Avation PLC
LSE:AVAP
Avation PLC
Avation Plc operates as an aircraft leasing company. The company employs 23 full-time employees The company went IPO on 2010-10-06. The firm owns and manages a fleet of aircraft which it leases, through its subsidiaries, to airlines across the world. Its customers include Loganair, Air France, easyJet, Eva Air, Philippine Airlines, Air India, Vietjet Air, Fiji Airways, Mandarin Airlines, Cebu Pacific, Garuda Indonesia, Galistair, airBaltic and Danish Air Transport. The firm's fleet comprises of approximately 45 aircraft, including three aircraft on finance lease. The firm's fleet includes Airbus A320 and A220 aircraft, Boeing 737 NG and 777-300ER aircraft and ATR 72 aircraft. The firm's subsidiaries include Avation Capital S.A., which is engaged in financing, and Capital Lease Aviation Limited, Avation Group (S) Pte. Ltd., AVAP Leasing (Asia) Limited and MSN429 Leaseco Limited, which are engaged in aircraft leasing.
Avation Plc operates as an aircraft leasing company. The company employs 23 full-time employees The company went IPO on 2010-10-06. The firm owns and manages a fleet of aircraft which it leases, through its subsidiaries, to airlines across the world. Its customers include Loganair, Air France, easyJet, Eva Air, Philippine Airlines, Air India, Vietjet Air, Fiji Airways, Mandarin Airlines, Cebu Pacific, Garuda Indonesia, Galistair, airBaltic and Danish Air Transport. The firm's fleet comprises of approximately 45 aircraft, including three aircraft on finance lease. The firm's fleet includes Airbus A320 and A220 aircraft, Boeing 737 NG and 777-300ER aircraft and ATR 72 aircraft. The firm's subsidiaries include Avation Capital S.A., which is engaged in financing, and Capital Lease Aviation Limited, Avation Group (S) Pte. Ltd., AVAP Leasing (Asia) Limited and MSN429 Leaseco Limited, which are engaged in aircraft leasing.
Revenue: Revenue for the six months ended December 31, 2021, was $57.9 million, down 6% year-on-year but exceeded management expectations.
Profit Recovery: The company reported an operating profit of $18.8 million, a turnaround from a $34 million loss in the prior year period.
Impairments & Provisions: Significant impairments and credit losses seen in the previous year did not recur; some provisions may be written back as debt is collected.
Liquidity Improvement: Unrestricted cash balance increased by 25% since June 30 to over $35 million, and net indebtedness declined by almost $72 million since June 2021.
High Cash Collections: Cash collection rate improved to 91% for the half-year, up from 75-76% in the previous period.
Fleet Utilization: The fleet is returning to high utilization, with active remarketing and sales of underutilized aircraft underway.
Guidance: Management expects continued improvement in liquidity, cash collections, and operational efficiency throughout the second half of the financial year.
