TIDMCLA
RNS Number : 5389A
Capital Lease Aviation PLC
29 September 2015
Capital Lease Aviation PLC
("CLA" or "the Company" or "the Group")
Audited Results Announcement for the Year Ended 30 June 2015
Capital Lease Aviation PLC (LSE: CLA), the aircraft leasing
company, today announces audited consolidated financial results for
the Company and its subsidiaries for the year ending 30 June
2015.
Highlights:
-- Refinance of debt which released US$ 10.1 million in cash and
reduced the average interest rate from 6.0% to 4.6%
-- Part out of an A320 end of life aircraft which increased cash
reserves by US$ 5 million and resulted in a US$ 1.2 million loss
(after tax)
-- Total cash increased 103% to US$ 12.4 million (2014: US$ 6.1 million)
-- Revenue from continuing operations down 7.5% to US$10.8 million (2014: US$ 11.7 million)
-- Basic and diluted EPS from total operations of 0.47 US cents (2014: 2.30 US cents)
The audited results for the Group's financial year ended 30 June
2015 (pursuant to International Financial Reporting Standards
"IFRS") and reported in United States Dollars "US$" are as
follows:
Consolidated Results: 12 months 12 months Change
ended 30 ended 30 June
June 2015 2014
US$ US$ %
(restated)
*
--------------------------- ----------- --------------- -------
Continuing operations
- Lease Revenue 10,825,000 11,700,000 (7.5)
--------------------------- ----------- --------------- -------
Total Profit 451,070 2,239,248 (79.8)
--------------------------- ----------- --------------- -------
Total assets 90,195,065 92,287,404 (2.2)
--------------------------- ----------- --------------- -------
Net Assets 44,063,603 47,062,523 (6.3)
--------------------------- ----------- --------------- -------
Cash 12,416,554 6,122,479 103
--------------------------- ----------- --------------- -------
Basic and diluted EPS
from total operations 0.47 cents 2.30 cents (79.5)
--------------------------- ----------- --------------- -------
Average Fleet Age (years) 12.7 15.2 (16.4)
--------------------------- ----------- --------------- -------
Average Lease Term
( years) 4.8 4.4 9.1
--------------------------- ----------- --------------- -------
Average Interest Rate
( % ) 4.6 6.0 (23.3)
--------------------------- ----------- --------------- -------
*the explanation for the restatement is in the Chairman's
Statement
Jeff Chatfield, Executive Chairman, said:
"During the reporting period the Group has focused on realising
value from aircraft assets to create a platform for growth."
"The Group's key achievements during the year include the
refinance of senior loans which reduced the cost of debt by 23 per
cent and released US$ 10.1 million. The part-out of an end of life
aircraft which resulted in a reduction in the average age of the
fleet to 12.7 years and increased cash reserves by US$ 5 million.
These elements, including the extension of the average lease term
to 4.8 years during 2014, are a solid foundation for the next stage
of development."
"Our strategy remains to grow the fleet of mid-life narrow-body
jets in Asia and Europe, the cash generated through the sale of an
asset and refinancing will facilitate future growth. Our goal, for
2016, is to invest the capital in assets that create value for our
shareholders."
"The continued support of our shareholders is fundamental to our
growth plans, in recognition of their continued support the Board
has announced a 2p interim dividend from the cash released during
the period."
The Company's financial statements are expected to be posted to
shareholders on 16 October 2015 and will be available shortly on
the company website http://www.cl-aviation.com/
Enquiries:
Capital Lease Aviation PLC +65 97354151
Jeff Chatfield, Executive Chairman
Nominated Adviser
James Joyce, W H Ireland Limited 0207 220 1666
Company Stockbroker
W H Ireland Limited 0207 220 1670
Blytheweigh 0207 138 3204
Tim Blythe / Wendy Haowei / Fergus Lane
Website
http://www.cl-aviation.com/
Chairman's Statement
For the Year ended 30 June 2015
Background and Outcome
I am pleased to report that the Group is in a strong financial
position despite the lower operating result. The Group refinanced
two aircraft during the year, renegotiated a key loan covenant
which released cash onto the balance sheet and post the period end
completed the disposal by way of part out of a 25 year old Airbus
A320, which was at the end of its useful economic life.
Management have successfully achieved their objectives which
have been to strengthen our financial position through the
refinance of higher interest debt, extend leases on key aircraft,
remain profitable and pursue fleet growth.
Key Achievements:
-- Refinance of two aircraft which released US$ 10.1 million in cash;
-- Disposal of an end of life aircraft which added US$ 5 million
to the Company's cash reserves;
-- Repayment of significant related party loan agreements; and
-- Reduction in the average cost of senior debt from 6.0% to 4.6%.
Results
Significant changes implemented by the Group during the year
resulted in Total Profit for the year ending 30 June 2015 being US$
0.45 million (2014:US$ 2.2 million), which translates into earnings
per share from total operations of 0.47cents (2014: 2.30 cents).
The key drivers for the changes in the results were certain lower
lease rates, a change in the depreciation policy and the net impact
of a disposal of an end of life aircraft which resulted in a book
loss of US$ 1.2 million.
The $1.2 million loss is classified within discontinued
operations as it represented the Group's only aircraft operating in
North America and operations in that region have therefore been
discontinued. The Group's current strategy is to grow its fleet
through the acquisition of narrow-body, mid-life aircraft in Asia
and Europe.
The Group has amended the presentation of its financial
statements in the current financial year to provide greater
clarity. The comparative statement of profit or loss has been
restated to show discontinued operations separately from continuing
operations.
Revenue from continuing operations decreased by 7.5 per cent to
US$ 10.83 million (2014: US$ 11.7 million).The Board has previously
advised that lease extensions on two aircraft to 2021 have resulted
in slightly lower revenue and net income yield from the aircraft.
Lower income was a commercial trade off for a longer duration
lease. The two aircraft are significant components of the balance
sheet and represent over 70 per cent of the total revenue of the
Group.
In addition to lower revenue, depreciation expenses have
increased as a result of a change in the depreciation policy as
advised in October 2014. Administrative expenses increased due to a
number of one off costs.
Dividend
The Board would like to thank the shareholders for their
continued support and is pleased to announce an interim dividend of
2p to shareholders, as a direct result of the Company's success in
releasing equity from the balance sheet during the financial
year.
The interim dividend payable of US$ 3,013,819 for the financial
year has been charged to retained earnings.
Outlook
The Group is actively pursuing new aircraft acquisitions on both
an individual and portfolio basis, and has evaluated numerous
aircraft during the year. Further acquisitions are expected to
deliver economies of scale that will lead to an increase in
profitability. The Group will also seek to optimise structures for
tax and finance to increase returns to shareholders.
Risks
The risks remain typical for an aircraft leasing company that
uses leverage to build the fleet. Along with the risks associated
with obtaining finance, there is residual value risk and impairment
of aircraft assets.
The Board has a conservative approach to gearing (at 42 percent
it is below industry norms), asset management and the deployment of
capital and will use these criteria when assessing new investment
opportunities.
The Directors would like to take this opportunity to thank all
our shareholders for their continued support and look forward to
creating more value for you as we continue to develop our aircraft
leasing business.
Robert Jeffries Chatfield
Executive Chairman
29(th) September 2015
--ENDS--
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