Annual Report 2010 in PDF - BBA Aviation

More documents

Recommendations

Info

Group Financial Summary 20 — Directors’ Report 2010 2009 Inc/(dec) 2009 1 Inc/(dec) £m £m % £m % Revenue 1,183.0 1,080.8 9 1,085.7 9 Underlying EBITDA 149.1 139.3 7 139.9 7 Underlying operating profit 110.6 100.5 10 100.9 10 Operating profit margin 9.3% 9.3% 9.3% Total operating profit 100.4 82.3 22 82.2 22 Underlying profit before tax 95.4 78.2 22 78.4 22 Adjusted earnings per share 17.6p 14.6p 21 Profit for the period 65.0 45.5 43 Free cash flow 115.2 137.5 (16) Net debt 313.9 391.6 Net debt to EBITDA 2.1x 2.8x Return on invested capital 9.5% 8.4% 1 At constant exchange rates US dollar exchange rates had a limited impact on the comparison of the proft and loss fgures with the prior year with average rates for 2010 of $1.55 (2009: $1.56), and a relatively small efect on the balance sheet with a spot rate of $1.57 (2009: $1.61). The key data for 2009 on the table above is shown as reported and on a constant currency basis for ease of comparison. Revenue increased by 9% and, excluding the impact of exchange rates, fuel prices and acquisitions and disposals, the organic revenue increase was 4%. Underlying operating profts of £110.6 million were 10% higher (2009: £100.5 million), as a result of the increased activity across both divisions, further operational improvements and a £3.0 million net pensions curtailment gain in the period, which arose as the result of the beneft changes to the Group’s UK defned beneft pension scheme in March 2010. The pension gain partly ofsets the absence of a £4.6 million proft realised in 2009 on accelerated engine sales in Engine Repair and Overhaul (ERO). Operating margins for the Group were maintained at 9.3% (2009: 9.3%) although on a constant fuel price basis improved by 0.4%. The net interest charge was £15.2 million (2009: £22.3 million) with the reduction over the prior period primarily due to the lower net debt and lower interest rates. Interest cover improved to 9.8 times (2009: 6.2 times). Underlying proft before tax increased by 22% to £95.4 million (2009: £78.2 million), and adjusted earnings per share increased by 21% to 17.6p (2009: 14.6p). Our tax rate was broadly maintained at 21.2% (2009: 21.7%).
Proft before tax increased by 42% to £85.2 million (2009: £60.0 million) due to the increase in underlying proft before tax outlined above and a reduction in exceptional items to £10.2 million (2009: £18.2 million), of which £4.9 million was non-cash. Unadjusted earnings per share were 15.2p (2009: 11.4p). We continued to build on the excellent cash fow performance in the prior year and strong cash generation in the frst half of 2010 with cash conversion for the year as a whole of 124% (2009: 179%) and free cash fow of £115.2 million (2009: £137.5 million). Despite the increased activity, free cash fow in the period included a working capital infow of £15.9 million (2009: infow £57.9 million). This was partly as a result of our continuing focus on improving the working capital efciency of the Group, but also included a short-term timing beneft of approximately £13 million. Capital expenditure increased to £27.8 million (2009: £18.7 million), mainly due to our investment in the PT6T (Twin-Pac®) engine overhaul authorisation for Europe. The reduction in the interest charge f owed through into reduced interest payments of £14.7 million, and tax payments were reduced by £9.0 million to £2.6 million (2009: £11.6 million) with the prior year including fnal payments in relation to earlier years. Free cash fow in the prior period included a £17.6 million infow in relation to the accelerated sale and leaseback of a number of engines by Dallas Airmotive. The cash dividend payment in the period was reduced to £17.4 million (2009: £21.9 million) with a 46% average take-up of the scrip alternative across the two dividends paid in the year. There was a reduction in net debt of £77.7 million with a net cash infow of £89.7 million (2009: £107.2 million) and closing net debt was £313.9 million (2009: £391.6 million). Net debt to EBITDA improved substantially to 2.1 times from 2.8 times at the end of 2009. Group return on invested capital improved to 9.5% (2009: 8.4%) as a result of the improvement in underlying operating proft and a continued focus on capital discipline. Directors’ Report — 21
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 and 20: Principal Risks and Risk Potential
Page 21: Return on Invested Capital (ROIC) M
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
Page 71 and 72: The Board has a formal schedule of
Page 73 and 74:
a. Remuneration Committee Compositi
Page 75 and 76:
Guidance on Audit Committees. The A
Page 77 and 78:
Directors’ Remuneration Report I
Page 79 and 80:
The following chart shows the balan
Page 81 and 82:
d. Longer-term performance incentiv
Page 83 and 84:
Annualised total shareholder return
Page 85 and 86:
e. Pension: policy and implementati
Page 87 and 88:
Independent Auditor’s Report to t
Page 89 and 90:
Consolidated Statement of Comprehen
Page 91 and 92:
Consolidated Cash Flow Statement Op
Page 93 and 94:
Accounting Policies Basis of Accoun
Page 95 and 96:
Property, Plant and Equipment Prope
Page 97 and 98:
Notes to the Consolidated Financial
Page 99 and 100:
2. Proft for the year Proft for the
Page 101 and 102:
5. Dividends On 21 May 2010, the 20
Page 103 and 104:
8. Intangible assets - continued Th
Page 105 and 106:
10. Investments in associates Cost
Page 107 and 108:
13. Trade and other payables Amount
Page 109 and 110:
16. Bank overdraft and loans - cont
Page 111 and 112:
17. Derivative fnancial instruments
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
19. Pensions and other post-retirem
Page 119 and 120:
19. Pensions and other post-retirem
Page 121 and 122:
21. Share capital and reserves Allo
Page 123 and 124:
21. Share capital and reserves - co
Page 125 and 126:
23. Cash fow from operating activit
Page 127 and 128:
26. Related party transactions Tran
Page 129 and 130:
Company Balance Sheet 2010 2009 Not
Page 131 and 132:
Leases Where assets are f nanced by
Page 133 and 134:
6. Creditors: amounts falling due w
Page 135 and 136:
10. Capital and reserves Details of
Page 137 and 138:
Five Year Summary 2010 2009 2008 20
Page 139 and 140:
This Annual Report is addressed sol
show all

Annual Report 2010 in PDF - BBA Aviation

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?