 652,337 675,094
Cash and cash equivalents 48,102 23,561
Net indebtedness (1) 604,235 651,533
Net debt to total assets (2) 54.8% 57.0%
Weighted average cost of secured debt (3) 5.2% 4.8%
Weighted average cost of total debt (4) 6.6% 6.4%
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 7.3% to US$604.2 million (30
June 2024: US$651.5 million). Seven aircraft were re-financed with long-term
floating rate debt in the year.
The weighted average cost of total debt has increased to 6.6% as at 30 June
2025 (30 June 2024: 6.4%) due to repayments of lower cost secured loans in the
period and refinancing aircraft with higher cost floating rate loans, offset
by repayments of unsecured notes. The weighted average cost of secured debt
increased to 5.2% at 30 June 2025 (30 June 2024: 4.8%).
At the end of the financial period, Avation's net debt to total assets ratio
improved to 54.8% (30 June 2024: 57.0%). As at 30 June 2025, 84.2% of total
debt was at fixed or hedged interest rates (30 June 2024: 96.4%). The ratio of
unsecured debt to total debt was 45.3% (30 June 2024: 44.8%).
Financial Analysis
Revenue
US$ '000s Year ended 30 June,
2025 2024
Lease rental revenue 89,935 87,749
Less: amortisation of lease incentive assets (3,141) (2,721)
86,794 85,028
Interest income from finance leases 1,219 2,018
Maintenance reserves revenue 22,086 5,351
110,099 92,397
Lease rental revenue increased by 2.5% to US$89.9 million in the year ended 30
June 2025 from US$87.7 million in the year ended 30 June 2024. The increase
was principally due to increased utilisation of the fleet in the year ended 30
June 2025 and the addition of an Airbus A320-200 aircraft to the fleet in
March 2025.
Interest income from finance leases decreased by 39.6% from US$2.0 million in
the year ended 30 June 2024 to US$1.2 million in the year ended 30 June
2025. The decrease was principally due to the sale of two ATR 72-600
aircraft pursuant to the exercise of purchase options during the year.
Maintenance reserves income increased to US$22.1 million in the year ended 30
June 2025 compared to US$5.4 million in the year ended 30 June 2024. A review
of forecasted maintenance events across the fleet resulted in adjustments to
the expected timing of several major maintenance events to beyond the end
date of the current leases. This is expected to result in lower maintenance
reserve reimbursements during the current lease terms and is the major
contributing factor to the increase in maintenance reserve income this year.
Other income
US$ '000s Year ended 30 June,
2025 2024
Foreign currency exchange gain - 807
Claim recovery 682 443
Fees for late payment 1,364 1,828
Deposit released - 350
Others 402 147
2,448 3,575
Fees for late payment reduced by 25.4% from US$1.8 million in the year ended
30 June 2024 to US$1.4 million in the year ended 30 June 2025 due to a
corresponding reduction in customer arrears.
Claim recoveries recognised in other income are the balance of distributions
paid to creditors of Virgin Australia in excess of amounts allocated to trade
receivables.
Foreign currency exchange gains which were reported in the year ended 30 June
2024 did not reoccur as the weakening US dollar caused exchange losses
reported in other expenses in the year ended 30 June 2025.
Administrative expenses
US$ '000s Year ended 30 June,
2025 2024
Staff costs 5,682 5,487
Other administrative expenses 3,444 3,305
9,126 8,792
Staff costs increased by 3.6% from US$5.5 million in the year ended 30 June
2024 to US$5.7 million in the year ended 30 June 2025 principally due to
inflationary salary increments offset by lower charges for employee share
warrants.
Other administrative expenses increased by 4.2% from US$3.3 million in the
year ended 30 June 2024 to US$3.4 million in the year ended 30 June 2025
principally due to inflationary increases to audit and accounting costs and
general office overheads.
