28th Jun 2005 08:00
BBA Group PLC28 June 2005 Trading Statement - June 28th 2005 BBA Group Plc today issues its regular trading statement ahead of its interimresults for the half year ending 30th June 2005 which will be announced on the1st September 2005. Commenting Roy McGlone, Group Chief Executive, said: "We anticipate sales growth of approximately 10 per cent in the first half of2005. Earnings per share* for continuing operations are expected to be similarto those reported in the first half of 2004 with increased profitability inAviation being offset by the previously anticipated impacts on MaterialsTechnology of higher raw material costs and reduced profitability from ourFinotech joint venture. Interest costs are also expected to be higher than theprior period. "Sales growth is expected to remain robust in the second half and this togetherwith productivity initiatives, the improved prospects for a reduction in rawmaterial costs and the recent relative strength of the dollar against sterlingshould lead to an improvement in the second half of the year compared to thefirst half. We remain confident that for the year as a whole we will delivergood progress (at the constant currency level) over 2004." Aviation Our Airport Services businesses continue to perform well. In Signature (BusinessAviation) the acquisitions made last year to expand the network are performingto expectations and in ASIG (Commercial Aviation) the integration of AGI(acquired in October 2004) and Boker (acquired in December 2004) have beencompleted on schedule. In Maintenance, Repair and Overhaul demand has remainedsteady and the closure of the Millville (New Jersey) site, initiated in thesecond half of last year, has now been completed. Materials Technology We anticipate sales growth of approximately 12 per cent in the first half of2005. As previously indicated raw material costs are significantly higher thanthey were in the first half of last year and this is expected to reduce profitsby approximately £4 million compared to the prior period. The previously advisedreduction in profitability of our Finotech joint venture due to a plannedtransition to new manufacturing technology will also reduce profits byapproximately £3 million. However the cost of Polypropylene has started todecline in both the USA and Europe and is currently forecast to fall further bythe end of 2005 although the rate and extent of the reduction remains uncertain. Financial We are anticipating positive free cash flow in the first half of the year andfor the year as a whole we expect that it will exceed the £60 million recordedin 2004. Interest costs will show an increase over the prior period due in particular tothe impact of increased dollar interest rates and higher debt levels. Prior year pre tax profits (excluding goodwill amortisation and all exceptionalitems) for continuing operations were £65.8 million. To comply with theintroduction of IFRS a number of adjustments, principally relating to shareoption costs and the tax impact of joint ventures, have been made, resulting ina restated pre tax figure of approximately £63.0 million. The audit of the prioryear figures to IFRS standards is currently being finalised and the restatedfigures for the half and full year 2004 will be issued to the market on the 28thof July 2005. * Basic earnings per share before goodwill impairment, restructuring costs andnon-operating items. Enquiries: Roy McGlone, Chief Executive 020 7514 3999Andrew Wood, Finance Director 020 7514 3999BBA GROUP PLC Mike Smith 020 7404 5959Lucie Anne Brailsford 020 7404 5959BRUNSWICK This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SIG.L