9th Dec 2015 07:50
LONDON (Alliance News) - BBA Aviation PLC on Wednesday said the majority of its units are trading in line with its expectations for 2015 but said it had seen weakness in its aftermarket services business in the final quarter.
The FTSE 250-listed aviation services company, which provides refuelling and ground handling services, along with aftermarket and repair services, to aircraft owners, said trading in the second half of 2015 to November 21 met its expectations, except for its engine repair and overhaul business.
Group revenue on an organic basis, excluding exchange rates, fuel prices and acquisitions effects, was down 3.0% in the period, with revenue in BBA's Flight Support division falling 3.0% due to net contract losses and softer-than-anticipated business and general aviation movements.
BBA said its Signature Flight Support unit saw organic revenue rise 3.0% in the period, boosted by it robust network, but Aftermarket Services revenue fell 3.0%, with weaker-than-expected inputs in October and November, expected to continue into December, and with pricing still competitive.
In September, BBA struck a USD2.07 billion deal to acquire US rival Landmark Aviation and it said the deal remains on track to be completed in early 2016.
"With the exception of our Engine Repair & Overhaul business, all group businesses continue to perform in line with our expectations," said BBA Chief Executive Simon Pryce.
"Despite this challenging backdrop in ERO, 2015 is still expected to be a year of progress for BBA Aviation, with strong momentum into 2016 driven by Flight Support as the significant growth investments made in recent years increasingly contribute and as we look to complete the acquisition of Landmark Aviation and begin to realise the very significant customer and stakeholder benefits this transformational combination creates," Pryce added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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