4th May 2011 07:00
4 May 2011
Interim Management Statement
In advance of its Annual General Meeting today, BBA Aviation plc, the leading global aviation support and aftermarket services provider, is issuing an Interim Management Statement for the period from 1 January to 3 May 2011.
Trading for the first quarter to 31 March 2011 was in line with our expectations, with Group revenue 13% higher than the prior year and up 6% on an organic basis (at constant currency and fuel prices and excluding the impact of acquisitions and disposals).
Revenue in Flight Support grew by 18%, including a £5.4m contribution from acquisitions and the £18.7m impact of higher fuel prices. On an organic basis, Flight Support revenues grew by 5%, reflecting continued growth in business and general aviation (B&GA) flying hours, with further outperformance in Signature North America more than offsetting a reduction in Middle Eastern in-bound traffic to Europe and slot constraints at Heathrow, as well as modest increases in commercial flight movements.
Signature has recently reached agreement with NetJets to build, lease and operate on its behalf a dedicated facility at Palm Beach International, Florida at a capital cost of c.$13m. As well as securing an additional long-term agreement with NetJets specific to this location, it will also free up capacity at the existing space-constrained FBO. The investment will largely be incurred during 2012 and the new facility is expected to be operational during 2013. Signature has also consolidated its position at Edinburgh Airport by recently acquiring the second FBO for a cash consideration of £1.5m.
In Aftermarket Services and Systems, revenues grew by 5% on a reported basis and by 6% on an organic basis, with ERO continuing to benefit from the growth in B&GA flying hours seen in 2010. Legacy continues to trade well but, as expected, APPH has yet to see any meaningful signs of recovery in its markets.
Aside from normal seasonal trading cash flows, the principal change in the Group's financial position reflects receipt of the £86m net proceeds of the share placing in March 2011. As previously announced, we acquired the FBO at Bozeman, Montana for a cash consideration of $10.5m during March and the $69.5m acquisition of the GE Aviation Systems' legacy fuel measurement business is expected to complete shortly. The pipeline of acquisition and investment opportunities remains strong.
The Group has recently signed a new $750m multi-currency revolving credit facility to replace the $175m facility maturing in August 2011 and the $900m facility maturing in September 2012. The new facility, which has a split maturity with a 3-year term for $250m and 5-year term for $500m, is provided by 11 relationship banks and was oversubscribed.
Since the end of March trading has followed a similar trend to the first quarter of the year.
Commenting on the Interim Management Statement, Simon Pryce, BBA Aviation Group Chief Executive said:
"2011 has started as expected, with our major markets continuing their recovery. While global economic uncertainties still remain, both divisions have performed well so far and we expect the positive underlying progress to continue, building on the good results delivered in 2010.
Over the longer term, the strengths of our business and our organic growth and consolidation opportunities, together with further operational improvement, mean that we expect to deliver a strong performance and generate superior returns."
Notes:
BBA Aviation plc will announce its interim results for the period to 30 June 2011 on 5 August 2011.
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, International Governor Services, Ontic and APPH) are focused on the repair and overhaul of jet engines and the design, manufacture and service of aerospace sub-systems and components. For more information, please visit www.bbaaviation.com.
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