Avation PLC Executes Buyback of 10,000 Shares at 135 Pence Under Authorized Repurchase Scheme

Avation PLC Advances Share Repurchase Within Authorized Buyback Framework

Avation PLC announced the repurchase of 10,000 ordinary shares on 22 July 2026 as part of its ongoing share buyback programme. The shares were acquired on the open market at 135 pence each and are held in treasury. This move aligns with Avation’s capital management strategy and complies with the approved buyback programme authorized by shareholders at the annual general meeting in November 2025.

The programme authorizes the company to repurchase up to 25% of its issued share capital within specified price limits. This mandate remains effective until the conclusion of the next annual general meeting, providing Avation with flexibility to undertake further buybacks if deemed appropriate. Shares repurchased are retained in treasury rather than cancelled, preserving the company’s option to reissue or cancel them later based on board and shareholder decisions.

Revised Share Capital Structure Following Treasury Share Acquisition

Following the repurchase, Avation’s share capital structure has been updated. The company now has 61,425,369 ordinary shares in issue, representing the total shares outstanding in the market. Additionally, 1,610,068 shares are held in treasury, representing repurchased shares retained by the company rather than cancelled. Treasury shares do not carry voting rights and are excluded from issued share capital for certain regulatory purposes.

Total voting rights have been recalculated at 59,815,301 shares after this transaction. This figure reflects the number of shares with voting rights, relevant for shareholder notification thresholds, significant shareholding disclosures, and quorum requirements. Understanding the distinction between issued shares, treasury shares, and voting rights is crucial for investors monitoring share capital changes and their implications on ownership and voting power.

Overview of Avation’s Commercial Aircraft Leasing Operations

Headquartered in Singapore, Avation PLC operates as a commercial passenger aircraft leasing company, owning and managing a fleet leased to airlines worldwide. The company generates revenue through long-term lease agreements, offering airlines flexibility in fleet management without the need for outright aircraft ownership. This leasing model provides steady lease income from Avation’s aircraft portfolio.

The commercial aircraft leasing sector plays a vital role in global aviation financing and fleet management. Airlines use leasing to optimize capital structure, manage depreciation, and adjust fleet size according to market demand. Avation’s role as a lessor places it within the broader aviation finance ecosystem, where factors like aircraft values, utilization rates, airline financial health, and travel demand impact business performance and asset valuation.

Authorized Share Buyback Programme and Regulatory Compliance

The share repurchase programme was formally approved at Avation’s annual general meeting in November 2025. This shareholder-approved mandate grants the board authority to repurchase shares on the open market subject to price and volume limits. The ability to repurchase up to 25% of issued share capital provides substantial flexibility for capital allocation over an extended period.

The mandate remains valid until the next annual general meeting, at which point renewal is required for continued buyback activity. This time-limited authority aligns with UK-listed company governance standards, ensuring periodic shareholder review. The programme’s price limits safeguard against share repurchases at prices detrimental to remaining shareholders.

Investor Relations and Shareholder Engagement at Avation

Avation maintains accessible communication channels for shareholders and investors seeking information or wishing to raise inquiries. Investor relations can be contacted via email at [email protected]. The company also hosts investor Q&A sessions during financial results conference calls, facilitating dialogue on performance, strategy, and governance.

Executive Chairman Jeff Chatfield serves as a key contact for investor queries, emphasizing senior management’s accessibility. The Singapore-based head office can be reached at +65 6252 2077, providing additional support for shareholder engagement. These arrangements demonstrate Avation’s commitment to transparent communication with its investor base.

Capital Allocation Strategy and Impact on Shareholder Value

Share repurchases reflect Avation’s capital allocation approach, deploying cash to buy back shares rather than solely investing in growth or paying dividends. Buybacks are typically undertaken when management views shares as undervalued relative to fundamentals or as part of optimizing the company’s capital structure.

Holding repurchased shares in treasury rather than cancelling them offers flexibility. Treasury shares can be reissued for acquisitions, employee share schemes, or other corporate purposes without requiring a new shareholder vote. Alternatively, cancellation of treasury shares would reduce issued share capital and potentially enhance earnings per share for remaining shareholders.

Share Price Context and Market-Based Execution

The 135 pence per share repurchase price reflects the market price at which Avation acquired shares on 22 July 2026. Public information does not specify the immediate share price impact. Investors may assess this price against Avation’s historical trading ranges, asset valuations, and earnings forecasts to evaluate the prudence of the buyback.

The repurchase was executed through standard market trading mechanisms rather than off-market transactions, ensuring transparency and equal participation for all shareholders. The timing and volume of buybacks depend on share price levels, available cash, and the company’s assessment of market conditions and capital needs.

Prospects for Future Buybacks and Capital Management Flexibility

The approved buyback programme authorizes repurchases of up to 25% of issued share capital, with the recent 10,000-share buyback representing a small portion of this capacity. Depending on cash flow, capital requirements, and board decisions, Avation may conduct additional buybacks before the next annual general meeting.

This authority signals the board’s readiness to pursue opportunistic or systematic share repurchases as part of its capital management strategy. Investors should monitor future buyback activity for trends in volume, pace, and pricing. Changes in treasury share holdings could affect future voting power if shares are cancelled or reissued.

Treasury Shares and Corporate Governance Considerations

With treasury shares increasing to 1,610,068, these shares remain company property but are excluded from dividends and voting rights. Treasury shares do not count towards issued share capital for certain regulatory calculations, providing flexibility in capital structure management without immediate shareholder approval for new issuances in some cases.

Governance of treasury shares is governed by UK company law and London Stock Exchange listing rules. Investors should monitor treasury share levels as they may influence shareholder voting dynamics and capital raising flexibility. Any cancellation or reissuance requires board and potentially shareholder approval depending on circumstances.