Aircraft leasing company Avation has said that it is considering moving its shares from PLUS to the Main Market of the London Stock Exchange. The firm has appointed lawyers Speechly Bircham to advise on the move but commented that it is still considering the proposals and will continue to keep its options open.

Shares in Avation have edged up by 1p to 49.5p on the news. Capitalised at just under £13 million the firm will be one of the smallest companies on the Main Market should the move go ahead. However, we see it as a positive move due to the improved liquidity which the shares will enjoy.

Avation recently posted pre-tax profits of £1.5 million for the six months to 31st December 2010. If that performance is matched in the second half the price earnings multiple is circa 7 times. What’s more, the company had net assets of £33.3 million as at the end of last December – £20 million more than the market is currently valuing the shares at. The shares are a stonking buy.

*Avation is a corporate client of Rivington Street Holdings, the ultimate owner of this website.