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Avation, a lessor of 33 commercial aircraft, provided a trading update this morning for the year ended 30 June 2025, highlighting a period of improving market dynamics, trading in line with expectations and strong cash generation. As reflected in the third party fleet appraisal provided in June, Avation reports that it continues to see increases in commercial aircraft values and lease rates across the market, with IATA showing 8.0% growth in air passenger numbers in the year to 30 April 2025 and constraints to aircraft supply remaining. Avation continues to trade aircraft, with all aircraft currently on lease, and a number of aircraft sales and lease transitions illustrating healthy market dynamics. Aircraft sales have in part contributed to a continued improvement in balance sheet strength, with debt repayments/repurchases leading to a positive first time credit rating from Moody’s. With the shares trading at a significant 40%+ discount to the last reported NAV of 367c/share and continued positive valuation dynamics, we believe the shares remain undervalued at current levels.
Avation PLC
This week, Avation has provided three separate positive announcements, each illustrating the significant underlying value within the balance sheet. On Wednesday, the sale of a Boeing 777-300ER above book value realised $33m in net cash proceeds. This was followed on Thursday, with the completion of the second of two sales from the ATR order book, releasing c.$5m, and an indicative estimate of the differential of the market value compared to book value of the ongoing fleet of $82m (+12%/91p per share). While the estimate of market value across the fleet is indicative and subject to movement, the premium, alongside the crystalised profits from the aircraft disposals, is nonetheless illustrative of highly positive market dynamics within the commercial aircraft market for lessors, reflecting both positive passenger demand and production and maintenance constraints. With the shares already trading at a significant 40%+ discount to the last reported NAV of 367c/share, the implied uplift in the value of the fleet further highlights the significant value in the shares.
Avation’s interim results this morning reflect a further period of improving lease revenues and underlying profitability from its fully utilised fleet of commercial aircraft, along with strong cash generation leading to net debt reducing by $45m and an increase in the NAV despite a reduction in the estimated value of the purchase rights. With the market for commercial aircraft remaining buoyant following a strong recovery in air passenger demand and constraints to aircraft supply, Avation also announced the intention to expand the fleet through the purchase of an Airbus A320 currently on lease to Etihad Airlines, supplementing the existing orderbook for 11 ATR 72-600s and 24 purchase rights. With growth underpinned by an extensive orderbook agreed at favourable prices, supported by an increasingly robust balance sheet position, we view Avation as well positioned to continue to deliver. Trading at 0.49x the reported NAV (as at 31 Dec 24), we view the current discount as highly unjustified and retain our 250p fair value target.
Avation, a lessor of 32 commercial aircraft, has this morning confirmed that it has entered into an agreement with a major international bank for an $85m expandable portfolio financing facility. This will not only benefit the Group’s cashflow profile but is also at an interest rate reported to be substantially lower than Avation’s equivalent unsecured bond format financing, which is due for expiry in October 2026. Ahead of interim results later this month, we leave our forecasts unchanged. Against a positive market backdrop for aircraft lessors, a strong business model and clear strategy for growth, we view the 50% discount to the last reported NAV as highly unjustified. We see fair value for the shares at 250p.
Avation, a lessor of 32 commercial aircraft, has provided an AGM update this morning, reporting an encouraging period of trading in the year to date. Progress has been made on new lease agreements, aircraft sales, rising lease yields, including a lease extension of an A320 at a higher rate, and strong cash generation. We adjust our net debt/EPS estimates this morning to take account of yesterday’s purchase by the company of 7.8m shares into Treasury, equating to 10.45% of the issued share capital and having a positive impact on the NAV, while leaving all other estimates unchanged. Against a positive market backdrop for aircraft lessors, a strong business model and clear strategy for growth, we view the 45% discount to the last reported NAV as highly unjustified. We see fair value at 250p.
The global commercial airline market is expected to see one of its strongest periods in the past decade as a result of increasing passenger demand, while the supply of new aircraft from manufacturers is constrained. Against this backdrop, Avation is extremely well positioned to benefit from rising aircraft valuations and increasing lease rates. FY24 results demonstrated considerable progress in the year, with the fleet 100% utilised for the first time since the pandemic, growth prospects underpinned by an orderbook for up to 36 of the popular ATR 72 aircraft and strong cash generation. While risks remain, we view the significant 45% discount to the 285p NAV as highly unjustified. Our NAV-based fair value estimate stands at 250p, providing 59%+ upside from current levels.
Avation, a lessor of 32 commercial aircraft, has announced its full year results for the year ended 30 June 2024 this morning, reflecting a year of operational progress on fleet management and a strong performance on cash generation. Revenues were ahead of expectations at $92.4m (flat YoY, Zeus est: $90.3m), with a $47m fair value gain on aircraft purchase rights driving an 80% increase in adj. PBT to $40.8m (Zeus est. $45m). Forecasts are raised this morning, following better than expected performances on cost control and cash generation, with upgrades in FY25 and FY26 at both the PBT and net debt levels. With a further 5% increase in net asset value to 285p, which now puts the shares at a 52% discount to NAV, we view the company as unfairly discounted given its improving balance sheet and healthy market backdrop. We retain our fair value for the shares at 250p.
Avation, a lessor of 32 commercial aircraft, has announced the sale of two ATR 72-600 aircraft this morning, realising $10m of net cash proceeds after repayment of associated debt. With the sale being completed at book value, the sale price provides a positive validation of the book value of Avation’s fleet, contributing to a net asset value which currently stands at a substantial premium to the share price (NAV: 256p as at 31 December 2023). Sale proceeds should enable Avation either to continue to reduce debt and interest costs or fund new aircraft purchases from the group’s long term purchase plan with ATR. With a solid balance sheet, an orderbook for 36 new ATRs at attractive terms, and an increasingly favourable market backdrop, we view the ca. 50% share price discount to NAV as unjustified. Adjusting our forecasts to reflect the sale, we retain our fair value for the shares at 250p.
