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 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.    
 
-ENDS-

Avation PLC (AVAP:LSE) set a new 52-week high during today's trading session when it reached 181.50. Over this period, the share price is up 35.34%.

Yippee .

AGM Statement
RNS
RNS Number : 1829P
Avation PLC
15 November 2016
 
 
AVATION PLC
("Avation" or "the Company")
AGM STATEMENT, DIVIDEND CURRENCY ELECTION AND TRADING UPDATE
 
Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company announces its dividend currency will be United States Dollars ("USD") and advises that Jeff Chatfield, Executive Chairman, will provide the following Chairman's address, including an Interim Management Statement and Trading Update at the Company's Annual General Meeting today. 
 
DIVIDEND CURRENCY ELECTION
Avation's functional currency is the USD. All of Avation's assets, liabilities and revenues are denominated in USD. Avation's Board of Directors has resolved to declare and pay future dividends in USD.
Going forward, the default currency for payment of dividends will be USD. However, shareholders will be provided the opportunity to elect to receive dividends in British Pounds, or in other currencies, by advising Computershare, the Company's share registrar.
 
INTERIM MANAGEMENT STATEMENT AND TRADING UPDATE
DISCLAIMER: Please note that certain statements in this announcement are forward-looking statements including without limitation, statements regarding future operations and performance, revenues, operating expenses, other income and expense items. These statements and any projection as to the Company's future performance represent management's estimates of future results and speak only as of today. These estimates involve risks and uncertainties that could cause actual results to differ materially from expectations. 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 results announcements. Avation assumes no obligation to update any forward-looking statements or information in light of new information or future events. Unauthorized recording of this transmission is not permitted.
Jeff Chatfield, Executive Chairman, will address the Annual General Meeting as follows:
"We are pleased to provide investors with an update on current operations. This statement concerns the period from 1 July 2016 through to today. Avation is a commercial aircraft lessor. We focus on narrowbody commercial jet and turboprop aircraft on long term leases. Avation's strategy is characterised by the pursuit of owning new and relatively new aircraft on long term leases and selling off mid-life and older aircraft. The Company's business model has a history of delivering profitability while simultaneously mitigating some of the risks inherent to the aircraft leasing sector.
"The financial results for the last financial year 2016 included reporting lease revenues increasing 25% to $71.2 million and total profit after tax increasing 37.6% to $18.3 million year-on-year. We now comment on our progress since the end of the financial year. In this 2016-2017 financial year to date two brand new Airbus A321 jets have been added to the fleet with two mid-life Airbus A321 jets and one new Airbus A321 being sold. The brand-new aircraft was sold on delivery for risk mitigation reasons.
"As a result of trading activity, Avation's fleet stands at 38 aircraft. Importantly, as a result of the acquisition of new aircraft and the sale of older aircraft, Avation's fleet metrics have continued to improve since the end of the financial year. As at 1 November the weighted average age of the fleet declined to 3.3 years and the weighted average lease term has increased to 7.6 years.  
 "Avation has achieved significant progress in building and diversifying its aircraft fleet, and will continue this growth during the remainder of the current period with a further two new Airbus A321 jets to VietJet Air scheduled for delivery before 31 December 2016. As scale and diversification are delivered into our aircraft fleet, we will strive to lower the cost of debt, which improves the profitability of our existing leasing business and enables Avation to be more competitive in our mission to attract new airline customers.
"We continue to deliver economies of scale as the proportion of administration expense to fleet value continues to decline. We are pleased to report that Avation has a skilled and experienced team in place and a platform that can support further growth in fleet assets.
"Last month, Avation announced that it had received an expression of interest for the purchase of 22 of its ATR turboprop aircraft. This portfolio comprises relatively new aircraft with an average remaining lease term of approximately 6.3 years which are leased to a number of airlines in Europe, Asia and Australia. The portfolio generates high lease yields.
"Since the approach, Avation has announced the appointment of a financial adviser to evaluate the proposal and also engage with the wider investor market to determine the value of the portfolio.  The size of the portfolio makes it an attractive acquisition for a range of both strategic industry and financial investors.  
"For clarity and certainty, the board advises shareholders that no decision had been made to sell this highly valuable portfolio. The unexpired revenue for the 22 aircraft is in excess of $305 million as at 1 November 2016. The Board is considering and responding to an offer. There is no guarantee that a transaction will occur or even if an acceptable valuation can be achieved. Approval for any transaction would be sought from shareholders for an eventual bid which the Board determines to be acceptable. Shareholder approval would only be sought if the proposed transaction delivers a significant premium to book value for these assets. The timing for receipt of proposals is before the end of this calendar year.
"Avation remains committed to the ATR turboprop aircraft type. Avation is not currently proposing to divest itself of its future order and delivery options for further ATR aircraft which would allow Avation to rebuild a turboprop portfolio.
 "Should a sale of the portfolio be concluded, the Board would consider a dividend for part of the proceeds from the profit on the sale of the portfolio assets to shareholders immediately following conclusion of the transaction. Avation would then seek to reinvest the remainder of the proceeds into replacement aircraft assets that would rebuild the fleet and add further diversification and new airline customers.
"The Board observes that Avation PLC ordinary shares are presently trading at a discount to the net tangible assets. It is therefore appropriate and in the interests of shareholders to consider asset sales that generate a premium to book value as a way of delivering enhanced shareholder returns.
"The value proposition of a commercial aircraft lessor such as Avation is the ability to trade aircraft, access and acquire aircraft, manage and market aircraft to airlines and attach leases to these assets to produce returns to shareholders.   
"Avation will release further information regarding the proposed transaction or any material events occurring, but stresses that at this time no decision has been made.
"We would like to thank our shareholders for their continuing support."
 
