BBA Aviation trading in line, organic revenue drops

The FTSE 250 provider of aviation support and aftermarket services said revenue was up 12% year-on-year in the first quarter. This reflects acquisitions and organic growth at Signature and Legacy.

On a like-for-like basis – constant currency, adjusting for lower fuel prices and before acquisitions – revenue was down 6%.

Total revenue growth adjusting for fuel prices in the Flight Support division was up 33%, but fell 3% on an organic basis.

In Signature Flight Support, the company grew revenues 1.8% on an organic basis to outperform its market, despite an unusually mild winter impacting both de-icing revenues and traffic in some locations.

BBA said the integration of Landmark Aviation, the $2.1bn acquisition that completed in February, was ahead of plan. In addition, the company said it remains confident in delivering at least the $35m million of synergies previously identified.

Revenue in the Aftermarket Services division fell 11% on an organic basis and BBA said conditions in the engine repair and overhaul markets remain challenging.

Chief executive Simon Pryce said: "Despite marginally softer than anticipated markets and unseasonably warm weather in the north eastern United States, the group as a whole is performing in line with expectations.

“Importantly, the Signature Flight Support network continues to outperform its markets with strong margin drop through, and we see increasing long term opportunity through the application of Signature's industry leading customer focus, quality and breadth of service across our network of nearly 200 fixed-base operations.”