Avation, a lessor of 34 commercial aircraft, provided a trading update on Friday for the year to date, reporting a significant expected increase in the value of its ATR 72 purchase rights, along with an improvement in lease revenues and cash collections. Following the announcement of a restructured aircraft purchasing plan with ATR earlier this month, the company has reported that the grant of new aircraft purchase rights and the extension of the existing rights is expected to increase the value of the rights to ca. $115m (31 December 2023 $88.0m). With improving market dynamics (IATA reports international passenger air traffic +19% YoY), Avation's lease revenues are now benefiting from full fleet utilisation, with lease revenues reported to stand at $7.9m per month and cash collections of 105% as airline customers repay COVID related arrears. With the recent announcement of a sale agreement for two ATR 72s from the order book, which is expected to deliver $10m of net cash proceeds at delivery in FY 2025E, Avation's purchase rights and order book hold substantial value, while the underlying business is making significant progress at the same time. This morning, we have adjusted our forecasts to reflect the purchase right revaluation, which combined with the aircraft on order, implies a c.25% increase in the NAV at year-end. We increase our estimate of fair value for the shares to 250p (200p).
Avation, a lessor of 34 commercial aircraft, announced on Friday that it has entered into a sale agreement for two ATR 72-600s on order, with the transaction expected to result in $10m of net cash proceeds to the company. As previously announced, the ATRs were scheduled for delivery to Avation in Q4 2024/ Q1 2025, and will now be sold on to an airline client, with the aircraft sales expected to be completed on the date of delivery. The aircraft had been ordered through the exercise of purchase rights under Avation's long term purchase contract with ATR, granting the company the right to purchase future ATR 72 aircraft at a material discount to their current market value. The $10m net proceeds therefore represent a combination of the differential between Avation's purchase and sale price on the aircraft and a return of pre-delivery deposit payments made by Avation. Given that Avation currently has 10 more ATR 72s on order out to 2028 and 24 further purchase rights out to June 2034, we view today's transaction as a highly positive development, providing an indication of the value of the remaining purchase rights. We amend our forecasts this morning to reflect Friday's announcement and recent bond repurchases, as well as adjusting for reduced net finance and depreciation costs, with upside beyond this as the long-term ATR purchase schedule is executed. With the shares trading at a significant discount to NAV, we see fair value at 200p.
Avation is a lessor of 34 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has provided an update on its aircraft purchasing strategy, reporting the exercise of purchase rights for 10 ATR 72 aircraft for delivery between Q4 2025 to Q1 2028, which will follow the delivery of two new ATR 72 aircraft in the coming months already on order. In addition, AVAP has been granted new purchase rights and extended its remaining rights for 24 further ATR 72 aircraft, which now expire in June 2034. Now with 36 purchase rights and firm orders in total, this marks an increase from the prior 30 firm orders and purchase rights, with a significant extension in the expiry date from June 2027 previously. The ATR 72 is the world's best-selling aircraft in the less than 90-seat segment, popular for short haul, regional flights where it offers a market-leading cost per seat and significant carbon emissions reductions. All aircraft delivered under Avation's purchase rights are expected to be sustainable aircraft fuel (“SAF”) compatible, which we view as highly supportive of long-term valuations as emissions regulations are progressively introduced over the next decade.
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 note positive fleet developments made in the last 6-months which should contribute to an upwards trajectory for the business in H224 and into FY25 as the impact of aircraft transitions/purchases and a reduction in transition costs respectively come through. Operationally, one A320 was transitioned in the period and one ATR 72-500 was sold following repossession, with the fleet now almost fully utilised pending the sale of one ATR 72-600 (expected shortly) and the lease of a second off-lease ATR 72-600, for which a letter of intent has been signed. Following the results, we leave our forecasts unchanged and with the shares trading at a discount to NAV of ca. 55% and increasingly positive market dynamics, we see fair value at 200p.
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 have now increased by 10-15% since January 2022 – a materially positive development for the group, with narrowbody aircraft making up 51% of the group's fleet value as at 30 June 2023. Operationally, the group continues to progress towards a fully utilised fleet, with new leases expected to commence for an ATR 72-600 and an Airbus A320 within the coming weeks and one currently unutilised ATR72-600 expected to be sold. With improving market dynamics, Avation reports a reduction in arrears of $6.3m since 30 June 2023, with overall cash and bank balances increasing $23.8m to a healthy $140.7m. Looking forward, we adjust our forecasts marginally this morning to account for the sale of one twelve-year old ATR 72-500 last month, while noting that Avation is now increasingly well placed, having significantly reduced its leverage over the past two years and benefiting from an improved market backdrop. With shares now trading at a discount to NAV of ca. 55%, which we continue to view as unjustified, we see fair value for the shares at 200p.
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 number of aircraft off-lease during the year and a reduction in the size of the fleet, revenues came in at $91.9m (WHI est: $93.0m), delivering an adj. PBT of $21.8m (WHI est: $6.6m), which included an unrealised gain on aircraft purchase rights of $20.5m. Avation has continued to deleverage over the year with net debt reducing to $731.2m (FY22: $792.9m) and 96% of borrowings remaining hedged or fixed at an average cost of 6.1%. Looking forward, while we reduce our FY24E revenue and PBT forecasts this morning to account for a lower expected lease revenue (FY2024 PBT: -$7.0m, was $3.3m), we view the outlook for Avation as positive given its strategic position, strength of the balance sheet and improving market dynamics. With a further increase in net asset value reported this morning, the shares now trade at a discount to NAV of 60%+, which we continue to view as unjustified and see fair value of 200p.