-ENDS-

SALE OF FIVE FOKKER 100 AIRCRAFT
RNS
RNS Number : 5572S
Avation PLC
22 December 2016
 
 
AVATION PLC
("Avation" or "the Company")
SALE OF FIVE FOKKER 100 AIRCRAFT
 
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company announces that it has sold five Fokker 100 aircraft. 
 
The five aircraft were the last remaining Fokker aircraft in the Avation fleet. The sale to the buyer has been effected by way of finance leases with the purchase price payable by way of monthly instalments over a term of three years. The total consideration for the aircraft is approximately at book value. The five aircraft were originally manufactured in 1992-1994.
 
Jeff Chatfield, Executive Chairman said "These aircraft were sold in accordance with the Company's risk policies and desire to maintain a young fleet."  
 
 
-ENDS-

I'm glad they got rid of them Fokkers .

careful. :-))

AIRBUS A321 AIRCRAFT DELIVERED TO VIETJET
RNS
RNS Number : 6780S
Avation PLC
23 December 2016
 
 
AVATION PLC
("Avation" or "the Company")
AIRBUS A321 AIRCRAFT DELIVERED TO VIETJET
 
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company announces the successful purchase and completion of delivery of a further factory-new Airbus A321-200 aircraft (the "Airbus") to Vietjet, the leading domestic and international new-age carrier of Vietnam. This aircraft is an additional new aircraft delivery direct from the Airbus production facility in Hamburg, Germany.
 
This delivery completes the current series of aircraft contracted by the Company with Vietjet.
 
The Airbus is equipped with CFM International CFM56-5B3/3 engines and seating for 230 passengers, the highest seat density of an Airbus A321-200. It will be employed by Vietjet on its expanding route network of domestic and international destinations from multiple bases in Vietnam. The aircraft is serial number 7454 and was delivered on schedule. The long term operating lease terms are typical for an aircraft of this type.
 
Jeff Chatfield, Executive Chairman said "The Company has taken delivery of a total of eight factory new A321-200 aircraft during calendar 2016 on behalf of two lessees. This completes the new aircraft delivery schedule for 2016."
 
 
-ENDS

JUNIOR FINANCE FOR THREE AIRCRAFT
RNS
RNS Number : 3066U
Avation PLC
17 January 2017
 
 
AVAP.LN via RNS Reach
 
 
 
AVATION PLC
("Avation" or "the Company")
JUNIOR FINANCE FOR THREE AIRCRAFT
 
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company advises that Tamweel Aviation Finance has made a press release concerning junior finance for the purchase of three aircraft.
 
The text of the press release is as follows:
 
 
"Novus' TAF finances three A321-200s for Avation PLC delivered to VietJet
 
Dubai, UAE - January 16, 2017: Tamweel Aviation Finance (TAF) has closed the financing of the third of a three-A321-200 new aircraft facility for Avation PLC (AVAP.LN), the London LSE listed and Singapore based lessor. All three aircraft are on long-term operating leases with fast-growing Vietnamese low-cost carrier VietJet Air.
 
TAF is the finance leasing platform managed by Novus Aviation Capital (Novus) which brings together a partnership of Airbus SAS (Airbus), the Development Bank of Japan Inc (DBJ) and Norddeutsche Landesbank Girozentrale (Nord/LB) to provide attractive high LTV mezzanine financing to the world's airlines and lessors for Airbus products. Having just completed three years of successful operation, TAF has grown to a portfolio size of more than US$1 billion of assets by market value.
 
"We are very pleased to add Avation to the growing list of customers of Novus dedicated financing platform," said Mounir Kuzbari, Managing Director at Novus.
 
