Annual Report 2010 in PDF - BBA Aviation

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Key Facts Legacy Support is a leading supplier of OEM-licensed legacy products, becoming the OEM for non-core, legacy products: 50 — Directors’ Report Size and scale Expertise and barriers Strong customer to entry relationships More than 1,000 customers worldwide Licences for over 4,000 parts Aftermarket focus with licence-based intellectual property rights Technical strength and product focus around engine accessories, electrical and mechanical components Outsourcing of manufacture and supply chain management Experienced, cross-trained workforce Wide range of OEM licensors Diverse, global customer base
Revenue ‡ 2010 2009 Inc/(dec) 20091 Inc/(dec) £m £m % £m % Performance USA Europe & ROW Total 58.9 51.8 14 52.2 13 2.6 0.6 333 0.6 333 61.5 52.4 17 52.8 16 1 At constant exchange rates ‡ APPH Houston was transferred from APPH to Legacy Support with effect from 1 January 2010 to reflect its focus on legacy platform support. 2009 revenues in Legacy Support and APPH have been restated in these results accordingly. Revenue for the Legacy Support business grew to £61.5 million (2009: £52.4 million), an organic increase of 16% over the prior year. Softness experienced in the frst half in IGS and Legacy Support Houston’s MRO activities abated in the second half and Ontic US experienced signifcant growth as a result of the ramp-up and the second half weighting of revenues from the Goodrich Landing Gear licence. Ontic UK benefted from a full year of revenue from the Kidde Graviner Gaseous Emergency Oxygen Equipment licence. Ontic US invested signifcantly in process enhancement to ensure that over the long term it can continue to deliver successfully the high growth rates we have seen since its acquisition in 2006. This bore fruit in the second half with four months of record revenues and improvements in key operational metrics. Ontic US demonstrated its capabilities in delivering on complex US Government contracts through the Goodrich Landing Gear licence execution and as a result of this it also won a competitive bid to supply parts to the US Army for the Apache helicopter. The order book continued to grow and at the end of 2010 it stood at a record $65 million (2009: $56 million). The opportunities to grow the Legacy Support business both in the US and the UK through sales from existing licences and new licences continue to be robust due to the life extension of military platforms and original equipment manufacturers seeking to rationalise their product and platform support of erings. In the frst quarter of 2011 Legacy Support announced that it had agreed to acquire GE Aviation Systems’ fuel measurement business for a cash consideration of $62.5 million. The acquisition enhances Legacy Support’s exposure to the commercial aviation market, expands its non-US product portfolio and adds third generation electronics expertise, an increasingly important legacy market. Directors’ Report — 51
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 and 22: Return on Invested Capital (ROIC) M
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 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
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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
Page 111 and 112:
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
Page 135 and 136:
10. Capital and reserves Details of
Page 137 and 138:
Five Year Summary 2010 2009 2008 20
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This Annual Report is addressed sol
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