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/

Interims Monday 26 Feb 18

Half year report

Key Financial Metrics
· Fleet assets increased by 35% to $1.008 billion since 30 June 2017;
· Revenue increased by 16% year on year to $52.4 million;
· Weighted average cost of total debt declined to 4.8%;
· Total profit after tax decreased by 8% year on year to $6.7 million; and
· Earnings per share ("EPS") decreased 15% year on year to 10.9 cents.
Operational Highlights
· Record growth with over $286 million in aircraft acquired in December 2017;
· First twin-aisle aircraft delivered into the fleet;
· First Boeing aircraft delivered into the fleet;
· Airbus A320 transitioned from Air Berlin to easyJet; and
· Four new customers added taking total airline customers to twelve.

MIDAS SHARE TIPS UPDATE: Growth is taking off for aircraft leasing business Avation
By Joanne Hart, Financial Mail on Sunday
Published: 10:43, 5 March 2018 | Updated: 10:43, 5 March 2018

Aircraft leasing firm Avation has delivered soaraway growth since Midas recommended the shares in 2013.
Then the stock was 63½p and the company’s fleet was valued at £240 million. Today, the shares are 223p and the fleet is worth just over £1 billion.
Avation owns 37 planes, leased to customers such as easyJet, Thomas Cook, Virgin Australia and Mandarin Airlines.


Looking ahead: Avation has added new planes to its fleet and attracted new customers
Chairman Jeff Chatfield is based in Singapore, because the Asian air travel market is growing fast, as incomes rise in the region.
Interim results last week revealed strong growth, as the group has added new planes to its fleet and attracted new customers.


The group reports in dollars so a profit of $18.2 million (£13.2 million) is expected for the year to June 30, rising to $23.5 million next year. A dividend of 6 cents (4.4p) is forecast for 2018, rising to 6.6 cents next year.
Midas verdict: Avation has performed well since 2013 but there is more to come. Existing investors should retain most of their shares, while new investors could also see value at 223p.
Traded on: Main Market Ticker: AVAP

That's good to see dream , wondered why this rose yesterday , I think it will do well now .

Hope it does VICTIM.

Proactive investor -

Avation's lease income to rise by nearly a fifth says finance boss
Share
15:14 13 Mar 2018
"Any simple maths will tell you that 9.6×6 months will see us generating over US$57.5mln in lease revenue in the second half"

Richard Wolanski, aircraft lessor Avation PLC’s (LON:AVAP) chief financial officer, has told Proactive he expects bumper revenues in the second half of the year.
The group ended the first half of the year (December) with 37 aircraft, a record size for its fleet, but the full benefit only started to come through from January.
Watch: Avation PLC's 'never looked stronger' - CFO Richard Wolanski
“In terms of revenue guidance, because we have that record fleet all through the second half of the financial year we are collecting about US$9.6mln a month in lease revenues.
“Keep in mind that the reported half-year revenue number was about US$42mln, any simple maths will tell you that 9.6×6 months will see us generating over US$57.5mln in lease revenue in the second half.
“Now that’s the clearest guidance we can give on revenue and that's the clearest guidance we’ve ever given on revenue.
“It’s going to be a very large leap from the first half to the second half.”
"That’s the nature of these assets if you buy aircraft in December," he added.
US$57.5mln revenue in second half
“While they turn up on the balance sheet those assets obviously haven’t generated any rent or only for a few days in December and so they’re going to be generating lease revenue all through the second half and so it’s going to be a very strong second half.”
Avation earned lease revenues of US$49.1mln in the second half of 2016/17, so revenue of US$57.5mln would equal an uplift of at least 17%.
The acquisition of the aircraft in December also meant the fleet’s value topped US$1bln for the first time.
It is the youngest ever fleet with the longest attached lease terms ever in the history of the company, Wolanski added, so as a portfolio of income-producing assets "we've never looked stronger".
“We’ve been going now for 12 years and the business model is to buy brand-new aircraft and lease them for long periods of time to the airlines.
“The risks that we face are in the residual value of the aircraft that we have to buy and sell at periods of time and (because these airlines are paying us rent effectively) to diversify into a broader range of very strong airline customers."
Four stong customers added
On that front, he said Avation has added four new airline customers to take the total to 12 from 8.
“The four airline customers that we picked up are among the strongest on our books: EasyJet, but also Philippine Airlines, Eva Air and Mandarin Airlines, so a couple in Asia as well.”
“I think if you look at the history of Avation, we’ve never changed our business model.
Double every 2 and half years
“We’ve been around for 12 years and certainly in the last five or six years the reason why investors look to this stock and buy the stock is while we do pay a 2% yield dividend, this is a company that doubles in size on average about every two and a half years and if you look at the last five or six years the share price has followed that.
“We have just delivered 35% asset growth in the first half of the financial year, you’ll see the lease revenue and the earnings from that growth be generated in the second half and for all periods to come.
"We’re still 10% off our record highs in terms of share price, but the company's never been larger, the rental roll has never been bigger, the revenues have never been bigger and the earnings are certainly going to be strong.”

