BBA Aviation PLC Trading Statement (2594E)
May 05 2017 - 1:01AM
UK Regulatory
TIDMBBA
RNS Number : 2594E
BBA Aviation PLC
05 May 2017
5 May 2017
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 30 April 2017, unless otherwise stated.
Trading
The Continuing Group's trading remains in-line with
expectations, with revenue up 19% year-on-year, reflecting both the
contribution from acquisitions and organic growth. On a
like-for-like basis (constant currency, adjusting for fuel prices
and before acquisitions and disposals), revenue was up 2%.
Signature Flight Support's revenues grew 26%, benefitting from
an additional month of contribution from the Landmark Aviation
acquisition, which completed on 5th February 2016, as well the
contribution from the other FBOs added to the network during the
course of 2016. Growth in the North American B&GA market has
shown signs of strengthening with flight movements up 4% in the
first two months of the year (same period last year: 0%). On an
organic basis Signature's revenues grew 3%. Signature's strong drop
through continues to demonstrate market outperformance.
Signature has continued to invest in its current network of
FBOs, with the successful completion in April of its newly
constructed state-of-the-art FBO terminal at Boeing Field,
Washington. The new 6,000 sq ft terminal will ensure a consistent,
world class customer experience for all Signature customers
travelling through the airport. Site preparation has commenced at
Nashville International Airport, Tennessee, where the construction
of a new FBO terminal and hangars will begin later this year.
In Aftermarket Services revenue grew 4% and on an organic basis
revenue was flat year-on-year. Ontic, which generates the majority
of the Aftermarket profit, continues to perform well, with the
integration of the legacy avionics business it acquired from GE
Aviation at the end of last year progressing well and contributing
as expected. In ERO, the actions that we continue to take to reduce
the cost and complexity of the business are supporting an improved
performance, as anticipated.
Commenting on the trading statement, Simon Pryce, BBA Aviation
Group Chief Executive said:
"The Group is performing well and in line with expectations with
a continued strong performance from the enlarged Signature business
and strong drop through. There has been an improvement in B&GA
flight volumes reflecting the continued strengthening of the US
business confidence indices. Our Ontic business continues to
deliver good results and ERO's performance improved as anticipated
versus the same period in 2016. The Group is now focused on higher
value-added, better IP protected, high ROIC and strongly cash
generative businesses with enhanced prospects and the Board remains
confident of good growth in 2017."
Notes:
BBA Aviation plc will announce its interim results for the
period to 30 June 2017 on 1 August 2017.
Enquiries:
BBA Aviation plc
Mike Powell, Group Finance Director / David Crook, Group
Financial Controller
Jemma Spalton, Head of Communications & Investor
Relations
+44 (0)20 7514 3999
Tulchan Communications
David Allchurch
+44 (0)20 7353 4200
Information on BBA Aviation plc
BBA Aviation plc is a market leading, global aviation support
and aftermarket services provider, primarily focused on servicing
the Business and General Aviation (B&GA) market. We support our
customers through three principal businesses: Signature Flight
Support is the world's largest fixed base operation (FBO) network
for B&GA users with more than 200 locations covering key
destinations in North America, Europe, South America, Caribbean,
Africa and Asia. Ontic is a leading provider of high-quality
equipment and cost-effective solutions for the continuing support
of maturing and legacy aerospace platforms with locations in the
USA, Europe and Asia. Engine Repair & Overhaul/Global Engine
Services is a leading independent engine service provider to global
B&GA operators, the rotorcraft market and regional airline
fleets with locations in the USA, Europe, South America, Asia and
the Middle East. For more information, please visit
www.bbaaviation.com
This information is provided by RNS
The company news service from the London Stock Exchange
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