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Abu Dhabi Aviation Abu Dhabi Aviation Consolidated financial statements 31 December 2018 Principal business address: P. O. Box 2723 Abu Dhabi United Arab Emirates Abu Dhabi Aviation Consolidated financial statements Contents Page Independent auditors’ report 1 Consolidated statement of financial position 8 Consolidated statement of profit or loss 10 Consolidated statement of profit or loss and other comprehensive income 11 Consolidated statement of changes in equity 12 Consolidated statement of cash flows 14 Notes to the consolidated financial statements 16 Abu Dhabi Aviation Consolidated statement of financial position as at 31 December 2018 2017 Note AED’000 AED’000 Assets Non-current assets Property and equipment 6 2,585,458 2,637,323 Investment properties 7 410,363 355,614 Investments 8 88,115 54,740 Investment in joint ventures 9 53,645 46,889 ____________ ____________ Total non-current assets 3,137,581 3,094,566 ____________ ____________ Current assets Inventories 469,949 442,235 Trade receivables 10 539,613 454,877 Prepayments and other current assets 12 178,998 195,198 Cash and deposits with banks 13 474,223 503,154 Assets held for sale 14 8,975 8,975 ____________ ____________ Total current assets 1,671,758 1,604,439 ____________ ____________ Total assets 4,809,339 4,699,005 ================== ================== Equity Share capital 15 444,787 444,787 Share premium 112,320 112,320 Reserves 16 1,873,533 1,762,407 Retained earnings 446,653 427,438 ____________ ____________ Equity attributable to owners of the Company 2,877,293 2,746,952 Non-controlling interests 18 321,578 268,522 ____________ ____________ Total equity 3,198,871 3,015,474 ================== ================== Liabilities Non-current liabilities Provision for employees’ end of service benefits 19 145,462 142,519 Non-current portion of term loans 20 489,225 806,040 Non-current portion of finance lease liabilities 21 113,881 115,121 Non-current portion of deferred income 22 213,505 267,186 ____________ ____________ Total non-current liabilities 962,073 1,330,866 ____________ ____________ Continued… 8 Abu Dhabi Aviation Consolidated statement of profit or loss for the year ended 31 December 2018 2017 Note AED’000 AED’000 Revenue from contracts with customers 24 1,806,762 1,606,575 Direct operating costs 25 (1,378,566) (1,223,827) ____________ ____________ Gross profit 428,196 382,748 General and administrative expenses 26 (200,580) (190,021) Gain on change in fair value of investment properties 7 15,239 74 Income from investment properties 19,495 13,523 Property rental expense (3,175) (2,130) Gain / (loss) on disposal of property and equipment 6,786 (27,647) Impairment loss on property and equipment 6 (16,078) (59,493) Net (charge) / reversal of impairment loss on trade receivables 10 (12,765) 19,333 Amortisation of deferred income 22 55,223 161,097 Share of profit of joint ventures 6,756 5,081 Finance income 9,249 3,625 Finance costs (44,540) (38,474) Other income 20,660 15,827 Investments at FVTPL – net change in fair value 15 - ____________ ____________ Profit for the year 284,481 283,543 ========= ========= Profit for the year attributable to: Owners of the Company 231,425 243,612 Non-controlling interests 18 53,056 39,931 ____________ ____________ 284,481 283,543 ========= ========= Basic and diluted earnings per share (AED) 27 0.52 0.55 ========= ========= The notes set out on pages 16 to 66 form an integral part of these consolidated financial statements. The independent auditors’ report is set out on pages 1 to 7. 10 Abu Dhabi Aviation Consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2018 2017 Note AED’000 AED’000 Profit for the year 284,481 283,543 Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Foreign currency translation differences 7 (7,742) 11,488 Debt investments at FVOCI – net change in fair value (4,385) - __________ __________ Other comprehensive (loss) / income for the year (12,127) 11,488 __________ __________ Total comprehensive income for the year 272,354 295,031 ======== ======== Total comprehensive income attributable to: Owners of the Company 219,298 255,100 Non-controlling interests 53,056 39,931 __________ __________ 272,354 295,031 ======== ======== The notes set out on pages 16 to 66 form an integral part of these consolidated financial statements. The independent auditors’ report is set out on pages 1 to 7. 