RNS: AVAP
19 February 2015
AVATION PLC
(the "Company")
FINANCIAL RESULTS AND INTERIM MANAGEMENT REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
"Record number of new ATR 72 deliveries and significant reduction to cost of debt capital"
Avation PLC (LSE: AVAP) the commercial passenger aircraft leasing company is pleased to announce unaudited consolidated financial results for the six-month period ended 31 December 2014.
Highlights for the period are as follows:
• Revenue increased by 13% to US$27.7m compared with US$24.6m in the six months ended 31 December 2013;
• Avation generated earnings per share of 11.4 U.S. cents;
• The fleet increased to 29 aircraft (as at the date of this report), with five new ATR 72-600 aircraft delivered in the six month period ended 31 December 2014;
• The average cost of debt capital across the group further reduced to 4.6% (31 December 2013: 5.5%); and
• Avation established a medium term business pipeline and exercised options to place a firm order for five additional ATR 72-600 aircraft for delivery in 2016.
Avation expects to continue fleet growth with a minimum of 13 new aircraft scheduled to be delivered by the end of 2016. These aircraft represent an investment equivalent to approximately 61% of total assets as at 31 December 2014.
Commenting today, Avation PLC Chairman, Jeff Chatfield said:
"The Directors are pleased with the growth in Avation's core leasing business driven by a rapid rate of deliveries of new aircraft in the period. This growth has also seen the introduction of new airline customers that has further diversified the company's sources of revenue.
"The latest half-year period also saw the announcement of a sale and leaseback with Thomas Cook for two new Airbus A321 aircraft delivering in early 2016. This is the company's first sale and leaseback transaction of brand new aircraft."
"Avation also secured long term fleet growth by firming five delivery options for ATR72 aircraft for delivery in 2016. This takes the number of firm aircraft scheduled to be delivered between now and the end of 2016 to 13 aircraft. In addition to this Avation has 22 further options for future deliveries for ATR 72 aircraft for delivery from 2017 onwards."
"Growth in core leasing revenue and total fleet assets will through the execution of these contracted deliveries of aircraft. The Board is confident that this increase in the scale of the business combined with the significant reduction in average cost of debt across the fleet will continue to provide sustainable growth and drive future earnings."
Further information on Avation PLC can be seen at: www.avation.net. Avation PLC is registered in England and Wales with its operational headquarters in Singapore.
Enquiries:
Avation Plc - Jeff Chatfield, Executive Chairman +65 97354151
WH Ireland - Harry Ansell / James Joyce +44 207 220 1666
Blytheweigh- Tim Blythe / Alex Shilov / Andrea Benton +44 207 138 3204
Statement and Interim Management Report
by the Executive Chairman, Jeff Chatfield:
Dear Fellow Shareholder,
Introduction
Your Board is pleased to report that during the six month period ended 31st December 2014 the group generated consolidated profit after tax of US$6,289,523 and earnings per share of 11.4 cents on increased revenues of US$27,677,505. As at 31 December 2014, total assets increased to US$503,207,871. Corresponding liabilities increased to US$381,549,170 resulting in net assets and total equity of US$121,658,701.
The Company enjoyed a 13% increase in revenue to US$27,677,505 ($24,560,737 in the comparable prior period). This revenue increase is consistent with expectations and is a consequence of the continued expansion in the aircraft fleet.
Fleet Development
The Company's aircraft fleet currently comprises 29 aircraft which generates a gross rental yield of approximately 13 per cent, calculated from the book value as at 31 December 2014. The Company has a customer base of airlines in Europe and Asia/Pacific. Avation understands that it is the now the second largest lessor of turbo-prop aircraft in Asia/Pacific.
The fleet is comprised of a diverse range of commercial passenger aircraft, including ATR 72 turbo-prop and Airbus A320, Airbus A321 and Fokker 100 jet aircraft.
