BBA Avation defies tough private jet market

27th Feb 2009

Business jet service provider BBA Aviation has defied the slump in the private aviation sector by posting healthy profits and an unchanged dividend, and beating market expectations.
However Simon Pryce, chief executive of the UK-listed group, said its markets remained “volatile with limited visibility.” He warned the group faced “a difficult year” particularly as 80 percent of its sales come from North America.The group has also recently embarked on a programme to cut cost by £10m a year including cutting 350 jobs. Last year it cut costs by £6m with the loss of 300 jobs. It has closed two small loss-making businesses.

Pryce said that capital expenditure had been reduced and the group was focusing on cash generation and debt reduction.

Group revenues rose last year by 18 per cent from £979m to £1.156bn, mainly due to the strength of the US dollar and the high oil price.

BBA has maintained its underlying profits despite the weakness of many of its markets in both private and commercial aviation, where it provides airport ground services including refuelling and de-icing. These rose by three per cent from £86.4m to £89.2m.

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