19th Dec 2006 07:01
BBA Aviation PLC19 December 2006 Trading Statement - December 19th 2006 BBA Aviation plc today issues its regular trading statement ahead of its annualresults for the year ending 31st December 2006, which will be announced on 27thFebruary 2007. Our aviation businesses have continued to perform well in the second half of2006 and it is currently anticipated that for the year overall operating profitsfrom continuing operations before restructuring costs and non-recurring itemswill be in line with our expectations. Looking ahead, the strength of thebusiness aviation market, assisted by the introduction of Very Light Jets andthe continued expansion of the fractional operators, supports an optimisticoutlook for the Group's organic growth prospects. This organic growth,supplemented by the opportunity for infill acquisitions, should ensure that thebusiness makes further good progress on a constant currency basis into themedium term. In the Flight Support division, Signature has experienced strong demand,particularly in the last three months and has invested $4.5m in adding anotherFBO at Clearwater/St Petersburg, Florida to the network in the USA. ASIG hasperformed well in the second half, although its final results will be dependentupon the demand for de-icing services that, for the first three weeks ofDecember, have been somewhat below our expectations. In Aftermarket Services and Systems the improved performance seen at enginerepair and overhaul in the first half of the year has continued in the secondhalf. Our component repair and distribution businesses, which include Ontic,acquired in February of this year, continue to perform well. APPH has hadanother good year and today announces a major order with Eurocopter for landinggear systems worth c. $100m over the next 20 years, with the first deliveriesexpected in 2010. Fiberweb, which was demerged on November 17th, and Becorit, which was sold onDecember 1st, will now be reported under discontinued operations. Discontinuedoperations are expected to show a post tax loss of c. £75 million after chargingdemerger costs in 2006 of c. £30 million, impairment and other reorganisationcosts that were incurred at Fiberweb prior to the demerger of £90 million and aprofit on the disposal of Becorit of c. £18 million. Following the disposal of Becorit, the Group's net debt at the end of 2006 isnow expected to be somewhat lower than the £400 million forecast for theyear-end at the time of the demerger. Interest for the full year is likely to bearound £26 million, inclusive of the impact of the higher debt levels prior toFiberweb leaving the Group. Commenting on the trading statement, Michael Harper, Chief Executive said: "The completion of the demerger of Fiberweb in November was a major milestonefor the Group. We are now focused on developing our aviation businesses to takeadvantage of the opportunities provided by the growth of the business aviationmarket. Our businesses have performed well in 2006 and with strong marketconditions and the potential for infill acquisitions we look forward to makingfurther progress in 2007". Enquiries BBA Aviation plc 020 7514 3999Michael Harper, Group Chief ExecutiveAndrew Wood, Group Finance Director Brunswick Group 020 7404 5959Lucie Anne BrailsfordJemma Hill Notes to Editors BBA Aviation is a world leader in aviation services focusing on Aviation FlightSupport and Aftermarket Services and Systems. BBA Aviation provides flightsupport services for corporate and commercial aviation customers as well asmaintenance, repair, overhaul and spare parts for aircraft engines. It alsosupplies aviation components, landing gear and hydraulic systems. These areattractive niches in a $250 billion market with clear barriers to entry, whereBBA has leading positions, well-known and reputable brands and a proven trackrecord of organic and acquisition-led growth. BBA Aviation was formerly part of BBA Group, but following the demerger ofFiberweb, in November 2006 it became a stand-alone aviation services business. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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