Airwork’s annual profit edges up to $24.8m

Airwork Holdings lifted annual profit 0.7 per cent, in line with its guidance, as a bigger fleet in its fixed wing division delivered better earnings offsetting a weaker result from its helicopter unit.

Net profit increased to $24.8 million in the 12 months ended June 30, from $24.6m in the prior year, the Auckland-based company said. In February, the company, which is 75 per centowned by China’s Zhejiang Rifa Holding Group, said it was expecting annual profit of $25m. Revenue rose 1.4 per cent to $168.4m.

The bottom line was bolstered by a $14.7m insurance payment, which more than offset a $13m impairment after a plane suffered major damage when it overshot a runway during a landing in Italy last year.

The increase in revenue and earnings was “due to significant expansion of the fixed wing division including the impact of contracts that commenced in the prior year”, said chief executive Chris Hart.

“The net gain on insurance associated with an Airwork owned aircraft incident in Europe in August 2016 (oper- ated and maintained by a third party, and, as referred to in prior announcements) has been offset by some nonrecurring costs associated with the introduction of additional freighter aircraft in NZ and Australia.”

Airwork’s board declared a final dividend of 9c a share. The shares closed down 18c yesterday at $4.32.