The Company took a significant step forward during the period by securing the sale and leaseback of two new Airbus A321 jet aircraft with Thomas Cook, with delivery of these aircraft scheduled for early 2016. Sale and leaseback is one of the key acquisition opportunities for new aircraft for an aircraft lessor such as Avation. The ATR 72 turbo-prop fleet will continue to grow, with five additional ATR 72 aircraft scheduled for delivery by December 2015 and a further six aircraft in 2016.
Funding
There has been a significant reduction to the weighted average cost of capital which 4.6% as at 31 December 2014 (31 December 2013: 5.5%) on debt funding for the fleet, which remains the largest cash operating expense. During the reporting period the Group secured a $31m re-finance on two existing Airbus A321 aircraft, a transaction that demonstrates the ability of the Group to re-finance core assets and release equity from the balance sheet to fund growth. Access to funding nevertheless remains a risk, which is common to all leveraged and capital intensive businesses. Avation also remains subject to specific aviation based industry risks including the credit worthiness of client airlines.
Dividend
As announced at the Annual General Meeting held on 24 November 2014 the Company previously paid a final dividend of 2.01 cents per share on 12 January 2015.
Outlook
The Board of Directors is strongly committed to further developing the Avation business and remains confident that it can achieve continued and sustainable growth throughout 2015 and 2016 through the contracted deliveries of new aircraft. The Directors anticipate additional growth in lease revenues arising from future aircraft acquisitions. As at the date of this report the Company has firm orders for 11 new ATR 72 and two new Airbus A321 aircraft and holds further options and purchase rights for an additional 22 ATR 72 aircraft.
Jeff Chatfield,
Executive Chairman
18 February 2015
AVATION PLC
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
|
31 December 2014 |
31 December 2013 |
|
US$ |
US$ |
Cash flows from operating activities: |
|
|
Profit before taxation |
6,978,491 |
7,894,478 |
Adjustments for: |
|
|
Depreciation expense |
8,489,141 |
7,466,753 |
Property, plant and equipment written off |
12,238 |
- |
Claim on maintenance reserve |
- |
70,240 |
Amortisation of loan premium |
539,120 |
539,120 |
Amortisation of interest expense on deposit collected |
162,894 |
- |
Warrant expense |
90,004 |
- |
Interest expense |
8,185,193 |
7,679,394 |
Finance income |
(155,908) |
- |
Interest income |
(72,713) |
(11,003) |
Operating profit before working capital changes |
24,228,460 |
23,638,982 |
Movement in working capital: |
|
|
Trade and other receivables and prepayments |
6,444,664 |
(640,261) |
Deferred lease income |
(72,878) |
- |
Trade and other payables |
2,524,968 |
6,443,812 |
Short-term provisions |
491,607 |
(3,827,321) |
Cash from operations |
33,616,821 |
25,615,212 |
Interest paid |
(7,311,879) |
(7,321,594) |
Interest received |
72,713 |
11,003 |
Corporation tax paid |
(140,021) |
(788,451) |
Net cash from operating activities |
26,237,634 |
17,516,170 |
|
|
|
Cash flows from investing activities: |
|
|
Loan receivables |
(13,400,000) |
- |
Purchase of property, plant and equipment |
(91,120,837) |
(17,803,062) |
Purchase of additional shares in a subsidiary from NCI |
(842,648) |
- |
Repurchase of a subsidiary's treasury shares |
(383,763) |
- |
Net cash used in investing activities |
(105,747,248) |
(17,803,062) |
|
|
|
Cash flows from financing activities: |
|
|
Net proceeds from issuance of ordinary shares |
6,870,041 |
- |
Dividends paid |
(1,118,841) |
(866,621) |
Repurchase of treasury shares |
- |
(467,835) |
Proceeds from loans and borrowings |
88,490,242 |
16,602,575 |
Repayment of loans and borrowings |
(16,175,347) |
(11,474,086) |
Capital element of finance lease repayments |
- |
(1,313,494) |
Net cash from financing activities |
78,066,095 |
2,480,539 |
Effects of exchange rates on cash and cash equivalents |
(12,599) |
(48) |
Net (decrease) / increase in cash and cash equivalents |
(1,456,118) |
2,193,599 |
Cash and cash equivalents at beginning of financial year |
23,394,739 |
19,623,244 |
Cash and cash equivalents at end of financial year |
21,938,621 |
21,816,843 |
|
|
|
|
AVATION PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
The Interim Report for Avation PLC for the six months ended 31 December 2014 was approved by the Directors on 18 February 2015.
