Secondary Recommendation

Avation - Aircraft leasing group forecast to grow eps 116% by 2016

December 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The rising costs of running a commercial aircraft have long encouraged airlines to switch to leasing planes as an alternative to buying them outright and a new report forecasts that the global market for aircraft leasing will balloon to a whopping US$319bn by 2018. One company that is exploiting this trend with aplomb is Avation, a fully-listed aircraft leasing business, which was only established in 2006 but which has grown extremely rapidly. For the year ended June 2013 its pretax profit jumped from US$10.7m to US$14.9m while eps has increased from 18.9 cents to 23.2 cents and following a massive upgrade broker Liberum now expects eps to hit 29.4 cents next year, before rocketing to 42.5 cents in 2015 and 50.1 cents in 2016. Ava ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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