TIDMAVAP
RNS Number : 5149N
Avation PLC
30 September 2021
AVATION PLC
("Avation" or "the Company")
UNAUDITED Financial Results for the YEar ended 30 june 2021
and Interim Management Statement
Avation PLC (LSE: AVAP), the commercial passenger aircraft
leasing company, announces preliminary unaudited financial results
for the year ended 30 June 2021.
Key Financial Results
-- Material COVID-19 impacts on financial results, revenue decreased 13% to $117.7 million;
-- Cash and bank balances increased 7% to $122.5 million;
-- Net Indebtedness reduced by $113.9 million (11%) to $922.6 million;
-- Impairment losses of $87.4 million and expected credit losses
on receivables of $25.4 million recognised for the year, reflecting
the COVID-19 disruption to the leasing industry; and
-- Loss before taxation of $70.2 million.
COVID-19 Update
-- Focus on preserving liquidity and cashflow has left the
fleet, business and customers substantially intact;
-- Rent deferrals totalling $25.9 million provided to airline customers;
-- Loan repayment deferrals totalling $35.2 million obtained from secured lenders;
-- Maturity date of Avation Capital S.A. Senior Notes ("Notes") extended to October 2026;
-- Administrative expenses excluding non-cash warrants expense
decreased by 9% to $10.3 million; and
-- Capital expenditure and dividends remain temporarily
suspended with a return to fleet growth expected in late 2022.
Executive Chairman, Jeff Chatfield, said:
"The year ended 30 June 2021 has been the most challenging in
the Company's history. The COVID-19 pandemic persisted throughout
the year disrupting airlines, aircraft leasing and aircraft
valuations. These challenges have created a significant workload
and I would like to thank Avation's employees for their commitment,
focus and diligence during the period.
"Avation's decision to preserve liquidity and cashflow ensured
survival and allowed focus to be directed to maintenance of the
business, customers and leasing platform which have been preserved
as the impacts of the pandemic recede and air travel returns.
"The prolonged impact of the pandemic has resulted in $87.4
million in impairments to the value of the fleet and $25.4 million
for expected credit losses that dominate the financial results. An
end to the pandemic appears to be in sight with the rollout of
global vaccination programmes supporting a return to growth in
passenger numbers. A return of air travel to pre-COVID levels may
result in an increase in the value of aircraft that could reverse
some of the impairments in future periods.
"The recent Chapter 11 filing for voluntary restructuring by
Philippine Airlines should lead to a resolution of one of the last
remaining lease defaults resulting from the COVID-19 pandemic in
Avation's fleet. Avation is set to emerge from the pandemic with a
smaller fleet with high levels of utilisation and a long timeframe
for repayment of the Company's unsecured Notes following the
extension of their maturity until October 2026.
"Avation's cash and liquidity position is expected to improve in
the coming months through the expected sale of underutilised
aircraft and the receipt of distributions to creditors from the
restructuring administrations of Virgin Australia and Philippine
Airlines. This will have the combined impact of improving
operational efficiency and increasing liquidity which can then be
used to continue to pay down debt and fund a return to fleet growth
planned for late 2022."
Aircraft Fleet
Aircraft Type 30 June
2021
Boeing 777-300ER 1
Airbus A330-300 1
Airbus A321-200 7
Airbus A320-200 2
Boeing 737-800 1
Airbus A220-300 6
ATR 72-600 21
ATR 72-500 5
--------
Total 44
At June 30, Avation's fleet comprised 44 aircraft. The weighted
average age of the fleet is 4.8 years (2020: 4.1 years) and the
weighted average remaining lease term is 6.4 years (2020: 6.9
years).
Fleet assets decreased 13% to $1,079.6 million (2020: $1,242.2
million). Two ATR72 aircraft were sold during the year. Two Fokker
100 aircraft were transferred to the lessee airline upon completion
of finance leases. Narrowbody aircraft make up 52% of the fleet by
value as at 30 June 2021.
Avation has orders for two additional ATR 72-600 aircraft and
has purchase rights for a further 28 aircraft. During the year
Avation rescheduled the ATR orderbook in response to the changes in
demand due to the pandemic.
