Annual Report 2010 in PDF - BBA Aviation

Financial Summary
2010 2009 Inc/(dec) 20091 Inc/(dec)
£m £m % £m %
Revenue 441.4 437.0 1 439.1 1
Organic growth/(decline) 0% (17%)
Underlying operating profit 48.0 48.5 (1) 48.7 (1)
Operating profit margin 10.9% 11.1% 11.1%
Operating cash flow 59.6 105.5 (44)
Cash conversion ratio 124% 218%
ROIC 2 9.1% 8.9%
1 At constant exchange rates
2 Including goodwill and intangibles amortised or written off to reserves, based on 12 month rolling operating profit and annual average capital employed at
constant currency
Performance Summary Organic growth Cash conversion Return on invested capital
0% 124% 9.1%
In the frst half of the year, activity in our later cycle Aftermarket Services and Systems division continued to decline as
expected. It returned to growth in the second half of the year as the impact of increased fying hours over the prior
6-9 months began to feed through to increased aftermarket demand. Organic growth of 3% in the second half ofset
the revenue decline in the frst half, and for the year as a whole revenue of £441.4 million was broadly fat on an
organic basis (2009: £437.0 million). Operating profts of £48.0 million were in line with the prior year (2009:
£48.5 million) and operating margins were also broadly maintained at 10.9% (2009: 11.1%). Included within operating
proft was a £3.0 million net pension curtailment gain realised in the frst half and which partly ofset the absence of a
£4.6 million proft realised in 2009 on the accelerated sale of engines in ERO.
Operating cash fow for the division was again strong at £59.6 million (2009: £105.5 million) representing a cash
conversion ratio of 124% (2009: 218%). Included within the operating cash fow in 2009 was an infow of £17.6 million
in relation to the accelerated sale of engines. Return on invested capital improved slightly to 9.1% (2009: 8.9%).
Directors’ Di ors’ Rep Report — 39