27th Jun 2006 07:00
BBA Group PLC27 June 2006 BBA Group Plc Trading Statement - June 27th 2006 BBA Group Plc today issues its regular trading statement ahead of its interimresults for the half year ending 30th June 2006, which will be announced on the30th August 2006. Trading overall remains as set out in our business update of 28th April 2006. Aviation Our Aviation division now accounts for more than 75% of our operating profitsand we continue to expect this division to make good progress at the half yearcompared to the prior period. In Maintenance, Repair and Overhaul, we expect to see a substantial improvementin profits and margins compared to the first half of last year. Engine Repairhas recovered as expected from the difficulties experienced in 2005. Thepreviously announced Ontic acquisition has been integrated into theorganisation, is performing well and will provide opportunities for furtherinvestment in this developing area of our business. Landing Gear and Hydraulicsis ahead of our expectations and there is growing demand for pilot training,which is benefiting Oxford Aviation. In Airport Services, Signature has continued to move forward underpinned inparticular by demand from the fractional operators. ASIG has suffered from arelatively weak de-icing season and this will restrict profits growth in AirportServices although we still expect to make some progress compared to the priorperiod. We are working on a number of bolt-on acquisition opportunities toexpand our Signature network. For the year as a whole we anticipate good progress over 2005. Fiberweb As previously announced on 28th April, the trading environment for Fiberwebremains challenging. For the first half of 2006, profits will, as expected, besubstantially lower than in 2005. The continued restructuring of the AmericasHygiene business also announced on 28th April is on-track at a cash cost of £4mwith anticipated savings of more than £6m in a full year. This reorganisationtogether with the closure of Toronto announced last year will result in theclosure or relocation of half of a total of 12 significant hygiene productionlines in North America and a reduction of almost one-third of the work force inthe region. Our Industrial businesses in North America continue to perform well. We expectthat the second half of 2006 will benefit from the start up of significantadditional capacity in our Industrial businesses in Europe and Brazil, thestart-up of a second hygiene production line at our successful Mexican site,productivity initiatives instigated since mid-2005 and continuing growth in anumber of our Industrial businesses. For the year as a whole we continue toexpect that the performance of Fiberweb will be below the prior year despite theanticipated improvement in the second half. We are making progress on the demerger of Fiberweb and we continue to expectthat it will be completed in the last quarter of 2006. We are pleased today tobe able to announce that Malcolm Coster has been appointed non-executiveChairman of Fiberweb with effect from the date of the demerger later in theyear. Pending the separate listing Malcolm, as Chairman Designate, will act aspart of the advisory committee responsible for reviewing and approving a numberof specific items relating to the demerger. Further appointments to the FiberwebBoard are expected and will be announced in due course. Malcolm's appointment isthe subject of a separate press release issued today. Commenting on the Trading Statement Michael Harper Chief Executive said: "Our Aviation businesses continue to perform strongly and for the half and fullyear we expect to make good progress compared to 2005. The trading environmentfor Fiberweb remains challenging but after a difficult first half in 2006 weanticipate an improved performance in the second half as a result of actionsalready in hand. We are delighted with the appointment of a Chairman forFiberweb announced today and we remain committed to completing the demerger inthe last quarter of 2006". Enquiries: Michael Harper, Chief Executive 020 7514 3999Andrew Wood, Finance Director 020 7514 3950BBA GROUP PLC Mike Smith 020 7404 5959Lucie Anne Brailsford 020 7404 5959BRUNSWICK Notes to Editors BBA BBA is a leading, focused aviation services company with two thirds of its salesto the fast growing business aviation market. The business operates in two areas- airport services and maintenance, repair and overhaul (MRO). In airport services, BBA has two principal activities: Signature, a marketleading brand operating the world's largest business aviation fixed baseoperation network and ASIG, serving the commercial aviation market whereactivities include refuelling, cargo handling and ground handling. In MRO, BBA'sactivities include overhaul of jet engines, supply of aircraft parts, design,manufacture and overhaul of landing gear, aircraft hydraulics and other aircraftequipment. Fiberweb Fiberweb is a world-leader in the design and manufacture of tailored non-wovenfabric solutions, with 65% of its sales to the hygiene and medical markets and35% in a wide range of industrial specialty markets. Fiberweb has 23manufacturing sites in 15 countries across the globe and employs the widestrange of non-woven production and treatment technologies to meet demandingcustomer requirements for service, quality and flexibility. Fiberweb specialises in the collaborative development of innovative productswithin long-term customer relationships, supported by global R&D resources. Fiberweb's strong brands include Reemay, Typar, Terram and Corovin. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SIG.L