Overview
Strong results against broadly flat markets: underlying operating profit up 6%, profit before tax up 14%
Continued operational improvement supporting margin progression
Adjusted earnings per share up 22%
Positive progress on acquisitions and new licences with $56.3 million committed year to date
Interim dividend increased by 5% to 4.40¢
Operational highlights
Flight Support (57% of Group EBIT)
Organic revenue increase of 3%, operating profits up 9% with good margin progress
Signature: further network expansion and continued market outperformance
ASIG: improved de-icing and increased focus on enhancing service quality
Aftermarket Services (43% of Group EBIT)
Organic revenue decrease of 1%, operating profit growth of 2%
ERO: first half revenue reduction against a strong comparator, new authorisations and facilities well established
Legacy Support: strong organic revenue increase, limited impact of sequestration
APPH: strong sales growth, benefitting from operational initiatives
Continued strategic progress
Further Flight Support network expansion: three acquisitions including Jet Systems FBO at Westchester County Airport for $38.5 million, Signature entry in to Singapore, new Signature Select TM locations
Organic capital expenditure expansion projects progressing well and to plan
Additional Legacy Support licences signed
Effective transition to two division structure
Simon Pryce, BBA Aviation Chief Executive Officer, commented:
"BBA Aviation has delivered a strong first half performance, with good profit growth despite broadly flat markets and further strategic progress in both Flight Support and Aftermarket Services.
In the current lower growth environment, we continue to identify and deliver operational improvements across the Group and create value from our strong pipeline of opportunities for organic investment and consolidation in our fragmented markets. We continue to anticipate making good progress in 2013 with clear upside for our businesses once we enter a period of greater business confidence and accelerated structural growth."