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.
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 demand, with narrowbody and turboprop capacity expected to exceed 2019 levels by the end of 2023; iii) inflation in the cost of new aircraft increasing demand in the second hand market; and iv) sustainability becoming increasingly important as a factor in aircraft demand and value.
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 weighted average cost of borrowing at an attractive 6.08%. Looking forward, market dynamics provide an increasingly positive backdrop for aircraft lessors such as Avation - global passenger market capacity is expected to recover by the end of 2023, the costs of maintaining and operating older aircraft are rising, many airlines' balance sheets have weakened considerably in recent years and OEMs are struggling with stepping up production rates of new aircraft - these factors in combination leading to higher demand, rising leasing rates and increased asset values for lessors. With the shares trading at a 58% discount to the last reported NAV, we see fair value at 200p.
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 – another ex-Virgin ATR 72-600 – down from a peak of over 14 aircraft following strong progress with aircraft sales and re-leasing over the past year. The sale announced today is scheduled to be delivered in May 2023, with the group actively marketing the remaining aircraft.
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 December, the NAV had increased by 5% to $3.42/282p per share. Since the beginning of H2 2023E, a 737-800 aircraft has been sold and a further ATR 72-600 leased, taking the remaining number of off-lease aircraft to two, from the peak of 14, while the 2026 note tender offer has also been successfully concluded. On the back of the results, we leave our revenue expectations unchanged but reflect the benefits seen in H1 2023, resulting in an uplift to our PBT forecasts and reduced debt profile. Ascribing a 30% discount to the latest reported NAV would imply fair value for the shares of 200p.
Today's news and views, plus announcements from: HLN, SDR, MRO, CRH. AVAP, CPI, BRK, & BEG.
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 expectations. Ahead of today's announcement, we had been looking for an FY 2023E adjusted pre-tax loss of -$3.4m.
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 these two announcements, we have adjusted our forecasts to reflect the anticipated benefit from the bond repurchase at a discount to par and proceeds from the aircraft sale, alongside our FY 2024E leasing revenue expectations. Looking ahead, market dynamics are starting to provide an increasingly positive backdrop for aircraft lessors such as Avation. Air traffic is increasing, the costs of maintaining and operating older aircraft are rising, many airlines' balance sheets have weakened considerably in recent years and OEMs are struggling with stepping up production rates of new aircraft - these factors in combination leading to higher demand, rising leasing rates and increased asset values for lessors. With the shares trading at a 50%+ discount to the last reported NAV, we see fair value at 185p.
Today's news and views, plus announcements from: REL, CNA, MONY, AVAP, BOWL, HOME, OTMP, IHC, MPE, & ASTO.
Avation PLC OnTheMarket Plc
Today's news and views, plus announcements from: CRDA, TRIG, VSVS, PLUS, IGCT, AVAP, ARIX, CYAN, & TXP.
Today's news and views, plus announcements from: AVAP, SOHO, RSG, NANO, YCA, & CMO.
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 of movement on the remaining four unutilised aircraft (one 737-800 and 3 ATR 72-600s). Looking ahead, market dynamics are starting to provide a much more positive backdrop for aircraft lessors such as Avation. Air traffic is increasing, the costs of maintaining and operating older aircraft are rising, many airlines' balance sheets have weakened considerably in recent years and OEMs are struggling with stepping up production rates of new aircraft - these factors in combination leading to higher demand, rising leasing rates and increased asset values for lessors. With the shares trading at a 50% discount to the NAV, we see fair value at 185p.
Recent International Air Transport Association (IATA) data on air passenger numbers reflects a sustained recovery in air travel in Q4 2022, particularly in regional and domestic markets, providing a positive backdrop for passenger aircraft leasing companies, including Avation. The IATA reports that total global traffic (as measured by passenger kilometres) in November had increased 41% year-on-year, approaching 75% of 2019 levels. Avation is a lessor of 37 commercial passenger aircraft to 16 airlines in 13 countries, with exposure to a number of regions. The group's balanced fleet, which included 52% narrow-body and 31% turboprop aircraft by value as at 30 June 2022, is well aligned to the trend for the strong recovery in short-haul regional and domestic travel. With aircraft demand now starting to come through positively, constraints on the supply side are also having a tightening effect on aircraft availability - a number of aircraft having left service permanently over the course of the pandemic, an increasing number of conversions of passenger aircraft to cargo aircraft, and supply chain shortages limiting the production output of major OEMs. These positive developments in the market follow Avation's AGM update last month, in which they announced higher aircraft utilisation and improved receivables collections. Our forecasts assume FY 2023E revenue of $100.8m, Adj. PBT of $2.7m and EPS of 3.9c, with this rising in FY 2024E to $108.1m, PBT of $5.8m and EPS of 8.4c. We are forecasting a further $26.0m decline in net debt to $766.9m as at 30 June 2023, falling to $732.7m at 30 June 2024.
Today's news and views, plus announcements from: AZN, INF, WG., MCRO, QLT, CBOX, JOUL, AVAP, & HLCL.