Other operating income and expense items
US$ '000s Year ended 30 June,
2025 2024
Depreciation (37,512) (37,251)
Gain on derecognition of a finance lease - -
Gain/(loss) on disposal of aircraft 3,455 (2,915)
Unrealised (loss)/gain on aircraft purchase rights (21,643) 46,886
Unrealised loss on equity investment (1,630) (490)
Reversal of/(impairment loss) on aircraft 4,831 (5,573)
Aircraft transition expenses (244) (2,607)
Reversal of expected credit losses 80 239
Legal and professional fees (1,978) (2,251)
Other expenses (2,336) -
Depreciation increased by 0.7% from US$37.3 million to US$37.5 million due to
the addition of an Airbus A320-200 aircraft to the fleet in March 2025.
Two new ATR 72-600 aircraft were sold on delivery to an airline customer in
the year generating gains on disposal of US$3.5 million. Avation terminated
a lease of an ATR 72-500 aircraft to an Indian airline in the year ended 30
June 2024. The aircraft was repossessed from the airline and subsequently
sold, generating a loss on sale of US$2.9 million.
The Company's 24 aircraft purchase rights were revalued at 30 June 2025 using
a Black-Scholes option pricing model. The principal factors leading to the
recognition of a loss of US$21.6 million (2024: US$ 46.9 million gain) were a
decrease in risk-free interest rates and a reduction in the time to expiry of
the purchase rights.
The Company recorded an unrealised loss of US$1.6 million on its holding of
shares in Philippine Airlines, Inc. (2024: US$0.5 million). The Company
received these shares as part of the settlement awarded to creditors in the
bankruptcy restructuring of the airline in December 2021.
Previously recognised impairment losses of US$4.8 million were reversed in the
year ended 30 June 2025 due to firmer residual values used in the company's
lease encumbered valuation model for aircraft. The market environment has
been supportive for aircraft values recently due to strong demand for aircraft
and constrained supply of new aircraft. Avation recognised US$5.6 million of
impairment losses in the year ended 30 June 2024.
Aircraft transition expenses of US$0.2 million (2024: US$2.6 million)
represent repairs and maintenance expenditure on aircraft incurred during the
transition of aircraft during the year. The Company expects transition
expenses to remain low in future periods as all aircraft in the fleet are
currently on lease.
The net reversal of expected credit losses of US$0.1 million (2024: US$0.2
million expense) primarily results from reduced rent arrears. Current trade
receivables (excluding allowances for credit losses) were US$6.3 million at 30
June 2025, reduced from US$8.2 million at 30 June 2024.
Legal and professional fees reduced by 12.1% from US$2.3 million in the year
ended 30 June 2024 to US$2.0 million in the year ended 30 June 2025 due to
reduced transaction activity.
Other expenses of US$2.3 million in the year ended 30 June 2025 represent
foreign currency exchange losses on the group's Euro denominated bank loans.
Finance income
US$ '000s Year ended 30 June,
2025 2024
Interest income 4,706 6,009
Fair value gain on financial derivatives - -
Finance income from discounting non-current deposits to fair value 629 652
Gain on repurchase of unsecured notes - 675
Gain on early full repayment of borrowings 960 2,507
6,295 9,843
Interest income decreased in the year ended 30 June 2025 principally due to
lower available rates for cash deposits and lower interest income on amounts
due under a customer payment plan agreement which was fully repaid by 30 June
2025.
Avation generated a gain of US$0.7 million in the year ended 30 June 2024 on
the repurchase of US$18.0 million of Avation Capital S.A. 8.25%/9.0% unsecured
notes at a discount.
Gains on early repayment of borrowings of US$1.0 million (2024: US$2.5
million) arose on termination of interest rate swaps when seven aircraft loans
were refinanced. As at the date of this announcement the company has six
unencumbered aircraft.
