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08 Nov 2018 | 08:36

BBA on track to meet expectations as revenue jumps 27%

BBA Aviation said Thursday it expected full-year underlying operating profit would be broadly in line with expectations even as its Signature division's performance was hurt by the softer-than-expected US B&GA market.

For the 10 months to 31 October, total revenue increased by 27%, representing year-on-year growth of 30% in Signature on the back of the EPIC acquisition and commercial renegotiations, the company said.

on a like-for-like basis revenue increased by 2.2%, reflecting 3.0% organic revenue growth in Signature and 4.4% organic revenue decline in aftermarket services, amid a loss of cyclical military orders.

The company's Signature division performance was hurt by stagnant growth US B&GA growth of 0.8% as global economic uncertainty kept a lid on flying hours, BBA said.

'While we noted a softening of the US B&GA market in the summer, 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,' said Mark Johnstone, BBA Aviation Group CEO.

At 8:36am: (LON:BBA) BBA Aviation PLC share price was -8.3p at 239.9p

Story provided by StockMarketWire.com
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