Avation PLC Informa Plc
Avation is a lessor of 39 commercial passenger aircraft to sixteen airlines. This morning, the group has reported that it has refinanced two leased Airbus A220-300 aircraft, which had previously been financed through its floating rate warehouse facility. The loans total c.$43.7m and have been refinanced at a lower rate with 8.5 year fixed rate term loans from a major Japanese bank, the first time Avation has secured funding from a financial institution in this country. The 8.5 year term is matched against the lease terms for these two aircraft and takes Avation's overall fixed rate loan position to 94.8% of the total.
The decision to repurchase the group's unsecured debt at a significant discount to face value is a sensible action in our view. With the price of 71c - 81c in the US$, the move presents a compelling return on equity. In the wider context, Avation has come through a challenging couple of years and is now well-positioned with a robust platform to benefit from improving market dynamics for aircraft lessors. Our estimate of fair value for the shares stands at 185p.
Avation is a lessor of commercial passenger aircraft to seventeen airlines. The advent of COVID-19 brought with it the most challenging period ever in the industry's history. Avation took swift action to preserve liquidity and maintain cash flow through renegotiating its senior debt amortisation, thereby being able to provide support for customers. Today, the group's fleet consists of 39 aircraft, along with purchase rights over 5-years on a further 28 ATR 72-600s, one of the lowest CO2 emission aircraft. While near-term wider challenges remain, market dynamics are beginning to provide a much more positive backdrop for aircraft lessors. Air traffic is increasing, the costs of maintaining and operating older aircraft are rising, many airlines' balance sheets have weakened considerably and OEMs are struggling with stepping up production rates of new aircraft - these factors in combination leading to higher demand, rising leasing rates and increased asset values for lessors. Avation not only survived but has exited the pandemic with a robust, cash-generative platform from which it can invest in expanding its fleet, pay down debt or a combination of the two, while also benefitting at this point from being a US$ earner. We see fair value for the shares at 185p.
Dish of the day Joiners: No Joiners Today. Leavers: DCD Media has left AIM. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their existing bank. Fiinu's technology arm manages and develops the platform, using open banking, and once the platform is fully operational will also look to develop secondary revenue streams by licensing Fiinu's intellectual property rights. Capital to be raised £8.01m. Target Mkt Cap c.£53m. Due 8 July Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group's product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group's best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime's top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Due early July 2022. Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company's Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet Avation 78.5p £54.5m (AVAP.L) The commercial passenger aircraft leasing company announced the completion of the sale of the third and final of a series of three ex-Virgin Australia Airlines ATR 72-600s to Aegean Airlines. The deal with Aegean Airlines was announced in November 2021. According to Avation’s trading update in January 2022, the sale of three ATR aircraft to Aegean Airlines and the sale of an Airbus A321 and an Airbus A220 announced earlier in 2021 will increase liquidity and release approximately $42m. Empire Metals 1.3p £5.3m (EEE.L) The AIM-quoted exploration and resource development company announces its final results for the year ended 31 December 2021. The company was still in the development stage without revenue in FY21. Its net loss was £0.59m (FY20: -0.57m) and diluted loss per share from continuing operations £0.706 (FY20: -0.456). The cash position was £2.2m (FY20: 2.3m). The company conducted drilling and technical review on its discovery the Eclipse Gold Project in Western Australia in 2021 and acquired the Gindalbie Gold Project adjacent to Eclipse post period. Essentra 273p £825m (ESNT.L) Dirven by its intention to become a pure play in the components business, the company announced that it will sell its packaging businesses ESNT Packaging & Securing Solutions Limited and Essentra Packaging US Inc and their respective subsidiary companies to Austria-based Mayr-Melnhof Group for £312m in cash and debt free consideration. Essentra currently has three segments: Components, Packaging and Filters. The Components business manufactures a wide range of plastic injection moulded, vinyl dip moulded and metal items. Greencoat Renewables Euro 115Cent Euro1,312.4m (GRP.L) The renewable infrastructure company invested in euro-denominated assets announces an agreement to acquire the 134.4MW Ersträsk North wind farm in Norrbotten County, Sweden from Enercon on a forward sale basis. The wind farm is currently under construction and is expected to be fully commissioned in Q4 2023. Once Ersträsk North will initially operate as a merchant asset but has the flexibility in the future to contract the electricity produced via a corporate PPA. This is the Company's second acquisition in this location, having acquired Ersträsk South wind farm in October 2021, and will bring Greencoat Renewable's overall capacity on this site to 235MW. Lamprell 4.6p £18.8m (LAM.L) The construction service provider based in the United Arab Emirates and servicing both renewables and oil & gas industries provided a statement regarding a potential offer from Blofeld Investment Management, a 25.06% shareholder in Lamprell, to acquire the entire issued and to be issued share capital of Lamprell. This potential offer is under consideration in light of Lamprell’s liquidity position and funding requirements of $75m over the next two months. Blofeld’s proposal is at a very significant discount to the prevailing share price and any acceptable offer would need to include an interim funding solution or bridge financing. The parties have been in discussions for more than two months but have not reached agreement on the price or conditions. Oracle Power 0.25p £7.2m (ORCP.L) The international natural resources project developer announced its results for FY21 ended 31 December 2021. The company was still in the pre-revenue stage in FY21. Its operating