BBA Aviation's first-half profit and revenue drop

5th Aug 2015 08:59

(ShareCast News) - BBA Aviation posted a 33% drop in first-half pre-tax profit as revenue fell on the back of lower fuel prices and adverse currency moves.For the six months ended 30 June, pre-tax profit came in at $61.7m from $92m on revenue of $1.10bn, down 5% from $1.15bn.The company said the performance of its Aftermarket Services was disappointing, although this was slightly offset by above-market growth in Flight Support.Despite the drop in profit and revenue, BBA raised its interim dividend by 5% to 4.85 cents, which it said reflected continued confidence in future growth prospects.Chief executive officer Simon Pryce said: "We remain confident in the full year outlook. We have strong momentum in Flight Support, with Signature's continued outperformance and reduced start-up costs in ASIG. In Aftermarket Services, we anticipate a more positive second half performance as the efficiency improvements in ERO feed through, underpinned by the completion of new licence adoptions and a strong order book in Legacy."This coupled with a continued, albeit slow, recovery in our major markets gives us confidence that 2015 will be a year of good growth with strong momentum into 2016."