Finance expenses
US$ '000s Year ended 30 June,
2025 2024
Interest expense on secured borrowings 17,033 20,047
Interest expense on unsecured notes 26,924 29,321
Amortisation of loan transaction costs 1,979 1,571
Amortisation of IFRS 9 gain on debt modification 13,885 10,709
Fair value loss on financial derivatives 1,188 405
Amortisation of interest expense on non-current borrowings 628 635
Loss on repurchase of unsecured notes 599 -
Others 225 327
62,461 63,015
Interest expense on secured borrowings reduced by 15.0% to US$17.0 million in
the year ended 30 June 2025 from US$20.0 million in the year ended 30 June
2024 as a result of net repayments of secured loans. Secured borrowings have
been paid down by US$16.2 million from US$372.8 million at 30 June 2024 to
US$356.6 million at 30 June 2025.
Interest expense on unsecured notes reduced by 8.2% to US$26.9 million in the
year ended 30 June 2025 from US$29.3 million in the year ended 30 June 2024 as
a result of repurchases of unsecured notes. The company repurchased US$21.6
million face value of Avation Capital S.A. 8.25%/9.0% unsecured notes during
the year.
Interest expense on unsecured notes in the year ended 30 June 2024 also
includes US$4.3 million of non-cash interest paid in kind by increasing the
face value of Avation Capital S.A. 8.25%/9.0% unsecured notes.
Amortisation of IFRS 9 gain on debt modification of US$13.9 million (2024: US$
10.7 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. The face value
of Avation Capital S.A. 8.25%/9.0% unsecured notes outstanding as of 30 June
2025 is US$310.0 million (30 June 2024: US$331.6 million).
Dividend
The Board has declared an interim dividend of 1.0 US cents per share in
respect of the financial year ended 30 June 2025. The timetable for the
interim dividend is as follows:
Ex-dividend date: 16 October 2025
Record date: 17 October 2025
Payment date: 30 October 2025
Interim Management Statement
According to IATA, passenger air travel grew at 8.0% in the year to 30 April
2025. International travel continued to show strong momentum with 10.8%
year-on-year growth in revenue passenger kilometres. A decline is air travel
in the United States was more than offset by strong growth in other regions.
In the Asia-Pacific region, where Avation's fleet and customer base is
concentrated, revenue passenger kilometres grew 10.6% year-on-year.
At the same time, supply chain constraints continue to impact new aircraft
deliveries. New aircraft deliveries are lagging 30% behind peak levels,
leading to a record aircraft order backlog of around 17,000 aircraft.
This market backdrop has continued to support aircraft valuations and lease
rates over the last year with Avation seeing increases in values and lease
rates for both new and second-hand commercial aircraft.
Avation's fleet was fully utilised throughout the year ended 30 June 2025.
The Company is now focussed on placing its ATR 72-600 orderbook with new
customers and transitioning aircraft which are due to come off lease in the
latter half of 2025 and first half of 2026 to new lessees. To this end the
first two deliveries from Avation's ten aircraft orderbook have been placed
with new airline customers in South Korea and Cambodia. These aircraft are
currently scheduled for delivery in November 2025 and February 2026
respectively. The Company transitioned an ATR 72-600 aircraft to a six-year
lease with new customer Clic Air in July 2025 and has signed a six-year lease
with existing customer PNG Air for an aircraft scheduled to be redelivered by
its existing lessee in the fourth quarter of 2025.
The Company will continue to focus on growing its fleet, transitioning
aircraft scheduled for redelivery from expiring leases and identifying
opportunities to place the remaining new ATR aircraft ordered in 2024.
Avation aims to gradually transition to a more sustainable, lower CO2
emissions aircraft fleet. Aircraft delivered from Avation's orderbook and
exercised purchase rights will be fitted with the new Pratt and Whitney Canada
PW127XT engine. The PW127XT engine promises 20% lower maintenance costs,
extended time on wing, 3% lower fuel consumption and 5% more power compared
with the current engine variant. The PW127XT engine is capable of operating
with 50% SAF* and manufacturer expects to achieve certification to operate
with 100% SAF before new fuel regulations planned for 2030. Net emissions of
CO2 are expected to be substantially reduced when using SAF.
We also 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
turboprop aircraft. The Company's portfolio already includes a significant
proportion of Airbus A220 and ATR 72 aircraft.
