Sharechat Logo

Airwork lifts annual forecast profit on strong helicopter unit trading

Wednesday 19th March 2014

Text too small?

Airwork Holdings, the aviation services specialist which listed last December, says annual profit will beat its offer document forecast by $1 million as its helicopter division operates ahead of expectations.

The Auckland-based company expects net profit of $9.4 million in the year ending June 30, up from the forecast $8.4 million in its initial public offer document, it said in a statement. The upgrade comes after Airwork affirmed the IPO forecast last month when reporting its first-half result.

The "helicopter division continues to perform strongly with trading and overhaul activity further improving ahead of expectations," it said.

The company's helicopter unit boosted first-half sales 23 percent to $31.4 million in the six months ended Dec. 31, even as flying hours dropped due to an ongoing dispute with a customer in the South Island.

Airwork said it had reached a satisfactory insurance settlement over an incident at Honiara Airport in the Solomon Islands in January, and has also signed a term sheet with lender Commonwealth Bank of Australia to refinance debt maturing in 2014 for another four years.

The shares rose 0.7 percent to $2.80 yesterday, and have gained 7.7 percent from their $2.60 offer price in December. First NZ Capital, which follows the stock, rates it a hold with a price target of $3.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report