9th Jan 2009 07:00
January 9th 2009
Year End Trading Update
BBA Aviation Plc, the aviation services and systems support group, today releases its period end trading update ahead of results for the year ended 31 December 2008, which will be announced on 26 February 2009. In addition BBA Aviation has today announced a number of senior management changes including the appointment of a non-executive director (see separate announcement).
Since our Interim Management Statement (IMS) on 13 November trading has been consistent with our expectations and we can confirm that performance for the year as a whole will be in line with market forecasts. Our continued focus on cash generation has resulted in strong free cash flow in the second half and, as a result, underlying net debt is likely to be somewhat lower than expected. The strengthening of the dollar in the latter part of the year will increase substantially the translated value of our US dollar denominated debt, however the group will be comfortably within its banking covenant limits for the year ended 31 December 2008 and has undrawn facilities available of approximately £200m as we head into 2009.
In Flight Support, despite a further weakening in the Business and General Aviation markets since our IMS, Signature USA organic fuel volumes at constant fuel prices for November and December were similar to those of October with stable margins. Signature in Europe has continued to trade well although it experienced a reduction in activity in November and December. ASIG continued to perform satisfactorily and had a strong start to the 2008/09 de-icing season.
In Aftermarket Services and Systems our businesses continued to perform robustly and finished the year well with Engine Repair and Legacy Support particularly strong. The transfer of the previously announced licence to Ontic for Honeywell's 700 APU is underway and is proceeding to plan.
We continue to make strategic progress and are pleased to announce today that Signature has reached an agreement in principle with Netjets for a new five year contract to supply fuel and other services to the Netjets fleet in North America. This will be effective from 1 January 2009 and replaces a five year contract which was due to expire in April 2009.
Commenting on this statement, Simon Pryce, CEO said:
'Despite 2008 being a challenging year in many of our major markets, trading for the year has been in line with our expectations with cash flow particularly strong. Although we have benefited from the relative strength of the US dollar, especially in the last quarter, our performance in 2008 demonstrates the underlying strength of our businesses and the benefits of ongoing management action.
The appointments separately announced today will strengthen our senior management team and will introduce fresh impetus to our efforts to capitalise on cross business marketing opportunities while continuing to provide dynamic, experienced and customer focussed leadership for Signature.
As we enter 2009, markets remain volatile with limited visibility. We will continue to flex operating costs to match demand wherever possible. We have significant undrawn financing available, the vast majority of our banking facilities is committed until 2012 and we will continue to focus on cash generation and debt reduction. We expect a challenging year, but are positioning ourselves to benefit from a recovery when it comes.'
Enquiries:
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BBA Aviation plc Andrew Wood, Finance Director 020 7514 3950 |
Brunswick Group LLP Simon Sporborg / Victoria Pease 020 7404 5959 |
Notes to Editors
BBA Aviation plc is a world leader in the provision of Flight Support and Aftermarket Services and Systems for business aviation, regional airline, military and commercial aviation operators, including FBO services, fueling, ground handling, turbine engine repair and overhaul and aviation components, landing gear and hydraulic systems. BBA has leading positions, well-known and reputable brands and a proven track record of organic and acquisition-led growth. BBA Aviation companies include Signature Flight Support, ASIG, Executive Beechcraft, Ontic, International Governor Services, APPH, Dallas Airmotive, Premier Turbines, H&S Aviation, International Turbine Service and Barrett Turbine Engine Company. For more information, please visit www.bbaaviation.com.
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