BBA Aviation trading in line but aftermarket services under pressure

BBA Aviation said trading from 1 July to 21 November was in line in all of its businesses apart from the engine repair and overhaul division.

The aviation support and aftermarket support services provider said group revenue was down 3% on an organic basis, excluding the impact of exchange rates, fuel prices, acquisitions and disposals.

Revenue in Flight Support was down 3% on an organic basis, reflecting net contract losses and softer-than-anticipated Business & General Aviation movements, which were flat in North America during the period, and down 2% in Europe.

The company’s Signature Flight Support business delivered another strong performance, with organic revenue up 3% and good drop-through to operating profit, “as customers continue to recognise the benefits of its strong network and leading service offering”.

In Aftermarket Services, meanwhile, organic revenue declined by 3%.

BBA said the proposed acquisition of Landmark Aviation that was announced in September 2015 has been positively received by all stakeholders and is proceeding to plan with completion anticipated early next year.

Chief executive Simon Pryce said: “Despite this challenging backdrop in ERO, 2015 is still expected to be a year of progress for BBA Aviation, with strong momentum into 2016 driven by Flight Support as the significant growth investments made in recent years increasingly contribute and as we look to complete the acquisition of Landmark Aviation and begin to realise the very significant customer and stakeholder benefits this transformational combination creates."

At 0817 GMT, shares were down 1.9% to 166.10p.