1 CORPORATE INFORMATION
Avation PLC (the Company) is a public limited company incorporated and domiciled in England and Wales under the Companies Act 2006 (Registration Number 05872328).
The principal activities of the Company and its subsidiaries are the holding of investments involved in owning, leasing aircraft and trading of broadcasting equipment and procurement business. The Company also owns and leases aircraft in its own right.
2 BASIS OF PREPARATION AND ACCOUNTING POLICIES
This Interim Report has been prepared in accordance with the Disclosure and Transparency Rules (DTR) of the Financial Services Authority and in accordance with International Accounting Standard (IAS) 34 'Interim Reporting'.
The Interim Report does not include all the notes of the type normally included within the annual report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financial and investing activities of the consolidated entity as the full financial report.
It is recommended that the Interim Report be read in conjunction with the annual report for the year ended 30 June 2014 and considered together with any public announcements made by Avation PLC during the six months ended 31 December 2014.
The accounting policies and methods of computation are the same as those adopted in the annual report for the year ended 30 June 2014.
The preparation of the Interim Report requires management to make estimates and assumptions that affect the reported income and expense, assets and liabilities and disclosure of contingencies at the date of the interim Report, actual results may differ from these estimates.
The statutory financial statements of Avation PLC for the year ended 30 June 2014, which carried an unqualified audit report, have been delivered to the Registrar of Companies and did not contain section 498 of the Companies Act 2006.
The Interim Report is unaudited and not reviewed by the auditors.
The Interim Report does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006.
AVATION PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
3 SEGMENT INFORMATION
Management has determined the operating segments based on the reports reviewed by the Executive Chairman ("Chief Operating Decision Maker" or "CODM") that are used to make strategic decisions.
The CODM considers the business from a business segment perspective. Management manages and monitors the business in the 2 primary business areas: aircraft leasing and business procurement.
a) Segment reporting policy
A segment is a distinguishable component of the Group within a particular economic environment (geographical segment) and to a particular industry (business segment) which is subject to risks and rewards that are different from those of other segments.
The business segments, is based on the Group's management and internal reporting structure. In presenting information on the basis of business segments, segment revenue and segment assets are based on the nature of the products or services provided by the Group, information for geographical segments is based on the geographical areas where the customers are located.
Inter-segment pricing is determined on an arm's length basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly of corporate assets and liabilities or profit or losses items that are not directly attributable to a segment or those that cannot be allocated on a reasonable basis. Common expenses were allocated based on revenue from the Group.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one year.
b) Business segments
During the six months ended 31 December 2014, the Group was organised into two main business segments which are aircraft leasing and business procurement.
Other operations of the Group mainly comprise investment holding which does not constitute a separate reportable segment. There are no inter-segment transactions recorded during the financial period.
The business procurement segment does not meet the quantitative thresholds and is not separately disclosed.