*Sustainable aviation fuel or SAF is the main term used by the aviation
industry (including IATA and the International Civil Aviation Organization) to
describe a non-conventional (non-fossil derived) aviation fuel. SAF is the
preferred IATA term for this type of fuel although when other terms such as
sustainable alternative fuel, sustainable alternative jet fuel, renewable jet
fuel or biojet fuel are used, in general, the same intent is meant.
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. In the short term the
Company is considering further growth in its narrow body fleet.
Avation supports the transition of the aircraft industry towards aircraft
capable of using SAF to produce lower CO2 emissions on a net basis. Reducing
CO2 emissions is key to providing a sustainable future for the global aviation
industry and in addressing climate-change risks.
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 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 for aircraft acquisitions is traditionally sourced from capital
markets, asset-backed lending, operational cash flows and disposals of
aircraft. The ability to access acceptably priced funding is a key profit
driver in aircraft leasing.
Principal risks factors facing the aircraft leasing industry include, but are
not limited to, exposure to the airline industry and the risk of deterioration
in the financial condition of airline customers, asset value risk driven by
changing patterns of supply and demand and technological change, operational
risks including risks resulting from war, acts of terrorism and natural
disasters, regulatory risks from changes to government regulations and tax
laws and climate-change risks.
The Directors may seek to repurchase ordinary shares in the Company from time
to time subject to the terms of a share buy-back mandate which expires at the
conclusion of the next Annual General Meeting.
Results Conference Call
Avation's senior management team will host an investor update call on 2
October 2025, at 1:00 pm BST (UK) / 8:00 am EST (US) / 8:00 pm SGT
(Singapore), to discuss the Company's financial results. Investors can
participate in the call by using the following link:
https://sparklive.lseg.com/Avation/events/4870afb6-d37d-4859-8135-af1d8c2c268d/avation-plc-full-year-results-call
(https://sparklive.lseg.com/Avation/events/4870afb6-d37d-4859-8135-af1d8c2c268d/avation-plc-full-year-results-call)
A replay of the broadcast 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
These are not the company's statutory accounts. This announcement covers the
results of Avation PLC for the year ended 30 June 2025, which have been
subject to audit. The audit report issued was unqualified.
The Board of Directors approved this financial information on 1 October 2025.
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.
-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 YEAR ENDED 30 JUNE 2025
2025 2024
US$'000s US$'000s
Continuing operations
Revenue 110,099 92,397
Other income 2,448 3,575
112,547 95,972
Depreciation (37,512) (37,251)
Gain/(loss) on disposal of aircraft 3,455 (2,915)
Unrealised (loss)/gain on aircraft purchase rights and pre-delivery aircraft
deposits paid
(21,643) 46,886
Unrealised loss on equity investments (1,630) (490)
Reversal of/(impairment loss) on aircraft 4,831 (5,573)
Aircraft transition expenses (244) (2,607)
Reversal of expected credit losses 80 239
Administrative expenses (9,126) (8,792)
Legal and professional fees (1,978) (2,251)
Other expenses (2,336) -
Operating profit 46,444 83,218
Finance income 6,295 9,843
Finance expenses (62,461) (63,015)
(Loss)/profit before taxation (9,722) 30,046
Taxation 2,006 (10,311)
(Loss)/profit from continuing operations (7,716) 19,735
(Loss)/profit attributable to:
Shareholders of Avation PLC (7,716) 19,735
Earnings per share for (loss)/profit attributable to:
Shareholders of Avation PLC
Basic earnings per share (US cents) (11.22) 27.85
Diluted earnings per share (US cents) (10.84) 27.71
AVATION PLC CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