LONG-TERM AIRCRAFT LEASE
RNS
RNS Number : 0137Q
Avation PLC
01 June 2018

AVATION PLC
("AVAP" or "the Company")
LONG-TERM AIRCRAFT LEASE
Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company announces that Far Eastern Air Transport Corp. of Taiwan ("FAT") has selected AVAP for the supply of one new ATR 72-600 aircraft on a twelve-year operating lease.
AVAP and FAT have entered into a conditional letter of intent for the lease of the aircraft. The aircraft will be configured to the customer's specifications and is expected to be delivered during September 2018. FAT announced its decision to Taiwanese media on 1 June 2018. The transaction is subject to completion of definitive documentation and customary conditions precedent.
ATR ORDER BOOK
The Company has now placed one out of the three remaining 2018 ATR 72 deliveries in its aircraft order book.
Jeff Chatfield, Executive Chairman, said: "Avation's strategy is to continue to diversify its lessee operator base and we welcome Far Eastern Air Transport Corp. of Taiwan as a customer. The ATR 72 is still the most popular and, on a per-seat-basis, the most fuel efficient commercial turboprop aircraft globally."
-ENDS-

AVATION PLC LEASES TWO BOMBARDIER CS300
RNS
RNS Number : 1871R
Avation PLC
13 June 2018

AVATION PLC
("AVAP" or "the Company")
AVATION PLC LEASES TWO BOMBARDIER CS300
Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company announces that it has signed leases with airBaltic for the supply of two Bombardier CS300 aircraft for durations of 12 years each to be acquired new at delivery.
The Latvian airline airBaltic is the world's most punctual airline connecting the Baltic region with over 70 destinations in Europe, the Middle East, and the CIS. Currently the airBaltic fleet consists of 31 aircraft and the company is moving towards a single-type fleet with the progressive introduction of up to 80 units of CS300 aircraft. With a previously announced order, airBaltic has become the largest European Bombardier C Series customer.
The C Series is the only new-technology single-aisle aircraft specifically designed to serve the 100 to 150 seat market. This drives the type's economic efficiency and performance, creating opportunities for small single-aisle operations. The C Series has booked firm purchase agreements for over 400 aircraft to date.
Jeff Chatfield, Executive Chairman, said: "The Company is pleased to welcome airBaltic as a addition to the Company's airline client base. The Company seeks long-term leases and these two 12-year leases align with our strategy. The Company continues to diversify its aircraft portfolio and recognises the importance of new technology single-aisle aircraft such as the CS300 and is appreciative of the progress made by Bombardier to achieve the smooth and successful entry into service of the C Series. Avation has a view that the C Series joint venture with Airbus and Bombardier may increase sales volume of the programme."
Martin Gauss, Chief Executive Officer of airBaltic said: "We are positively impressed with Avation PLC's speed of execution and are delighted to welcome them as one of our valued partners for supporting airBaltic's fleet modernization. With the new order of C Series airBaltic will introduce a single-type fleet of 50 CS300 aircraft with options for additional 30 aircraft for even stronger future growth."
Bombardier commented: "We are pleased to welcome Avation PLC as a new lessor to Bombardier and the C Series programme," said Colin Bole, Senior Vice President, Commercial, Bombardier Commercial Aircraft. "This investment is testament to the quality of the C Series order book and its tremendous value in the small single-aisle market following an exceptional entry-into-service in Europe and Asia. The leasing market seeks aircraft with good lease rate factors, and we are confident that Avation PLC will benefit from the C Series ongoing worldwide momentum."
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INTERIM MANAGEMENT STATEMENT
RNS
RNS Number : 1597T
Avation PLC
01 July 2018

AVATION PLC
("Avation" or "the Company")

INTERIM MANAGEMENT STATEMENT

Trading Update
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company provides an update in respect of trading performance for the financial year ended 30 June 2018.

The Company's business is operating in line with expectations. Management estimates that revenue for the year ended 30 June 2018 will be US$109 million (unaudited), representing an increase of 15% over the prior year.

Operational Update
As at 30 June 2018 Avation's fleet comprised 38 aircraft which are on lease to 13 airlines in 10 countries. The Company advises that it is scheduled to take delivery of two additional new aircraft early in the financial year commencing 1 July 2018. The first is a single aisle CS300 aircraft which will commence a 12 year lease to airBaltic in July 2018. The second is an ATR 72-600 aircraft which is expected to commence a 12 year lease to Far Eastern Air Transport Corp. of Taiwan in September 2018.

