Dublin Aerospace could attempt float by 2013
Published 02/12/2010 | 05:00
AIRCRAFT maintenance start-up Dublin Aerospace beat its first-year targets and could attempt a trade sale of flotation as early as 2013, according to stockbrokers Bloxham.
In a detailed research note sent to clients late last night, Bloxham said Dublin Aerospace was "close to breakeven" on a monthly basis when it finished its first financial year in October.
Annualised revenues are now running at about $10m (€7.65m), Bloxham said.
"As importantly, cash balances at over $3m are well ahead of plan," added Bloxham director of research Joe Gill.
Founded by former Ryanair executive Conor McCarthy, Dublin Aerospace picked up both staff and equipment from the closure of SR Technics' Dublin aircraft maintenance operations. Bloxham also pointed out that Dublin Aerospace pioneered a new pay model in Ireland, eliminating overtime and keeping wages down by rewarding "power per hour".
These lower costs, coupled with key contract wins from Aer Lingus and easyJet, make a trade sale or IPO a "medium-term option", Bloxham said.
"You'd probably be talking about three to five years before that will happen," Mr Gill said last night, adding that Dublin Aerospace would need to land more major clients first.
Having already wooed Aer Lingus with prices of up to 30pc below those formerly offered by SR Technics, Mr McCarthy is believed to be actively pursuing deals with his former employer Ryanair.
Dublin Aerospace also does significant business with leasing companies moving aircraft around the world, leveraging Dublin's position as a global centre for aircraft finance.
"After clearing regulatory and operating standards (in both Europe and the US), business has started to accelerate," said Bloxham.
"This is likely to continue into 2011 as the company's competitive offering is augmented by positive customer reaction to its output and quality."
Last night Mr Gill said that there was "no reason" Dublin Aerospace's model could not be rolled out at other bases like Shannon and Knock once they had "proof of concept" in Dublin.