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Avation directors back prospects of firm with own cash

Director share purchases serve as a tangible and very public show of faith by the board in the prospects of the firm.

Avation (LON:AVAP) chairman Jeff Chatfield has shown his faith in the company by spending just over £180,000 on stock in the aircraft leasing group.

He paid 129p for 139,635 shares. It brings his total to just under 10.4mln shares – the equivalent of 20.2%.

Executive director Roderick Mahoney has acquired 20,000 shares through the market at the same price paid by his chairman.

Purchases of this kind serve as a tangible and very public show of faith by the board in the prospects of the firm.

In the case of Avation, which has successfully completed a series of aircraft leasing deals recently and has ambitious growth plans, the potential of the company probably hasn’t been fully appreciated by the market.

This is fourth time since mid-November directors have bought in the market.

In the same announcement, Avation said it had bought back 784,544 shares that will be held in treasury.