loss was £0.88m (FY20: -1.0m) and diluted loss per share was £0.04 (FY20: -0.05). Its net cash was £0.87m (FY20: 0.75m), excluding financial assets The company received £632,500 from the exercise of warrants during the period and raised an additional £800k before expenses through an equity placing in April 2022 to finance the development of the green hydrogen project. Currently, the company is continuing with the wo gold prospects in Western Australia (Jundee East and the Northern Zone projects) it invested in 2019 and Thar Block VI green hydrogen project in Pakistan (co-developed with Power China). Premier African Minerals 0.35p £78.5m (PREM.L) The multi-commodity mining and natural resource development company announced its prepayment agreement with Suzhou TA&A Ultra Clean Technology for a large-scale pilot plant at the company’s Zulu Lithium and Tantalum Project to produce SC6 (6% lithium oxide content) from Q1 2023. Suzhou TA&A agreed to provide US$34,644,385 to enable the construction and commissioning of the pilot plant. Suzhou TA&A is the company’s largest shareholder, with 13.38% stakes. Prospex Energy 4.5p £11.3m (PXEN.L) The AIM-quoted investment company focused on European gas and power projects, announced the commencement of the installation of its first rooftop solar projects at the El Romeral power plant in southern Spain. These are rooftop projects are intended to diversify the company’s generation profile and the electricity generated will be sold to the spot market in Spain. The Company holds a 49.9% working interest in El Romeral through its interest in Tarba Energía S.L. The remaining 50.1% working interest is owned by Warrego Energy Limited (ASX: WGO). RiverFort Global Opportunities 1p £7.6m (RGO.L) The AIM-listed investment company announced its audited final results for the year ended 31 December 2021. The company reported an operating income of £2.5m (FY20: 2.4m) and a net profit of £1m (FY20: 1.5m). As at the end of the year, the company held around £5.8m in over 20 different listed junior companies through debt and equity linked products. Meanwhile, the company is planning to investment in pre-IPO opportunities in technology, including the cyber security sector. Trackwise Designs 49.5p £18.6m (TWD.L) The AIM-listed provider of specialist products using flexible printed circuit technology provides an update on current trading for the year ended 31 December 2022. Due to reduced near term demand from UK electric vehicle OEM customers, the company’s FY22 sales are now expected to be below previous market expectations. For the five months to 31 May 2022, the company has achieved total revenue of £3.3m (1H21: 4.1m). The company's order book for delivery in FY22 is currently £4.6m, of which the IHT order book is £2.5m, and the APCB order book is £2.1m. IHT stands for Improved Harness Technology™, the company’s proprietary roll-to-roll manufacturing process enabling the production of unlimited length, multilayer flexible printed circuits (FPCs).
AVAP EEE ESNT GRP ORCP PREM
Avation is a lessor of 42 commercial aircraft to a diversified airline client base. This morning, the group has released interim results for the six months to 31 December 2021, a period in which further progress was made in dealing with the fallout for all aircraft leasing businesses as a result of COVID-19. Revenue & Other income stood at $60.1m in the period (H1 2021A $63.3m), which after depreciation, admin expenses and various other non-cash items culminated in an operating profit of $18.8m (H1 2021A -$34.5m). This resulted in a loss before tax of $15.9m (H1 2021A -$60.5m) post net finance costs of -$34.7m. Net indebtedness of decreased by 8% to $851.2m, including total cash of $120.8m (H1 2021A $122.5m) and unrestricted cash of $31.3m (H1 2021A $25.1m). As at 31 December 2021 the NAV per share was unchanged at 164p/$2.22 (30 June 2021A 164p/$2.26).
Avation is a lessor of 42 commercial aircraft to a diversified airline client base. This morning, the group has provided an update to coincide with its AGM, that illustrates the further progress made and wider developments in the first five months of the current financial year. The group presently has three ex-Virgin Australia ATR 72-600 aircraft subject to a sale agreement with Aegean Airlines, three further ATR 72-600 aircraft that may be sold or leased and an A320 due to transition from Air France to a new client in the next few days. The group also reports that it expects to take re-delivery of the Boeing 737-800 presently on lease to Garuda Indonesia and that it is remarketing two ATR 72-600 aircraft that are at end of lease from Loganair. Excluding the aircraft subject to sale agreements, the average age of the fleet is reported at 5.1 years, with the average remaining lease term of 6.3 years, and the next aircraft scheduled to come off lease in March 2023. Avation expects to return to fleet growth in 2022, including the two ATR 72-600 aircraft presently on order and due for delivery towards the end of the year.
Today's news & views, plus announcements from TW., AV., BRBY, MDC, PHP, AVAP, YNGA & CMCL.
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Today's news & views, plus announcements from BHP, MGGT, RIO, BWY, MONY, BGO, YOU, AVAP, PCA & SOLG.
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Today's news & views, plus announcements from ENT, EZJ, VTY, LIO, AVAP, DLAR & OTMP.
Avation is a lessor of 44 commercial aircraft to a diversified airline client base. This morning, the group has released full year results to 30 June 2020, which illustrate an immensely challenging year brought about by COVID-19 but one in which the business has successfully pulled various levers to enable it to come through. The results themselves are dominated by aircraft impairments of $87.4m and expected credit losses on receivables of $25.4m but the actions taken to work with its customer base and preserve its own liquidity and cash flow have now positioned Avation well to benefit as airline passenger numbers begin to return. We have reintroduced estimates for FY 2022E and FY 2023E, which only include the addition of two further ATR-72 600 aircraft towards the end of calendar 2022 but would anticipate further jet aircraft to be added to the fleet in due course throughout our forecast time horizon. While the shares have performed well in recent months as a result of the group making substantial progress against the key areas of focus, they remain at a c.35% discount to the NAV of 164p and we see Avation as a key play on the pandemic recovery.
