Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Airwork on track to meet FY target after 1H profit slips 18%

Airwork on track to meet FY target after 1H profit slips 18% on IPO costs, interest rate swaps

By Paul McBeth

Feb. 20 (BusinessDesk) - Airwork Holdings, the aviation services specialist which listed last December, is on track to meet its annual earnings target after first-half profit slid 18 percent on the cost of its initial public offer and a revaluation of its interest rate swaps.

Net profit fell to $4.6 million, or 10.6 cents per share, in the six months ended Dec. 31 from $5.6 million or 13.2 cents, a year earlier, the Auckland-based company said in a statement. Underlying earnings, which strips out $1.3 million in IPO costs and a $1.1 million loss on movements in financial instruments, increased to $6.6 million from $5.3 million. Airwork lifted first-half revenue 16 percent to $65.8 million.

“This result is in line with expectations for the first half of the 2014 financial year and Airwork is on target to meet the recent investment statement forecast for the full financial year of net profit after tax of $8.4 million,” chief executive Chris Hart said.

The board declared an interim dividend of 7 cents per share payable on April 4 with a record date of March 28.

The shares were sold at $2.60 apiece via a broker firm and institutional offer, raising $37.5 million. Of the total funds raised, $17.5 million was used by the company to acquire and cancel shares from majority shareholder Hugh Jones, leaving about $20 million to help fund the company’s growth plans.

The stock was last at $2.91, up 12 percent from the offer price.

The company’s helicopter unit boosted revenue 23 percent to $31.4 million, even as flying hours dropped 34 percent due to minimal flying in the South island fleet, which is in dispute with a customer.

The fixed wing unit boosted sales 9 percent to $34.5 million, and lifted flying hours 18 percent with more activity in Australia and Romania.

Operating cash flow edged up to $14.6 million in the period from $13.5 million a year earlier, while net debt dropped to $64.5 million as at Dec. 31 from $80.2 million a year earlier.

Airwork has a number of facilities maturing this calendar year and has a refinancing proposal from Commonwealth Bank of Australia which it expects will push out maturities to May 2018.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>