Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on AVATION PLC. We currently have 4 research reports from 4 professional analysts.
|30Mar17 07:01||RNS||Admission and Total Voting Rights|
|24Mar17 07:00||RNS||ISSUE OF EQUITY ON WARRANT EX, DIRECTOR DEALING|
|24Mar17 07:00||RNS||TREASURY, ADMISSION OF SHARES, TOTAL VOTING RIGHTS|
|20Mar17 07:15||RNS||DIRECTORS DEALING|
|16Mar17 07:00||RNS||TURBO-PROP PORTFOLIO|
|16Feb17 07:00||RNS||Half-year Report to Dec 2016|
|07Feb17 13:50||RNS||Schedule for Half-year Report and Conference Call|
Frequency of research reports
Research reports on
01 Feb 17
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%.
The end of the world as we know it?
10 Mar 16
According to the LSE stats there was no Oil & Gas fundraising activity on the main market during 2015 and just £1.2m raised on AIM. The chart below clearly demonstrates the pain that oil producers are feeling with global prices having been in almost constant decline since mid-2014. Both Brent and West Texas Intermediate are now hovering between $30 and $40 per barrel having rebounded from their lows over recent weeks.
Soaring with the Eagles
10 Sep 15
The last three months has seen Avation shares knocked by same general sentiment that has affected the much wider basket of Asian-qoted equities. Yet the Group’s earnings visibility is exceptionally high, with revenues contracted from long-term leases for aircraft that have been financed on fixed terms while being amortised over the life of the initial agreement. And despite hitting something of an economic ‘speed bump’, Asia is still confidently expected to be to remain the world’s fastest growing market for ATR lessors for the remainder of this decade. Despite having secured significant options for fleet expansion from 2017, which can now be funded through the global debt capital markets, Avation is now trading at an unjustified discount to its obvious peers. Even after applying a 10% discount to account for its relatively small size and limited liquidity, Beaufort arrives at a price target of 178p for the shares.
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
Panmure Morning Note 29-03-2017
29 Mar 17
We are cutting our recommendation to HOLD as we see little upside from current levels given the lack of positive surprises in today’s trading update. Multiples of 4.4x 2017 sales and 17x 2017 EBITDA imply an expectation of at least slightly exceeding expectations. We had assumed that acquisitions will provide the momentum until organic investments deliver. However, acquisitions are proving elusive and excess cash is diluting returns. Moreover, our forecast relies on at least one order in vehicle simulator market, which has yet to be announced. The management has shown that it can use the financial markets to raise equity but it now needs to show that it can deploy excess equity productively.
N+1 Singer - Severfield - Strong H2 drives upgrades; CEO temporarily steps down due to ill health
28 Mar 17
Severfield’s trading update highlights that trading during H2 was strong and the Group now expects results to be ahead of expectations. Cash flow performance has been similarly strong with net funds at the year end also expected to be ahead of expectations. The strong performance was driven by both a better than expected revenue performance and better than expected growth in the operating margin. We expect to increase our FY16 PBT forecasts by c.9% to around £19.5m. In addition, we are disappointed to see that Ian Lawson (CEO) has taken a temporary leave of absence due to physical ill health. John Dodds (non-executive Chairman) will step up to Executive Chairman on an interim basis and Alan Dunsmore (FD) has agreed to assume the role of CEO on a similar basis. This should ensure the continuity of the business whilst Ian is recovering. The outlook for Sevefield remains positive and the Group has reiterated its medium term target to double PBT from £13.2m in FY16 by FY20. We remain positive on Severfield (one of our best ideas for 2017) and continue to see clear potential for it to outperform its medium term targets.
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)