Airways Interim Report 2019

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2 GROUP STRUCTURE CONT.

Entity

Principal activity

Airways International Ltd

Revenue management, recruitment and training, and air navigation services and maintenance of systems

Airways Training Ltd

Aviation English Training

Aeropath Ltd

Aeronautical information management and procedural design and development services. A new entity incorporated 16 November 2018 to deliver unmanned aerial vehicle (UAV) and drone traffic management services (currently not trading)

Airshare Ltd

CHIEF EXECUTIVE’S REPORT

NOTE 3 NET GA I N ON SALE OF ASSETS Net gain on sale of assets is nil (2017: $4.4 million). 2017 included a gain on the sale of a parcel of land in Queenstown. NOTE 4 OTHER OPERAT I NG COSTS Other operating costs are up on the prior year as a result of the equipment costs incurred in delivering commercial business projects. These additional costs are offset by the corresponding increase in revenue. NOTE 5 NET F I NANCE EXPENSE Net finance expense of $0.324 million includes financing expenses of $1.226 million offset by capitalised interest of $0.902 million (2017: $0.09 million net). NOTE 6 D I V I DENDS PA I D A $4 million interim dividend has been delivered to shareholders over the reporting period. Airways expects to pay a total dividend of $12 million for the full year to 30 June 2019. NOTE 7 CASH AND CASH EQU I VALENTS Airways operates an overdraft facility to manage operational cash flow without the requirement to hold surplus cash on hand. The overdraft facility incurs interest rates on similar terms as long term borrowings and represents a critical component of Airways’ liquidity risk management strategy. NOTE 8 EMPLOYEE ENT I TLEMENTS Employee entitlements (current and non-current) is largely made up of accrued salary costs, annual leave, long service leave and retiring leave liabilities. NOTE 9 CAP I TAL COMM I TMENTS Airways had total capital commitments of $74.3 million as at 31 December 2018 ($86.6 million as at 31 December 2017). This programme will be funded through operating cash flow and increased debt, while remaining within current loan facilities and covenants. NOTE 1 0 CONT I NGENT L I AB I L I T I ES Airways has contingent liabilities of $1.383 million for performance bonds (2017: $0.449 million). NOTE 1 1 SUBSEQUENT EVENTS There have been no significant events occurring since balance date requiring disclosure.

FINANCIAL STATEMENTS

EVA KEY PERFORMANCE INDICATOR

CORPORATE DIRECTORY

Airways Interim Report 2018 2019

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