"A key driver of Avation's profitability is the overall cost of finance and the amount of leverage. TAF's mezzanine facilities are a useful leverage tool for transactions of this nature," said Jeff Chatfield, Executive Chairman at Avation PLC. 
 
-ENDS-

Half year report to Dec 16

Overview
·   Lease revenue increased by 43% to $45.1 million;
·   Earnings before interest and tax ("EBIT" or "Operating Profit") grew 54% to $27.6 million;
·   Profit before taxation increased by 51% to $8.4 million;
·   Total profit after tax increased 54% to $7.4 million;
·   Operating cash flows increased 65% to $31.1 million; and
·   Earnings per share ("EPS") increased 46% to 12.9 cents.

Looks good here , hope we can move up slowly .

On Thursday, Avation PLC (AVAP:LSE) closed at 209.50, -2.10% below its 52-week high of 214.00, set on Jan 04, 2017.

7 March Avation in a Shares investor evening London.

Who Should Attend?Date:

Tuesday 7th March 2017

Venue:

Novotel Tower Bridge, London EC3N, 10 Pepys Street, London, EC3N 2NR

Event Timings:Sponsored by:

Here's another that gets knocked back , again more buys all week but they drop it in a flash .

Nice rise today though .

ST of IC today - So, ahead of the next update on the bidding process, and having last advised buying at 195p ('Targeting record highs', 21 November 2016), I continue to rate Avation's shares a buy and have upgraded my target price to 250p, inline with the latest book value. Buy.


The bidding process is for the 22 ATR 72's.

TURBO-PROP PORTFOLIO
RNS
RNS Number : 6443Z
Avation PLC
16 March 2017
 
 
AVATION PLC
 TURBO-PROP PORTFOLIO
Avation PLC (LSE: AVAP, "Avation" or the "Company"), the commercial passenger aircraft leasing company, announced on 26 October 2016 that it had received an expression of interest to purchase a portfolio of 22 ATR 72 aircraft.  With the assistance of a financial adviser the Company ran a global process to consider the proposal and benchmark alternative bids associated with the potential sale of such a portfolio. 
 
The Company carefully considered the process for the sale of the portfolio. It was pleased to receive eight offers for all or parts of the portfolio. In reviewing the offers, the Company considered the consequential impact on revenues of the business, the impact to the Company's credit ratings, lessee diversification and concentration, the potential for redeployment of the sale proceeds and other factors.
 
After due and careful consideration, the Company has decided that the optimal commercial outcome is a sale of a smaller portfolio of aircraft. The Company is currently in discussion with a single commercial lessor for a proposed sale of six existing leased ATR 72 aircraft. The Company has executed a conditional letter of intent with the proposed purchaser which has made a $3 million cash deposit, refundable in the event of non-completion.  The transaction is expected to close prior to the end of June 2017 with an economic closing date of 7 of April 2017.  The transaction is subject to entering into definitive sale documentation and the usual conditions of transactions of this type, including the purchaser novating debt finance and technical inspections.
 
Assuming the transaction completes, as it remains conditional, the outcome is at a price above the Company book value for these aircraft and releases approximately $31 million in net proceeds to the Company after transaction costs and debt repayment. The Directors will carefully consider the redeployment of proceeds through the acquisition of a diversified portfolio of leased aircraft.
 
The Company may pay a dividend in the ordinary course of business associated with the Company's year-end. There is no special dividend under consideration in relation to this transaction.
 
Executive Chairman Jeff Chatfield said "This was an extremely positive process for the Company, eight existing and new lessors were interested in part or all of the ATR portfolio. Many of these bidders offered to pay cash above book value. But, in our view selling such a large proportion of our fleet would reduce revenues too dramatically. Aircraft valuations remain high, with a rush of new liquidity into the aircraft lessor market. The efficient redeployment of the proceeds from the sale of 22 aircraft would therefore be challenging in the current aircraft pricing environment.  In our view the exercise did validate the Company aircraft valuations and verified our business model.
 
"In electing to sell six aircraft, we expect to release approximately $31 million in equity (before costs), which can then be leveraged. We are confident the proceeds can be redeployed in a sensible manner in the near term.   
 
"The Company remains extremely confident in the ATR aircraft which is the leading turboprop in the world with about 85% global market share. The Company has three ATR-72s to place in 2017 and a further six in future years with 27 additional options over new aircraft. The Company plans to continue to invest in ATR-72s in addition to jet aircraft.  Avation PLC is in net growth mode in 2017 and is actively seeking airline sale and lease backs along with secondary trade transactions with other lessors."
 
-ENDS-

ST of IC today - My target price of 250p is not only achievable, but is looking increasingly conservative. Buy.