Company Profile


Commercial passenger aircraft leasing specialists

Avation PLC is a commercial passenger aircraft leasing company that was incorporated in England and Wales in 2006 and whose shares are traded on the Main Market of the London Stock Exchange (LSE: AVAP).

Avation owns and manages a fleet of aircraft which it leases, through its subsidiaries, to airlines across the world. Our customers include Virgin Australia, Thomas Cook, Condor, Air France, Air Berlin, Vietjet Air, Fiji Airways and UNI Air. The company’s fleet includes Airbus A320 family aircraft as well as Fokker 100s and ATR 72s.

Specialist management team

Avation’s management team has extensive experience in all areas of the aviation industry and has the expertise to select aircraft to bring under Avation’s management that will deliver value to the company, performance to its customers and returns to its shareholders.

Financial Growth

Coinciding with the expected delivery of the ATR 72s and potential acquisitions of other aircraft, Avation will continue to grow in terms of the size and quality of its managed fleet and the financial returns it generates.


http://www.avation.net/

ST of IC - On a bid-offer spread of 123p to 127p, I rate Avation’s shares a medium-term buy offering significant upside potential.

avation-set-to-enter-largest-growth-phase-says-finance-chief

FIRST FLYBE AIRCRAFT DELIVERY
RNS
RNS Number : 3365Z
Avation PLC
17 September 2015

LSE: AVAP

17 September 2015

AVATION PLC

(the 'Company')

FIRST FLYBE AIRCRAFT DELIVERY

Avation PLC, (LSE: AVAP) the commercial passenger aircraft leasing company, has delivered into operation a new ATR72-600 aircraft to be operated by UK commercial airline Flybe.

The delivery is the first of a series of new ATR72-600 aircraft which will be progressively delivered new to Flybe during the course of 2015 and early 2016. This arrangement was initially announced on the 23rd of February 2015. The lease rate and terms are typical for leases of this type: the initial duration of the leases is six years with the client options for further term extensions.

Avation Plc Executive Chairman, Jeff Chatfield said: "We are satisfied with the financial outcome of owning over 20 ATRs we have flying today in the liveries of several airlines in a variety of countries and environments. We are pleased to be associated with two major European aviation operators like Flybe and SAS, and we are confident that the introduction of these new ATR 72 -600s may bring us additional opportunities to place additional new ATRs in Europe as airlines start replacing their earlier generation aircraft."

COMPLETION OF PURCHASE A320 ON LEASE TO AIR FRANCE
RNS
RNS Number : 5919Z
Avation PLC
21 September 2015

21 September 2015



AVATION PLC

("AVAP" or "the Company")

COMPLETION OF PURCHASE A320 ON LEASE TO AIR FRANCE

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, announces that it has completed the purchase of an Airbus A320-200 on lease to Air France that was initially announced on 7 August 2015.

The aircraft was acquired from another aircraft leasing company. The aircraft is four years old and the purchase is being conducted on typical commercial terms. This A320-200 delivery brings the number of A320 "family" aircraft owned by the Avation PLC group to six aircraft.

Jeff Chatfield, Executive Chairman, said:

"We are pleased to take ownership of this A320-200 on lease to Air France, one of the world's most prestigious airlines. The Company is executing its strategy of building the portfolio, diversifying the airline customer base and the addition of this aircraft meets those criteria. On a case by case basis, provided it makes economic sense, Avation is willing to purchase aircraft from other aircraft lessors, manufacturers as well as airlines in sale and lease back transactions. Avation would like to thank all the parties involved for their speedy transaction execution."



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SECOND FLYBE AIRCRAFT DELIVERY
RNS
RNS Number : 8691B
Avation PLC
12 October 2015

LSE: AVAP

9 October 2015

AVATION PLC

('Avation' and the 'Company')

SECOND FLYBE AIRCRAFT DELIVERY

Avation PLC, (LSE: AVAP) the commercial passenger aircraft leasing company, is pleased to announce that it has delivered into operation a second new ATR 72-600 aircraft to the UK commercial airline Flybe.

