BBA Aviation PLC BBA Aviation plc - Trading Update (7318N)
May 11 2018 - 2:31AM
UK Regulatory
TIDMBBA
RNS Number : 7318N
BBA Aviation PLC
11 May 2018
11 May 2018
Trading update
In advance of its Annual General Meeting today, BBA Aviation
("the Group"), a market-leading provider of global aviation support
and aftermarket services, is pleased to announce a trading update
for the period 1 January to 30 April 2018, unless otherwise
stated.
The Group's trading performance remains in line with
expectations, with revenue for the period up 9.7% year-on year,
reflecting good organic growth in Signature. On a like-for-like
basis (constant currency, adjusting for fuel prices and before
acquisitions) revenue was up 2.9%.
In Flight Support, Signature revenues for the period to end of
April grew 13.9% and on a like-for-like basis (constant currency,
adjusting for higher fuel prices) were up 5.5%. For the three
months to 31 March 2018 US B&GA flight movements grew 2.6% and
Signature like-for-like revenue growth was 4.7%. Our market
outperformance reflects the momentum from the commercial
negotiations concluded around the middle of 2017; this
outperformance, compared to US B&GA market movements, is
expected to moderate as comparatives strengthen in the second half.
The US B&GA market was weaker than expected during the first
quarter as weather impacted flight movements, particularly in
January and March.
We continue to invest in our Signature network, including recent
investments in new technology to enhance our fuel and non-fuel
revenue management capabilities. Signature has recently secured a
significant lease term extension with a new 20-year lease (with a
possible five-year extension) at its sole source FBO at Hartsfield
Jackson Atlanta International Airport. Here, at what is the world's
busiest hub airport, we will invest in a new FBO facility and will
launch our first Signature Elite(TM) service in the US (private
transfers to/from commercial flights via Signature's B&GA FBO
facilities). We also continue to explore Signature Select(TM)
growth opportunities.
In Aftermarket Services, revenue declined 0.5% and on a
like-for-like basis was down 3.8%. In the first four months of the
financial year Ontic has been impacted by the phasing of its
revenues, against a strong prior year comparative, but continues to
see a strong pipeline of future growth opportunities and is
expected to perform in line with expectations for the full
year.
Ontic has recently signed a new licensing agreement with
Honeywell for cockpit LCD displays on multiple commercial, military
fixed-wing and rotorcraft platforms. We are also pleased to sign a
first product licence with Engine Control Services (part of United
Technologies Aerospace Systems) for the manufacturing and
aftermarket support for military fuel control products. This
product line will transition into our Cheltenham facility during
this first half of the year.
Our ERO business has continued to perform well during the period
with revenues flat compared to the prior year, continuing the
stable trend seen over the second half of last year. The strategic
review of ERO, which we announced on 1 March 2018, is ongoing and
we expect to update the market in due course.
As recently announced, the Group has refinanced its $650 million
unsecured multicurrency revolving credit facility (RCF) which was
due to mature in April 2019, with a new facility which will expire
in March 2023. The new RCF has been agreed predominantly with the
Group's existing lenders with an overall weighted average interest
cost in line with the previous facility. We have also recently
issued our inaugural $500m senior unsecured notes due 2026 at
5.375%. This gives the Group a diversified debt structure with an
extended maturity profile to align better with the long-term nature
of the assets being financed and support future growth.
Mark Johnstone, BBA Aviation CEO commented "Momentum in the
Group continues with market outperformance in Signature, building
our non-fuel services, the extension of our lease term at
Hartsfield Jackson Atlanta International Airport and the
acquisition of new Ontic licences. We are pleased to have concluded
the refinancing of the Group and have the capital structure in
place to execute on our strategy. The outlook for the full year
remains unchanged."
Notes:
The Group will publish its interim results for the half year
ended 30 June 2018 on 1 August 2018.
Enquiries:
BBA Aviation plc
David Crook, Group Finance Director
Kate Moy, Head of Investor Relations and Communications
(020) 7514 3999
Tulchan Communications
Toby Bates
(020) 7353 4200
Information on BBA Aviation plc
BBA Aviation plc is a market leading, global aviation support
and aftermarket services provider, primarily focused on servicing
the Business and General Aviation (B&GA) market. We support our
customers through three principal businesses: Signature Flight
Support and Signature TECHNICAir(TM) which provide premium, full
service flight and home base support including refuelling, ground
handling and MRO services through the world's largest fixed base
operation (FBO) network for B&GA users with around 200
locations covering key destinations in North America, Europe, South
America, Caribbean, Africa and Asia. Ontic is a leading provider of
high-quality equipment and cost-effective solutions for the
continuing support of maturing and legacy aerospace platforms with
locations in the USA, Europe and Asia. Engine Repair &
Overhaul/Global Engine Services is a leading independent engine
service provider to global B&GA operators, the rotorcraft
market and regional airline fleets with locations in the USA,
Europe, South America, Asia and the Middle East. For more
information, please visit www.bbaaviation.com
This information is provided by RNS
The company news service from the London Stock Exchange
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