AQZ 0.00% $3.10 alliance aviation services limited

I'm reading that they have already deducted from the underlying...

  1. 10,479 Posts.
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    I'm reading that they have already deducted from the underlying profit before tax of $56.9mil the 'operational and training expenses incurred in building capacity for FY24'(and not vice versa). Now there will be other expenses such as the QAN Scheme of Arrangement costs that will reduce Statutory NBPT but I would expect them to be limited in FY23.
    Also when we look at cashflow in this business, we have to realise that deprec & amort expense has probably amounted to $60mil in FY23
    and therefore I am still of the firm opinion that there will be a final dividend for FY23 declared due to the amounts of free cashflow being generated and the fact that Management can see that is very likely to continue.
    I would dare to say that most airlines have borrowings amounting to at least 70%+ of the WDV of their aircraft. At 31Dec22, AQZ had borrowings(incl leases) of $230mil against WDV of $546mil in non-current assets(mainly aircraft) or 42% - I don't believe that's high and it's unlikely to be much higher at 30Jun23.
 
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