3rd Mar 2020 12:04
(Alliance News) - FTSE 250-listed Signature Aviation PLC on Tuesday reported an annual revenue rise, though profit from continuing operations tumbled, with the company posting USD36.5 million in legal costs related to a disposal.
In 2019, the aviation services firm's revenue edged 4.7% higher to USD3.02 billion from USD2.88 billion, with pretax profit surging to USD722.2 million from USD174.3 million in 2018.
For continuing operations however, the numbers make for poor reading. Pretax profit fell sharply to USD23.4 million from USD100.6 million.
In July 2019, Signature - then called BBA Aviation - agreed to sell its aerospace parts and services unit Ontic to CVC Fund Vll, managed by private equity firm CVC Capital Partners, for an enterprise value of USD1.37 billion.
Among the one-off costs weighing on profit were USD25.8 million in costs related to the adoption of IFRS 16, an accounting standard governing the financial treatment of leases, and USD36.5 million in legal fees related to a previously disposed business.
Chief Executive Mark Johnstone said: "2019 has been a transformational year as we continued to invest in our core Signature business and fully recognised the strategic value of our Ontic business."
Signature upped its full-year payout by 5.0% to 14.77 cents from 14.07 cents.
"Given ongoing trade discussions, high levels of global economic uncertainty and the US election in November, we expect similar conditions in 2020 in the US business & general aviation market to those experienced in 2019," the company said. "We are continuing to monitor the covid-19 situation and will update the market in due course."
Signature shares were 4.1% higher at 284.10 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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