avation - Impairment weighs on results but liquidity is healthy

Davy Research
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Avation’s FY 2020 results, including an impairment charge of $35.5m, demonstrate the difficulties that COVID-19 has exerted on the industry. However, Avation has been proactive on liquidity -preserving and rejigging the amortisation schedule of its secured debt – thus, it finished the year with slightly better cash on hand year-on-year. In that context, it remains difficult to explain the $145m of market value that Avation has lost since February.