Signs of pick-up at BBA Aviation

25th Feb 2010 08:46

Cost cutting enabled aircraft services group BBA Aviation to mitigate the effects of reduced volumes in 2009.Though adjusted profit before tax dipped 8% to £78.2m from £89.2m in 2008, the group was encouraged by some signs in the final quarter of 2009 ‘that we are through the worst of the downturn in business and general aviation flying hours.’Statutory profit before tax dived by 29% to £70m from £84.2m the year before on revenue that fell 7% to £1,080.8m from £1,156.1m. The group took an £18.2m hit from one-off charges this time round, of which £6m was accounted for by restructuring costs. The cost base has been reduced by around £30m per annum as a result of the restructuring initiatives undertaken in the second half of 2009.Net debt at the end of 2009 had been reduced to £391.6m from £554.4m at the end of 2008. ‘We saw preliminary indications in the last quarter of 2009 that we are through the worst of the downturn in business and general aviation flying hours, as Signature [the flight support division] returned to modest organic volume growth. This has continued in the first few weeks of 2010, although the nature and profile of the recovery remains unclear,’ said chief executive Simon Pryce.The dividend for the year has been maintained at 7.6p.