(Alliance News) - Signature Aviation PLC on Tuesday said it expects an improved operating performance in the second half following a first half that was hurt by a reduction in flight activity.
The FTSE 250-listed aviation services company said Business & General Aviation flying activity has been relatively stable since September. In October, US flight activity across its network was at 80% of prior year levels.
Revenue to October 30 for the continuing group - comprising Signature FBO and EPIC - was down 38%. On a like-for-like basis, revenue was down 33%.
London-headquartered Signature Aviation said the disposal process for the Engine Repair & Overhaul business continues. In the ERO business, revenue for the ten months to October 31 was down 8% year-on-year.
"Despite the continued challenges presented by the pandemic, I am encouraged that the recovery in flight activity across our network has stabilised at around 80% of prior year levels, which we currently assume to continue for the balance of the year," said Chief Executive Mark Johnstone.
"Our effective cost management and the support secured through the CARES Act in the US underpin an expected improved financial performance in the second half compared to the first half. Our market-leading FBO business model, the quality of our network and the strength of our liquidity underpins our ability to continue to invest in and grow our business as we navigate the pandemic, allowing us to emerge in a position of strength," he added.
As at the end of October, Signature Aviation had cash of USD87 million and undrawn facilities of GBP375 million.
Shares in Signature Aviation were trading 3.3% lower at 263.70 pence each on Tuesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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