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

 


Airwork annual profit climbs 52 percent, beating forecast

Airwork annual profit climbs 52 percent, beating forecast

By Paul McBeth

Aug. 28 (BusinessDesk) - Airwork Holdings, the aviation services firm which listed last December, boosted annual profit 52 percent on the strength of its helicopter engineering unit, beating guidance. The shares gained.

Net profit rose to $9.83 million, or 20.8 cents per share, in the 12 months ended June 30, from $6.47 million, or 15.2 cents, a year earlier, the Auckland-based company said in a statement. That beat the $9.4 million guidance it gave in March, and the $8 million forecast in its December offer document. Revenue rose 5.9 percent to $125.4 million, in line with the prospectus forecast.

"Airwork has undertaken a successful IPO and NZX listing, exceeded its growth targets and laid the foundations for further growth in the current financial year and beyond," chairman Mike Daniel said. "Underpinning our performance was the certification of key areas of the helicopter engineering business (including engine modification and upgrade programmes) by European and North American regulatory agencies, opening further market opportunities that we are well positioned to develop."

The aviation company raised $37.5 million in an initial public offer last December, of which $20 million was set aside to fund its growth plans. Airwork anticipates more earnings growth in 2015, with the helicopter division focusing on organic growth through extending its engineering and maintenance capacity and expanding its fleet in emerging markets. It will focus further on refining its fixed wing segment, reducing unscheduled and charter flying hours, cutting down on costs and expanding its dry lease fleet and customer base to widen margins.

The shares rose 1.9 percent to $2.70, and have gained 3.8 percent from the $2.60 offer price last year. The stock is rated a 'hold' by First NZ Capital, with a price target of $3.15, according to Reuters data.

The board declared a final dividend of 8 cents per share, payable on Oct. 10 with an Oct. 3 record date. That takes the annual payout to 15 cents, beating the 14 cents dividend forecast in the December offer document, and up from 10 cents a year earlier.

Chief executive Chris Hart said there were "significant growth opportunities" for the helicopter engineering and leasing business, with US aircraft acquisitions being refurbished, then leased or sold to generate more revenue streams.

The helicopter segment lifted revenue from external customers 21 percent to $64.3 million, and increased operating earnings 30 percent to $14 million. The fixed wing unit reported a 6.6 percent drop in revenue to $61 million, while earnings gained 26 percent to $11.7 million.

Airwork generated operating cashflow of $44.6 million in the year, compared to $22.5 million a year earlier. It had cash and equivalents of $2.4 million as at June 30, with net debt of $52.4 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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