14th Nov 2013 07:00
14 November 2013
Interim Management Statement
BBA Aviation plc, the leading global aviation support and aftermarket services provider, is today issuing its Interim Management Statement for the period from 1 July to 13 November 2013. The financial information set out below relates to the four months to 26 October 2013, unless otherwise stated.
BBA Aviation's major market performed broadly as expected and for the year to 30 September 2013 North American business and general aviation ("B&GA") movements have increased by 1% with modest growth of 3% in the third quarter. However, B&GA movements in Europe and commercial movements in both North America and Europe all declined by 1% in the third quarter and for the year are marginally worse than anticipated.
Against this backdrop, Group revenue increased by 2% over the same period in 2012. Revenue in Flight Support grew by 2%. Signature continued to outperform its markets. In ASIG, revenue grew but as in the first half, drop-through was impacted by some short-term and incremental investment associated with accelerating the improvement in service and safety performance. We are now beginning to see the operational benefits of this in the underlying business.
In addition to the acquisitions previously announced, Signature continues to expand its network, winning an RFP for a new FBO at Port of Spain, Trinidad, signing an agreement with Imperial Oil in Canada which offers Signature SelectTM to all 38 Esso aviation dealers in Canada, and breaking ground on the construction of a new FBO at Tocumen International Airport in Panama.
Revenue in Aftermarket Services increased by 1%. Legacy Support and APPH continued to perform well, and in ERO the revenue decline seen in the first half has slowed, although both inputs and mix were marginally weaker than anticipated.
Legacy Support continues to convert a strong licence pipeline and has recently signed its third licence with Curtiss-Wright covering fans, compressors and blowers on a number of platforms including the AH-64 Apache helicopter, with an associated licence fee of $3.0m.
The Group continues to make positive strategic progress, receiving anti-trust clearance on the previously announced acquisition of Maguire Aviation at Van Nuys and has invested or committed in excess of $130m so far this year on acquisitions and licences, of which $12.7m has been spent to date. The Group's balance sheet continues to offer substantial investment capacity.
Commenting on the Interim Management Statement, Simon Pryce, BBA Aviation Group Chief Executive said:
"Whilst month on month performance remains volatile we have seen an encouraging trend of growth, albeit modest, in the North American B&GA market in the last six months. European B&GA movements remain weak. With limited short-term visibility and against a background of fragile confidence, we remain cautious in our near-term planning assumptions. Whilst trading in the third quarter was marginally softer than expected, we have started the fourth quarter well and continue to anticipate making good progress in 2013."
Notes:
BBA Aviation will announce its final results for the year ending 31 December 2013 on 5 March 2014.
Enquiries:
BBA Aviation plc
Mark Hoad, Group Finance Director / Jemma Spalton, Head of Investor Relations
020 7514 3999
Tulchan
David Allchurch / Christian Cowley
020 7353 4200
Notes to Editors
BBA Aviation plc is a leading global aviation support and aftermarket services provider with market leading businesses and attractive growth opportunities. BBA Aviation's Flight Support businesses (Signature Flight Support and ASIG) are focused on refuelling and ground handling of business and commercial aviation aircraft. Its Aftermarket Services businesses (Dallas Airmotive, Premier Turbines, H&S Aviation, International Turbine Service, Barrett Turbine Engine Company, Ontic and APPH) are focused on the repair and overhaul of jet engines and the manufacture and service of aerospace sub-systems and components. For more information, please visit www.bbaaviation.com.
This interim management statement contains forward-looking statements which are based on current expectations and assumptions. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
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