Avation Share Discussion Threads

[z1co] 25/5/2024 19:53

Fishbourne

You never know the share price could well rerate towards £3 again over the next 12 months now that the company's fleet is once again fully deployed after nearly 4 years.

Damian Brewer, at Canaccord has a price target of £2.30 and is saying that the current share price is not pricing-in future revenue and profit uplift.

The £2.30 target was prior to "significant profit beat" announced yesterday.

No doubt guidance will now be upgraded for the current and next year.

[fishbournetrader] 25/5/2024 16:58

And not only was the business booming but they had interest from a potential buyer and started a formal process to sell the company.

And whilst we do not know who the potential buyer was, it is fair to say that the interest must have been at a price reasonably above 300p, which was the share price at the time.

[z1co] 25/5/2024 08:55

Last month the company successfully delivered its last remaining off-lease ATR 72-600 aircraft to PNG Air Limited ("PNG Air") for a 72-month lease at a market lease rate.

The company's fleet of 34 aircraft is now fully utilised for the first time since the Covid-19 pandemic.

Trading from April must has been very strong and ahead of management expectations , forcing the company to issue a trading update yesterday prior to it's year end.

In 2020 just before the start of Covid-19 when the company's business was booming the shares were trading above £3.

[z1co] 25/5/2024 08:37

Nice coverage in the Daily Mail market report - " STOCK WATCH "

[z1co] 24/5/2024 13:52

More details will be provided when they issue their trading update after the year end at the beginning of July.

The important thing is that the market is now aware that company has been trading better than expectations.

[cb7] 24/5/2024 13:44

As far as I am aware brokers estimates were for precious little profits - somewhere around breakeven. So significantly above not a lot could still be not a lot. Sadly for me they gave little guidance and too much woffle about the aviation sector rather than their business.

[z1co] 24/5/2024 13:38

The good news for the holders and new investors that have bought today after the company said that it exceeded it's forecasts for the year to 30/06/2024 "significantly" is the downside for the shares is very minimal and the potential upside is huge.

Not everyone at IG opens short positions, i myself have traded long positions from IG.

The problem now for those that still may have short positions ( having been done by this very upbeat trading update ) is how much losses they can take because shares are likely to rerate aggressively ahead of the forthcoming trading update in early July.

[z1co] 24/5/2024 13:16

Avation says profits to be significantly ahead of expectations

Published: 09:03 24 May 2024 BST

Avation PLC (LSE:AVAP) told investors it expects to report profit significantly ahead of current market expectations for the financial year ending 30 June.

Shares in the aircraft leasing company rose around 9% in Friday’s morning’s trade.

"The company is at a transition point in terms of improving shareholder returns alongside cash flow generation and growth,” executive chair Jeff Chatfield said in a statement.

“We are confident of improving returns to shareholders by carefully optimising the mix of sources of finance available to the company and are finding asset-backed financiers to be extremely constructive."

[bdbd11] 24/5/2024 12:56

The good news for those STILL waiting on the side lines is that the customers of IG hold 4% of the stock. These will be mostly punters looking for a short term hit and others will sell out quickly if the price does decline when the calm takes over, driving it down further. I'll be keeping an eye on when IG declare under 3% and waiting to buy in on any weakness thus caused. Avap is now (once again) my biggest holding.

[z1co] 24/5/2024 10:53

It's not just a beat but by a significant amount.

The company will issue another trading update in the first week of July.

The company has issued this brief trading update with more than 5 weeks before the end of it's financial year , bodes well for another strong update in July.

[z1co] 24/5/2024 10:49

Market & Company News

Avation shares fly as expects higher profit than market expectations

24 May 2024, 10:30Source - Alliance News

Avation PLC on Friday said it expects profit to top current market expectations.

The Singapore-based aircraft leasing company said that the market backdrop has been supportive for aircraft valuations for the financial year ending June 30.

It predicts profit for the year which is ‘significantly ahead of current market expectations’.

Avation shares rose 11% to 146.28 pence each on Friday morning in London.

Avation noted International Air Transport Association figures reporting that passenger air travel climbed 14% in the 12 months to March 31, with international travel growing by 19% in revenue passenger kilometres.

The company said it placed orders for 12 units of ATR 72-600 aircraft, a key component of its 10-year low carbon technology strategy.

Further, it added that rent arrears and other customer receivables have been reduced by around $18.7 million since the start of the current financial year.

Avation Executive Chair Jeff Chatfield said: ‘The company is at a transition point in terms of improving shareholder returns alongside cash flow generation and growth. We are confident of improving returns to shareholders by carefully optimising the mix of sources of finance available to the company and are finding asset backed financiers to be extremely constructive.’

[donald pond] 24/5/2024 08:57

This is far too cheap. Market asleep

[z1co] 24/5/2024 08:46

As usual with these set stocks they always spike at the opening.

Bought 2 lots at £1.385 and £1.40.

The trading update is exceptional " significantly ahead of expectations".

Before the Covid and Ukraine these shares were trading above £3.

[citys2874] 24/5/2024 08:27

Great RISE this morning For AVAP and CRTM looks like a happy Friday is on the cards

[geniechem] 20/5/2024 14:47

So sh the drop today in share price?

[davebowler] 20/5/2024 13:34

WH Ireland -


Sale of two ATR 72-600s from order book for $10m net cash proceeds 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.

[bdbd11] 17/5/2024 08:53

So we now have an idea of the value of the purchase rights - $5M each. 34 x $5M = GBP circa £134M - against a market capitalisation of £90M!!

[carcosa] 13/5/2024 08:30

From today Avations ordinary shares on the london stock exchange are tradable via the SETS platform, which is the fully electronic market having moved up from the SETSqx. This will enable more international and US sophisticated investors to have access to Avations shares.

[m5] 08/5/2024 15:20

I hold, its a decent Company but the share price does sweet fanny Adam. Frustrating.

[a_game] 07/5/2024 10:34

My largest holding by quite some way. The re-rate will come

[bdbd11] 03/5/2024 12:06

An incredibly muted response to the latest very positive rns. a 54% discount to NAV, combined with some great long term growth prospects, yet nobody is interested. This is my second largest holding, but i'm still considering buying more.

[catsick] 02/5/2024 08:59

I think they must be very close to placing the two due to be delivered as that would need to be going well to order these next 10

[harrogate] 02/5/2024 08:36

Another step forward at last. But what we could really do with is some sort of deal or agreement with some decent airline with a good credit rating that commits to take a chunk of these over the period. Some sort of LOI. That would put a proper piece of the jigsaw in place and maybe they could use that to help with funding. In the meantime we need to see where they place the 2 ATRs coming in short term

[catsick] 26/4/2024 07:22

Things seem to be slowly improving, I would prioritise buying back the bonds which are yielding 14% at the moment, low risk, they have to repay them/restructure in 2026 anyway and buying your debt at 86c on the dollar is a great way to reduce the net debt