13th Nov 2019 09:25
(Alliance News) - BBA Aviation PLC said Wednesday it expects underlying results for 2019 to be in line with expectations based on the performances of its Signature and Ontic businesses.
In addition, the FTSE 250-listed aviation services provider has decided to change its name to Signature Aviation PLC, to better align the company with its "most significant brand in its core market". The name is expected to take effect on or about November 25.
For the ten months to the end of October, BBA Aviation reported 10% year-on-year revenue growth from Signature and Ontic, with 8.3% revenue growth from Signature, and 32% growth from Ontic.
For Signature, which supplies flight support to owners and operators of private and business aircraft, BBA said the Signature FBO brand outperformed the US business & general aviation market by 50 basis points, with organic revenue growth of 1.0% in the third quarter of 2019.
BBA reiterated expectations for the second half of the market being consistent with the first half, with growth of around 0.3% and Signature continuing to outperform the market at the same level as the previous half.
For the year, Ontic, which provides equipment and supplies to original equipment manufacturers of commercial and military aircraft, will be considered a discontinued operation following its sale to CVC Fund VII, which was completed in November.
For the ten-month period, Ontic contributed USD218 million in revenue, and the business continued to perform well ahead of its sale.
"The US B&GA market has grown in line with our expectations in the third quarter and our Signature outperformance has been consistent with the first half. Business confidence and flying hours continue to be impacted by global economic uncertainty. In line with our strategic growth plans we have continued to invest to strengthen our market leading network and recently added five sole source Caribbean locations," said Chief Executive Mark Johnstone.
Shares in BBA Aviation - which is based in London - were up 0.4% at 303.60 pence on Wednesday.
By Dayo Laniyan; [email protected]
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