This delivery is the second of a series of five new ATR 72-600 aircraft which will be progressively delivered to Flybe during the course of 2015 and early 2016. The aircraft is in the livery of Scandinavian Airlines (SAS) and will be operated by Flybe for SAS under an operational contract arrangement called the "white label" project. The lease rate and terms are typical for leases of this type; the initial duration of all leases is six years and the client has options for lease term extensions.

Avation understands that it is the second largest ATR lessor worldwide, in terms of firm orders. This aircraft overall is the 25th ATR 72 aircraft that Avation has taken delivery of since 2011.

Avation's Executive Chairman, Jeff Chatfield said: "We are pleased to be able to deliver promptly this second ATR 72-600 aircraft to Flybe and SAS. We believe the ATR 72-600 to be an ideal aircraft type for the shorter regional routes of Europe, due to the fact that it has the lowest fuel burn and overall operating cost economics in its class."

http://www.rns-pdf.londonstockexchange.com/rns/8691B_-2015-10-9.pdf


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ST of IC today - On a bid-offer spread of 145p to 148p, I continue to rate Avation’s shares a medium-term buy offering potentially 35 per cent upside to my 200p target price.

Proactive investor -

Capital Lease Aviation set to de-list from AIM



11:11 16 Oct 2015

Capital Lease Aviation is a subsidiary of plane leasing firm Avation

Capital Lease Aviation set to de-list from AIM

WH Ireland expects Avation to buy the remaining stake next year


Capital Lease Aviation (LON:CLA) is to de-list from AIM subject to AGM approval.

The company is a subsidiary of plane leasing firm Avation (LON:AVAP), which has progressively increased its stake to about 97% from 62% over the last 18 months.

“The rationale for the delisting is to reduce costs which have become disproportionate in relation to the free float,” broker WH Ireland said.

It added that it expects Avation to buy Capital Lease outright sometime in the next year.

“The move may in due course enable Avation to present a more transparent picture to investors and bondholders thus allowing better access to the markets as it continues along its steady growth trajectory”.

Shares in Capital Lease dropped 16% to 19.6p while Avation nudged 2.4% lower to 143p.

Results in the morning


15/12/2015 BUY Jeff Chatfield CH 15,000
15/12/2015 BUY Roderick Mahoney ED 15,000
02/12/2015 BUY Roderick Mahoney ED 25,000
02/06/2015 BUY Jeff Chatfield CH 30,000
02/06/2015 BUY Jeff Chatfield CH 50,000

Half yearly report

ST of IC - Of course, this is a highly geared company by its nature and net borrowings dwarf shareholders funds of $122m. But with cash profits set to soar from $63m to $94m in the next 12 months, and total revenues from unexpired leases totalling over $400m on Avation’s existing fleet of 34 planes, then there is clear visibility of future income to service the debt and leave a tidy sum left over for shareholders.

In the circumstances, I am therefore maintaining my buy stance and 200p target price.

Avation buys Airbus and leases it to Thomas Cook

07:51 26 Feb 2016

Leasing firm Avation now has a fleet of 35 owned aircraft, it said, as it delivered a new Airbus A321-200 to holiday giant Thomas Cook.

Avation buys Airbus and leases it to Thomas Cook




Leasing firm Avation (LON:AVAP) now has a fleet of 35 owned aircraft, it said, as it delivered a new Airbus A321-200 to holiday giant Thomas Cook.

Avation chairman Jeff Chatfield said: "Avation is pleased to deliver this new Airbus A321 to Thomas Cook Airlines Limited on a 12 year lease.

"This brings Avation's current fleet of owned aircraft to 35. The company has been a lessor to Thomas Cook for nine years and we are grateful for their continued confidence and custom."

To support the purchase of the Airbus, the firm secured an asset backed senior debt facility with a new banker and prior to delivery, it made finance payments.