Airline Customers subject to Restructuring or Insolvency
Insolvency proceedings are currently ongoing in relation to two
airlines, Virgin Australia and Philippine Airlines.
Virgin Australia
On 20 April 2020, Virgin Australia entered into voluntary
administration. Avation had two Fokker 100 aircraft on finance
lease and 11 ATR 72 aircraft on operating lease to Virgin
Australia. The two Fokker 100 aircraft were transferred to the
lessee at the end of their finance leases in September 2020. Of the
11 ATRs, four have been re-leased at market rates and one has been
sold. In respect of the remaining six unutilised ATR aircraft,
Avation is discussing the future opportunity for these aircraft
with a number of interested parties. The aggregate outstanding debt
on the remaining six ATR aircraft is $6.3 million as at today's
date.
Avation's claim against Virgin Australia has been adjudicated by
the Trustee of the Creditors Trust in the sum of AUD101.4 million.
The Company believes that around 45% of its claim should take
priority over unsecured claims and is preparing to commence
litigation in order for its priority claims to be recognised. The
Administrator has advised of an expected pay-out of 9.5-13 cents on
the dollar for unsecured claims.
Philippine Airlines
On 6 September 2021, Avation announced that P hilippine Airlines
("PAL") filed a voluntary petition for relief under Chapter 11 of
the United States Bankruptcy Code in order to complete a
prearranged restructuring process. Avation and PAL have agreed
terms for PAL to retain the use of a Boeing 777- 300ER aircraft on
lease from Avation.
A successful restructuring will ensure that Avation will
recommence collecting rent on the aircraft for the first time since
early 2020. Under the restructuring, Avation will also be entitled
to receive payments relating to utilisation since 1 September 2020
on a power by the hour basis along with a promissory note for a
portion of rent outstanding for the period prior to 1 September
2020.
Financial Highlights and Analysis
30 June 30 June
2021 2020
US$ 000's US$ 000's
Revenue 117,738 135,274
Depreciation (46,332) (46,666)
Administrative expenses (12,046) (11,913)
Other income and expenses (net) (2,154) (1,150)
--------------------------------------------- -------------- -----------
57,206 75,545
Finance Expenses (net of finance income) (57,777) (55,721)
--------------------------------------------- -------------- -----------
(571) 18,824
Unrealised gain/(loss) on aircraft purchase
rights (150) 27,110
Gains/(Loss) on disposal of aircraft (6,948) 3,230
Impairment loss on aircraft (87,394) (35,524)
Expected credit loss on receivables (25,428) -
and accrued revenue (1)
Gain on debt modification 50,270 -
--------------------------------------------- -------------- -----------
(Loss)/Profit before taxation (70,221) 14,640
Taxation (14,664) (4,924)
--------------------------------------------- -------------- -----------
Total profit after tax (84,885) 9,716
EPS (131.1 cents) 15.4 cents
Dividend per share - 10.6 cents
Change
Fleet assets (2) 1,079,594 1,242,176 (13%)
Total assets 1,282,934 1,415,584 (9%)
Cash and bank balances (3) 122,471 114,585 7%
Net asset value per share (US$) (4) $2.26 $3.53 (36%)
Net asset value per share (GBP) (5) GBP1.64 GBP2.86 (43%)
1. Expected credit losses are recorded on a separate line as at
30 June 2021 due to material amount. As at 30 June 2020 expected
credit losses of $0.9 million were included in Other income and
expenses (net).
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 30 June 2021 comprise
unrestricted cash and cash equivalents of $25.1 million (30 June
2020: $35.3 million) and restricted cash balances of $97.4 million
(30 June 2020: $79.3 million).
4. Net asset value per share is total equity divided by the
total number of shares in issue, excluding treasury shares, at 30
June 2021.
