3rd Mar 2016 08:07
LONDON (Alliance News) - BBA Aviation PLC Thursday said it expects further good growth in 2016 and beyond, as it reported a fall in pretax profit for 2014, hit by exceptional costs and lower fuel prices and foreign exchange movements reducing revenue.
BBA Aviation provides aviation support and aftermaket services.
The company reported a pretax profit of USD95.3 million, down from USD152.4 million in 2014, as revenue declined to USD2.13 billion from USD2.29 billion, compounded by USD15.1 million in restructuring costs and USD44.4 million in exceptional costs.
These exceptional costs included USD38.4 million of transaction costs related to its acquisition of Landmark Aviation.
BBA Aviation attributed its decline in revenue to a hit from lower fuel prices and foreign exchange movements, which it estimated reduced revenue by USD248.5 million. Overall it delivered a "satisfactory" performance in the year, with above market growth in its flight support segment driven by its Signature business offsetting a "disappointing" year for its aftermarket services.
It proposed a final dividend of 8.68 cents per share, taking its total dividend to 13.53 cents, down from 16.20 cents in the previous year. The company said that, after adjusting for the impact of a rights issue it undertook to partly fund its acquisition of Landmark Aviation, its final dividend would have been 12.15 cents, giving it a total dividend of 17.00 cents for the year.
"We anticipate further progress in 2016, driven mainly by Signature's continued outperformance, the application of its operational excellence across a much larger network of high quality locations and the realisation of the Signature/Landmark combination benefits which enhance the group's prospects for cash generation and value creation. The board therefore expects further good growth in 2016 and beyond," said Chief Executive Officer Simon Pryce in a statement.
BBA shares were up 2.0% to 194.3p early Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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