Airwork Holdings boosts earnings as investment pays off

Specialist aviation company Airwork Holdings has delivered a 58 per cent boost in full-year profit to $24.6 million following strong earnings growth in its expanded fixed-wing aircraft business.

Revenue for the year ending June 30 increased by 15 per cent to $166m, while earnings before interest and tax (ebit) was up 51 per cent to $32.7m, the Auckland-based company said.

Income from external customers is now weighted to the rest of the world which accounts for $73m, while New Zealand earned $40.6m, and Australia $52.5m.

Airwork will pay a fully imputed final dividend of 8c on October 5, taking total dividends for the year to 17c a share.

Ebit growth of 91 per cent to $20.5m in the company’s fixed-wing division reflected the fleet expansion first announced two years ago. During the past financial year six B737-400 freighter aircraft conversions were completed and delivered to customers in New Zealand, Australia and Europe while a further two were delivered since balance date, leaving one remaining for delivery later this year.

The helicopter business also posted a solid performance with ebit growth of 16 per cent to $23.8m though revenue of $85.5m was similar to the prior year. Two helicopters have been added to the leasing fleet as the company continues to diversify and expand its global footprint with a downturn in the resources sector. Reduced flying in the oil and gas sector was offset by some highyielding short-term leases.

Expansion of the company’s helicopter engineering maintenance repair and overhaul facility at Ardmore was completed during the year.

Total capital expenditure increased in the year by $6m to $89.8m, funded through operating cash flow and debt with the debt ratio now at 64.6 per cent due to new aircraft investment.