The plane is an Airbus A321-200 equipped with CFM International CFM56-5B3/3 engines, seating 220 passengers.

House broker WH IRELAND repeated a 'buy' and 260p a share price target after the news.


It left its forecasts unchanged. For full year 2016, it estimates revenue of $71mln, representing growth of 24.8% and resulting in pre-tax profit of $13.4mln - a transitionary year for Avation.



The shares remain undervalued on a range of valuation metrics, added the broker.

FOURTH FLYBE ATR72 AIRCRAFT DELIVERED

RNS


RNS Number : 6639S

Avation PLC

19 March 2016




AVATION PLC

("Avation" or "the Company")

Fourth Flybe ATR72 Aircraft Delivered



Avation PLC (LSE: AVAP), the commercial passenger aircraft lessor, announces the successful acquisition and delivery of a fourth ATR 72-600 aircraft to Flybe Group PLC ("Flybe"), the UK leading regional airline.

The aircraft is new and will be operated by Flybe on behalf of Scandinavian Airlines ("SAS") under a wet lease operational contract arrangement termed the "White Label" project and will operate in Scandinavia in the livery of SAS. The lease duration is six years with an extension option.



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Acquisition of Commercial Aircraft

RNS


RNS Number : 6318T

Avation PLC

31 March 2016




AVATION PLC

("Avation" or "the Company")



DELIVERY OF NEW AIRBUS A321

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company announces the successful completion of the delivery of a second of a series of new Airbus A321-200 aircraft to Thomas Cook Airlines Limited. The aircraft was delivered at the Airbus manufacturing facility in Hamburg, Germany.



The lease is a 12 year operating lease and the terms are typical for a new delivery aircraft of this type. The Company has entered into an asset-backed senior debt facility, with an existing lender in order to finance the acquisition of this aircraft. The aircraft is an Airbus A321-200 equipped with CFM International CFM56-5B3/3 engines, seating 220 passengers. It will be operated by Thomas Cook Airlines Limited. Thomas Cook Airlines Limited is part of Thomas Cook Group Airlines and serves international destinations from multiple bases in Europe.



The Company's Executive Chairman, Jeff Chatfield commented that "Avation is pleased to deliver this second new Airbus A321 to Thomas Cook Airlines Limited, fulfilling a contract for the lease of two new aircraft. The Company has been a lessor to Thomas Cook for nine years and we are grateful for their continued confidence. We are also pleased to be taking delivery of our second factory-new aircraft from Airbus."



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ST of IC today, So with Avation's management team continuing to deliver on its fleet expansion programme, and the company lowly valued both in absolute and relative terms, I continue to rate the shares a buy and maintain my 200p target price. Buy.

Trading Statement

RNS


RNS Number : 8454I

Avation PLC

02 September 2016




AVATION PLC

("Avation" or "the Company")

Trading Update



As previously notified Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company expects to release its unaudited preliminary results for the year ending 30 June 2016 on 8 September 2016 with a conference call for investors scheduled for later that day.



The Company expects that the pre-tax profits will be above market expectations for the period. The unaudited lease revenues for the year are anticipated to be about 25% higher than for 2015, increasing to about US $71 million. Financial year 2016 second half profits are expected to be materially increased when compared with the first half of the year. For the year ending 30 June 2016 Pre Tax Profit is expected to be approximately US 18 million and associated earnings per share are anticipated to be about 32 cents per share. The increased profits are primarily due increased trading profits from the disposal of aircraft.



Avation's Executive Chairman, Jeff Chatfield commented that: "It is satisfying to announce a profit upgrade which represents high profit growth along with corresponding growth in revenue. The Company has been highly active in terms of aircraft acquisitions of new aircraft during the year. More commentary will be provided at the time of the results publication on 8 of September 2016."



