BBA Aviation revenue soars 19% in 4 months to April

Aviation services company BBA said trading remained in-line with expectations, with revenue up 19% year-on-year in the four months to April, reflecting contributions from acquisitions and organic growth.

Revenue rose 2% on a like-for-like basis at constant currencies, adjusting for fuel prices and before acquisitions and disposals.

BBA said revenues from Signature Flight Support grew 26%, benefiting from an additional month of contribution from the Landmark Aviation acquisition.

Growth in the North American market had shown signs of strengthening with flight movements up 4% in the first two months of the year against 0% last year.

Organic revenues at the Signature fixed-base operation unit grew 3% with strong "drop through" continuing to demonstrate market outperformance, BBA said, adding that the unit had continued to invest in its current network of fixed-base operations with the successful completion in April of its newly constructed terminal at Boeing Field, Washington.

Site preparation had started at Nashville International Airport, Tennessee, where the construction of a new FBO terminal and hangars will begin later this year, BBA said.

Aftermarket Services revenue grew 4% and on an organic basis revenue was flat year-on-year.

Chief executive Simon Pryce said the group was performing well and in line with expectations.

“There has been an improvement in business and general aviation flight volumes reflecting the continued strengthening of the US business confidence indices,” he said.

“Our Ontic business continues to deliver good results and engine repair and overhaul's performance improved as anticipated versus the same period in 2016.”

“The group is now focused on higher value-added, better IP protected, high ROIC and strongly cash generative businesses with enhanced prospects and the board remains confident of good growth in 2017."