2025 2024
US$'000s US$'000s
(Loss)/profit from continuing operations (7,716) 19,735
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Net loss on cash flow hedge, net of tax (10,140) (4,568)
(10,140) (4,568)
Items that may not be reclassified subsequently to profit or loss:
Revaluation gain /(loss) on property, plant and equipment, net of tax 14,815 (3,421)
Other comprehensive income, net of tax 4,675 (7,989)
Total comprehensive(loss)/income for the year (3,041) 11,746
Total comprehensive (loss)/income attributable to:
Shareholders of Avation PLC (3,041) 11,746
AVATION PLC CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF 30 JUNE 2025
2025 2024
US$'000s US$'000s
ASSETS
Non-current assets
Property, plant and equipment 725,134 791,420
Finance lease receivables 11,129 12,754
Trade and other receivables 1,005 939
Pre-delivery aircraft deposits paid 18,218 21,813
Derivative financial assets 836 8,096
Aircraft purchase rights 91,740 112,780
Lease incentive assets 4,831 7,756
Goodwill 1,902 1,902
854,795 957,460
Current assets
Finance lease receivables 1,734 28,644
Trade and other receivables 9,912 15,876
Pre-delivery aircraft deposits paid 10,960 8,520
Derivative financial assets 714 -
Investment in equity, fair value through profit or loss 9,115 10,745
Lease incentive assets 2,920 3,136
Restricted cash 80,831 94,379
Cash investment in fixed term bank deposits 1,042 -
Cash and cash equivalents 48,102 23,561
165,330 184,861
Assets held for sale 81,810 -
247,140 184,861
Total assets 1,101,935 1,142,321
AVATION PLC CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF 30 JUNE 2025
2025 2024
US$'000s US$'000s
EQUITY AND LIABILITIES
Equity
Share capital 1,234 1,182
Share premium 79,447 70,120
Treasury shares (16,003) -
Merger reserve 6,715 6,715
Asset revaluation reserve 62,158 47,343
Capital reserve 8,876 8,876
Other reserves (1,406) 11,210
Retained earnings 102,818 110,944
Equity attributable to shareholders of Avation PLC 243,839 256,390
Non-controlling interests 7 7
Total equity 243,846 256,397
Non-current liabilities
Loans and borrowings 582,253 625,426
Trade and other payables 18,843 18,487
Derivative financial liabilities 3,142 2,037
Maintenance reserves 31,360 73,270
Deferred tax liabilities 31,637 34,047
667,235 753,267
Current liabilities
Loans and borrowings 70,084 49,668
Trade and other payables 19,595 18,920
Maintenance reserves 69,423 62,153
Income tax payable 1,314 1,916
160,416 132,657
Liabilities associated with assets held for sale 30,438 -
190,854 132,657
Total equity and liabilities 1,101,935 1,142,321
AVATION PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
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$'000s
Balance at 1 July 2024 1,182 70,120 - 6,715 47,343 8,876 11,210 110,944 256,390 7 256,397
Loss for the year - - - - - - - (7,716) (7,716) - (7,716)
Other comprehensive income - - - - 14,815 - (10,140) - 4,675 - 4,675
Total comprehensive loss - - - - 14,815 - (10,140) (7,716) (3,041) - (3,041)
Issue of shares 52 9,327 - - - - (2,847) - 6,532 - 6,532
Purchase of treasury shares - - (16,003) - - - - - (16,003) - (16,003)
Share warrant expense - - - - - - 411 - 411 - 411
Dividend paid (450) (450) (450)
Total transactions with owners recognised directly in equity
52 9,327 (16,003) - - - (2,436) (450) (9,510) - (9,510)
Expiry of share warrants - - - - - - (40) 40 - - -
Total others - - - - - - (40) 40 - - -
Balance at 30 June 2025 1,234 79,447 (16,003) 6,715 62,158 8,876 (1,406) 102,818 243,839 7 243,846
Capital reserve comprises acquisitions with non-controlling interests that do
not result in a change of control.
Other reserves consists of capital redemption reserve, share warrant reserve,
fair value reserve and foreign currency hedge reserve.
The merger reserve arose on acquisition of additional shares of the Company's
subsidiary Capital Lease Aviation Limited through the allotment of ordinary
shares in the year ended 30 June 2015. The merger reserve represents the
difference between the fair value and the nominal value of the shares issued
by the Company.
