Annual Report 2010 in PDF - BBA Aviation

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Key Performance BBA Aviation uses a range of key performance indicators (KPIs) tied to the Group’s mission statements Indicators to monitor the progress against the goals which have been set to support the delivery of BBA Aviation’s overall objective to grow exceptional, long-term, sustainable value for all stakeholders. 18 — Directors’ Report Financial KPIs Organic Revenue Growth Monitoring organic revenue growth provides a measure of the underlying growth of the business. It is measured excluding the impact of foreign currency and fuel price fuctuations, and any contribution from acquisitions and discontinued operations. 2010 performance: organic revenue returned to growth following the signifcant market downturn in 2008 and 2009. Adjusted Earnings per Share Adjusted earnings per share measures the proftability attributable to shareholders after the impact of interest and tax. It excludes the impact of exceptional items and is divided by the weighted average number of shares in issue. 2010 performance: Adjusted earnings per share increased by 21% to 17.6p (2009: 14.6p) refecting the 10% increase in underlying operating proft together with a 32% reduction in the net interest charge due to lower debt levels and lower interest rates. Cash Conversion Our cash conversion rate measures how ef ectively we convert operating profts into cash. Focusing on this measure encourages a strong discipline in the management of working capital and decisions on capital expenditure. 2010 performance: Our strong cash conversion continued, building on an exceptional performance in 2009. There was some beneft from the timing of c.£13 million of collections which would otherwise have come in during 2011. 2010 2009 2008 2007 2006 2010 2009 2008 2007 2006 2010 2009 2008 2007 2006 -10% 6% -15 -10 -5 0 5 10 17.6p 14.6p 16.1p 15.4p 14.9p 10 12 14 16 18 124% 179% 101% 83% 87% 0 20 40 60 80 100 120 140 160 180 4% 1% 8%
Return on Invested Capital (ROIC) Measuring ROIC ensures we are focused on the ef cient use of the Group’s assets, with the target of operating returns generated across the cycle exceeding the cost of holding the assets. ROIC is defned for the Group as underlying operating proft expressed as a percentage of average invested capital at constant currency, including goodwill and intangible assets amortised or written of to reserves. 2010 performance: 110 basis point improvement in ROIC refects the 10% improvement in underlying operating proft whilst maintaining the same invested capital base. Non-Financial KPIs Recordable Incident Rate (RIR) Each of our facilities uses Recordable Incident Rate (RIR) as its primary health and safety performance metric. RIR measures the number of full-time employees out of every 100 that sustain a recordable injury or illness. 2010 performance: The Group-wide RIR at the end of 2010 was 3.25, 22.25% lower than our 2009 RIR performance of 4.18. This represents the lowest rate for the current portfolio of aviation businesses since we started monitoring. Number of locations achieving zero RIR Our health and safety strategy seeks to deliver a zero incident environment in which every individual is responsible. This approach is supported by our ZIPP (Zero Incident Philosophy & Process) global safety campaign. 2010 performance: 124 out of 211 BBA Aviation reporting locations achieved an RIR of zero in 2010. This continues the improving trend, with 115 sites achieving an RIR of zero in 2009 and 101 in 2008. 2010 2009 2008 2007 2006 2010 2009 2008 2007 2006 2010 2009 2008 2007 2006 9.5% 8.4% 11.1% 11.3% 11.6% 0 2 4 6 8 10 12 3.25 4.18 4.9 6.3 6.7 0 1 2 3 4 5 6 7 124 115 101 72 32 0 20 40 60 80 100 120 140 160 14 8 Directors’ Report — 19
Page 1 and 2: Annual Report 2010
Page 3 and 4: Directors’ Report 2 Overview 2 Gr
Page 5 and 6: Group Structure Revenue by business
Page 7 and 8: Revenue Revenue increased by 4% on
Page 9 and 10: Corporate Governance The Board beli
Page 11 and 12: Michael Harper (66) Chairman Simon
Page 13 and 14: Worldwide Business Jet and Turbopro
Page 15 and 16: Commercial Aviation Our commercial
Page 17 and 18: Each of the fve businesses has a cl
Page 19: Principal Risks and Risk Potential
Page 23 and 24: Proft before tax increased by 42% t
Page 25 and 26: Financial Summary 2010 2009 Inc/(de
Page 27 and 28: ASIG United States of America, Cari
Page 29 and 30: Directors’ Report — 27
Page 31 and 32: Revenue 2010 2009 Inc/(dec) 20091 I
Page 34 and 35: ASIG Focused on growth 32 — Direc
Page 36 and 37: Key Facts ASIG is a world leading i
Page 38: London Heathrow: the A380 is a doub
Page 41 and 42: Financial Summary 2010 2009 Inc/(de
Page 43 and 44: Legacy Support United States of Ame
Page 45 and 46: Directors’ Report — 43
Page 47 and 48: Revenue 2010 2009 Inc/(dec) 20091 I
Page 50 and 51: Legacy Support Flexible resources m
Page 52 and 53: Key Facts Legacy Support is a leadi
Page 54 and 55: Houston, Texas: a Legacy Support st
Page 56 and 57: APPH Delivering continuous improvem
Page 58 and 59: Key Facts APPH has a niche focus an
Page 60: Runcorn, UK: a Jas39 Gripen nose la
Page 63 and 64: CSR leadership Group-wide Providing
Page 65 and 66: The Group also launched its new par
Page 67 and 68: A signifcant proportion of our debt
Page 69 and 70: Suppliers Payment Policy Substantia
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The Board has a formal schedule of
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a. Remuneration Committee Compositi
Page 75 and 76:
Guidance on Audit Committees. The A
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Directors’ Remuneration Report I
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The following chart shows the balan
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d. Longer-term performance incentiv
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Annualised total shareholder return
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e. Pension: policy and implementati
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Independent Auditor’s Report to t
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Consolidated Statement of Comprehen
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Consolidated Cash Flow Statement Op
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Accounting Policies Basis of Accoun
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Property, Plant and Equipment Prope
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Notes to the Consolidated Financial
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2. Proft for the year Proft for the
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5. Dividends On 21 May 2010, the 20
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8. Intangible assets - continued Th
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10. Investments in associates Cost
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13. Trade and other payables Amount
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16. Bank overdraft and loans - cont
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17. Derivative fnancial instruments
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19. Pensions and other post-retirem
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19. Pensions and other post-retirem
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21. Share capital and reserves Allo
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21. Share capital and reserves - co
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23. Cash fow from operating activit
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26. Related party transactions Tran
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Company Balance Sheet 2010 2009 Not
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Leases Where assets are f nanced by
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6. Creditors: amounts falling due w
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10. Capital and reserves Details of
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Five Year Summary 2010 2009 2008 20
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This Annual Report is addressed sol
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Annual Report 2010 in PDF - BBA Aviation

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