StockMarketWire.com - Aviation services group Signature Aviation said its revenue had slumped in the first half, though it had seen some improvement in flying activity as Covid-19 lockdowns eased.

Revenue from continuing operations in the six months through June dropped 38%.

Like-for-like revenue, which was at constant currency and included adjustments for fuel prices, acquisitions and disposals, fell 31%.

Signature Aviation said it remained net cash flow positive in the second quarter, having cut costs and capital expenditure.

Flying activity had continued to show an improving trend, falling 32% in June, compared to a 77% drop in April.

The company said it had agreed to a precautionary covenant waiver with its banks for the December 2020 and June 2021 testing periods/

'Since our AGM statement in mid-May, flight activity across our global network has continued to show an encouraging recovery and, in the US, with the support of the CARES Act, we have now called back all our furloughed staff,' chief executive Mark Johnstone said.

The company said it would continue to monitor the Covid-19 recovery closely and would provide further updates when it published its interim results in early September.

'Furthermore, the board will review the decision on suspension of dividend payments as trading conditions become clearer,' it added.



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