Signature Aviation Posts H1 Loss; August Flight Activity Down 19%; Sees Sequentially Improved H2

Signature Aviation Plc (SIG.L) reported Tuesday that its first-half total loss before tax was $29.3 million, compared to last year’s profit of $47.3 million.

Basic loss per share was 2.3 cents, compared to profit of 3 cents a year ago.

Loss before tax from continuing operations was $51.7 million, compared to last year’s profit of $36.3 million. Basic loss per share from continuing operations was 4.5 cents, compared to profit of 2.9 cents a year ago.

Underlying profit before tax was $17.4 million, compared to $140.7 million. Underlying profit per share was 1.9 cents, compared to 10.6 cents a year ago.

Continuing Group underlying EBITDA was down 39.7 percent to $143.3 million.

Revenue declined to $963.1 million from $1.53 billion a year ago. Revenue from continuing operations declined 38.4 percent to $702.7 million from $1.14 billion last year due to the impact of COVID-19 on flight activity.

The organic revenue of Signature declined 29.3 percent in the first half. Continuing Group organic revenue was down 31.3 percent.

The company saw significant declines in flight activity in the second quarter, as stay-at-home restrictions were imposed in response to COVID-19.

Further, August flight activity was down 19 percent year on year across the network, a marked improvement to the low point of 77 percent down in April.

In the light of the continued uncertainty around the COVID-19 pandemic and to preserve balance sheet strength and liquidity, the Board has taken the decision to continue the suspension of dividend payments.

Looking ahead, the company expects improved performance in the second half compared to the first half.

Further, the company has committed to reducing carbon footprint with a 29 percent reduction in controllable Scope 1 & 2 emissions targeted by 2025 and 50 percent by 2030.

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