AVATION PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Attributable to shareholders of Avation PLC
Share capital Share Treasury Merger reserve Asset revaluation reserve Capital reserve Other Retained earnings Total Non-controlling interest Total
premium Shares reserves equity
US$'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 2023 as previously reported 1,182 70,024 - 6,715 50,764 8,876 15,069 88,995 241,625 7 241,632
Effects of changes in accounting policies
- - - - - - - 2,300 2,300 - 2,300
Balance at 1 July 2023 as restated
1,182 70,024 - 6,715 50,764 8,876 15,069 91,295 243,925 7 243,932
Profit for the year - - - - - - - 19,735 19,735 - 19,735
Other comprehensive income - - - - (3,421) - (4,568) - (7,989) - (7,989)
Total comprehensive income - - - - (3,421) - (4,568) 19,735 11,746 - 11,746
Issue of shares 1 96 - - - - (18) - 79 - 79
Purchase of treasury shares - - (95) - - - - - (95) - (95)
Cancellation of treasury shares (1) - 95 - - - 1 (95) - - -
Share warrant expense - - - - - - 735 - 735 - 735
Total transactions with owners recognised directly in equity
- 96 - - - - 718 (95) 719 - 719
Expiry of share warrants - - - - - - (9) 9 - - -
Total others - - - - - - (9) 9 - - -
Balance at 30 June 2024 1,182 70,120 - 6,715 47,343 8,876 11,210 110,944 256,390 7 256,397
Other reserves consists of capital redemption reserve, share warrant reserve
and fair value reserve.
AVATION PLC CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE
2025
2025 2024
US$'000s US$'000s
Cash flows from operating activities:
(Loss)/profit before income tax (9,722) 30,046
Adjustments for:
Amortisation of lease incentive asset 3,141 2,721
Depreciation expense 37,512 37,251
Depreciation of right-of-use assets 283 278
Reversal of expected credit losses (80) (239)
Finance income (6,295) (9,843)
Finance expense 62,461 63,015
(Gain)/loss on disposal of aircraft (3,455) 2,915
Interest income from finance leases (1,219) (2,018)
(Reversal of)/impairment loss on aircraft (4,831) 5,573
Maintenance reserves income (22,086) (5,351)
Share warrants expense 411 735
Foreign currency exchange loss/(gain) 2,834 (946)
Unrealised loss/(gain) on aircraft purchase rights and pre-delivery
aircraft deposits paid
21,643 (46,886)
Unrealised loss on equity investments 1,630 490
Operating cash flows before working capital changes 82,227 77,741
Movement in working capital:
Trade and other receivables and finance lease receivables 32,147 23,919
Pre-delivery aircraft deposits paid (6,238) (2,268)
Trade and other payables 2,625 325
Maintenance reserves 17,884 20,583
Cash from operations 128,645 120,300
Finance income received 7,831 7,909
Finance expense paid (43,487) (45,724)
Income tax paid (1,486) (916)
Net cash from operating activities 91,503 81,569
Cash flows from investing activities:
Cash investment in fixed term bank deposits (1,042) 1,225
Purchase of property, plant and equipment (63,249) (5)
Proceeds from disposal of aircraft 39,556 11,989
Net cash (used in)/from investing activities (24,735) 13,209
Cash flows from financing activities:
Net proceeds from issuance of ordinary shares 6,532 79
Purchase of treasury shares (16,003) (95)
Dividend paid (450) -
Decrease/(increase) of restricted cash balances 13,548 (3,515)
Proceeds from loans and borrowings, net of transactions costs 109,146 29,098
Repayment of loans and borrowings (155,000) (121,600)
Net cash used in financing activities (42,227) (96,033)
Net increase/(decrease) in cash and cash equivalents 24,541 (1,255)
Cash and cash equivalents at beginning of year 23,561 24,816
Cash and cash equivalents at end of year 48,102 23,561
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