AVATION PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
3 SEGMENT INFORMATION (CON'T)
c) Geographical analysis
|
Europe |
North America |
Australia and Oceania |
Asia |
Total |
|
US$ |
US$ |
US$ |
US$ |
US$ |
31 December 2014 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
6,445,452 |
146,667 |
20,106,708 |
978,678 |
27,677,505 |
|
|
|
|
|
|
31 December 2014 |
|
|
|
|
|
|
|
|
|
|
|
Net book value - aircraft |
95,181,843 |
- |
293,638,704 |
54,255,791 |
443,076,338 |
|
|
|
|
|
|
Total assets |
120,164,162 |
16,277,160 |
294,975,756 |
71,790,793 |
503,207,871 |
|
|
|
|
|
|
|
Europe |
North America |
Australia and Oceania |
Asia |
Total |
|
US$ |
US$ |
US$ |
US$ |
US$ |
31 December 2013 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
5,800,000 |
350,000 |
18,410,737 |
- |
24,560,737 |
|
|
|
|
|
|
30 June 2014 |
|
|
|
|
|
|
|
|
|
|
|
Net book value - aircraft |
79,215,923 |
6,841,366 |
281,207,642 |
- |
367,264,931 |
|
|
|
|
|
|
Total assets |
96,652,653 |
6,841,366 |
307,695,428 |
4,438,868 |
415,628,315 |
|
|
|
|
|
|
|
|
|
|
|
|
AVATION PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
4 REVENUE
|
|
|
|
|
31 December 2014 |
31 December 2013 |
|
|
US$ |
US$ |
|
|
|
|
Rental income |
|
27,677,505 |
24,560,737 |
|
|
|
|
|
|
|
|
|
|
|
|
5 OTHER INCOME
|
|
|
|
|
31 December 2014 |
31 December 2013 |
|
|
US$ |
US$ |
|
|
|
|
Interest income |
|
72,713 |
11,003 |
Foreign currency exchange adjustment gain |
|
- |
208,003 |
Finance income from the discounting of non-current deposits to present value |
|
155,908 |
- |
Profit from sale of property, plant and equipment |
|
- |
1,433,784 |
Others |
|
380,706 |
62 |
|
|
|
|
|
|
|
|
|
|
609,327 |
1,652,852 |
|
|
|
|
|
|
|
|
|
|
|
|
6 OTHER OPERATING EXPENSES
|
|
|
|
|
31 December 2014 |
31 December 2013 |
|
|
US$ |
US$ |
|
|
|
|
Claim on maintenance reserve expense |
|
- |
70,240 |
Foreign currency exchange adjustment loss |
|
573,525 |
- |
Depreciation of property, plant and equipment |
|
8,489,141 |
7,466,753 |
|
|
|
|
|
|
|
|
|
|
9,062,666 |
7,536,993 |
|
|
|
|
|
|
|
|
|
|
|
|
AVATION PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
7 FINANCE EXPENSES
|
|
|
|
|
31 December 2014 |
31 December 2013 |
|
|
US$ |
US$ |
|
|
|
|
Interest expense on borrowings |
|
8,185,193 |
7,679,394 |
Amortisation of loan insurance premium |
|
539,120 |
539,120 |
Notional interest on deposit collected |
|
162,894 |
- |
|
|
|
|
|
|
|
|
|
|
8,887,207 |
8,218,514 |
|
|
|
|
|
|
|
|
|
|
|
|
8 PROPERTY, PLANT AND EQUIPMENT
|
Furniture and equipment |
Jet |
Turbo Props |
Total |
|
US$ |
US$ |
US$ |
US$ |
31 December 2014 |
|
|
|
|
Cost or valuation: |
|
|
|
|
|
|
|
|
|
At 1 July 2014 |
133,151 |
177,595,796 |
252,999,855 |
430,728,802 |
Additions |
161,011 |
- |
90,959,826 |
91,120,837 |
Disposal/written off |
(87,297) |
- |
- |
(87,297) |
Reclassification |
- |
(13,477,625) |
- |
(13,477,625) |
|
|
|
|
|
|
|
|
|
|
At 31 December 2014 |
206,865 |
164,118,171 |
343,959,681 |
508,284,717 |
|
|
|
|
|
|
|
|
|
|
Representing: |
|
|
|
|
At cost |
206,865 |
- |
- |
206,865 |
At valuation |
- |
164,118,171 |
343,959,681 |
508,077,852 |
|
|
|
|
|
|
|
|
|
|
|