-ENDS-

More information on Avation can be seen at: www.avation.net

Enquiries:


Avation

Jeff Chatfield, Executive Chairman




T: +65 6252 2077














Notes to Editors:

Avation PLC

Avation PLC is a commercial passenger aircraft leasing company owning and managing a fleet of jet and turboprop aircraft which it leases to commercial passenger airlines. The Company's customers include Vietjet, Thomas Cook, Air France, Condor, Air Berlin, Flybe, Scandinavian Airlines, Air India, Virgin Australia, Fiji Airways and UNI Air.

Preliminary results

Overview

· In Avation's tenth year as a public company, it has reported record revenue and profit

· Lease revenue increased by 25.0% to $71.2 million (2015: $56.9 million)

· Operating profit grew 35.6% to $45.6 million (2015: $33.6 million)

· Total profit after tax increased 37.6% to $18.3 million (2015: $13.3 million)

· Operating cash flows increased 20.9% to $52.5 million (2015: $43.5 million)

· Earnings per share ("EPS") increased 42.5% to 34.2 cents (2015: 24.0 cents)

· Interim dividend per share to increase by 8.3% to 3.25 US cents (2015: 3.00 US cents)

ST of IC today - Target price

So, no matter which way I look at it, and even after applying a small cap liquidity discount, Avation’s shares are far too lowly rated given the positive market outlook, and company specific profit drivers I have outlined above.

In fact, I feel that the target price of 200p I outlined in my article a few months ago when I recommended buying the shares at 145p could prove conservative (‘Get ready for take-off’,2 Jun 2016) as it only equates to a price-to-book value ratio of 0.8 times for the 12 months to end June 2017 and a rating of around 7.5 times conservative looking earnings estimates.

Offering 36 per cent upside potential, I rate Avation’s shares a buy on a bid-offer spread of 146p to 147p.

Sale of two aircraft

RNS


RNS Number : 6734J

Avation PLC

13 September 2016




AVATION PLC

("Avation" or "the Company")

TRADING OF MID LIFE AIRCRAFT



Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company announces completion of the sale of the second of two 2003 built Airbus A321 aircraft which are leased to Thomas Cook Airlines. The aircraft were sold to a US based investor.



Sale of these aircraft is consistent with the Company's desire to focus on new aircraft. These two aircraft are mid-life aircraft being 13 years old. The net sales proceeds will be applied towards funding new aircraft deliveries. The sale of the first of these two aircraft was previously announced in the Company's preliminary results announcement on 8 September 2016.



The Company's Executive Chairman, Jeff Chatfield commented: "Avation's fleet policy is to sell older aircraft to other lessors when economic conditions permit, reflecting the Company's desire to own new aircraft. In our view a disposal policy for mid-life aircraft is part of a sensible risk mitigation strategy. Management estimates that 85% of the balance sheet value of our aircraft relate to aircraft that are currently less than 5 years old and by this metric we have a relatively modern aircraft fleet."



-ENDS-

ST of IC today - So, having recommended buying Avation's shares at 147p at the time of the full year results ('In the ascent', 12 Sep 2016), I feel that my fair value estimate of 220p is looking conservative and I have raised it to a target range between 225p and 240p. At the upper end the shares would be rated on less than nine times earnings, and 10 per cent below the end of June 2017 NAV estimates of 266p a share, excluding any bid premium on a sale of the ATR portfolio. Strong buy.

SALE OF A321 ON DELIVERY
RNS
RNS Number : 9354N
Avation PLC
01 November 2016
 
AVATION PLC
("Avation" or "the Company")
SALE OF A321 ON DELIVERY
 
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company announces the successful delivery and sale of the fourth new Airbus A321-200 aircraft out of the Company's orderbook for six A321-200s with VietJet Air. This aircraft is a new delivery from the Airbus production facility in Hamburg, Germany.
 
The aircraft has been sold by the Company with the lease in place to a Chinese lessor.  The Company's rationale for the sale is both favourable economics and the management of concentration risks.    
 
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