BBA Aviation (BBA) moved back into the black at the halfway stage after an impairment charge against its engine repair business wiped out pre-tax profit at the time of full-year results in March. Flight support business Signature, the group’s largest division, saw revenue increase by 18 per cent to $803m (£608m). This included a $52.8m boost from acquisitions, as well as an additional month of contribution from Landmark Aviation which was bought in February last year. Higher fuel prices and movements in foreign exchange also lent a helping hand. Signature now has 202 locations after BBA opened a new facility in Seattle and leased a location in Viginia during the period.
Revenue in the aftermarket services business fell relatively flat, although underlying operating profit rose 134 per cent to $26m. The acquisition of avionics products from GE Aviation aided the profit surge, as did improved demand in some markets for the engine repair and overhaul division.
Analysts at Jefferies expect pre-tax profit of $299m in the year to December 2017, giving an EPS of 23.3¢, compared with $239m and 20.9¢ in 2016.
| BBA AVIATION (BBA) | ||||
| ORD PRICE: | 307p | MARKET VALUE: | £3.17bn | |
| TOUCH: | 307.2-307.4p | 12-MONTH HIGH: | 324.5p | LOW: 231.2p |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 182¢* | NET DEBT: | 67% | |
| Half-year to 30 Jun | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2016 | 1.0 | -153 | -24.1 | 3.63 |
| 2017 | 1.1 | 92 | 5.1 | 3.81 |
| % change | +12 | -160 | -121 | +5 |
| Ex-div: | 14 Sep | |||
| Payment: | 03 Nov | |||
| *Includes intangible assets of $2.5bn, or 238¢ a share £1=$1.32 | ||||
