BBA Aviation increases its 2016 interim dividend by 5% in $ terms

DividendMax Ltd.

BBA Aviation increases its 2016 interim dividend by 5% in $ terms

Highlights

Strong overall results, underlying operating profit (continuing and discontinued) up 56% to $149.6 million

Acquisition of Landmark Aviation delivering as anticipated

Integration proceeding well and synergy delivery ahead of plan

$190m of U.S. Department of Justice required FBO disposals completed

Continuing operations:  

Flight Support (93% of Group) 

Excellent underlying operating profit growth of 84% in enlarged Signature despite broadly flat markets

Continued market outperformance, existing Signature organic revenue growth of 3.6% and underlying operating profit growth of 10.8%*

Increased confidence in delivering run rate synergies of at least $35 million

Aftermarket Services (7% of Group) 

Ontic, our Legacy Support business, delivered ahead of plan and with a strong order book

Weak H1 performance in ERO as trading conditions remained challenging, continued progress on footprint reduction programme

Statutory operating profit from continuing operations down 8% to $62.1 million

Discontinued operations:

o ASIG reclassified as held for sale; good underlying improvement 

Exceptional and other items of $347.3 million

o Continuing challenges in ERO leading to non-cash accounting impairment of $185.3 million

o $128.9 million ASIG write-down resulting from reclassification as held for sale

o $44.7 million amortisation of acquired Landmark Aviation intangibles, in line with expectations

Strong net cash flow from operating activities of $160 million and Group de-levered to 3.2x net debt/EBITDA on a covenant basis, versus covenant of 4x

Adjusted underlying EPS up 6.4%

Interim dividend up 5% reflecting continued confidence in the Group's future growth prospects

Companies mentioned