StockMarketWire.com - BBA Aviation said half-yearly profits fell 2% despite 'solid' performance in its signature division as higher costs weighed.

For the six months to 30 June, underlying pre-tax profits fell 2% to $140.2m as revenues rose 19% to $1.53bn, bolstered by organic growth along with the acquisitions of EPIC, Firstmark and Ontic licences acquired during 2018, the company said.

In its signature division, which included signature FBO, EPIC and TECHNICAir, revenues increased 23.3%, reflecting the six-month contribution from EPIC, partially offset by the impact of lower fuel prices and foreign exchange movements. Organic growth in the signature FBO business was 1.0%.

Ontic revenue increased by 28.2% with organic revenue growth of 8.0% supplemented by the contribution from the 2018 licence acquisitions and Firstmark contributing as expected.

The interim dividend increased by 5% to 4.2 cents.

Looking forward, signature would focused on maintaining its level of performance against the US B&GA market in the second half, the company said.

Post the proposed disposals, BBA Aviation would be focused on the cash generative signature business which 'will enable us to maintain our progressive dividend policy, coupled with the prospect of returns to shareholders as we maintain our target leverage range,' it added.

'The Board is confident of delivering market outperformance through our Signature strategic growth initiatives.'



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