BBA Aviation swings to profit in first half

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BBA Aviation said on Tuesday that it swung to a profit in the first half as it lifted its dividend by 5%.

In the half year ended 30 June, the company made a pre-tax profit of $84.7m compared to a loss of $269m the year before. Total revenue came in at $1.18bn, down from $1.23bn the year before but revenue from continuing operations was up 12% to $1.15bn.

Revenue in the flight support division, Signature, was up 18% to $802.8m, while revenue in the aftermarket services business edged up 0.8% to $342.7m. The group’s legacy support business, Ontic, saw revenue rise 34.2% to $94.2m, while Engine Repair and Overhaul’s revenue declined by $21.4m to $248.5m.

The company upped its interim dividend to 3.81 cents a share from 3.63 cents.

Interim group chief executive Wayne Edmunds said: “We successfully concluded during the first half of the year negotiations with our largest customers regarding the delivery of our services across the enlarged, market-leading network and believe that the outcome demonstrates Signature’s unrivalled ability to satisfy the needs of its customer base.

“Although we experienced a short-term negative impact on volumes relative to market during the period, Signature’s strong drop through continues to demonstrate our ability to grow underlying operating profit ahead of market growth.”

At 1025 BST, the shares were up 2.4% to 307.40p.

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