Signature Aviation profits soar following sale of Ontic

Aviation services group Signature Aviation posted improved full-year results on Tuesday, partly thanks to the firm booking a gain on the sale of its Ontic business.

Signature recorded a 2019 net profit including discontinued operations of $659.5m, up 378% year-on-year, while revenues rose 4.7% to $3.02bn and underlying pre-tax profit inched ahead 0.4% to $309.3m.

The FTSE 250-listed firm, which sold off its Ontic business for $1.36bn and returned $833.6m of capital to shareholders during the year, declared a final dividend of 10.57 cents and a full-year payout of 14.77 cents per share - both up 5% year-on-year.

Signature FBO organic revenue was up 1.1%, with new commercial initiatives contributing to the group's outperformance in the US.

Chief executive Mark Johnstone said: "2019 has been a transformational year as we continued to invest in our core Signature business and fully recognised the strategic value of our Ontic business.

"Looking forward, Signature is focused on continuing to improve its level of outperformance against the US B&GA market. With our singular focus on the cash generative FBO business, we reiterate our progressive dividend policy and will look to further enhance returns to shareholders as we maintain our target leverage range, while continuing to invest to grow the business."

As of 0840 GMT, Signature shares were flying 3.33% higher at 282.10p.