Doric Nimrod Air Three (DNA3) H2 2023 earnings summary

Executive summary

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

• The company declared and paid four quarterly dividends of 2.0625 pence per share, maintaining an annual rate of 8.25 pence per share.

• Market capitalization as of 12 July 2024 was £118.8 million, with shares trading at 54.0 pence.

• The company is preparing for lease expiries between August and November 2025, with plans for orderly wind-up or alternative asset strategies.

Financial highlights

• Total rental income for the year ended 31 March 2024 was £74.8 million, down from £77.5 million the previous year.

• Net profit for the year was £46.1 million, up from £29.6 million in the prior year.

• Earnings per share rose to 20.95 pence from 13.44 pence year-over-year.

• Net asset value per share increased to 45.08 pence from 32.38 pence.

• All borrowings were repaid during the year, reducing financial liabilities.

Outlook and guidance

• The company expects to continue paying quarterly dividends at the current rate until lease terminations in 2025.

• Directors have reasonable expectation of sufficient financial resources to meet obligations for at least twelve months from approval date.

• The board is considering options post-lease expiry, including asset sale, re-leasing, or reinvestment.