Airwork forecasts 30% gain in full-year profit on strong 1Q performance from planes, choppers

Wednesday 11th November 2015

Airwork Holdings, the listed aviation services firm, forecast a 30 percent gain in annual profit, after strong performances from its helicopter and fixed-wing businesses in the first quarter.

The Auckland based company expects profit to rise to at least $20 million, or 40 cents a share, in the 12 months ending June 30, 2016, chief executive Chris Hart told shareholders at their annual meeting in Auckland. That's up from profit of $15.5 million on revenue of $144.9 million in the 2015 financial year. Airwork will increase its annual dividend for 2016 by 1 cent per share to 16 cents.

"The helicopter division continued to perform well in a difficult market, with an expansion of the helicopter leasing fleet and engineering revenues providing the backbone of group performance in 2015," Hart said in speech notes published on the NZX.

In June, Airwork extended its contract with Toll Group to service and maintain the logistic company's Australian express air freight business. It committed to replacing two of Toll's 737-300 aircraft with 737-400s, and has since purchased a third replacement aircraft to deliver it to Toll this financial year.

Airwork shares rose 1.2 percent to $3.40, and have gained 6.2 percent this year.

BusinessDesk.co.nz

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