206,865 |
164,118,171 |
343,959,681 |
508,284,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment: |
|
|
|
|
|
|
|
|
|
At 1 July 2014 |
72,951 |
48,129,215 |
15,201,505 |
63,403,671 |
Depreciation charge |
30,722 |
3,414,208 |
5,044,211 |
8,489,141 |
Disposal/written off |
(75,059) |
- |
- |
(75,059) |
Reclassification |
- |
(6,787,625) |
- |
(6,787,625) |
|
|
|
|
|
|
|
|
|
|
At 31 December 2014 |
28,614 |
44,755,798 |
20,245,716 |
65,030,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount: |
|
|
|
|
|
|
|
|
|
At 1 July 2014 |
60,200 |
129,466,581 |
237,798,350 |
367,325,131 |
|
|
|
|
|
|
|
|
|
|
At 31 December 2014 |
178,251 |
119,362,373 |
323,713,965 |
443,254,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVATION PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
8 PROPERTY, PLANT AND EQUIPMENT (CONT'D)
|
Furniture and equipment |
Jet |
Turbo Props |
Total |
|
US$ |
US$ |
US$ |
US$ |
30 June 2014 |
|
|
|
|
Cost or valuation: |
|
|
|
|
|
|
|
|
|
At 1 July 2013 |
20,120 |
177,595,796 |
217,015,882 |
394,631,798 |
Additions |
113,031 |
- |
71,662,590 |
71,775,621 |
Disposal |
- |
- |
(35,678,617) |
(35,678,617) |
|
|
|
|
|
|
|
|
|
|
At 30 June 2014 |
133,151 |
177,595,796 |
252,999,855 |
430,728,802 |
|
|
|
|
|
|
|
|
|
|
Representing: |
|
|
|
|
At cost |
133,151 |
- |
- |
133,151 |
At valuation |
- |
177,595,796 |
252,999,855 |
430,595,651 |
|
|
|
|
|
|
|
|
|
|
|
133,151 |
177,595,796 |
252,999,855 |
430,728,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment: |
|
|
|
|
|
|
|
|
|
At 1 July 2013 |
12,411 |
39,646,096 |
7,772,902 |
47,431,409 |
Depreciation charge |
60,540 |
7,769,869 |
7,428,603 |
15,259,012 |
Impairment |
- |
713,250 |
- |
713,250 |
|
|
|
|
|
|
|
|
|
|
At 30 June 2014 |
72,951 |
48,129,215 |
15,201,505 |
63,403,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount: |
|
|
|
|
|
|
|
|
|
At 1 July 2013 |
7,709 |
137,949,700 |
209,242,980 |
347,200,389 |
|
|
|
|
|
|
|
|
|
|
At 30 June 2014 |
60,200 |
129,466,581 |
237,798,350 |
367,325,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVATION PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
9 SHARE CAPITAL AND TREASURY SHARES
a) Share capital
|
31 December 2014 |
30 June 2014 |
|
No of shares |
US$ |
No of shares |
US$ |
|
|
|
|
|
Allotted, called up and fully paid Ordinary shares of 1 penny each |
|
|
|
|
At 1 July |
49,604,639 |
891,301 |
48,822,960 |
878,519 |
Issue of shares |
6,059,088 |
99,457 |
781,679 |
12,782 |
|
|
|
|
|
|
|
|
|
|
At 31 December/30 June |
55,663,727 |
990,758 |
49,604,639 |
891,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The holders of ordinary shares (except for treasury shares) are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restrictions.
a) On 3 July 2014, the Company issued 3,000,000 ordinary shares of 1 penny each at 140 pence following a private placement exercise raising gross proceeds of £4.2 million (equivalent to US$7,193,760).
b) On 24 September 2014, the Company issued 273,027 ordinary shares of 1 penny at each at 164 pence each as consideration for the acquisition of 2,184,216 ordinary shares in its subsidiary, Capital Lease Aviation PLC.
