BBA Aviation unveils rise in revenue

10th May 2013 09:12

BBA Aviation reported a three per cent rise in revenue in the first four months of the year as the company worked to improve its operations.The group said a 2.0% rise in flight support revenues offset weak performance in business and general aviation in North America and Europe.Commercial airline movements in the US declined by 3.0%. However, following last year's exceptionally warm winter, flight support benefited from more normal locals of de-icing activity. In the group's aftermarket services division, revenues grew by 1.0% on an organic basis. Capital projects at Palm Beach, Florida and Luton, England were also proceeding to plan during the period. The San Jose City Council gave approval for the finalisation of an agreement for BBA flight support subsidiary, Signature, to establish a fixed-based operator at Mineta San Jose International Airport under a 50 year lease. In another achievement for the group, its Aircraft Service International Group arm recently signed an agreement to acquire Gategroup's cabin cleaning business at London Heathrow and de-icing business at Heathrow, London Gatwick and Dublin.The acquisition is expected to be complete in the first half of the year with an aggregate consideration of up to $4.5m.BBA said despite the anticipated impact of business and general aviation movements on engine overhaul activity, all businesses are performing well. "Our major markets remain broadly stable, as expected, and we continue to focus on driving further operational improvement," said Chief Executive Simon Pryce. "With good underlying momentum from 2012 as well as the incremental contribution from acquisitions, we continue to anticipate making good progress in 2013."Shares rose 3.03% to 268.80p at 09:49 Friday.RD