The Company is also assessing other aircraft purchase opportunities with a view to growing the fleet and further diversifying the Company's airline customer base. Additions to the fleet are subject to finding aircraft that meet the Company's investment and risk management criteria.

Finance Update
The Company recently completed a US$300 million issue of notes under the previously announced US$1 billion Global Medium Term Note (GMTN) programme. The GMTN programme has enabled Avation to create an efficient and flexible capital structure.

The Company's management believes that Avation has adequate liquidity and flexibility in its credit facilities to fund additional short-term fleet growth.

Credit Ratings
Following the US$300 million notes issue under the GMTN programme, Fitch Ratings upgraded Avation's corporate credit rating to 'BB-' from 'B+', outlook stable. The notes issued under the GMTN programme are also rated 'BB-'.

In April 2018, Standard & Poor's Global Ratings revised its rating outlook on Avation from stable to positive and affirmed their 'B+' long-term issuer credit rating on the Company. The rating attached to the notes issued under the GMTN programme has been maintained at 'B'.

Results Timetable
Avation intends to release its unaudited results for the financial year ending 30 June 2018 at 7:00am (BST) on 6 September 2017. The Company will hold a conference call for shareholders and bondholders at 1:00pm (BST) on 6 September 2017. Dial in details for the conference call will be published in due course.

The Company's Executive Chairman, Jeff Chatfield, said: "The Company has continued to perform strongly in the year ended 30 June 2018 and has grown the fleet by almost 40% and revenues by 15%. We continue to focus on delivering further growth in our aircraft fleet."

-ENDS-

Acquisition
RNS
RNS Number : 3012V
Avation PLC
20 July 2018

AVATION PLC
("AVAP" or "the Company")
AIRBUS A220-300 DELIVERY TO AIRBALTIC
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, has acquired and leased a second new Airbus A220-300 aircraft to airBaltic, the Latvian hybrid carrier. The 12-year lease commenced on 19 July 2018 and is at a market lease rate.

Avation's Executive Chairman, Jeff Chatfield said: "We have expanded our fleet with a second delivery to Air Baltic and we are proud to be associated with this growing and popular airline. The Bombardier CS300 aircraft has been rebranded the Airbus A220-300 following completion of the acquisition of a majority stake in the C Series Aircraft Limited Partnership by Airbus. The A220-300 seats 130-160 passengers and has a range of up to 3,300 nautical miles. Avation is pleased to be involved with this programme as a Lessor and we are optimistic about the sales prospects for this new-technology, fuel efficient aircraft type."

-ENDS-

Prelim financial results for 2018
Key Financial Metrics
· Fleet assets increased by 38% to $1.030 billion since 30 June 2017;
· Revenue increased by 16% to $109.1 million;
· Total profit after tax decreased by 5.9% to $20.0 million;
· Earnings per share ("EPS") decreased by 11% to 32.20 US cents;
· Dividend per share of 7.25 US cents, an increase of 21% year on year; and
· Net asset value per share increased 12% year on year to $3.64 per share.
Operational Highlights
· Redeployment of the proceeds from sales of aircraft in 2017 supported the acquisition of $323 million in aircraft;
· Five aircraft added to the fleet, including three new aircraft types;
· An Airbus A320 aircraft was transitioned from Air Berlin to easyJet;
· Six new customers added taking total airline customers to thirteen at 30 June 2018;
· Credit enhancement with upgrades in credit ratings by Standard & Poor's ("S&P") and Fitch Ratings; and
· Extension of debt maturity duration with an issue of $300 million 6.5% Senior Notes due 2021 under the Company's Global Medium Term Note programme.

ATR 72 DELIVERY TO DANISH AIR TRANSPORT
RNS
RNS Number : 5065C
Avation PLC
01 October 2018

AVATION PLC
("AVAP" or "the Company")

ATR 72 DELIVERY TO DANISH AIR TRANSPORT
Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company, announces that it has delivered the first new ATR 72-600 aircraft to Danish Air Transport AS ("DAT").
Jeff Chatfield, Executive Chairman, commented: "We are pleased to welcome DAT as a customer and wish them well with the aircraft which was delivered today at ATR's facility in Toulouse, France. The lease is for 12 years and is at a market rate."
Danish Air Transport comment: "We are pleased with Avation's speed of execution and the flexibility provided in quickly establishing a lease on a new plane."
Karine Guenan, Vice President Leasing, Asset Management & Freighter Customer & Structured Finance at ATR commented: "This is the first ATR 72-600 aircraft for DAT and is proof that the 600 series is the right aircraft for the replacement wave of previous generation turboprop aircraft, resulting in renewed demand. We welcome DAT to this community. We congratulate Avation PLC in their achievements to place new, modern aircraft in the regional aviation market."
-ENDS-

