Borrowings at the GPA Group dropped to $638 million (£440 million) at the end of September from $974 million a year earlier and $757 million at the end of March 1997, according to the latest results from the Shannon-based company. The results for the six months to end September showed that profits after tax fell to $15 million from $24 million for the corresponding period of 1996. But when exceptional gains and losses are stripped out, the underlying profits increased for the period. Profits after tax but before exceptional items rose to $22 million from $6 million. The exceptional loss of just over $7 million for the latest period included $4.6 million on valuation of derivatives and $2.5 million set aside for potential refinancing costs on the ALPS 94 fund. The exceptional loss for the period compared with an exceptional gain of $18 million, mainly on the sale of warrants, in the previous corresponding period.
The group's cash inflow from operating activities improved to $24 million from $22 million, helped by $19 million from aircraft sales compared with $5 million in the first half of 1996. Group revenue, or turnover, dropped to $140 million from $173 million while net interest costs fell to $5 million from $12 million. GPA attributed the lower turnover and interest costs to the restructuring of lease arrangements on 12 A320 aircraft and the repayment of $336 million of borrowings since the end of September 1996.
At the end of September 1997, GPA had shareholders funds of $283 million, up from $177 million. Cash holdings fell to $427 million from $673 million.
GPA chief executive Mr Patrick Blaney said the results reflected "generally favourable conditions" in the aircraft leasing market and the continuing reduction in the group's borrowings. The cash flow generated from the business is now more than sufficient to pay off borrowings, Mr Blaney said. GE Capital has an option until October 29th, 2001, to acquire the operation.
