Genesis flies to a 55% increase in net profits

THE Limerick-based aircraft leasing group Genesis Leasing has announced solid quarter one results for 2007, their first set of figures since the group floated in New York in December of last year.

They show a 55% increase in net profits for the period which rose from $7.1m (€5.2m) to $11m (€8.061m).

Total sales over the same period rose by 17.4% to $42.2m from $36m.

The better figures were attributed to the increase in the number of aircraft on lease from 37 to 41 over the comparative periods.

Genesis has declared an interim dividend of 53 cents per share, payable on March 27.

In December it announced its intention to pay a dividend in the first quarter.

Genesis chief executive John McMahon said it was indicative of the group’s commitment to reward investors in the years ahead with dividend payments as the results permitted.

Looking ahead Mr McMahon spoke of the “positive industry trends where demand is outstripping supply”.

He also told analysts that most of the aircraft were on a 5.7 year lease on average and that all of the craft were leased at this stage.

Genesis, which is headquartered in Limerick, is led by executives with a strong background in the aircraft leasing business.

It also has forged links with GECAS, General Electric’s aircraft leasing operation, which will support Genesis by handling the practical details of putting leases in place and ensuring that aircraft are delivered on time.

At present four of the 41 leased by the group carry freight, which is a profitable segment of the business.

Mr McMahon said the group has a clear strategy for the business which it is confident it can deliver given the background of the senior management team and the solid financial backing it has been able to secure in such a short space of time.

It emerged during the conference call that 22 of the 41 aircraft also generated supplementary rental income.