GPA Group, the Shannon based aircraft leasing company, has recorded a loss of $9 million (£5.7 million) in the quarter to December 31st 1995. This is marginally below the $11 million loss incurred in the comparable period in 1994.

The latest loss was mainly due to exceptional refinancing costs of $23 million, which were partly offset by an exceptional gain of $16 million following the sale of some of its investments. However, stripping out the exceptional charges and credits, there was an adverse underlying trend.

The loss before exceptionals amounted to $2 million. This contrasts with a profit of $4 million in the comparable 1994 quarter.

However, GPA's chief executive, Mr Patrick Blaney, said it is difficult to judge the underlying trend from the figures alone. He stressed this trend is positive and cited rising revenue, a lower level of defaults and no non revenue aircraft.

GPA raised $4.05 billion from investors in a crucial restructuring last month. This was designed to meet debt repayments and other financial obligations. It was one of the largest bond issues in the US market and enabled it to repay core bank debt of some $2.9 billion, in cash. The exceptional costs of $23 million reflect that transaction.

Mr Blaney said the trading out look continues to improve and the successful completion of the securitisation, which refinanced its senior secured debt, has significantly strengthened its balance sheet. This resulted in an upgrading of its rating.

Moody's Investors Service, the US debt rating agency, raised its debt rating on GPA's senior unsecured debt from Caa to B1 two weeks ago. Mr Blaney said the impact of this transaction would be reflected in its results to March 31st 1996.

The latest results show a fall in shareholders' funds from $139 million to $85 million. Borrowings were reduced from $4.99 billion to $4.36 billion. The group's total assets were cut from $6.56 billion to $5.7 billion.

Revenue dropped to $244 million from $833 million. This included a drop in the net proceeds from aircraft sales from $587 million to $6 million. Reflecting a contraction in business, cash inflow from operating activities fell from $741 million to $158 million. The net loss for the nine months to December 31st amounted to $26 million. That was after net exceptional costs of $19 million.