Alliance Aviation says it is approaching the current year with confidence after a transition 2013/14 financial year where the charter and fly-in/fly-out airline operator posted a big drop in full year profit.
Net profit after tax (NPAT) for the 12 months to June 30 2014 came in at $10.3 million, down 58 per cent from $23.3 million in the prior corresponding period, Alliance said in a regulatory filing with the Australian Securities Exchange on Thursday.
The result was in line with company guidance issued on August 8.
Revenue fell 10 per cent to $200.1 million due to a reduction in wet-lease flying and ad-hoc charters, Alliance said.
The company described 2014 as a “transitional year” and one affected by a changing revenue mix and the start of some new contracts.
With that completed, Alliance was forecasting a return to revenue growth in 2014/15 and profit levels similar to the 2012/13 financial year.
“With recent contract wins and announcements, Alliance remains confident about the 2015 financial year and beyond,” Alliance said.
“The new contracts together with existing long term commitments provides confidence that Alliance will return to revenue and profit growth in 2015.
“This will mean that Alliance will deliver a NPAT result comparable with the 2013 result.”
About 74 per cent of forecast revenue for 2014/15 was secured by existing contracts, Alliance said.
Alliance had 25,162 flying hours in 2013/14, down from 31,940 hours in the prior year.
Highlighting the move away from wet lease and ad-hoc charters to long-term contracts, the proportion of wet lease flying hours fell to nine per cent of total flying hours in 2013/14, from 21 per cent the prior year.
“Despite a strong start to the year for charter income, ad-hoc charter income has reduced since October 2013 reflecting a softening in the economy,” Alliance said.
Alliance said it was “well aware of the changing priorities of a number of its clients and is working on innovative solutions to meet these changing requirements”.
The company had 17 Fokker 100 andsix Fokker 70 jet aircraft and five Fokker 50 turboprops in its fleet at June 30.
Directors declared a fully-franked dividend of 2.1 cents per share.