Avation is a lessor of 44 aircraft to a diversified airline client base of 19 commercial airlines across 15 countries. This morning, the group has provided a brief update as of 30 June 2021, which points to an impairment review having been completed in line with its standard accounting policies across its turboprop, narrow-body and wide-body fleet. The net impact is to reduce the book value of the fleet by c.$32m, which follows on from the H1 2021A impairment of $46.7m. Management believes that these latest impairments will be sufficient to put a line under the decline in aircraft valuations brought about by COVID-19 and indeed, reports evidence of aircraft valuations now beginning to recover in the market.
Today's news & views, plus announcements from SSPG, PNL, SHED, TUNG, ANX, BLTG, AVAP
Avation is a lessor of 45 aircraft to a diversified airline client base of 19 commercial airlines across 15 countries. This morning, the group has provided a solid trading update to 31 March 2021, which points to a continued focus on managing the collection of customer revenue, with rent collections and overall cashflow having improved since the end of H1 2021. The remarketing of the eight returned ATR aircraft has also continued, while net debt reduced by $51.6m in Q3 FY 2021E to $988.1m, with total cash and bank balances (including restricted cash) improving to $122.4m (31 December 2020 $117.6m).
Today's news & views, plus announcements from SGE, CRST, AVAP, WRKS, ASTO,ETX, MBOX
Avation PLC Crest Nicholson Holdings Plc
Today's news & views, plus announcements from KGF, AZN, UTG, AVAP, YEW, OTMP
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Avation is a lessor of 46 commercial aircraft to a diversified airline client base. This morning, the group has announced that it has successfully raised £7.5m by way of a placing and subscription at a price of 110p, a 10.2% discount to last night's closing price, to support the delivery of its Covid-19 strategy.
Avation is a lessor of 46 commercial aircraft to a diversified airline client base. This morning, the group has released interim results for the 6-months to 31 December 2020, which illustrate the challenges faced by its customer base and the wider airline industry as a result of Covid-19, alongside the successful corrective actions taken by management. An aircraft impairment of $46.7m and expected credit loss on receivables and accrued income of $12.9m have been taken, with the NAV at period end stood at $2.38/174p per share. Whilst having scope to change given the uncertainty of the current backdrop, following these results and the maturity extension of its $342.6m senior notes earlier this month, we reinstate estimates this morning, forecasting a return to profitability in FY 2023E. With the shares now trading at a 30% discount to NAV and the extension secured, we see Avation as a key play on the pandemic recovery.
Today's news & views, plus announcements from OCDO, HLMA, GFS, BWY, MCRO, SMP, AVAP, NUM, MTW, JOUL, TAVI
Avation is a lessor of 46 commercial aircraft to a diversified airline client base. This morning, the group has released results for the 12-months to 30 June 2020, which illustrate the challenges faced by its customer base as a result of Covid-19, as well as the corrective actions taken by the Board that have resulted in profitability being maintained in the year as a whole. Loan repayment deferrals of c.$24.4m were obtained in the period, in comparison to $13.1m short-term rent deferrals being granted to airline customers and thus emphasising management's focus on liquidity during an unprecedented period for global airlines. Avation again reports that it is currently reviewing alternatives in relation to the 6.5% senior notes due in May 2021. Whilst at this point our forecasts remain under review, and near term challenges remain across the industry, we believe that demand for aircraft from lessors such as Avation will increase in time as a result of airlines being even more reliant upon aircraft leasing firms due to the retirement of older aircraft during 2020 in combination with much weaker balance sheets that are unable to support direct aircraft purchases.
Avation is a lessor of commercial aircraft to a diversified airline client base. In relation to the ongoing administration process of Virgin Australia, Avation has this morning announced that following the successful placing of five of the original thirteen aircraft that were on lease to the airline (two Fokker 100s plus three ATR 72-500s, with the latter having gone to two new customers), the remaining eight aircraft will be returned to Avation, being made up of three ATR 72-500s and five ATR 72-600s. Additionally, subject to approval at a creditors' meeting scheduled for 4 September 2020, the expected return to unsecured creditors is now anticipated at between 9-13% being paid prior to 30 June 2021.
Avation is a lessor of 48 commercial aircraft to a diversified airline client base. Intra-day yesterday, the group announced that, as a result of the present uncertain backdrop caused by COVID-19, the Board had withdrawn from the previously announced strategic review and formal sale process, and that it was no longer in active discussions with any interested parties. The key reasons behind this were 1) the present uncertainty meaning that an attractive valuation was seen as unlikely to be achieved at this present moment in time and 2) the distraction of the process in the day to day operational activities of the business. Petards supplies advanced security and surveillance systems to the Rail, Defence and Traffic Technology markets. Intra-day yesterday, the group confirmed that its RTS Solutions subsidiary had secured a multi-year renewal agreement for the provision of software support services to one of its major rail customers. Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning, the group has released full year results to 31 December 2019, alongside providing an update on progress against the present COVID-19 backdrop. In line with the market updates provided in February and April, group revenue in the year increased by 3.2% to £7.1m, whilst revenue from continuing operations, excluding the Onboard business that was disposed of in the year, increased by 7.2% to £6.7m, driven by traction being gained with new products and services. The gross margin in the year increased by 280bps to 53.9% reflecting the greater proportion of software and service income. This resulted in a trading loss after tax before exceptionals of £89k, which post exceptionals of £412k that predominantly related to the disposal of OnBoard, resulted in a loss after tax of £501k. As previously reported, the year-end net cash position stood at £850k, which reflected an increase of £554k in the year; this post £1.1m of new product development expenditure and cash costs associated with the disposal.
