Annual Report 2010 in PDF - BBA Aviation

Leases
Where assets are f nanced by lease agreements that give rights similar to ownership (f nance leases), the assets are treated as if they had been
purchased and the leasing commitments are shown as obligations to the lessors. The capitalisation values of the assets are written of on a
straight-line basis over the shorter of the periods of the leases or the useful lives of the assets concerned. The capital elements of future lease
obligations are recorded as liabilities, while the interest elements are charged to the proft and loss account over the period of the leases to
produce a constant rate of charge on the balance of capital payments outstanding.
For all other leases (operating leases) the rental payments are charged to the proft and loss account on a straight-line basis over the lives of
the leases.
Taxation
The charge for taxation is based on the proft for the year and takes into account taxation deferred due to temporary diferences between the
treatment of certain items for taxation and accounting purposes.
Deferred tax is provided in full on all liabilities. In accordance with FRS 19 ‘Deferred Tax’, deferred tax assets are recognised to the extent it is
regarded that it is more likely than not that they will be recovered. Deferred tax assets and liabilities have not been discounted.
Deferred tax is not provided on timing diferences arising from the sale or revaluation of fxed assets unless, at the balance sheet date,
a binding commitment to sell the asset has been entered into and it is unlikely that any gain will qualify for roll-over relief.
Notes to the Company Financial Statements
1. Dividends
On 21 May 2010, the 2009 fnal dividend of 5.30 pence per share (total dividend £22.4 million) was paid to shareholders. During 2010 and 2009 the
Company operated a Scrip Dividend Scheme which provided shareholders with the opportunity to receive their dividends in the form of new
ordinary shares in the Company instead of cash. £10.8 million of the 2009 fnal dividend was taken up in the form of shares under the Scrip
Dividend Scheme. In May 2009, the 2008 fnal dividend paid was 5.30 pence per share (total dividend £21.9 million).
On 29 October 2010, the 2010 interim dividend of 2.4 pence per share (total dividend £10.3 million) was paid to shareholders. £4.5 million of
the 2010 interim dividend was taken up in the form of shares under the Scrip Dividend Scheme. In November 2009, the 2009 interim dividend
paid was 2.30 pence per share (total dividend £9.7 million).
In respect of the current year, the directors propose that a fnal dividend of 5.7p per share will be paid to shareholders on 8 June 2011. This
dividend is subject to approval by shareholders at the Annual General Meeting and in accordance with FRS 21 “Events after the Reporting Period”
has not been included as a liability in these fnancial statements. The proposed dividend is payable to all shareholders on the register of members
on 15 April 2011. The total estimated dividend to be paid is £22.4 million.
Dividend payments to minority shareholders during the year totalled £0.1 million (2009: £0.1 million).
2. Directors
Emoluments and interests
Details of directors’ emoluments and interests are provided within the Directors’ Remuneration Report on pages 75 to 83.
2010 2009
Employees Number Number
Average monthly number (including Executive Directors) 30 29
£m £m
Employment costs
Wages and salaries 6.0 5.9
Social security costs 0.6 0.5
Pension costs 0.9 0.4
7.5 6.8
Company Financial Statements — 129