BBA Aviation (BBA), which provides a range of services to airlines, has delivered a flat set of results against a stagnant market backdrop. Revenues were boosted by a number of acquisitions, which delivered an extra $27m (£16m), but these gains were largely wiped out by lower fuel prices. Strip out these effects and organic sales were up 2 per cent.
The acquisition-led growth strategy looks set to continue this year, when the group hopes to complete its $39m acquisition of Jet Systems FBO at Westchester County Airport in New York. In the meantime, its decision to combine the group's five divisions into two is showing modest signs of paying off: underlying operating profit rose by 4 per cent to $200m and operating margins were broadly stable at 9 per cent last year. Furthermore, the flight-support division - which offers refuelling and ground-handling services - managed to improve underlying profit by 5 per cent to $116m.
But a tough market took its toll on the aftermarket division. Revenues from engine repairs and overhaul fell 8 per cent to $598m, offsetting double-digit gains elsewhere in the segment and leaving overall divisional sales 2 per cent lower at $843m.
Brokerage N+1 Singer expects adjusted pre-tax profits of $186m this year, giving adjusted EPS of 32p, up from $171m and 30p in 2013.
BBA AVIATION (BBA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 338p | MARKET VALUE: | £1.62bn | |
| TOUCH: | 337-338p | 12-MONTH HIGH: | 353p | LOW: 241p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 229ȼ* | NET DEBT: | 44% | |
| Year to 31 Dec | Turnover ($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 |
| % change | +2 | +16 | +25 | +5 |
Ex-div: 9 Apr Payment: 23 May *Includes intangible assets of $1.06bn or 220ȼ per share £1 = $1.67 | ||||
