Airwork lifts annual forecast profit on strong helicopter unit trading

Chris Hart, Chief Executive Officer
Airwork Holdings 12-month price history (NZX.com)

Airwork Holdings [NZX: AWK], 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)

This article is tagged with the following keywords. Find out more about My Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7845 0.0017 0.22%
AUD 0.8994 0.0002 0.02%
EUR 0.6203 0.0010 0.16%
GBP 0.4929 0.0003 0.06%
HKD 6.0847 0.0131 0.22%
JPY 84.0120 0.0180 0.02%

Commods

Commodity Price Change Time
Gold Index 1233.8 -1.760 2014-10-14T00:
Oil Brent 85.4 -4.470 2014-10-14T00:
Oil Nymex 81.2 -4.530 2014-10-14T00:
Silver Index 17.4 0.035 2014-10-14T00:

Indices

Symbol Open High Last %
NZX 50 5145.9 5168.7 5145.9 0.33%
NASDAQ 4246.2 4281.3 4213.6 0.32%
DAX 8765.4 8854.4 8812.4 0.15%
DJI 16321.9 16463.7 16321.1 -0.04%
FTSE 6366.2 6403.4 6366.2 0.42%
HKSE 23087.5 23230.3 23048.0 0.67%
NI225 15009.8 15044.3 14936.5 -0.13%