AVAP TST PEG
Our Hot Off The Wires daily newsletter takes a look at the morning's market movements, news stories and company announcements. Don't forget to have a go at our daily trivia! Companies mentioned in this edition include: IAG, Tesco, Bunzl, Rathbones, Dunelm, Marks & Spencer, Mitchell & Butlers, Card Factory, *SIG, Galliford Try, Liontrust, Hipgnosis Songs Fund, *Avation, Nichols, Naked Wines, John Lewis and the potential upcoming IPO of Calisen Group Holdings. If you would like to be subscribed, please email us at info@capitalaccessgroup.co.uk. *Capital Access represents SIG and Avation - if you would like more information or access to the Management teams of either of these companies, please get in touch.
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Our Hot Off The Wires daily newsletter takes a look at the morning's market movements, news stories and company announcements. Don't forget to have a go at our daily trivia! Companies mentioned in this edition include: RBS, Vodafone, Crest Nicholson, GCP Student Living, SDCL Energy Efficiency Income Trust, *Avation, Aquis Exchange and *ImmuPharma. If you would like to be subscribed, please email us at info@capitalaccessgroup.co.uk. *Capital Access represents Avation and ImmuPharma - if you would like more information or access to the Management teams of either of these companies, please get in touch.
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Avation is a lessor of commercial aircraft to a diversified airline client base. The group has this morning released an update to coincide with its AGM, pointing to an anticipated 12% increase in leasing revenue in the six months to 31 December 2019 and a 5% increase in the interim dividend to 2.1c. Following the repossession of the two A321 aircraft following the collapse of Thomas Cook, a letter of intent to lease both aircraft to an existing customer is reported to have been signed, with the impact on lease revenue for the period reported to have been minimised. On the back of this morning’s announcement, we have reflected the impact from Thomas Cook, timing of delivery of the four ATR 72-600 deliveries to Braathens and slightly higher finance costs, in combination reducing our FY 2020E PBT expectation by $3.3m/12.5%, this having scope to move higher through the addition of new aircraft. Our estimate of fair value remains at 352p, equivalent to a c.19% premium to the NAV per share.
Avation (AVAP) – Corporate – Credit rating upgrade and repositioning of Thomas Cook aircraft | NetScientific (NSCI) – Corporate – PDS collaborates with Merck in Phase 2 studies
Avation PLC EMV Capital PLC
Avation-Upgrades following additional planned ATR 72-600’s | Petards-Interims - order delays lead to a reduction in full year expectations | Pittards-Interim results in line; strategic initiatives continue
AVAP PEG PTD
Avation is a lessor of commercial aircraft to a diversified airline client base. This morning, the group has released a strong set of full year results to 30 June 2019, with core lease revenue growing by 21% in the period. Greater gains on disposal of aircraft led to PBT coming in some 15% higher than our estimate, with EPS 26% ahead, this also reflecting a tax credit being received for the year. Illustrating this performance and management’s confidence looking forward, the total proposed dividend for the year has increased 45% to 10.5c, implying a 3% dividend yield. On the back of the results, we raise our two year earnings expectations by 7.7% and 7.5% respectively, these having scope to increase as additional aircraft are added to the fleet. Our estimate of fair value stands at 352p, a c.19% premium to the NAV per share.
Avation is a lessor of commercial passenger aircraft to a number of airlines, including VietJet, airBaltic, easyjet, Air France and Virgin Australia. The business was founded in 2006 by Jeff Chatfield, its current Executive Chairman, and is quoted on the full list. From a standing start, Avation has grown its fleet to 48 commercial passenger aircraft and has a proven capacity to buy and sell aircraft assets profitably. Its fleet is well diversified both by aircraft type and customer base. Our forecasts presently only reflect the addition of ATR 72-600s on order, leaving scope for our estimates to be raised as further aircraft are added to the fleet. Ahead of full year results next month, we see scope for another year of strong progress in FY 2020E for this US$ business and see fair value at 346p, some 20% above the current share price.
Avation (AVAP) – Corporate – Trading update | Water Intelligence (WATR) – Corporate – Continued growth momentum, strong forecasts reaffirmed | Malvern International (MLVN) – Corporate – Genuine progress despite extraneous factors / setback
AVAP WATR MLVN
Avation has made four separate announcements in the last few days in relation to the acquisition of additional aircraft. These included an ATR 72-600 to US-Bangla Airlines, two A220-300 to airBaltic and lastly, a Boeing 737-800 NG currently on lease to Garuda Indonesia. The first three were part of the seven further aircraft scheduled to be delivered in the year, highlighted at the time of last month’s interim results. We have tweaked our underlying assumptions this morning (our EPS forecasts remaining unchanged) and will review these to incorporate the 737-800 NG following its delivery scheduled by the end of June 2019. Avation is making clear progress in both expanding and diversifying its fleet and the addition of a second Boeing jet should help to increase its credit rating in due course. A 15% premium to the last reported NAV implies fair value for the shares of 330p.
Avation has this morning released interim results to 31 December 2018, highlighting a particularly strong period for the Group. Lease revenue increased by 40%, whilst EPS rose by 97%, in part reflecting the gain on sale of the A321-200 announced in December 2018, and demonstrating a positive performance across the board. Four aircraft were added in the period, with a further four A220-300s and three ATR 72- 600s scheduled this year. Reflecting the movements in the fleet, including the gains on disposals, and reviewing our wider underlying cost assumptions, we have this morning raised our FY 2019E PBT estimate by $1.5m, which results in our earnings forecast increasing by 7.1%. Working these assumptions through into FY 2020E, the net effect is to reduce our FY 2020E PBT expectation by $1.4m, a 6.0% reduction in EPS - this having scope to increase as additional aircraft are added to the fleet. Our estimate of fair value of 300p stands at a c.5% premium to the NAV per share.
