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

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news