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)


Got a question about this story? Leave it in Comments & Questions below.

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

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7158 -0.0015 -0.21%
AUD 0.9333 0.0002 0.02%
EUR 0.6762 0.0000 0.00%
GBP 0.5745 -0.0008 -0.14%
HKD 5.5551 -0.0115 -0.21%
JPY 81.1780 -0.1270 -0.16%

Commods

Commodity Price Change Time
Gold Index 1234.8 -4.300 2017-02-17T00:
Oil Brent 56.1 0.140 2017-02-17T00:
Oil Nymex 53.8 0.020 2017-02-17T00:
Silver Index 18.0 -0.040 2017-02-17T00:

Indices

Symbol Open High Last %
NZX 50 7099.5 7116.2 7099.5 0.23%
NASDAQ 5807.3 5838.6 5814.9 0.41%
DAX 11818.0 11888.9 11827.6 0.39%
DJI 20564.1 20624.0 20619.8 0.02%
FTSE 7299.9 7319.0 7299.9 -0.30%
HKSE 24174.1 24213.6 24146.1 -0.76%
NI225 19267.9 19395.3 19251.1 0.68%
ASX 5795.1 5795.1 5795.1 -0.07%