(Reuters) - BBA Aviation Plc said it expects core earnings at its Ontic aircraft parts and services unit to reach $100 million by the end of 2021, helped by acquisitions and contract wins.
BBA’s shares were 6.8 percent higher at 244.6 pence at 0900 GMT, making the stock one of the top gainers on London’s midcap index.
The company said the unit, whose major customers include Boeing, Airbus and British Airways, had a healthy pipeline of new licence acquisitions and was also benefiting from the company’s recent acquisition of Firstmark Corp.
“Through effective execution of the licence and M&A opportunities available to Ontic we expect to reach $100m of EBITDA by the end of 2021,” BBA said.
BBA, which flagged softer-than-expected growth in the U.S. business and general aviation (B&GA) market in August, also set a new target for its aircraft maintenance support unit, saying the unit will outperform the market’s growth by about 250 basis points over the medium term.
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Saumyadeb Chakrabarty