Interim surge at Advent Air

16/03/2007 Robert Tyerman

Western Australian airline operator Advent Air is confident after lifting first-half profits 245 per cent to £1.3 million.

AIM-quoted Advent, which is based in Singapore and owns Skywest Airlines serving the mineral and oil and gas fields of Western Austalia, enjoyed enhanced profitability in the six months to December, with profits up three and a half times on a 58 per cent sales gain to nearly £20 million. The company, which paid no tax in the period in question, grew passenger numbers from scheduled airline operations and signed up several new long-term charter contracts, including one with Portman Iron Ore worth £700,000 a year.

Chairman Jeff Chatfield says the company is continuing to ‘strengthen relationships’ with resource companies and add new destinations, while maintaining a hedging policy to mitigate fuel price rises. He warns of the risk Advent could run from a downturn in commodity prices.

China Credit Holdings has emerged with 5.9 per cent of Advent, where Janco Investments has 17 per cent and RAB Capital 11.9 per cent. At 13.25p, up 0.25p this morning and valuing the company at £27 million, Advent shares have risen 55 per cent since Growth Company Investor’s recommendation a year ago.

Hold on for now.