Strong cash generation

Avation - Interim results – on track to deliver for the full year

Avation, a lessor of 35 commercial aircraft, has released interim results this morning for the period to 31 December 2023, reporting an increase in underlying lease revenue and a further reduction in net debt, as the group continues to build following a turbulent period of trading over the last few years. Operating profit of $17.5m compared to $35.4m in H123, primarily driven by one-off gains in the prior period and a $2.9m loss on the sale of an ATR 72-500 in the current period; however, we not

Avation - AGM update - improving outlook for aircraft demand and valuations

Avation, a lessor of 35 commercial aircraft, has provided an AGM update this morning, highlighting positive dynamics in the air passenger market along with internal progress on fleet repositioning and debt reduction. Revenue passenger kilometres (“RPK”) are reported to have increased over 30% globally in the year to September 2023, now standing at 97% of pre-COVID levels, contributing to a positive backdrop for aircraft valuations. In the narrowbody aircraft market, Avation believes that values

Optimism, optimisation and opportunities

Avation - Full year results – substantial progress in repositioning the fleet in the year

Avation, a lessor of 36 commercial aircraft, has today released full year results for the year to 30 June 2023, reflecting a period in which substantial progress was made in transitioning its last remaining off-lease aircraft and paying down existing borrowings. Importantly, the Group is now positioned strategically for growth as a green low CO2 lessor of modern aircraft, where it also owns one of the world's largest order books comprising 28 purchase rights for new low CO2 ATR 72-600s. With a n

Inflection point - fleet growth coming

Avation - Aircraft transition to Cebu Pacific

Avation is a lessor of 36 commercial aircraft to a diversified client base of 17 airlines. This morning, the group has announced that it has entered into a new four-year operating lease for one of its two Airbus A320 aircraft to Philippines low cost carrier Cebu Pacific. The aircraft is currently being returned by the previous operator and is scheduled for delivery in December 2023 following scheduled periodic maintenance checks.

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.

Morning Note – 22 April 2024

Benefits of scale set to materialise

Frenkel Topping - Resilient with strong growth potential

FY 2023 was a challenging year for Frenkel with higher interest rates encouraging clients to place money into lower margin money market funds. Despite this, sales grew +32% (supported by recurring revenue +9% and +51% in non-recurring), EBIT margins remained strong at 22% and adj. EPS grew +17% (taking into account the higher number of shares). FY 2024 has seen a solid start to transactional business and there is a strong pipeline of new FUM opportunities both of which support further growth. Wi

S&U - PBT ahead, encouraging volume trends

S&U reported FY24 PBT of £33.6m, down from £41.4m in FY23 on higher funding and regulatory costs and higher impairments in Advantage in H2. PBT was 2% ahead of our forecast as stronger revenues – up 12% to £115.4m – and better costs offset higher-than-expected impairments. Net receivables grew to a record at both Advantage and Aspen and management noted particular strength in Q4 and a good trading environment in the current year. Having absorbed a significant rise in funding cost as well as addi

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Foresight Solar Fund - Termination of coverage

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web

International Public Partnerships - Consistently and responsibly delivering

International Public Partnerships’ (INPP’s) FY23 results show that it continues to deliver consistent and predictable returns for investors, while delivering environmental and social benefits for the individuals and communities that are served by its assets. Despite this strong performance and a substantial need for private infrastructure funding, the macroeconomic environment has weighed on INPP’s share price, in common with the wider sector. Regardless, attractive returns are available from th

Regional REIT - Performing as expected ahead of refinancing

In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.

LIBERUM: PayPoint: On track for £100m of EBITDA in FY 26

LIBERUM: Speedy Hire: Weakness in FY 24 but recovery in FY 25

Hybridan Small Cap Feast - 22 April 2024

22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

Witan

Business as usual for WTAN’s executive team, while the board reviews investment management arrangements…

Foxtons Group (FOXT LN) - 1Q24 IMS shows real momentum

Foxtons Group plc first quarter revenue rose 9% to £35.7m (1Q23: £32.9m) with growth delivered across all business segments. Trading is in line with management's expectations.

The Hardman & Co Monthly: April 2024

Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol

H&T Group (HAT): Core franchise build, short-term retail noise

In our 15 March 2023 initiation, 'Pawnbroking royalty, with strong, profitable growth', and subsequent notes, we have highlighted the strong market for pawnbroking and why H&T, as the market leader, is uniquely placed to take advantage of these opportunities. These results reconfirmed both, with the pledge book up 28% and net pawnbroking revenue up 36%. Like many in the retail space, H&T faced the challenge of customers focusing on lower-value, lower-margin items in the key run-up to Christmas 2