Avcorp narrows quarterly loss
Airframe manufacturer Avcorp has posted a net loss of roughly $1m for 1Q 2011, down from $2.3m for 1Q 2010.
This includes an operational loss of $517,000 on revenues of $20.9m, compared with a $2m loss on $17.4m for the same period last year. Operational cash flow amounted to $3.6m (up from $447,000), primarily from working capital growth in support of increased revenues. On March 31, 2011, working capital stood at a surplus of $5m against $1.5m at the end of December 2010. Avcorp attributes its revenue growth to a restart and increase in deliveries plus a small rise in demand for non-OEM products and services. The company amended its banking arrangements at the end of 1Q, completing a secured subordinated convertible loan from Panta with a principle amount of $6m, which will go towards its operating line of credit. Avcorp is not currently in compliance with the covenants of its Export Development Canada convertible debenture and is working on a refinancing programme.
