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BBA Aviation sees FY in line despite softer US market

By Frank Prenesti

Date: Thursday 08 Nov 2018

BBA Aviation sees FY in line despite softer US market

(Sharecast News) - BBA Aviation on Thursday said it expected full year underlying operating profit to be broadly in line with expectations as its Ontic and discontinued ERO businesses, offsetting a softer than expected US market.


Continuing group total revenue increased by 27% year-on-year for the 10 months to end-October.

This represented year-on-year growth of 30% in BBA's Signature flight support division, reflecting the acquisition of EPIC fuels and commercial renegotiations.

Year-on-year revenue growth in BBA's aftermarket services business was 2.2%.

On a like-for-like basis continuing group revenue increased by 2.2%, reflecting 3.0% organic revenue growth in Signature and 4.4% organic revenue decline in aftermarket services, due to the expected non-repeat of cyclical military orders in 2017.

BBA added that it had signed a deal to buy the St Thomas Jet Centre in the US Virgin Island of St. Thomas for an undisclosed sum.

"The acquisition will occur in two phases - we have acquired a holding of 49% and will acquire the remaining 51% of the business within 14 months," BBA said.

The St Thomas Jet Centre comprises an executive terminal, aircraft maintenance and storage hangar and a newly constructed fuel farm.

BBA chief executive Mark Johnstone said the market "continues to be impacted by global economic uncertainty which is impacting flying hours".

"We continue to believe that over the longer term flying hours are correlated to US GDP and this is supported by many of the typical market indicators which remain positive."

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