Interim Management Statement
In advance of its Annual General Meeting today, BBA Aviation plc, the leading global aviation support and aftermarket services provider, is issuing an Interim Management Statement for the period from 1 January to 23 April 2012.
For the first quarter to 31 March 2012, Group revenue increased by 2%. After adjusting for fuel prices, revenue declined by 1%.
Revenue in Flight Support declined by 8% after adjusting for fuel prices. The Flight Support division, particularly ASIG, was adversely impacted by the exceptionally warm winter in North America which resulted in limited de-icing revenue in the first quarter of 2012 compared to a strong Q1 2011. Both business and general aviation (B&GA) flying hours and commercial movements were also marginally down against strong prior year comparators. Signature continued to outperform its market, although this has been masked by the 2011 exit from Miami and Tampa, which was partly offset by the contribution from the FBO acquisitions made in 2011 and the beginning of 2012.
In Aftermarket Services and Systems there was further good progress and revenues grew by 15%, driven by solid demand for engine overhaul services and legacy products together with a strong contribution from the GE fuel measurement business. While landing gear deliveries were weaker than the same period in 2011, this was principally due to the timing of deliveries rather than underlying demand.
All businesses continued to make further operational progress, and the acquisitions made in 2011 and early 2012 are integrating well. Trading cash flows have followed the usual seasonal pattern and the Group's balance sheet remains strong, supporting substantial investment capacity to fund a strong pipeline of potential acquisition and investment opportunities.
Commenting on the Interim Management Statement, Simon Pryce, BBA Aviation Group Chief Executive said:
"B&GA and commercial movements in the first quarter in both North America and Europe have been muted. We anticipate this continuing for the remainder of the first half, consistent with our view that the uncertain economic climate will result in low and somewhat volatile growth in our major markets in 2012. This, together with lower de-icing revenues against a strong comparator, represent headwinds for the first half, however with ongoing underlying operational progress we continue to expect this to be a year of further progress, and see good opportunities to deploy our investment capacity in a value creative way.
Over the medium-term, the strengths and track record of our business and the structural drivers of our markets give us continued confidence in the attractive growth prospects for BBA Aviation and our ability to deliver superior through-cycle returns."