11 Abu Dhabi Aviation Consolidated statement of changes in equity for the year ended 31 December 2018 Equity attributable Non- Share Share Retained to owners of controlling capital premium Reserves earnings the Company interests Total AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Balance at 1 January 2018 444,787 112,320 1,762,407 427,438 2,746,952 268,522 3,015,474 ___________ _____________ ____________ ____________ ____________ ____________ ____________ Profit for the year - - - 231,425 231,425 53,056 284,481 Other comprehensive loss for the year - - (12,127) - (12,127) - (12,127) ___________ _____________ ____________ ____________ ____________ ____________ ____________ Total comprehensive income - - (12,127) 231,425 219,298 53,056 272,354 Dividends (Note 17) - - - (88,957) (88,957) - (88,957) Transfer to legal reserve (Note 16) - - 23,253 (23,253) - - - Transfer to maintenance and fleet replacement reserve - - 100,000 (100,000) - - - ___________ _____________ ____________ ____________ ____________ ____________ ____________ Balance at 31 December 2018 444,787 112,320 1,873,533 446,653 2,877,293 321,578 3,198,871 =========== =============== ============== ============== ============== ============= ============= Continued… 12 Abu Dhabi Aviation Consolidated statement of changes in equity (continued) for the year ended 31 December 2017 Equity attributable Non- Share Share Retained to owners of controlling capital premium Reserves earnings the Company interests Total AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Balance at 1 January 2017 444,787 112,320 1,593,381 416,978 2,567,466 228,591 2,796,057 ___________ _____________ ____________ ____________ ____________ ____________ ____________ Profit for the year - - - 243,612 243,612 39,931 283,543 Other comprehensive income for the year - - 11,488 - 11,488 - 11,488 ___________ _____________ ____________ ____________ ____________ ____________ ____________ Total comprehensive income - - 11,488 243,612 255,100 39,931 295,031 Dividends (Note 17) - - - (75,614) (75,614) - (75,614) Transfer to legal reserve (Note 16) - - 17,538 (17,538) - - - Transfer to maintenance and fleet replacement reserve - - 140,000 (140,000) - - - ___________ _____________ ____________ ____________ ____________ ____________ ____________ Balance at 31 December 2017 444,787 112,320 1,762,407 427,438 2,746,952 268,522 3,015,474 =========== =============== ============== ============== ============== ============= ============= The notes set out on pages 16 to 66 form an integral part of these consolidated financial statements. 13 Abu Dhabi Aviation Consolidated statement of cash flows for the year ended 31 December 2018 2017 Note AED’000 AED’000 Cash flows from operating activities Profit for the year 284,481 283,543 Adjustments for: - Depreciation 6 159,718 177,945 - Net charge / (reversal) of impairment losses on trade receivables 10 12,836 (5,303) - Reversal for obsolete and slow moving inventories (4,875) - - Recovery of impaired trade receivables 10 (71) (14,030) - Impairment loss on property and equipment 6 16,078 59,493 - Provision for employees’ end of service benefits 19 22,804 20,761 - Amortisation of deferred income 22 (55,223) (161,097) - Gain on change in fair value of investment properties 7 (15,239) (74) - Loss on disposal of property and equipment (6,786) 27,647 - Impairment of goodwill - 836 - Share of profit of joint ventures (6,756) (5,081) - Finance costs 44,540 38,474 - Finance income (9,249) (3,625) - Change in fair value of investments (15) - _____________ _____________ 442,243 419,489 Changes in: - Inventories (22,839) (10,130) - Trade receivables 10 (92,901) 71,657 - Prepayments and other current assets 12 (24,246) 45,529 - Trade and other payables 23 8,223 6,401 - Accrued expenses and other current liabilities 15,829 (76,793) _____________ _____________ Cash generated from operating activities 326,309 456,153 Interest paid (44,540) (39,800) Employees’ end of service benefits paid 19 (19,861) (12,073) _____________ _____________ Net cash from operating activities 261,908 404,280 _____________ _____________ continued… 14 Abu Dhabi Aviation Consolidated statement of cash flows (continued) for the year ended 31 December 2018 2017 Note AED’000 AED’000 Cash flows from investing activities Acquisition of property and equipment 6 (150,633) (107,775) Payments for investment property 7 (6,806) (182,800) Payments for investments 8 (37,745) (54,740) Proceeds from disposal of property and equipment 25,208 134,932 Proceeds from disposal of assets held for sale - 94,698 Finance income received 9,249 3,625 Deposits with maturities over three months 13 40,473 (90,183) _____________ _____________ Net cash used in investing activities (120,254) (202,243) _____________ _____________ Cash flows from financing activities Proceeds from term loans 50,000 - Repayment of term loans (76,624) (82,846) Decrease in due to a related party - (5,429) Payments for finance lease liabilities (1,148) (1,063)* Dividends paid 17 (88,957) (75,614) ____________ _____________ Net cash used in financing activities (116,729) (164,952) _____________ _____________ Net increase in cash and cash equivalents 24,925 37,085 Cash and cash equivalents at 1 January 158,713 121,628 _____________ _____________ Cash and cash equivalents at 31 December 13 183,638 158,713 ========== ========== * Other finance lease repayments are presented within related party cash flows above. The Group entered into the following non-cash transaction which is not reflected in the consolidated statement of cash flows.
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