5. Based on GBP:USD exchange rate as at 30 June 2021 of 1.38 (30 June 2020: 1.23).
Debt summary
30 June 2021 30 June
US$000's 2020
US$000's
Loans and borrowings 947,640 1,071,738
Unrestricted cash and bank balances 25,067 35,290
Net indebtedness (1) 922,573 1,036,448
Debt to assets (2) 73.9% 75.7%
Weighted average cost of secured
debt (3) 3.9% 3.6%
Weighted average cost of total
debt (4) 5.4% 4.5%
1. Net indebtedness is defined as loans and borrowings less unrestricted cash and bank balances.
2. Debt to assets is defined as total debt divided by total assets.
3. Weighted average cost of secured debt is the weighted average
interest rate for secured loans and borrowings as at 30 June
2021.
4. Weighted average cost of total debt is the weighted average
interest rate for total loans and borrowings as at 30 June
2021.
The weighted average cost of total debt increased to 5.4% as at
30 June 2021 (2020: 4.5%). The weighted average cost of secured
debt increased to 3.9% at 30 June 2021 (2020: 3.6%).
At the end of the year, Avation's debt to assets ratio was 73.9%
(2020: 75.7%). At 30 June 2021, 90.9% of net debt was at fixed or
hedged interest rates (2020: 90.7%). The proportion of unsecured
debt to total debt was 29.9% (2020: 32.3%).
Bond Extension
During the year Avation completed a process to extend the
maturity date of the $342.6 million outstanding Notes from May 2021
to October 2026. The Company announced the completion of this
process on 26 March 2021. The Notes extension provides stability to
the Company's capital structure and will assist the Company to
successfully navigate the COVID-19 pandemic.
The extension of the maturity date and other revisions to the
terms and conditions of the Notes ("Extension") has been accounted
for as a substantial modification of the terms of a debt instrument
in accordance with IFRS 9. Under IFRS 9, if the modification to the
terms of a debt instrument is substantial the existing liability is
extinguished and a new liability is recognised at fair value. The
fair value of the Notes at the date of the Extension, based on the
quoted open market price of the Notes of 82c/$, was $281.0 million.
Total fees and costs incurred in connection with the Extension
amounted to $11.0 million which includes $3.5 million for the fair
value of share warrants issued to holders of the Notes. The
difference between the extinguished liability and new liability,
less fees and costs incurred, has been recognised as a gain of
$50.3 million in the Statement of profit or loss.
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. Avation is capable of owning,
managing and leasing turboprop, narrowbody and twin-aisle aircraft
and engines.
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 is an active trader of aircraft and from time to time
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.
Interim Management Statement
The disruption created by the COVID-19 pandemic is expected to
recede following the successful rollout of global vaccination
programmes that support a return to increased levels of air travel.
This trend is already evidenced in regional and domestic travel and
we expect will be followed by a recovery in international travel as
we move through the remainder of the 2022 financial year.
Avation instituted a programme of support for its airline
customers by agreeing to defer payment of a portion of their rent
in the short-term. The cashflow impact of this support programme
has been mitigated by adjusting the amortisation profiles of
related financings with the agreement of lenders. Since the start
of the pandemic the Company has also reduced cash administration
costs and temporarily suspended capital expenditure.
Avation has consolidated its aircraft fleet and resolved
numerous issues that have arisen as a result of the pandemic. The
Company is in a position to look forward with cautious optimism to
opportunities that will present themselves in a post pandemic
environment.
The Company believes that airlines will require significant
number of leased aircraft following the pandemic due to the large
number of older aircraft that have been retired and the impact of
the pandemic on airline balance sheets, reducing their ability to
purchase aircraft directly. This supports the Company's strategy of
focussing on young and popular commercial aircraft.
Funding of asset acquisitions is traditionally sourced from
capital markets, asset-backed bank lending, operational cash flows
and disposals of selected aircraft. Access to acceptably priced
funding is a key factor in aircraft leasing. Specific risks which
are inherent in the aircraft leasing industry include, but are not
limited to, ongoing pandemic impacts on travel, the
creditworthiness of airline customers, over-production of new
aircraft and market saturation, technology change, residual value
risks, competition from other lessors and the risk of impairment of
aircraft assets.
