With most of BBA Aviation's profits coming from the US, a switch last year in reporting currency from sterling to the dollar made sense. But, whatever the currency, 2011's performance looks impressive.
BBA provides such services as overhauling jet engines and landing gear and its biggest division, flight support - containing private jet refuelling and staffing unit, Signature - performed strongly. Indeed, Signature has been busy expanding its network of fixed base operations, spending $70.2m (£44m) on several acquisitions and securing lease extensions on four existing sites. Flight support turnover actually rose 16 per cent to $1.33bn, with $21.8m coming from acquisitions - although organic growth reached just 2 per cent. Aftermarket services, meanwhile, enjoyed decent growth and turnover there rose 18 per cent to $806.6m, of which 12 per cent was organic. A recovery in flying activity helped the engine repair and overhaul side deliver organic revenue growth of 15 per cent, too. Cash generation remained strong, with free cash flow up 4 per cent to $185.8m, helping net debt fall 18 per cent.
Oriel Securities currently expects 2012 adjusted pre-tax profit of $168.9m, giving EPS of 27.4¢ ($170.2m and 29¢ in 2011) - but sees scope to revise these numbers up by 3-5 per cent.
| BBA AVIATION (BBA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 201p | MARKET VALUE: | £958m | |
| TOUCH: | 200-201p | 12-MONTH HIGH: | 228p | LOW: 152p |
| DIVIDEND YIELD: | 4.3% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 206¢* | NET DEBT: | 41% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 0.98 | 111 | 21.2 | 7.6 |
| 2008 | 1.16 | 84.2 | 15.3 | 7.6 |
| 2009 | 1.08 | 60.0 | 11.4 | 7.6 |
| ($bn) | ($m) | (¢) | (¢) | |
| 2010 | 1.83 | 132 | 23.6 | 13.1 |
| 2011 | 2.14 | 164 | 32.5 | 13.9 |
| % change | +17 | +24 | +38 | +6 |
Ex-div: 18 Apr Payment: 25 May *Includes intangible assets of $983m, or 206¢ a share £1=$1.60 | ||||
