BBA Aviation sees profits plunge in first half

7th Aug 2012 08:07

BBA Aviation, the FTSE 250 aviation and support services provider, said soft markets were to blame for a drop in profits in the first half.Profit before tax fell 27% to $58.4m in the six months to the end of June, pushing earnings per share down 17% to 12c.The company said activity in both the business and general aviation and commercial markets was down and warm weather had meant less demand for its de-icing services.It was also hit by exceptional items to $13.3m relating to the closure of APPH's Basingstoke facility and the cost of a drive to harmonise financial function processes.However, revenues were up slightly to $1.09bn and the firm saw fit to push the dividend up 5% to 4.2c."Consistent with the subdued macroeconomic backdrop, we do not now anticipate any material improvement in markets in the second half," said Chief Executive Simon Pryce."However with fewer headwinds and continued operational improvements we expect to make progress in the second half of the year and beyond." The firm said its acquisition pipeline remained strong and medium-term indicators continued to support "exciting growth potential" in its markets.