27th Jun 2008 07:00
Trading Update
BBA Aviation today releases its regular trading update ahead of its results for the half year ended 30 June 2008, which will be announced on 28 August 2008.
Since the issue of our Interim Management Statement on 30 April overall trading has been broadly in line with our expectations and we anticipate that the performance of our continuing operations for the first half will be in line with the prior year.
In Flight Support, fuel volumes in Signature USA remain volatile and in recent weeks have softened from the trend established through to the end of April. In the rest of the world Signature continues to perform well. Overall we anticipate an organic (exclusive of acquisitions, disposals and at constant exchange rates and fuel prices) reduction in revenues of approximately 4% for the first half of the year compared to the 3% reported in the Interim Management Statement for the first quarter.
ASIG continues to trade satisfactorily and has not been significantly impacted by flight schedule reductions in North America.
In Aftermarket Services and Systems all businesses continue to trade in line with or ahead of our expectations and we expect strong organic sales growth across the board for the first half of the year. In Engine Repair and Overhaul engine inputs have held up well across a range of programmes, APPH continues to deliver strong growth with good margins and Legacy Support has had an exceptional first half with the order backlog at record levels and a strong pipeline of opportunities.
We have made further strategic progress in the development of the Group. We have acquired an FBO at Munich Airport, which extends our coverage outside North America to 24 sites. We expect that we will shortly complete the purchase of 6 of the 7 bases of the previously announced Hawker Beechcraft's Line Service Operations with the 7th base to follow in the next few weeks.
Commenting on the trading statement Simon Pryce, Chief Executive said:
"We continue to perform satisfactorily despite a volatile and difficult economic environment in our North American markets. Assuming there is no further adverse impact from this slowdown, and with the benefit of acquisitions and an improved performance in our Aftermarket Services and Systems businesses, we expect to make progress in the second half of 2008 over the first half."
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
BBA Aviation is a world leader in aviation services focusing on Aviation Flight Support and Aftermarket Services and Systems. BBA Aviation provides flight support services for corporate and commercial aviation customers as well as maintenance, repair, overhaul and spare parts for aircraft engines. It also supplies aviation components, landing gear and hydraulic systems. These are attractive niches in a $250 billion market with clear barriers to entry, where BBA Aviation has leading positions, well-known and reputable brands and a proven track record of organic and acquisition-led growth.
BBA Aviation was formerly part of BBA Group, but following the demerger of Fiberweb, in November 2006 it became a stand-alone aviation services business.
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