Avation (AVAP) – Corporate – Four additional Airbus A220-300 aircraft to be leased to airBaltic
Avation has this morning announced that it has signed an agreement with airBaltic for the sale and leaseback of an additional four new Airbus A220-300s. The aircraft are on twelve-year operating leases and are expected to be delivered in Q2 2019. airBaltic’s fleet currently consists of 34 aircraft, with Avation already having delivered a further two A220-300 aircraft earlier this year. Avation notes that the airline is moving towards a single aircraft type fleet, with the progressive introduction of more A220-300s.
Avation (AVAP) – Corporate – Positive trading update; 2.0c interim dividend announced | UK Oil & Gas (UKOG) – Corporate – Extended Well Test Update | CYBER 1 (CYB1:ST) – Corporate – Q3 update
Avation PLC UK Oil & Gas Plc
Avation (AVAP) – Corporate – Jet portfolio transaction | AfriTin (ATM) – Corporate – Acquisition of new Namibian exploration licences |
Avation PLC Andrada Mining Limited
Avation has this morning announced the successful pricing and full subscription of its $300m 2021 senior unsecured note offering under the Group’s $1bn global medium term note programme at a rate of 6.5%. The net proceeds will be used to call and repay the outstanding $150m 7.5% senior notes due 2020, as well as repaying certain senior and junior secured loans. The notes, to be listed on the SGX-ST, are to be rated ‘B’ by S&P Global Ratings and ‘BB-’ by Fitch Ratings. We see this move as being highly positive for Avation as not only do the Group’s immediate borrowing costs reduce but it also provides greater flexibility in delivering the growth strategy. On the back of this morning’s announcement, we raise our FY19E and FY20E earnings forecasts by 2.0% respectively to reflect an assumed lower finance cost. Our estimate of fair value for the shares increases to 300p (from 280p) to reflect this positive development in supporting further growth.
Avation has this morning issued interim results to 31 December 2017 illustrating the increased scale of operations following acquisitions and disposals undertaken throughout 2017. Fleet assets increased in value by 35% to over $1bn for the first time, with $286m being added in December 2017, including Avation’s first twin aisle aircraft and the weighted average age of fleet and remaining lease term both improving in the period. The Group benefited from the transition of the A320 from Air Berlin to easyJet through the release of the maintenance reserve, which has led to us raising our FY 2018E earnings forecast by 10.5%, whilst we raise our FY 2019E and FY 2020E earnings expectations by 4.3% and 11.4%; these benefitting from the addition of the six further ATRs on order and a full period contribution of the new aircraft. We see fair value for the shares at 280p.
Clean Invest Africa—Introduction due around 14 Nov. Vehicle established to identify investment opportunities and acquisitions in renewable and clean energy projects/companies or alternative technologies that are used in a socially and environmentally responsible way that will aid the development of the African continent. City Pub Group - owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a three year CAGR from FY14 to FY16 of 34.9% and 44.8% respectively, and an EBITDA margin of 14.7% in FY16. Due Nov. Boku - Independent direct carrier billing company. Revenues were up 21% to US$10.2 in HYJun17. Q32017, revenues grew to $6.5m, up by 44%. The Company also saw continued growth across all of its key metrics: user numbers, total payment and a positive adjusted EBITDA for the month of September 2017. Due 20 Nov. Offer TBA. Ten Lifestyle Hldgs. Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer and date TBA. AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 8 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world. Expected 8 November 2017 OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November.
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Harvey Nash Group— Provider of professional recruitment and offshore solutions moving to AIM from Main. No capital to be raised. Mkt Cap c. £57.8m. | AnimalCare—RTO of Ecuphar NV, a European animal health company. £30m raise. Ecuphar FY16 rev £68.4m, underlying EBITDA £8.9m. Due 13 July. | Angling Direct -Schedule 1 from the specialist fishing tackle retailer in the UK . Offer TBA. Expected mid July. | NEXUS Infrastructure—Offer TBA. Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m. | Tatton Asset Management –Sch 1. Provider if services to FCA authorized financial advisers. Raising £10m at 156p. Secondary offer £41.6m. Due 6 July. | GYG—Intention to float by the superyacht painting, supply and maintenance company. Due 5 July. Raising £6.9m new plus vendor sale of £21.5m at 100p. Mkt Cap c. £47m. Revenue of €54.6m in FY16 and adjusted EBITDA of €6.7m. | Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July. | QUIZ— Omni-channel fast fashion womenswear Company intention to float. Due July 2017. Offer TBA | I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 7 June admission. | Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June | Rockpool Acquisitions—Northern Ireland based Company seeking strong NI acquisition with an international outlook. Raising £1.5m at 10p. Due 5 July. | Hipgnosis Songs Fund investment company offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published. | Impact Investment Trust—Exposure to a diversified portfolio of funds providing SMEs across developing economies with the growth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00 | Residential Secure Income - social housing REIT raising up to £300m Admission due c.12 July. | Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. | NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. | Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe | Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income. Due 21 July.
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Avation is an aircraft lease company. The model is easy to understand, and has been very effective in recent years: Purchase new aircraft, which offer a lease yield of 13%, with asset depreciation of about 5% per year. Apply 75% debt financing, at an interest rate of around 5%. Total other cash costs net off to around 1%.
Avation Plc is a specialised commercial passenger aircraft leasing company with operations around the world. The company has a broad and blue-chip customer base, including Virgin Australia, Air France, Flybe, Condor, Shenzen Airlines, Fiji Airlines, Air Berlin and UNI Air.