Results Conference Call
Avation's senior management team will host a conference call on
30 September 2021, at 1pm BST (UK) / 8am EST (US) / 8pm SGT
(Singapore), to discuss the Company's financial results. Investors
can participate in the conference call by using the following
link:
https://avation.emincote.com/avapFY2021/vip_connect
You will need to register your name and email address. You will
receive a telephone number, a passcode and an individual PIN
number. The conference call will also be webcast live through the
following link:
https://avation.emincote.com/avapFY2021
To view the webcast, you will need to register your name and
email address . A replay of the broadcast will be available on the
Investor Relations page of the Avation Plc website.
Annual General Meeting
The annual general meeting of the Company is expected to be held
at the Company's headquarters in Singapore on 1 December 2021 at
9am GMT (UK) / 5pm SGT (Singapore). Notice of the annual general
meeting will be issued in due course.
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 year ended 30 June 2021.
Financial information presented in this announcement is being
published for the purposes of providing preliminary Group financial
results for the year ended 30 June 2021. 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 Group
statutory financial statements for the year ended 30 June 2021 are
expected to be delivered to the Registrar of Companies by 31
October 2021. (as at the date of this report, such statutory
financial statements have not been reported on by the independent
auditors of the Company). The Board of Directors approved this
financial information on 29 September 2021. 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
2020, upon which the auditors have given an unqualified audit
report, were published on 29 October 2020 and have been delivered
to the Registrar of Companies.
All "$" amounts in this release are US Dollar amounts unless
stated otherwise. Certain comparative amounts have been
reclassified to conform with current year presentation.
-S-
More information on Avation PLC can be found at: www.avation.net
. Avation welcomes shareholder questions and comments and advises
the email address is: investor @avation.net
Enquiries:
Avation PLC T: +65 6252 2077
Jeff Chatfield, Executive Chairman
AVATION PLC
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE FINANCIAL YEARED 30 JUNE 2021
2021 2020
US$'000s US$'000s
Continuing operations
Revenue 117,738 135,274
Other income 2,406 1,270
120,144 136,544
Depreciation (46,332) (46,666)
(Loss)/gain on disposal of aircraft (6,948) 3,230
Unrealised(loss)/gain on aircraft purchase rights (150) 27,110
Impairment loss on aircraft (87,394) (35,524)
Expected credit losses (25,428) -
Administrative expenses (12,046) (11,913)
Other expenses (4,560) (2,420)
Operating (loss)/profit (62,714) 70,361
Gain on debt modification 50,270 -
Finance income 2,441 1,471
Finance expenses (60,218) (57,192)
(Loss)/profit before taxation (70,221) 14,640
Taxation (14,664) (4,924)
(Loss)/profit from continuing operations (84,885) 9,716
--------- ---------
(Loss)/profit attributable to:
Shareholders of Avation PLC (84,886) 9,714
Non-controlling interests 1 2
(84,885) 9,716
--------- ---------
Earnings per share for (loss)/profit
attributable to shareholders of Avation PLC
(131.15)
Basic earnings per share: cents 15.39 cents
(131.15)
Diluted earnings per share: cents 15.36 cents
--------- ------------
AVATION PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEARED 30 JUNE 2021
2021 2020
US$'000s US$'000s
(Loss)/profit from continuing operations (84,885) 9,716
--------- ---------
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Net gain/(loss) on cash flow hedge, net of tax 1,686 (12,947)
1,686 (12,947)
Items that may not be reclassified subsequently to profit or loss:
Revaluation gain/(loss) on property, plant and equipment, net of tax 7,440 (4,230)
--------- ---------
Other comprehensive income, net of tax 9,126 (17,177)
Total comprehensive loss for the year (75,759) (7,461)
--------- ---------
Total comprehensive loss attributable to:
Shareholders of Avation PLC (75,760) (7,463)
