It was a mixed bag for airline services provider BBA Aviation (BBA) in 2014. "Softer than anticipated" revenues from the after-market services unit, which accounts for 41 per cent of operating profits, offset much of the year's progress. Even a resilient performance from the flight support division (51 per cent of operating profit) only managed to pull underlying operating profit up by 1 per cent to $201m (£132m) at group level.
Management said it was hoping for a better year in after-market services in 2015. Last year, a tough engine repair and overhaul market pulled underlying operating profit down 12 per cent to $90m.
On a more positive note, BBA did see an uptick in the US business and general aviation market, with its Signature flight support brand reporting an 11 per cent increase in revenues to $1.08bn. Even adjusting for lower fuel prices, underlying sales grew 8 per cent, significantly outperforming wider US market growth of 4 per cent. This contributed to a 14 per cent improvement in underlying operating profits from flight support, to $133m.
Analysts at N+1 Singer expect pre-tax profits of $192m for 2015, giving EPS of 34ȼ, up from $172m and 30.7ȼ, respectively, in 2014.
| BBA AVIATION (BBA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 343p | MARKET VALUE: | £1.60bn | |
| TOUCH: | 343-344p | 12-MONTH HIGH: | 362p | LOW: 294p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 232ȼ* | NET DEBT: | 57% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2010 | 1.83 | 132 | 23.6 | 13.1 |
| 2011 | 2.14 | 164 | 32.5 | 13.9 |
| 2012 | 2.18 | 125 | 23.1 | 14.7 |
| 2013 | 2.22 | 145 | 28.9 | 15.4 |
| 2014 | 2.29 | 152 | 34.5 | 16.2 |
| % change | +3 | +5 | +19 | +5 |
Ex-div: 9 Apr Payment: 22 May £1=$1.52 *Includes intangible assets of $1.15bn, or 246ȼ a share | ||||
