Avation PLC flying high after raising guidance

Aircraft leasing company Avation (LON:AVAP) cheered the market by revealing full-year revenues are likely to be ahead of market expectations.

Net revenue in the year to the end of June 2014 is expected to rise by 29% year-on-year to around US$55mln from US$42.7mln the year before.

Profit before tax is set to rise by a quarter to US$17.5mln from US$14.0mln the year before, with earnings per share set to rise in line, to 29 cents from 23.25 cents.

Jeff Chatfield, executive chairman of Aviation said: "With one month left in this financial year we expect to report strong growth in group revenues and profits. We are encouraged that our strategy is demonstrating such visible growth.

“We are focused on continuing to grow our fleet rapidly, diversifying our customer base whilst continually improving profitability. We have already contracted additional commercial aircraft deliveries for the remainder of 2014.”

Avation’s overall fleet currently stands at 25 commercial passenger aircraft and should rise to 31 by the end of 2014, and to around 36 by the end of 2015.

“We look forward to 2015 with confidence as we enter an 18 month period in which growth in aircraft fleet will be at the highest level in the group’s history," Chatfield said.

Shares were up 6.5% on the trading update.