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.
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.”
BBA Aviation plc will announce its interim results for the period to 30 June 2017 on 1 August 2017.
BBA Aviation plc
Mike Powell, Group Finance Director / David Crook, Group Financial Controller
Jemma Spalton, Head of Communications & Investor Relations
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