Profits after tax at AerFi, formerly GPA, fell to $47 million (€46.07 million) for the year to the end of March, from $63 million (€61.76 million) the previous year. Profits growth was held back by net exceptional costs of $46 million which arose on the restructuring of the company.

AerFi reported basic earnings per share of 40 cents and the company is to resume payment of dividends to shareholders with an interim dividend of 14 cents per share.

The chief executive, Mr Patrick Blaney, warned that he expected the current softening of rates in the aircraft-leasing market to continue. However, he said there were opportunities in the market for AerFi, which would expand its business mainly by acquiring and financing aircraft for operating lease to airline customers.

Total revenue for the year was $453 million (€444.12 million), up from $23 million. Some $293 million of revenue came from the sale of aircraft and related assets, compared with $27 million from sales in the previous year. Revenue from aircraft leasing fell to $160 million (€156.86 million) from $209 million, reflecting the sales of aircraft to AerCo and GE Capital. Profits before interest, tax and depreciation fell to $58 million (€56.86 million) from $91 million. The net profit figure was helped by an increase in net interest income, up to $15 million from $6 million, reflecting lower debt levels, and a lower depreciation charge, down to $26 from $33 million. Secured loans of $187 million and unsecured debt of $88 million was repaid during the year, leaving year-end borrowings of $239 million. Year-end cash balances increased to $436 million from $28 million, with restricted balances down to $113 million from $159 million.

Mr Blaney said the results reflected a change in ownership and strategic direction and the generally favourable conditions in the aircraft leasing market. Following the restructuring, AerFi was now "a financially strong, cash-rich, independent company", he commented.

In the restructuring, the Texas Pacific Group became the largest shareholder, acquiring 74.4 million shares - 48 per cent of the company on a fully diluted basis. The company name was changed from GPA to AerFi. GE Capital, which was involved in the original rescue of the GPA Group, now has an option until October 2001 to acquire 35.3 million new shares, or 23 per cent of the company, at a price of 60 cents per share.

AerFi set up a specialist aircraft securitisation company, AerCo, which then acquired 10 aircraft from AerFi and a further 25 from ALPS-1, a securitisation company set up earlier by GPA. Some $270 million of the $293 million total revenue raised came from the sale of aircraft to GE Capital as part of the AerFi restructuring.

The restructuring resulted in exceptional charges of $57 million and a $11 million profit on the disposal of assets. In addition, an earlier impairment provision of $10 million on the value of spare engines was reversed. Operating cashflow for the year was a negative $6 million, down from a positive $179 million. But the latest figure included $99 million of exceptional cash outflows associated with the restructuring.