(Alliance News) - Signature Aviation PLC on Friday reported an improvement in flying activity in the first half of May despite the numbers still showing a significant year-on-year decline.
The aviation services company - whose annual general meeting is scheduled for Friday - said that flying activity in the first thirteen days of May was down 66% year-on-year but highlighted it was an improvement on the year-on-year decline of 77% recorded in April.
Signature Aviation said that April revenue was down 72%, resulting in revenue for the first four months of 2020 dropping 28%. On a like-for-like basis revenue was down 69% in April and down 24% in the first four months of the year.
Revenue for the Engine Repair & Overhaul business has not being hurt by Covid-19 so far. In the year to date, revenue grew by 2.1% compared to the year prior. On a like-for like basis revenue was up 2.5%.
The London-headquartered company said the disposal process for the ERO business continues.
"Encouragingly, we have seen some early signs of an improvement in flight activity in the US in May. Our business continues to have attractive fundamentals and medium-term prospects, and our ability to both manage cost in a timely manner and deliver robust cash generation has contributed to the group being cash flow positive in the month of April. A robust outcome given the extraordinary impact of market conditions on our income," said Chief Executive Mark Johnstone.
As at the end of April, Signature Aviation had cash of USD74 million and USD351 million of undrawn facilities.
The stock was up 3.5% at 191.80 pence early Friday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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