Avation (AVAP) H2 2024 earnings summary

Executive summary

• Delivered strong FY2024 results with profit before tax rising to $30 million from $13.8 million, and profit after tax at $19.7 million, despite $1 million/month in non-cash IFRS 9 amortization and a one-off deferred tax charge.

• Fleet of 34 aircraft leased to 16 customers across 14 countries, with full utilization and a diversified mix of wide-body, narrow-body, and turboprop aircraft.

• Order book includes 12 ATR 72s, with a ten-year delivery program and 24 purchase rights extended to 2034.

• Earnings per share grew to 27.85 cents from 18.50 cents year-over-year.

• Total income declined to $96 million from $100.1 million year-over-year, with revenue stable at $92.4 million for FY2024.

Financial highlights

• Net debt reduced by nearly $80 million to $651.5 million; $80 million in unsecured notes repurchased at 85.6 cents on the dollar.

• Net asset value per share up 5.2% to $3.62 (or £2.85 from £2.71); lease yield improved to 10.7% and expected to reach 11% in FY2025.

• Total assets at $1.14 billion, down from $1.18 billion year-over-year.

• Weighted average cost of debt increased to 6.4%; unsecured notes now 47% of total debt.

• Ended year with $23.6 million in unrestricted cash.

Outlook and guidance

• Market conditions favorable with global aviation growth, aircraft shortages, and falling interest rates.

• Focus for FY2025 on liquidity management, leverage reduction, prudent organic growth, and sustainable aviation with fuel-efficient, low CO2 aircraft.

• ATR deliveries scheduled through 2028; all future deliveries to feature latest technology and SAF compatibility.

• Plans to place ordered ATR aircraft for lease or sale and seek prudent fleet growth in the narrowbody market.

• Positioned for sustainable organic growth with a fully utilized fleet and reduced leverage.