c) On 20 November 2014, the Company issued 2,786,061 ordinary shares of 1 penny at each at 164 pence each as consideration for the acquisition of 21,065,334 ordinary shares in its subsidiary, Capital Lease Aviation PLC.
b) Treasury shares
|
31 December 2014 |
30 June 2014 |
|
No of treasury shares |
US$ |
No of treasury shares |
US$ |
|
|
|
|
|
At 1 July |
450,000 |
682,333 |
150,000 |
214,498 |
Acquired during the period |
- |
- |
300,000 |
467,835 |
|
|
|
|
|
|
|
|
|
|
At 31 December /30 June |
450,000 |
682,333 |
450,000 |
682,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVATION PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
10 DIVIDENDS PAID
|
|
31 December 2014 |
31 December 2013 |
|
|
US$ |
US$ |
|
|
|
|
Declared/paid during the 6 months ended 31 December 2014 |
|
|
|
|
|
|
|
Dividends on ordinary shares |
|
|
|
- Final exempt (one-tier) dividend for 2014:2.01 US cents (2013:1.78 US cents) per share |
|
1,118,841 |
866,621 |
|
|
|
|
|
|
|
|
|
|
|
|
No dividends have been declared subsequent to 31 December 2014.
11 CONTINGENT LIABILITIES
There were no material changes in contingent liabilities since 30 June 2014.
12. TRANSACTIONS WITH RELATED PARTIES
Significant related party transactions:
|
|
|
|
|
31 December 2014 |
31 December 2013 |
|
|
US$ |
US$ |
|
|
|
|
Entities controlled by key management personnel (including directors): |
|
|
|
Interest income |
|
2,383 |
5,140 |
Rental expense paid |
|
(9,182) |
- |
Service fee paid |
|
(36,000) |
(4,830) |
Interest expense paid |
|
(223,332) |
(326,294) |
|
|
|
|
|
|
|
|
|
Ex-director of a subsidiary: |
|
|
|
|
Interest expense paid |
|
- |
19,654 |
|
|
|
|
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The nature and contractual terms of key management compensation and inter-company transactions during the period are consistent with the disclosures in the Annual Report for the year ended 30 June 2014.
13 EVENTS AFTER THE BALANCE SHEET DATE
On 13 February 2015 the Company announced it had terminated the lease of one aircraft and entered into a conditional sale agreement to sell this and one other aircraft to be delivered in 2015 at prices consistent with current market values.
PRINCIPAL RISKS
The Group's risk management processes bring greater judgement to decision making as they allow management to make better, more informed and more consistent decisions based on a clear understanding of risks involved. We regularly review the risk assessment and monitoring process as part of our commitment to continually improve the quality of decision-making across the Group.
The principal risks and uncertainties which may affect the Group in the second half of the financial year will include the typical risks associated with the aviation business, including but not limited to any downturn in the global aviation industry, fuel costs, finance costs, war and terrorism and the like which may affect our airline customers' ability to fulfil their lease obligations.
The business also relies on its ability to source finance on favourable terms. Should this supply of finance contract, it would limit our fleet expansion and therefore growth.
GOING CONCERN
After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. The financial risk management objectives and policies of the Group and the exposure of the Group to credit risk and liquidity risk are discussed in the annual report for the Group for the year ended 30 June 2014.
DIRECTORS
The directors of Avation PLC are listed in its Annual Report for the year ended 30 June 2014. A list of the current directors is maintained on the Avation PLC website: www.avation.net.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that, to the best of their knowledge, this condensed consolidated interim financial information have been prepared in accordance with IAS 34 as adopted by the European Union and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 namely
· an indication of important events that have occurred during the first six months and their impact on the Interim Report, and a description required by the principal risks and uncertainties for the remaining six months of the financial year; and
· material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.
By order of the Board
Jeff Chatfield
Executive Chairman
18 February 2015
