Doric Nimrod Air Three (DNA3) H1 2024 earnings summary

Executive summary

• Four Airbus A380 aircraft remain leased to Emirates, with all lease payments made on time and all associated debt fully repaid as of May 2023.

• Two interim dividends of 2.0625 pence per share were paid during the period, with a further dividend declared post-period.

• The company’s share price was 61.0 pence as of 6 December 2024, with a market capitalization of £134.3 million.

• Emirates exercised options for redelivery of aircraft in half-life condition, triggering $12 million per aircraft compensation at lease expiry.

• The company is preparing for lease expiries between August and November 2025 and an orderly wind-up or alternative strategies in 2026.

Financial highlights

• Net profit for the period was £22.0 million, down from £24.0 million year-over-year.

• Total rental income was £36.3 million, compared to £38.6 million in the same period last year.

• Earnings per share were 10.01 pence, down from 10.91 pence year-over-year.

• Net asset value per share increased to 50.97 pence from 45.08 pence at 31 March 2024.

• Cash and cash equivalents stood at £15.0 million as of 30 September 2024.

Outlook and guidance

• The board expects continued dividend payments at 2.0625 pence per quarter per share until lease terminations in 2025.

• Directors believe Emirates will continue to meet lease obligations through November 2025, supported by strong financials and no requests for lease deferral.

• The company is actively planning for end-of-lease scenarios, including potential asset sales, re-leasing, or wind-up.