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BBA Aviation Plc (BBA)

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Friday 10 May, 2013

BBA Aviation Plc

Interim Management Statement

RNS Number : 3932E
BBA Aviation PLC
10 May 2013
 



 

 

10 May 2013

 

Interim Management Statement

 

In advance of its Annual General Meeting today, BBA Aviation plc, the leading global aviation support and aftermarket services provider, is issuing an Interim Management Statement for the period from 1 January to 9 May 2013.

 

For the four months to April 2013, Group revenue increased by 3%.  On an organic basis (excluding the impact of exchange rates, fuel prices, acquisitions and disposals) revenue increased by 2%.

 

Revenue in Flight Support grew by 2% on an organic basis.  Business and general aviation (B&GA) movements in North America were broadly flat in the first quarter compared with the prior year and in Europe there was a 4% reduction in activity. Commercial airlines continue to manage capacity actively and commercial movements in the US declined by 3%, but after last year's exceptionally warm winter, Flight Support benefited from more normal levels of de-icing activity.

 

Major capital projects at Palm Beach, Florida and Luton, England are proceeding to plan, and the San Jose City Council has given approval for the finalisation of an agreement for Signature to establish an FBO at Mineta San Jose International Airport under a 50 year lease. Signature continues to pursue a number of organic growth and acquisition opportunities. ASIG has recently signed an agreement to acquire Gategroup's cabin cleaning business at London Heathrow and de-icing business at Heathrow, London Gatwick and Dublin, complementing existing operations at these locations. This acquisition is expected to complete in the first half of the year with an aggregate consideration of up to $4.5m.

 

In Aftermarket Services revenues grew by 1% on an organic basis. Despite the anticipated impact of B&GA movements on engine overhaul activity, overall the businesses are performing well. There is also a good pipeline of legacy licence opportunities.

 

Trading cash flows have followed the usual seasonal pattern and the Group's balance sheet remains strong, supporting substantial investment capacity. The final $125m of cross currency swaps matured during April with a cash cost of $28.6m.

 

Commenting on the Interim Management Statement, Simon Pryce, BBA Aviation Group Chief Executive said:

 

"Our major markets remain broadly stable, as expected, and we continue to focus on driving further operational improvement. With good underlying momentum from 2012 as well as the incremental contribution from acquisitions, we continue to anticipate making good progress in 2013.

 

Over the longer term, the underlying strengths of BBA Aviation's market-leading businesses, the potential for further operational improvement, a strong balance sheet and the Group's unique position in markets where leading indicators support medium-term recovery and structural growth potential, give us continued confidence in our ability to generate superior through-cycle returns."

 

Notes:

BBA Aviation plc will announce its interim results for the period to 30 June 2013 on 6 August 2013.

 

 

Enquiries:

BBA Aviation plc

Mark Hoad, Group Finance Director

020 7514 3999

 

Tulchan

David Allchurch / Martha Walsh

020 7353 4200

 

Notes to Editors

 

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, Premier Turbines, H&S Aviation, International Turbine Service, Barrett Turbine Engine Company, International Governor Services, Ontic and APPH) are focused on the repair and overhaul of jet engines and the design, manufacture and 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
 
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