Avation Dividends - AVAP

Avation Dividends - AVAP

Best deals to access real time data!
Monthly Subscription
for only
Level 2 Basic
Monthly Subscription
for only
UK/US Silver
Monthly Subscription
for only
VAT not included
Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Avation Plc AVAP London Ordinary Share GB00B196F554 ORD 1P
  Price Change Price Change % Stock Price High Price Low Price Open Price Close Price Last Trade
  0.00 0.0% 278.00 0.00 0.00 0.00 278.00 01:00:00
more quote information »
Industry Sector

Avation AVAP Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

carcosa: QP, I think you are taking a pessimistic view (but I'm a shareholder, so only natural for me to say that!) On my post on The Lemon Fool I provide past examples of re-allocating A321's over the last few months from large airline bankruptcies; that gives you reasonable timescales to work with. It's not too difficult to work out potential loss of profitability and it's relatively small. Add back re-leasing the aircraft at a potentially greater net interest margin than with Thomas Cook, plus recoveries using the mechanisms identified in today's RNS, and by June 2020 results I doubt you will notice any material difference to profitability. If things go as well as they did with the Air Berlin aircraft then perversely profitability will increase. I have said before that high levels of profitability for an aircraft leasing company is counter-productive as its a sign of not being able to deploy those profits back into higher earning assets. This is why you will never be able to value aircraft leasing companies against FCF. There really should not be any! Hence as a long term investor it remains the NAV as the driving force for the share price for me.
carcosa: Because the discussion with US-Bangla are ongoing and there would still be an LOI or other contract intent that would prevent AVAP perhaps? Braathens might have configured their aircraft differently. Share sale yesterday was tiny and actually took place many days ago. It was the UT trade at the end of day that pulled the reported share price down and today it basically recovered. I don't see today's ATR deal having an influence on the share price to any great degree when it was already highlighted over the past few weeks. I see oil price and exchange rates as the highest risk to the share price in the short term.
harrogate: While they call it a cash flow hedge on the results it is actually an interest rate hedge. As they say in the results over 90% of the borrowings are fixed or hedged. So they have lots of hedges in place to protect against interest rate rises. The downside of that is that you potentially lose some of the upside when rates fall. Given that they have had to show what the "cost " of that has been by marking the hedges to market. The $18m will be the amount that the hedges will cost them over the life of those hedges if rates stayed the same as at June 19 over the length of each hedge. So none cash and should reverse over time and if interest rates go up then disappear quickly and we get a large increase in NAV just as it has been a hit to that now. having said that the share price looks up with events for now but that could change if they do some decent deals on airbus
carcosa: Looks like someone managed to get £1.34m worth of shares according to this Post Trade Deferral Off-Book report. That's about 0.9% of the company. May also be the reason for the 2.6% increase in the share price of late; but I thought such trades were only protected for 48 hours? It's also reported at todays 'buy' price. Could someone, maybe a trader explain the most likely underlying story?
davidosh: Just to mention that AVAP will have a stand and be presenting at our MelloSouth event in Hever,Kent on 14th June and all shareholders and potential investors are welcome to attend Http://melloevents.com Richard Wolanski for Avation has presented at our Mello events on a number of occasions before and the company are very popular with Mello investors with the share price having doubled plus dividends for early investors and those who attended Mello2014 where Richard presented. We are very pleased to welcome him back as he unfortunately could not make it to Mello2018 last month in Derby so this is an ideal opportunity to meet the management and hear about their strategy. Do come and join us at this quality event and there will be at least 25 other companies to meet plus some fabulous keynote speakers and a large number of fund managers presenting and on panel sessions. Http://melloevents.com
carcosa: Hi harrogate, I very much doubt that. Mandarin Airlines is a subsidiary of China Airlines and hence a major carrier. Very savvy/drive a hard bargain etc. What has happened is that Avation have had to sweeten the deal.. or 'add value'. If you read between the lines of the RNS, I reckon that ATR have provided the pilot training/aircrew and Avation have paid for it. In the grand scheme of things it is a minor cost over the lease term. The good news is that Mandarin should have got the aircraft at a much lower than average price compared to most of the ATR fleet. Financially the airline will have a very good credit rating (I expect) which may have allowed the financing cost to be a little lower, more than enough to defray the pilot training costs. Although the revenues (based on the acquisition cost) will be a bit lower, what it also means is that it will give Avation the opportunity to review the market value of these aircraft and end up with a NAV above purchase price which will be supportive to the share price.
