Simon Thompson 

On the earnings beat

Simon Thompson

Simon Thompson
On the earnings beat

Shares in aircraft leasing company Avation (AVAP:230p) have proved volatile since I last rated them a buy at 243p in the autumn (‘Six seductive small-caps’, 11 September 2017), but that’s not a reflection of the operational progress being made. Having completed the $100m (£72m) disposal of six leased ATR 72 narrow body aircraft to Chorus Aviation Inc (TSX: CHR), a deal that released $31m in net cash proceeds, Avation has continued to diversify its client base, reduce the average age of its aircraft fleet (down from 5.3 years to 2.9 years since June 2015), and lengthen outstanding lease terms (from 6.5 years to 7.9 years).

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