Signature Aviation expects trading to improve in H2
Signature Aviation
396.00p
17:15 28/05/21
Aviation services group Signature Aviation expects to see trading improved in the second half of the year after being "encouraged" by a recovery in flight activity across its network.
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Signature aviation said on Tuesday that US flight activity across its network was now at 80% of that seen a year ago, while business and general aviation flight activity was said to be "relatively stable".
However, despite the improved levels of activity, the FTSE 250-listed firm said continuing group revenues were down 38% in the ten months ended 31 October.
Signature added that it had continued to have a tight focus on costs at both corporate and at individual FBOs, while liquidity was also strong, with total facility headroom and cash of $462.0m at the end of the period.
Signature anticipates an improved trading performance in the second half, assuming flight activity stays at the aforementioned 80% level.
Chief executive Mark Johnstone said: "Despite the continued challenges presented by the pandemic, I am encouraged that the recovery in flight activity across our network has stabilised at circa 80% of prior-year levels, which we currently assume to continue for the balance of the year.
"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."
As of 0900 GMT, Signature Aviation shares were down 3.09% at 264.36p.