27th Jul 2020 10:24
(Alliance News) - Signature Aviation PLC on Monday said revenue for the first half of 2020 plunged due to the Covid-19 pandemic but said it has started to see a significant improvement in flying activity.
The aviation support services provider said revenue to June 30 for the continuing group - comprising Signature FBO, EPIC and TECHNICAir - was down 38%. On a like-for-like basis, revenue was down 31%.
However, Signature Aviation said it has started to see an improvement in flying activity, with activity down just 32% in June compared to 58% in May and 77% in April. It added that all its employees in the US have been brought back from furlough.
Looking ahead, Chief Executive Mark Johnstone said: "I remain confident in the resilience and potential of our market leading FBO business model, the quality of our unique network, the strength of our liquidity and therefore our ability to continue to invest in and grow our attractive and high return business."
Signature Aviation stated that all guidance remains suspended but added it will review the decision on suspension of dividend payments as trading conditions become clearer.
As at the end of June, the London-based company had USD321 million of undrawn facilities and cash of USD200 million. It noted it has agreed a covenant waiver for the testing periods ending 31 December 31, 2020 and June 30, 2021 for its USD400 million unsecured revolving credit facility expiring March 2025.
Separately, Signature Aviation said it has agreed to acquire TAG Aviation FBO SA, comprising two FBOs at Geneva and Sion in Switzerland but did not provide any further details.
Full interim results will be published on September 8.
The stock was trading 1.5% lower at 223.16 pence each on Monday morning in London
By Ife Taiwo; [email protected]
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