BBA Aviation PLC Trading Statement (4317X)
May 06 2016 - 1:00AM
UK Regulatory
TIDMBBA
RNS Number : 4317X
BBA Aviation PLC
06 May 2016
6 May 2016
Trading Statement
In advance of its Annual General Meeting today, BBA Aviation
plc, the market-leading provider of global aviation support and
aftermarket services, is issuing a trading statement for the period
from 1 January to 31 March 2016, unless otherwise stated.
Trading
The Group is trading in-line with expectations, with revenue up
12% year-on-year, reflecting acquisitions and organic growth at
Signature and Legacy. On a like-for-like basis (constant currency,
adjusting for lower fuel prices and before acquisitions), revenue
was down 6%.
In Flight Support, total revenue growth adjusting for fuel
prices was up 33%. On an organic basis, Flight Support's revenues
fell 3%.
Signature Flight Support grew revenues 1.8% on an organic basis
to outperform its market, despite an unusually mild winter
impacting both de-icing revenues and traffic in some locations, and
continued to deliver strong drop-through. North American B&GA
flight movements continue their recovery, up 1% in the quarter
(same period last year: 1%).
The $2.1bn acquisition of Landmark Aviation completed on 5
February. Integration is ahead of plan and we remain confident in
delivering at least the $35 million of synergies previously
identified. US Department of Justice approval for the transaction
required the disposal of six FBOs, and a sale for $190 million was
announced on 30 March with completion expected before the end of
June.
Signature's greenfield development project at Mineta San Jose
International Airport opened officially in February, while the
redevelopment at London Luton is progressing on track towards an
expected completion in November. In April, we announced the
acquisition of a majority share in four FBOs to add to Signature's
European network - Milan-Linate, Milan-Malpensa, Rome-Ciampino and
Venice Marco-Polo.
Elsewhere in Flight Support, ASIG's revenues were down 12% on an
organic basis both as a result of previously announced contract
losses and lower de-icing activity. Underlying operational
performance was good and as referenced in our 2015 preliminary
results announcement, we are making good progress in reviewing our
value maximisation alternatives for ASIG.
Aftermarket Services revenue fell 11% on an organic basis.
Conditions in ERO markets remain challenging. We are making good
progress on both our footprint rationalisation programme and on the
additional actions identified and referred to in our 2015
preliminary results announcement to further reduce the cost and
complexity of the ERO business. In contrast, Legacy Support
continues to perform well, with increased demand for product under
existing licences as well as new adoptions contributing to growth
versus the comparator period.
Commenting on the trading statement, Simon Pryce, BBA Aviation
Group Chief Executive said:
"Despite marginally softer than anticipated markets and
unseasonably warm weather in the north eastern United States, the
Group as a whole is performing in line with expectations.
Importantly, the Signature Flight Support network continues to
outperform its markets with strong margin drop through, and we see
increasing long term opportunity through the application of
Signature's industry leading customer focus, quality and breadth of
service across our network of nearly 200 FBOs. Our Legacy Support
business continues to deliver, ASIG's underlying operational
performance is solid and ERO is demonstrating operational
improvements despite challenging markets. The Group has got off to
a good start in what will be a transformational year for BBA
Aviation."
Notes:
BBA Aviation plc will announce its interim results for the
period to 30 June 2016 on 2 August 2016.
Enquiries:
BBA Aviation plc
Mike Powell, Group Finance Director / Martha Walsh, Interim Head
of Investor Relations
(020) 7514 3999
Tulchan Communications
David Allchurch / Doug Campbell
(020) 7353 4200
Information on BBA Aviation plc
BBA Aviation plc is a leading global aviation support and
aftermarket services provider with market leading businesses and
attractive growth opportunities. BBA Aviation's Flight Support
businesses (Signature Flight Support and ASIG) are focused on
refuelling and ground handling of business and commercial aviation
aircraft. Its Aftermarket Services businesses (Dallas Airmotive,
H+S Aviation, International Turbine Service, Barrett Turbine Engine
Company, International Governor Services and Ontic) are focused on
the repair and overhaul of jet engines and the service of aerospace
sub-systems and components. For more information, please visit
www.bbaaviation.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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