Non-controlling interests 1 2
--------- ---------
(75,759) (7,461)
--------- ---------
AVATION PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE FINANCIAL YEARED 30 JUNE 2021
2021 2020
US$'000s US$'000s
ASSETS
Non-current assets
Property, plant and equipment 963,304 1,057,901
Finance lease receivables 45,836 85,019
Trade and other receivables 8,857 11,601
Aircraft purchase rights 26,960 27,110
Lease incentive assets 6,661 -
Goodwill 1,902 1,902
1,053,520 1,183,533
Current assets
Finance lease receivables 4,154 7,988
Trade and other receivables 35,112 18,210
Lease incentive assets 1,377 -
Cash and bank balances 122,471 114,585
163,114 140,783
Assets held for sale 66,300 91,268
---------- ----------
229,414 232,051
---------- ----------
Total assets 1,282,934 1,415,584
---------- ----------
EQUITY AND LIABILITIES
Equity
Share capital 1,203 1,108
Share premium 67,681 57,747
Treasury shares (7,811) (7,811)
Merger reserve 6,715 6,715
Asset revaluation reserve 37,602 30,162
Capital reserve 8,876 8,876
Other reserves (21,382) (24,302)
Retained earnings 64,058 148,455
---------- ----------
Equity attributable to shareholders of Avation PLC 156,942 220,950
Non-controlling interests 68 72
---------- ----------
Total equity 157,010 221,022
---------- ----------
Non-current liabilities
Loans and borrowings 505,018 534,755
Trade and other payables 16,472 11,725
Derivative financial liabilities 20,161 27,928
Maintenance reserves 89,279 57,141
Deferred tax liabilities 17,138 698
---------- ----------
648,068 632,247
Current liabilities
Loans and borrowings 442,622 536,983
Trade and other payables 16,449 10,155
Maintenance reserves 12,202 3,836
Income tax payable 666 1,058
---------- ----------
471,939 552,032
Liabilities directly associated with assets held for sale 5,917 10,283
---------- ----------
477,856 562,315
Total equity and liabilities 1,282,934 1,415,584
---------- ----------
AVATION PLC
CONSOLIDATED STATEMENT OF EQUITY CHANGES
FOR THE FINANCIAL YEARED 30 JUNE 2021
Attributable to shareholders of Avation PLC
Share Share Treasury Merger Asset Capital Other Retained Total Non-controlling Total
capital premium Shares reserve revaluation reserve reserves earnings interest equity
reserve
US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s US$'000s
As at 1 July 2020 1,108 57,747 (7,811) 6,715 30,162 8,876 (24,302) 148,455 220,950 72 221,022
Loss for the period - - - - - - - (84,886) (84,886) 1 (84,885)
Other comprehensive
income - - - - 7,440 - 1,686 - 9,126 - 9,126
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------------
Total comprehensive
income - - - - 7,440 - 1,686 (84,886) (75,760) 1 (75,759)
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------------
Issue of new shares 95 9,934 - - - - - - 10,029 - 10,029
Dividend paid
to non-controlling
interest - - - - - - - - - (5) (5)
Share warrant
expense - - - - - - 1,723 - 1,723 - 1,723
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------------
Total transactions
with owners
recognised
directly in equity 95 9,934 - - - - 1,723 - 11,752 (5) 11,747
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------------
Expiry of share
warrants - - - - - - (489) 489 - - -
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------------
Total others - - - - - - (489) 489 - - -
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------------
Balance at 30
June 2021 1,203 67,681 (7,811) 6,715 37,602 8,876 (21,382) 64,058 156,942 68 157,010
--------- --------- --------- --------- ------------ --------- --------- --------- --------- ---------------- ---------------
AVATION PLC
CONSOLIDATED STATEMENT OF EQUITY CHANGES
FOR THE FINANCIAL YEARED 30 JUNE 2020
Attributable to shareholders of Avation PLC
Share Share Treasury Merger Asset Capital Other Retained Total Non-controlling Total
capital premium shares reserve revaluation reserve reserves earnings interest equity
reserve
US$'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
2019 1,104 56,912 (1,147) 6,715 34,392 8,876 (11,809) 145,644 240,687 70 240,757
Effect of
adoption
of IFRS 16
leases - - - - - - - (199) (199) - (199)
