LONDON (ShareCast) - Contributions from new contracts with Qantas and US firm ACTS helped aircraft spares group Aero Inventory boosted interim profits by over 50% with the group anticipating more growth over the remainder of the year.
"'Business so far this financial year has been buoyant, with initial sales to ACTS substantially above our original expectations. As a consequence, Aero Inventory is well placed to achieve significant further sales and profit growth for the year, although higher-than-expected sales will inevitably involve further investment in stock during the second half," chief executive Rupert Lewin said.
Profits rose by pre-tax profit of $22.7m, an increase of 56% over $14.5m. Sales rose by 91% to $165.1m, reflecting one and a half months of sales from the new ACTS contract in the US and a full six month contribution from the Qantas contract. Operating profits rose by 90% to $30.8m.
Aero said that net debt at the half year was $309.2m versus $111.8m at 30 June 2007, reflecting increased stocks to support the new contracts. In February it agreed a new $425m lending facility.
