Interim Management Statement

10 November 2011

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 9 November 2011.

Business and General Aviation (B&GA) activity continued to grow in the third quarter, albeit at a slower rate than in the first half. B&GA movements in North America grew by 0.5% in the third quarter against more challenging comparators. This follows 4% growth in the first half, taking the year to date growth to 3%. Commercial movements in North America declined by 0.5% and in Europe grew by 1% compared with 1% growth in both markets in the first half.

Against this market backdrop, the Group continued to perform well. In the four months to the end of October 2011 revenue grew by 8% (after adjusting for currency and fuel prices) of which 5% was organic (excluding the impact of acquisitions and disposals).

Revenue in Flight Support grew by 8%, including a £3.6m contribution from acquisitions and a £27.5m impact from higher fuel prices. On an organic basis, Flight Support revenues declined by 1%. Excluding the effect of our previously announced exit from the FBO at Miami International Airport at the end of June, Flight Support revenues grew by 1% on a like-for-like basis.

Both Signature and ASIG outperformed their key markets and we continue to see a good pipeline of value creative investment opportunities in Flight Support. As previously announced, Signature acquired the FBOs at Boca Raton, Florida and San Juan, Puerto Rico during the period for a total cash consideration of $23.7m.

Aftermarket Services and Systems experienced further strong growth with revenues up 19% on a reported basis and 15% on an organic basis. Acquisitions contributed £10.7m to revenues.

Engine Repair & Overhaul and Legacy Support continued to deliver a strong operating performance with an ongoing improvement in overhaul activity, whilst APPH began to stabilise. Legacy has a strong pipeline of licence opportunities and the integration of the GE Aviation Systems' legacy fuel measurement business continues to progress well.

The Group's balance sheet remains strong and cash flows improved as expected. The Group benefited during the period from a €23.1m refund of tax and associated interest relating to an old outstanding tax claim in Germany. During the period, a further $100m of cross currency swaps have been closed out at a cash cost of £13.1m.

Commenting on the Interim Management Statement, Simon Pryce, BBA Aviation Group Chief Executive said:

"As anticipated, B&GA activity has demonstrated modest growth so far in the second half against more challenging comparators. Despite continuing economic uncertainty, the Group is performing well in this environment. We have a strong pipeline of investment and acquisition opportunities and we continue to anticipate making positive underlying progress, achieving a full year result in line with our expectations."  

Notes:

As previously announced, BBA Aviation will transition to US dollar reporting with effect from the final results for the year ended 31 December 2011. BBA Aviation plc will release the restatement of its historical financial information in US dollars on 22 November 2011.

BBA Aviation will announce its final results for the year ended 31 December 2011 on 2 March 2012.

Enquiries:

BBA Aviation plc

Mark Hoad, Group Finance Director / Jemma Spalton, Head of Investor Relations

020 7514 3999

Tulchan

David Allchurch / Christian Cowley / Martha Kelly

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 and Systems 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.