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

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news