Avation PLC INTERIM DIVIDEND AND MANAGEMENT STATEMENT (6665J)
June 30 2017 - 2:00AM
UK Regulatory
TIDMAVAP
RNS Number : 6665J
Avation PLC
29 June 2017
AVATION PLC
("Avation" or "the Company")
INTERIM DIVIDEND AND MANAGEMENT STATEMENT
Trading Update
Avation PLC (LSE: AVAP), the commercial passenger aircraft
leasing company provides the following update in respect of trading
performance for the current period.
The Company's leasing business is operating in line with
expectations. For the year ended 30 June 2017 management estimates
revenues will be US$94 million (unaudited) with a margin for error
of 0.5%. Management estimates that leasing revenue has increased
year on year by approximately 32%.
Operational Update
The Company has signed a letter of intent to lease a mid-life
Airbus A321 narrowbody jet currently in the fleet to a new customer
upon conclusion of the existing lease in April 2018. After
transitioning the aircraft to the new customer the new lease is
proposed to have a duration of 6 years, thereby extending the
contracted revenue stream attached to this aircraft.
The Company advises that it is scheduled to take delivery of a
new ATR 72-600 aircraft from the factory in Toulouse, France on 30
June 2017. The aircraft is the 29th ATR 72 that Avation has
purchased.
Avation has a proposed delivery stream of ATR 72-600 aircraft
extending to 2019 and on an ongoing basis is assessing other jet
aircraft for purchase with a view to growing its fleet and adding
new airlines to diversify the Company's customer base. Avation will
seek to acquire aircraft that meet its investment and risk
management criteria.
Finance Update
The Company recently completed the issue of a US$20 million
'tap' under the previously announced US$500 million Global Medium
Term Note (GMTN) programme. The tap involved the issue of US$20
million notes on the same terms as the issue of its 7.5% senior
notes due 2020, originally issued in May 2015. The tap was priced
at a premium of 101.25.
The GMTN programme has enabled Avation to create a more
efficient and flexible capital structure. Further aircraft
purchases may be financed through a combination of senior secured
financing together with funds provided by the GMTN tap and equity
released from the sale of older aircraft.
Credit Rating
Avation confirms that in March 2017 it was issued a Foreign
Currency Long-term Issuer Rating assignment by Japan Credit Rating
Agency, Ltd. (JCR) of BB; Outlook: Stable.
Following the US$20 million 'tap' under the GMTN programme,
Standard & Poor's Global Ratings affirmed Avation's corporate
credit rating at 'B+', Outlook Stable; with the Senior Unsecured
Notes rating affirmed at 'B'.
Interim Dividend
The Company confirms its aim to follow a progressive dividend
policy and announces an increase in dividends.
In order to recognise shareholder ownership as it continues the
development of the business, the Board has approved an interim
dividend of 6.00 US cents per share in respect of the financial
year ended 30 June 2017 (2016: 3.25 US cents), which represents an
increase of 85%. The record date and timetable for this interim
dividend are as follows:
Ex-Dividend Date: 20 July 2017
Record Date: 21 July 2017
Payment Date: 10 August 2017
Payment Amount: US 6.00 cents
Shareholders should note that dividend payments are made by
default in US Dollars (USD). Shareholders who prefer to receive
dividends in British Pounds (GBP) can elect to receive GBP by
completing and returning a form to the Company's share registrar by
24 July 2017. Further details and a download of the form can be
found at www.avation.net/dividends.html
Results Timetable
Avation intends to release results for the financial year ending
30 June 2017 at 7:00am (BST) on 7 September 2017. A conference call
for shareholders and bondholders will be held at 1:00pm (BST) on 7
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 grown revenues by approximately 32% in the year ending
30 June 2017. The Board is pleased to be able to provide dividend
guidance and schedule. Avation has recently sold aircraft in order
to provide for fleet diversification. Avation is both diversifying
its aircraft fleet and also pursuing growth and is currently
assessing additional aircraft acquisitions."
-ENDS-
Enquiries:
Avation
Jeff Chatfield, Executive T: +65 6252 2077
Chairman
Note to Editors:
Avation PLC is a passenger aircraft leasing company, owning a
fleet commercial aircraft which it leases to airlines across the
world. The Company's customers include Air France, Air Berlin, Air
India, Condor, Flybe, Fiji Airways, Thomas Cook, Virgin Australia,
UNI Air and Vietjet Air.
More information on Avation PLC can be seen at:
www.avation.net
This information is provided by RNS
The company news service from the London Stock Exchange
END
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