11th Nov 2010 07:00
11 November 2010
BBA Aviation plc
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 2010 to 10 November 2010.
As anticipated, the growth in business and general aviation (B&GA) flying activity experienced in the first half of 2010 compared to the prior year has continued into the second half of 2010. In the North American market, movements were up 8% in the third quarter and for the year-to-date have grown by 11% compared to the same period in 2009. October market data is expected to show a continuation of the trend, marking the 12th consecutive month of growth. Commercial flight movements have increased by 1% in the third quarter and movements in the year-to-date are now flat compared with a 1% decline in the first half.
In the context of this encouraging market environment, and reflecting the Group's mix of early and later cycle businesses, revenue for the four months to 31 October 2010 grew by 6% on an organic basis (after adjusting for acquisitions and disposals, exchange rates and fuel prices) over the same period last year, a continued improvement over the 3% organic growth reported for the first half of the year, and in line with our expectations. For the year to date revenue grew by 4% on an organic basis.
In Flight Support, organic revenue grew by 5% in the four months to 31 October, broadly in line with the 6% growth seen in the first half despite marginally more challenging comparators. Signature's fuel revenue growth continues to outpace its markets and ASIG continues to perform well.
The increase in flying activity over the last 12 months is now resulting in growth in Aftermarket Services and Systems. Revenue for the year to date is now in line with the prior year and grew by 6% organically in the four months to 31 October with ERO and Legacy Support performing well, although trading at APPH remains challenging.
We continue to see strong cash conversion with net debt being reduced further from the half year on both a constant currency and reported basis.
Commenting on the Interim Management Statement, Simon Pryce, Group Chief Executive said:
"The recovery in B&GA flying hours experienced in the first half has continued, and the anticipated second half improvement in our later cycle Aftermarket businesses is being realised. This, combined with our sustained operational improvement, has delivered good underlying progress and supports our confidence in the outcome for the year as a whole.
The underlying strengths of our businesses - our secular growth prospects, consolidation opportunities and focus on continued operational improvement - mean that over the longer term we expect to deliver a strong performance and generate superior returns. "
Notes:
BBA Aviation plc will release its Final Results for the year ended 31 December 2010 on 2 March 2011.
BBA Aviation plc will today be holding an investor seminar at which no further information on current trading will be published. The presentations from the investor seminar will be made available on the Company's website.
Enquiries:
BBA Aviation plc
Mark Hoad, Group Finance Director
020 7514 3950
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, Legacy Support Houston 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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