WH Ireland: Avation - Market tailwinds highlighted in Bloomberg Intelligence event

Avation is a lessor of 35 commercial aircraft to a diversified client base of 17 airlines. Yesterday's Bloomberg Intelligence webinar event entitled ‘Aircraft Lessor Recovery and Innovation' reaffirmed a number of positive market trends for aircraft lessors at the present time. Key points included: i) structural deficits in the supply of turboprop aircraft in the coming years, with aircraft retirements expected to outpace limited production of new aircraft; ii) the strong recovery in air travel

'Airlines will be shocked when Covid leases run out and rates go up’

Avation - Final off-lease aircraft placed with 99% of borrowings hedged

Avation is a lessor of 35 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has announced that is has successfully entered into a new lease for its remaining off-lease ATR 72-600 to a Pacific airline, which is expected to be delivered in July. This is a major milestone for the group, having at its peak in the pandemic had the burden of 14 off-lease aircraft and the associated costs. In addition, Avation reports that 99% of its borrowing is hedged, with a we

Rising signals

Avation (AVAP) – Corporate – Sale of ex-Virgin ATR 72-600

Avation is a lessor of 35 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has announced that it has entered into an agreement to sell a ten-year old ATR 72-600 aircraft, which has been off-lease since its redelivery from Virgin Australia in 2020. Importantly, the sale is at a slight premium to Avation's book value for the aircraft, illustrating the recovery in aircraft valuations. The sale leaves Avation with just one off-lease aircraft remaining – anothe

Avation - Interims show continued recovery; shares at a 50%+ discount to NAV

Avation is a lessor of commercial passenger aircraft to 17 airlines. Interim results to 31 December 2022 illustrated continued progress after a torrid couple of years for lessors and the wider airline industry brought about by the pandemic. Revenue of $46.3m and Other income of $9.0m, along with a number of other positive gains brought a return to profitability in the six-month period, while net debt reduced by $46.0m due to both positive operating cash flow and aircraft disposals. As at 31 Dece

Strengthening foundations for growth

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: HLN, SDR, MRO, CRH. AVAP, CPI, BRK, & BEG.

Avation (AVAP) – Corporate – Trading update points to full year outturn ahead of expectations

Avation is a lessor of 36 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has provided a short announcement stating that as a result of lower aircraft transition, administration and legal costs, improvements in finance income and the recognition of a gain on investment in a listed airline taken as part of the agreement with one customer during the pandemic, profitability in the year to 30 June 2023 is expected to be significantly ahead of current market e

Avation Result of tender offer & sale of Boeing 737-800

Avation is a lessor of 36 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has announced the expiration and result of its $100m bond tender offer, with $7.1m in principal amount of the Notes being validly tendered by holders. This follows on from last week's announcement of the sale of its unencumbered and off-lease Boeing 737-800 aircraft, with a target of either leasing or selling the remaining three off-lease aircraft by 30 June 2023. On the back of the

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: REL, CNA, MONY, AVAP, BOWL, HOME, OTMP, IHC, MPE, & ASTO.

Aiming for full fleet utilisation

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: CRDA, TRIG, VSVS, PLUS, IGCT, AVAP, ARIX, CYAN, & TXP.

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: AVAP, SOHO, RSG, NANO, YCA, & CMO.

Avation H1 update – a solid platform from which to build

Avation is a lessor of 37 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has provided key fleet metrics as of 31 December 2022, along with a brief trading update pointing to trading revenue of c.$46m in H1 2023E and with a target to have transitioned, leased or sold its remaining four unutilised aircraft by 30 June 2023. We have adjusted our revenue estimates this morning to reflect the sale of the two Loganair ATR 72-600s, alongside the timing o

CMD - Broadening & deepening client relationships

A dose of morosity

No change in the narrative. Aviva’s ship sails on as usual. The PRT business is still going well, inflation remains an impediment to a strong P&C improvement, retail customers seem more interested in the rising cost of living than savings’ products and Aviva investors see no real signs of an improvement. This is the same story as in recent quarters and, in that context, our thesis remains the same.

The Opportunity in Short-Termism

Fears vs Fundamentals (again) For 2 years, European banks have enjoyed potent earnings upgrades. For 2 years, valuations have been trapped between ''unease'' and ''outright panic'' multiples. This note looks at the latest fears and fundamentals behind this ongoing struggle. We extract lasting lessons from Q1, a record profit quarter, and extend our work on the fears of the moment: ''peak NIM'', CRE and credit contraction. Peak NIM - no, not yet We refresh our top-down margin work for the late

In the Flow

Industry flows - bond funds remain preferred over equities Risk appetite for equity funds remained subdued with last week seeing $4bn net outflows (negative in 8 of the last 9 weeks). Flows worsened sequentially for Asia/EM categories, but improved for US and European equities. Bond funds saw inflows for a 10th straight week (c.$8bn) with broad based inflows across US government, IG and HY funds. Listed asset managers flows - inflows into ETFs, outflows from mutual funds ETFs net inflows contin

Morning Note – 24 May 2023

Morning Note – 30 May 2023

NAHL Group plc: AGM update: Continued progress in scaling the business for future growth

NAHL’s AGM statement released today, is encouraging as management continues to scale the businesses for further growth. As a result, the Board’s expectations for the full year remain unchanged and we make no alterations to our forecasts. As a reminder, these still call for a c.13% increase in adjusted PBT in 2023, c.170% in FY24 and a further c.70% in FY25. Our current fair value remains at 65p but this is likely to rise as the Group delivers on its significant potential.

This Week's AIM Highlights 19th May

Early Mover in UK Lab-grown Meat

BSF Enterprise Plc (BSF) is a biotechnology company focused on acquiring, combining, and building businesses in the lab-grown tissue space. It aims to achieve this through an acquisition-led growth strategy and has already acquired the tissue engineering and cellular agriculture company, 3D Bio Tissues.

Very strong CY22 - CY23 upgraded 10%

Trading update indicates strong FY23 performance

An Asian exploration

We spent last week with HSBC and STAN in Hong Kong and Singapore, delving into the detail of structural drivers for Asia. Both banks have a good story to tell, with business models that are well positioned and being enhanced further. In isolation we did not learn enough to warrant a change in recommendation but tailwinds from the region are not to be overlooked. A deep dive into a core part of the investment case Asia sits at the core of the investment case for both HSBC and STAN given its share

c.60% discount to NAV... Can deep value prevail?

Petershill (PHP) reported a Q1-23 double digit % headline miss on FRE/DE mostly driven by cyclical factors. However, fundraising was resilient including more closings after quarter end and PHP reiterated FY2023 guidance ($220-250m FRE). We remain outperform, 250p target price. Weakness on headline earnings amid a muted industry backdrop Private markets are being tested in 2023 with private equity deal activity down c.50-80% y/y. In this context, the headline Q1 miss was mostly driven by cyclica

Revisiting the key debates

In this note, we revisit the key debates on ICG following FY23 results. ICG reported a +5% FMC PBT beat vs. csus. driven by lower costs and better than expected investment company returns in H2. We continue to see a more attractive risk/reward for the shares but remain neutral for now. Deployment and fundraising resilient in a challenging market backdrop Debate with investors has focussed on whether private debt focussed ICG can benefit as banks tighten/retrench from lending to private equity b

XPS CMD articulates growth potential