BBA Aviation (BBA) has managed to negotiate turbulence in its US and European markets to deliver a steady full-year performance. Organic revenue fell 1 per cent in 2012 and - after adjusting for $32.7m (£21.8m) in exceptional costs relating to the closure and restructuring of operations - underlying pre-tax profit slipped 4 per cent to $163m.
The flight support business, which handles and refuels private jets across a global network of airports, generates over 60 per cent of group revenues. Previously flagged problems at Miami and Tampa during the first half, lower-than-expected de-icing work and a fall in flying hours in the US and Europe meant underlying operating profit here slipped 10 per cent in the year to $112.5m. Still, forecast deliveries of new business jets are set to increase every year until 2017, with a recovery in flying hours expected in 2014 after another flat year in 2013. The after-market services division, meanwhile, reported reasonably strong results, with sales up 6 per cent to $857m and underlying profit up 10 per cent to $100.5m.
JPMorgan Cazenove expects adjusted pre-tax profit of $176m for 2013, giving EPS of 30.5ȼ (from $163m and 29ȼ in 2012).
BBA AVIATION (BBA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 260p | MARKET VALUE: | £1.2bn | |
| TOUCH: | 260-260.3p | 12-MONTH HIGH: | 264p | LOW: 177p |
| DIVIDEND YIELD: | 3.8% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 214ȼ* | NET DEBT: | 41% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 1.16 | 84.2 | 15.3 | 7.60 |
| 2009 | 1.08 | 60.0 | 11.4 | 7.60 |
| $bn | $m | (ȼ) | (ȼ) | |
| 2010 | 1.83 | 132 | 23.6 | 13.1 |
| 2011 | 2.14 | 164 | 32.5 | 13.9 |
| 2012 | 2.18 | 130 | 24.2 | 14.7 |
| % change | +2 | -21 | -26 | +6 |
Ex-div: 10 Apr Payment: 24 May *Includes intangible assets and goodwill of $1bn, or 210ȼ a share £1=$1.50 | ||||
