Plus Markets-quoted Avation owns five Fokker 100 regional jets, one of which has just been purchased. In addition, it has an interest in two more via 51 per cent-owned Capital Lease Aviation, which joined the alternative investment market (Aim) in December 2007.
All but two of the planes in service are leased to another Aim company, Skywest Airlines, which uses them to service the booming western Australian mining markets. Destinations include coastal towns such as Broome, Port Hedland and Monkey Mia as well as the mining centre of Kalgoorlie - plus the holiday destination of Bali. One is still leased to German tour operator Tui and another to charter operator Germania based in Berlin. That deal is, however, coming to an end and the plane will be leased to Skywest.
The latest results from Avation are certainly spectacular, although £5.74m of the profit came from a gain on floating off a minority stake in Capital Lease Aviation. Ignore that and profits for the six months to end-December were still impressive at £1.19m after allowing for fixed rate US dollar interest costs of £260,000. Nor does Avation pay or expect to pay much tax as the interim tax rate was just 4 per cent.
AVATION (AVAP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 67.5p | MARKET VALUE: | £16.4m | |
| TOUCH: | 65-70p | 12-MONTH HIGH: | 86.5p | LOW: 67.5p |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 2 | |
| NET ASSET VALUE: | 44p | NET DEBT: | 5% | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 0.59 | 0.25 | 0.93 | nil |
| 2007 | 2.16 | 6.93 | 27.55 | 0.50 |
| % change | +266 | +2672 | +2862 | – |
Ex-div: 26 March Payment: 10 April | ||||
Click for a guide to the terms used in IC results tables