--------- --------- ---------- --------- ------------ --------- --------- ---------- ----------- ---------------- -----------
As at 1 July
2019
(adjusted) 1,104 56,912 (1,147) 6,715 34,392 8,876 (11,809) 145,445 240,488 70 240,558
--------- --------- ---------- --------- ------------ --------- --------- ---------- ----------- ---------------- -----------
Profit for the
year - - - - - - - 9,714 9,714 2 9,716
Other
comprehensive
income - - - - (4,230) - (12,947) - (17,177) - (17,177)
--------- --------- ---------- --------- ------------ --------- --------- ---------- ----------- ---------------- -----------
Total
comprehensive
income - - - - (4,230) - (12,947) 9,714 (7,463) 2 (7,461)
--------- --------- ---------- --------- ------------ --------- --------- ---------- ----------- ---------------- -----------
Dividends paid - - - - - - - (6,773) (6,773) - (6,773)
Issue of new
shares 4 835 - - - - (69) - 770 - 770
Purchase of
treasury
shares - - (6,664) - - - - - (6,664) - (6,664)
Share warrants
expense - - - - - - 592 - 592 - 592
--------- --------- ---------- --------- ------------ --------- --------- ---------- ----------- ---------------- -----------
Total
transactions
with owners
recognised
directly in
equity 4 835 (6,664) - - - 523 (6,773) (12,075) - (12,075)
--------- --------- ---------- --------- ------------ --------- --------- ---------- ----------- ---------------- -----------
Expiry of share
warrants - - - - - - (69) 69 - - -
Total others - - - - - - (69) 69 - - -
--------- --------- ---------- --------- ------------ --------- --------- ---------- ----------- ---------------- -----------
Balance at 30
June 2020 1,108 57,747 (7,811) 6,715 30,162 8,876 (24,302) 148,455 220,950 72 221,022
--------- --------- ---------- --------- ------------ --------- --------- ---------- ----------- ---------------- -----------
AVATION PLC
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE FINANCIAL YEARED 30 JUNE 2021
2021 2020
US$'000s US$'000s
Cash flows from operating activities:
(Loss)/profit before income tax (70,221) 14,640
Adjustments for:
Amortisation of lease incentive asset 2,069 524
Depreciation expense 46,332 46,666
Depreciation of right-of-use assets 215 217
Expected credit losses 25,428 855
Finance income (2,441) (1,471)
Finance expense 60,218 57,192
Gain on debt modification (50,270) -
(Loss)/gain on disposal of aircraft 6,948 (3,230)
Interest income from finance leases (2,364) (3,266)
Impairment loss on aircraft 87,394 35,524
Pre-delivery payments expensed 2,850 -
Share warrants expense 1,723 592
Unrealised loss/(gain) on aircraft purchase rights 150 (27,110)
Operating cash flows before working capital changes 108,031 121,133
Movement in working capital:
Trade and other receivables and finance lease receivables (40,757) (5,105)
Trade and other payables 8,390 (5,551)
Maintenance reserves 34,879 28,621
--------- ---------
Cash from operations 110,543 139,098
Finance income received 2,172 3,215
Finance expense paid (49,935) (51,712)
Income tax paid (495) (2,095)
--------- ---------
Net cash from operating activities 62,285 88,506
--------- ---------
Cash flows from investing activities:
Purchase of property, plant and equipment (104) (58,739)
Proceeds from disposal of aircraft 20,187 -
Net cash from/(used in) investing activities 20,083 (58,739)
--------- ---------
Cash flows from financing activities:
Net proceeds from issuance of ordinary shares 10,029 770
Dividends paid to shareholders - (6,773)
Dividend paid to non-controlling interest of a subsidiary (5) -
Purchase of treasury shares - (6,664)
Placement of restricted cash balances (18,109) (33,536)
Proceeds from loans and borrowings, net of transactions costs 11,747 76,561
Repayment of loans and borrowings (88,712) (86,524)
Transaction costs for modification of unsecured notes (7,541) -
--------- ---------
Net cash used in financing activities (92,591) (56,166)
--------- ---------
Net decrease in cash and cash equivalents (10,223) (26,399)
Cash and cash equivalents at beginning of year 35,290 61,689
--------- ---------
Cash and cash equivalents at end of year 25,067 35,290
--------- ---------
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