Annual Report 2010 in PDF - BBA Aviation

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Financial statements Consolidated Statement of Changes in Equity 85 Independent Auditor’s Report to the Members of Non- BBA Aviation plc in Respect Share Share Retained Other controlling Total of the Consolidated capital premium earnings reserves interests equity Financial Statements £m £m £m £m £m £m 86 87 88 89 Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Cash Flow Statement Balance at 1 January 2009 Total comprehensive income for the period Equity dividends Issue of share capital and scrip dividend Movement on treasury reserve Credit to equity for equity-settled share-based payments 122.7 – – 3.3 – – 346.4 – – (3.0) – – (62.1) 31.3 (21.9) – – – 30.2 (0.5) – – (0.2) 2.5 0.8 (2.4) – – – – 438.0 28.4 (21.9) 0.3 (0.2) 2.5 90 Consolidated Statement of Transfer to retained earnings – – 1.1 (1.1) – – Changes in Equity Balance at 31 December 2009 126.0 343.4 (51.6) 30.9 (1.6) 447.1 91 Accounting Policies of the Group 95 Notes to the Consolidated Balance at 1 January 2010 126.0 343.4 (51.6) 30.9 (1.6) 447.1 Financial Statements Total comprehensive income for the period – – 59.4 (4.8) (0.1) 54.5 126 Independent Auditor’s Report to the Members of BBA Aviation plc in Respect Equity dividends Issue of share capital and scrip dividend – 2.7 – (2.7) (17.4) – – – – – (17.4) – 127 128 of the Parent Company Financial Statements Company Balance sheet Accounting Policies of the Company Movement on treasury reserve Credit to equity for equity-settled share-based payments Changes in non-controlling interests Transfer to retained earnings – – – – – – – – – – (0.5) 1.1 (2.8) 2.4 – (1.1) – – (0.9) – (2.8) 2.4 (1.4) – 129 Notes to the Company Financial Statements Balance at 31 December 2010 128.7 340.7 (9.0) 24.6 (2.6) 482.4 134 Principal Subsidiary Undertakings 135 Five Year Summary 136 Shareholder Information 90 — Consolidated Financial Statements
Accounting Policies Basis of Accounting The fnancial statements have been prepared using the historical cost convention adjusted for the revaluation of certain f nancial instruments. The principal accounting policies adopted are set out below which have been consistently applied with the prior year except where noted. The fnancial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) adopted for use in the European Union and therefore comply with Article 4 of the EU IAS Regulation. They have also been prepared in accordance with IFRS as issued by the International Accounting Standards Board. There are no new Standards issued by the International Accounting Standards Board that are efective in the current period. The following amendments to existing Standards are ef ective for the current period: IFRS 3 Business Combinations (revised) IAS 27 Consolidated and Separate Financial Statements (revised) Amendment to IAS 39 Eligible Hedged Items Amendment to IFRS 2 Group Cash-settled Share-based Payment Transactions The adoption of these Amendments has not had a material impact on the Group’s fnancial statements, apart from the adoption of IFRS 3 Business Combinations (revised) which has had the following ef ect on the fnancial statements for the year ended 31 December 2010; As a result of the acquisition of SAS Ground Services UK Ltd (see note 24 for details) in the year, £0.5 million of acquisition related costs have been charged to Other Operating Expenses. Prior to the adoption of IFRS 3 these would have been included in goodwill. There are no new interpretations issued by the International Financial Reporting Interpretations Committee that are ef ective for the current period and have not been previously applied in the Group’s f nancial statements. At the date of authorisation of these f nancial statements, the following Standards and Interpretations which have not been applied in these fnancial statements were in issue but not yet ef ective: IAS 24 Related Party Disclosures (revised) IFRS 9 Financial Instruments Amendment to IAS 32 Financial Instruments: Presentation: Classifcation of Rights Issues IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments Amendment to IFRIC 14 – IAS 19 Prepayments of a Minimum Funding Requirement The adoption of IFRS 9 which the Group plans to adopt for the year beginning on 1 January 2013 will impact both the measurement and disclosures of f nancial instruments. The directors anticipate that the adoption of the remaining Standards above, in future periods, will not have a material impact on the fnancial statements of the Group. Basis of Consolidation The Group fnancial statements incorporate the f nancial statements of the parent company and all subsidiary undertakings under the acquisition method of accounting. The results of subsidiary undertakings acquired or sold during the year are included in the consolidated income statement from the ef ective date of acquisition or up to the efective date of disposal as appropriate. Control is achieved where the company has the power to govern the fnancial and operating policies of an investee so as to obtain benefts from activities. Goodwill on acquisitions, being the excess of the fair value of the consideration paid, the non-controlling interest, and the fair value of any previously held equity interest in the acquiree over the fair value of the identifable net assets and liabilities acquired, is capitalised and tested for impairment on an annual basis. Associated undertakings are those investments other than subsidiary undertakings where the Group is in a position to exercise a signif cant infuence, typically through participation in the f nancial and operating policy decisions of the investee. The consolidated f nancial statements include the Group’s share of the post-acquisition reserves of all such companies. Going Concern The directors have, at the time of approving the f nancial statements, a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the fnancial statements. Further detail is contained in the directors’ statement of going concern on page 84 of the Directors’ Report. Investments In the Group’s fnancial statements, investments in associated undertakings are stated at cost plus the Group’s share of postacquisition reserves less provision for impairment. Foreign Currencies Transactions in foreign currencies are translated into sterling at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are recorded at the rates of exchange prevailing at that date. Any gain or loss arising from a change in exchange rates subsequent to the date of transaction is recognised in the income statement. The income statements of overseas operations are translated into sterling at the average exchange rates for the year and their balance sheets are translated into sterling at the exchange rates ruling at the balance sheet date. All exchange diferences arising on consolidation are taken to equity. All other translation dif erences are taken to the income statement, with the exception of dif erences on foreign currency borrowing and derivative instruments to the extent that they are used to provide a hedge against the Group’s equity investments in overseas operations, which are taken to equity together with the exchange diference on the net investment in those operations. Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Operating Profit Operating proft is stated after charging exceptional items and after the share of results of associates but before investment income and f nance costs. Exceptional items are items which are material or non-recurring in nature, costs relating to acquisitions and the amortisation of acquired intangibles. Consolidated Financial Statements — 91
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Annual Report 2010
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Directors’ Report 2 Overview 2 Gr
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Group Structure Revenue by business
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Revenue Revenue increased by 4% on
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Corporate Governance The Board beli
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Michael Harper (66) Chairman Simon
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Worldwide Business Jet and Turbopro
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Commercial Aviation Our commercial
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Each of the fve businesses has a cl
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Principal Risks and Risk Potential
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Return on Invested Capital (ROIC) M
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Proft before tax increased by 42% t
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Financial Summary 2010 2009 Inc/(de
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ASIG United States of America, Cari
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Directors’ Report — 27
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Revenue 2010 2009 Inc/(dec) 20091 I
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ASIG Focused on growth 32 — Direc
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Key Facts ASIG is a world leading i
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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: Consolidated Cash Flow Statement Op
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 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
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