ONCE off profits of $18 million from the sale of aircraft resulted in a first quarter profit at the GPA Group. The Shannon based group reported profits after tax and exceptional gains of $ 15 million for the three months to end June.

The latest result compares with a loss of $8 million in the first quarter last year after exceptional costs of $5 million. When the exceptional gains and losses are stripped out, the underlying result a loss of $3 million is unchanged.

However, at the end of June, GPA was a very different company than it was a year earlier. It was a much smaller company in terms of total assets down from $5.948 billion to $1.966 billion, but a stronger company in terms of debt levels and cash resources.

The fall in revenue from $244 million to $94 million and in cash flow from $153 million to $5 million reflected the sale in March, 1996, of 229 aircraft in a move to reduce group debt. By the end of June group borrowings had fallen to $1.194 billion from $4.552 billion a year earlier while shareholders funds had improved to $181 million from $102 million.

The company bought back the first quarter "at attractive prices", according to GPA assistant chief executive and finance director, Mr John Tierney. Since the end of June, further debt repayments of $115 million have been made. At the end of June, GPA had cash balances of $863 million, up from $29 million.

Commenting on the latest results, Mr Tierney said they reflected "slow but steady improvement". Leasing rates are firming and GPA has very few aircraft on the ground, he said. GPA had two aircraft on the ground (not leased to customers) at the end of June compared with 47 aircraft not generating revenue at the height of the recession.

The group expects to sell some of its remaining fleet of 113 aircraft in the current quarter, he said.

GPA was rescued from collapse in 1993 by GE Capital, a subsidiary of the US conglomerate, General Electric. Under the rescue arrangements, GPA debt and most of its fleet of aircraft were left with the company which was to sell off the aircraft assets over time to pay off the debts. A GE subsidiary, GE Capital Aviation Services, bought 35 aircraft for $1.3 billion.