harrogate: Given that they spend a lot of time raising cash through various loan note offers and struggled to get one of them away recently and seem to pay 7% + on these I still don't see the point in buybacks = why not use the free cash to fund more aircraft and grow the company and let the share price look after itself? They have done a brilliant job and I have not sold a share in these for years as I see great potential.
carcosa: One of the nice things about Avation is that it is very easy to work out lease revenue of the current and announced fleet changes. Those forecasts of which you refer to are a million miles away from expectations in my opinion. If Avation manages to get a twin-aisle seat into their fleet then the lease revenue will increase substantially; will have to wait and see on that one. Also there appears to be an exceptional gain likely from the Air Berlin A320 and potential gains from the sale of ATR production slots. Avation is not an aircraft operator; they are a leasing company. The airlines are the operator and hence take all the operational risk. As with any other leasing company they will sell the assets if they believe it is worth so doing. The 'nice' thing is that the can choose if and when to sell an aircraft; there is nothing really forcing them to sell an aircraft (although as the business grows am not so certain that statement would hold true) Most ATR leases are a 6+6 i,e, 6 years plus an option to extend a further 6 years. Some are on 10 year leases. The A321's are on a 12 year lease, expiring 2028. I would not be overly concerned with PE ratios for Avation. Share price, in my opinion for a leasing company, should be a reflection of NAV. Have a look at the investor presentation material on their website for further info. FWIW i estimate FY 2018 total revenues to be $101m without yet to be announced fleet changes.
jamesjoel: Just listened to the interview on proactive investor and the finance director seems confident in massive growth going forward.Says the shares are undervalued compared to its peers but will rerate as the company keeps preforming.The share price reaction at the moment is some what surprising considering the companies potential.Profit taking or a tree shake? One to hold and add on any weakness and reinvest and compound the dividend I think!
carcosa: Today, Avation released it's FY prelims. https://www.investegate.co.uk/avation-plc--avap-/rns/preliminary-unaudited-financial-results-for-2017/201709070705030791Q/ Overall the ATR aircraft are once again selling like hotcakes around the world and production slots are likely at a premium. Avation currently holds a number of production slots values in excess of $3m but quite possibly worth a tad more. Demand for the ATR aircraft has resulted potential and meaningful gains on aircraft sales against their deprecitation book value. As Avation tend not to hold on to old aircraft the industry depreciation rate will continue to hide the hidden value in their ATR portfolio. This past year Avation were approached by several entities wanting to buy their ATR fleet at a substantial premium over book. Whilst as first glance this sounds an excellent outcome, in practice it would have resulted in the company effectivly going back to 'sqaure one'. A compromise of selling a portion of the fleet was made resulting in a gain of $5.3m or I estimate about 5% over book value; lower than I initially thought at the time of the sale. Their headline numbers showed: NB: Items in brackets are (Consensus Forecasts) [My forecasts] Lease Revenue up 32% at $94.2 million ($94m) [$92.8m]; Operating Profit grew 32% to $60.2 million; [$56.1] Profit before taxation increased by 18% to $21.4 million ($19.7m) [$24.3m] Total profit after tax increased 16% to $21.3 million; (19.7m) [$21.9m] Operating cash flows increased 20% to $63.0 million; Dividend per share increased by 85% to 6.00 US cents; and Earnings per share ("EPS") increased by 6% to 36.3 US cents.($0.32) [$0.36] Other areas of improvement include a lower LTV of 72% and an upgrade in the credit rating. Sitting on a hefty cash pile following the ATR sales too Of particular interest was their annoucement that they would now start to consider wide-bodied aircraft to be added to the fleet. Thi sis a new development and something that they have shied away from in the past. It suggests that narrowbodied aircraft valuations are high and, although potentially higher risk perhaps the returns from widebodied aircraft are more attactive now. Certainly lease income form one widebodies aircraft, if less that 8 years old, is a multiple of that obtainable from ATR's and indeed narrow-bodied jet aircraft. Interesting to note that for the first time Avation have not split out asset valuations between jet and turboprop aircraft (or may have to wait for the annual report for that detail). The 'real' measure for share price valuation is the book value/share which stands at $3.21/share Current share price in $ terms is ~246p which is marginally below yesterdays closing price. However a fair view is that the share price should be a multiple of the book value. Going forward however, the loss of lease revenue from the now sold 6 ATR's is going to substantially decrease lease revenue and aircraft asset valuatoin next year. However it is in the nature of their business to aquire further aircraft and if they announce additions to the fleet within the next three months then I am comfortable with the current share price. Questions: Previous years Avation have shied away from wide-bodied aircraft entering the fleet. In today's prelims there is an indication that they are considering this aircraft type now. Why the change of heart? (narrow bodied valuations too high?) Why is the tax charge so low? Is this a timing issue?
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20191022 06:05:56