8th May 2015 06:32
LONDON (Alliance News) - Aviation support services company BBA Aviation PLC Friday said it is trading in line with its expectations so far in 2015, with revenue down on the back of a fall in fuel prices but with organic revenue rising in its flight support and aftermarket services divisions.
FTSE 250-listed BBA said its reported revenue in the period from January 1 to April 25 was down 5%, thanks to the fall in fuel prices. On an organic basis, which strips out exchange rates, fuel prices and acquisition costs, revenue was up 3%.
Also on an organic basis, revenue in its flight support division rose by 3%, with a recovery in the business and general aviation sector in the US, though European markets remain challenging. In the commercial segment, however, the opposite proved the case, with revenue down 2% in North America and up by the same amount in Europe.
Aftermarket services revenue was up 2% on an organic basis, with engine repair and overhaul volumes picking up despite continued weak market conditions. BBA said that with the ongoing reorganisation of the engine repair and overhaul business, it does not expect to see the benefit of increased throughput in the unit until the second half of the year.
BBA's new engine repair facility in Abu Dhabi is now operational and the group said its legacy support business is performing in line with its expectations, boosted by licences signed in 2014.
"The group is performing in line with our expectations. The recovery in our major market continues and it is pleasing to see some recovery in repair and overhaul volumes, which we expect will begin to feed through to overall performance in the second half of the year. Our businesses are well positioned and we remain confident that 2015 will be another year of good growth for BBA Aviation," said Simon Pryce, BBA Aviation's chief executive.
"The group continues to realise the benefits of the significant growth investments made in recent years, the full impact of which will not be seen until 2016 and 2017, with a continuing good pipeline of value creative opportunities," Pryce added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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