6th May 2016 06:40
LONDON (Alliance News) - Aviation services company BBA Aviation Ltd on Friday said trading in the first quarter of 2016 met its expectations, though organic revenue fell on tough market conditions.
BBA said revenue for the three months to the end of March grew 12% year-on-year, though revenue in constant currencies and on a like-for-like basis, stripping out acquisitions, fell 6.0%.
Organic revenue for BBA's Signature Flight Support business grew 1.8% in the quarter, despite an unusually mild winter season which hit de-icing revenue and traffic in some locations. The group said the acquisition of US rival Landmark Aviation, completed in February, is ahead of plan, and BBA remains confident on meeting its target for at least USD35.0 million in annual synergies.
Revenue for BBA's ASIG division declined 12% organically in the quarter, due to contract losses and lower de-icing revenue, but the group said it was making progress on its review of the business.
Aftermarket services revenue fell 11% on an organic basis in the quarter and BBA said market conditions remain challenging. It said it is making progress on rationalising its footprint and on further cost cutting.
"Despite marginally softer than anticipated markets and unseasonably warm weather in the north eastern United States, the group as a whole is performing in line with expectations," said BBA Chief Executive Simon Pryce.
By Sam Unsted; [email protected]; @SamUAtAlliance
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