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• Revenue: $92.4 million, consistent in 2024.

• Total Income: Down by $4 million due to lower foreign currency exchange gains and lower distributions from Virgin Australia's administration.

• Profit Before Tax: $30 million, includes an unrealized gain of $46.9 million on ATR aircraft purchase rights.

• Net Debt: Reduced by nearly $80 million.

• Debt Repayment: $18 million face value of unsecured notes repurchased at an average price of $0.856.

• Net Asset Value Per Share: Increased by 5.2% to $3.62.

• Lease Yield: Improved, expected to further improve to around 11% in the 2025 fiscal year.

• Net Debt to EBITDA: Reduced to 7.3 times from 12.6 times at the height of the COVID pandemic.

• Cash Overheads: Increased marginally by 3.1% to $10.3 million.

• Unrestricted Cash: $23.6 million at year-end.

• Total Receivables: Reduced by over $20 million during the 2024 fiscal year.

• Unencumbered Aircraft: Five aircraft with a combined book value of over $150 million.

• Scheduled Loan Repayments: $50 million for the 2025 fiscal year, funded entirely by contractual rent receipts.

• ATR Aircraft Orderbook: 12 aircraft, with the first two deliveries pre-sold, expected to release around $10 million in cash.

• Weighted Average Cost of Debt: Increased slightly to 6.4%.

• Warning! GuruFocus has detected 6 Warning Signs with LSE:AVAP.

Release Date: September 26, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Avation PLC (LSE:AVAP) reported a strong net profit for the year, despite higher IFRS 9 non-cash amortization.

• The company has a diversified fleet of 34 aircraft, including widebody, narrowbody, and turboprop, with a weighted average aircraft age of 7.3 years.

• Net debt was reduced by nearly $80 million, showing effective deployment of surplus cash flows.

• The fleet is 100% utilized, with successful placements of older aircraft and new leases.

• Avation PLC (LSE:AVAP) has a 10-year growth program with 12 ATR 72s on order, aiming to double the company's size over the period.

Negative Points

• Total income decreased by about $4 million due to lower foreign currency exchange gains and lower distributions from Virgin Australia's administration.

• The weighted average cost of debt increased slightly to 6.4%, impacting overall financial performance.

• The company faces potential delays in ATR aircraft deliveries, which could affect future operations.

• There is a significant tax charge this year due to adjustments in deferred tax provisions, which may not be repeated in future.

• The share price remains significantly below the net asset value, indicating potential market skepticism about the company's valuation.