JET PORTFOLIO TRANSACTION
RNS
RNS Number : 7729C
Avation PLC
03 October 2018

AVATION PLC
("AVAP" or "the Company")

JET PORTFOLIO TRANSACTION
Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company, announces that it has entered into a conditional sale and purchase agreement for the sale of one 23-month old A321-200 aircraft to an Asian buyer.
The sale and purchase agreement is conditional upon the novation of the lease to the buyer and other usual conditions to closing. The transaction is expected to close in October 2018. The sale is at approximate current market value ("CMV") for an aircraft of this type and age.
Jeff Chatfield, Executive Chairman, commented: "We are selling this aircraft purely for risk management and portfolio diversification reasons. The sale is in order to reduce financial exposure to one operator and jurisdiction. The sale is being conducted in line with market conditions, at a price around CMV, albeit that Avation's book value for the aircraft is materially lower than CMV due to an advantageous initial purchase."
-ENDS-

ATR DELIVERY TO DANISH AIR TRANSPORT
RNS
RNS Number : 3548I
Avation PLC
23 November 2018

AVATION PLC
("AVAP" or "the Company")

ATR DELIVERY TO DANISH AIR TRANSPORT
Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company, announces that it has delivered a second new ATR 72-600 aircraft to Danish Air Transport AS ("DAT").
Jeff Chatfield, Executive Chairman, commented: "We are pleased to continue delivering aircraft from our order book. This new aircraft was delivered to DAT today at ATR's facility in Toulouse, France. The lease is for 12 years and is at the current market rate."
Mr Chatfield also stated: "Avation currently holds options for 25 additional new ATR 72-600 aircraft with delivery dates extending out to 2023. We note with interest the recent developments concerning the sale by Bombardier of the Q400 production line. Avation has no exposure to Q400 aircraft."
-ENDS-

FOUR ADDITIONAL AIRBUS A220-300 AIRCRAFT LEASED
RNS
RNS Number : 7933K
Avation PLC
18 December 2018

AVATION PLC
("AVAP" or "the Company")

FOUR ADDITIONAL AIRBUS A220-300 AIRCRAFT LEASED TO AIRBALTIC
Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company announces that airBaltic has selected Avation PLC for the sale and lease-back of four additional new Airbus A220-300 aircraft delivering in the first half of 2019. The Company has signed 12-year operating leases on the aircraft.
airBaltic is a hybrid airline offering low fares across a route network spanning over 70 destinations in Europe, Scandinavia, Russia, CIS and the Middle East. airBaltic's fleet currently consists of 34 aircraft and is moving towards a single-aircraft type fleet with the progressive introduction of more A220-300s.
Avation's Executive Chairman, Jeff Chatfield said: "We believe the A220-300 is an excellent, highly fuel-efficient new technology aircraft. We are growing our fleet with four more A220-300 aircraft leased to airBaltic and we are very proud to be expanding our partnership with this growing and popular airline. In 2018 we leased two A220-300s to airBaltic and these four additional new aircraft are planned to be delivered from the final assembly line in Q2 of 2019. The A220-300 is a new-technology single-aisle aircraft specifically designed to serve the 130 to 150 seat market. This drives the type's economic efficiency and performance, creating opportunities for regional single-aisle operations. We understand that orders for the Airbus A220 series already amount to over 400 aircraft."
Vitold Jakovlevs, the Chief Financial Officer of airBaltic said: "We are very pleased to be working with Avation once again. Avation has again demonstrated their competitiveness which, combined with our good experience with the first two aircraft, is why we have selected them a second time"
-ENDS-

PLACEMENT OF ATR-72 AIRCRAFT AND HALF-YEAR RESULTS
RNS
RNS Number : 5009N
Avation PLC
18 January 2019

AVATION PLC
("AVAP" or "the Company")

PLACEMENT OF ATR-72 AIRCRAFT AND HALF-YEAR RESULTS
Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company announces that it has entered into a long-term lease agreement with a South-Asian airline for one new ATR 72-600 aircraft. The lease is for a period of 8 years and otherwise on market-standard terms and conditions. The aircraft is expected to be delivered in France at the end of February 2019.

HALF-YEAR RESULTS
The Company advises that it expects to publish its results for the six-month period to 31 December 2019 on 21 February 2019.
The Company will make further announcements in due course in relation to the investor call to be held at that time.

-ENDS-