Financial highlights
· Continued market outperformance, Group organic revenue growth of 5%
· Underlying operating profit up 16% to $198.9m, Aftermarket Services & Systems up 23%; Flight Support up 10%
· Underlying profit before tax up 15%, adjusted earnings per share of 29.0c up 6%
· Free cash flow increased by 4% with continued strong cash conversion of 102%
· Further improvement in Group return on invested capital up 110bps to 10.6%
· Full year dividend increased by 6.5% to 13.94c
Operational highlights
Flight Support (57% of Group EBIT)
· Signature: continued market outperformance; strong operating profit conversion; integration of the 7 FBOs acquired proceeding well; network expanded to 112 locations
· ASIG: good growth; SGS acquisition exceeding expectations; commencement of operations in Latin America
Aftermarket Services and Systems (43% of Group EBIT)
· ERO: strong overhaul demand; expanded field service offering and footprint in South America and Asia
· Legacy: buoyant demand; further operational improvement. Integration of GE Aviation Systems' legacy fuel measurement business progressing well, performance exceeding initial expectations
· APPH: revenues stabilising; further opportunities for operational improvement and cost efficiencies
Strategic highlights
· Implemented a stable, long-term and diversified funding structure, that together with the equity placing and the Group's strong cash generation supports continued execution of growth strategy
· $129m invested in 2011 on 7 acquisitions in Signature and Legacy Support with annualised revenues of $75m, $37m committed to organic expansion and lease extensions
· Strong pipeline of opportunities with significant investment capacity
Simon Pryce, BBA Aviation Chief Executive Officer, commented:
"BBA Aviation delivered another strong set of results in 2011 despite slower than anticipated market growth. The Group continued to outperform, with good operating profit conversion, strong cash generation and further progress in improving returns on invested capital. We completed seven acquisitions during the year which are integrating well and made further organic investments to extend key lease terms and support future growth.
We will continue to deliver operational improvement, to flex costs and to deploy our available capital to a strong pipeline of attractive investment and consolidation opportunities. Whilst the macro-economic climate remains uncertain, we anticipate making further progress during the year. Over the medium-term, the strengths and track record of our business together with the structural drivers of our markets give us continued confidence in the attractive growth prospects for BBA Aviation and our ability to deliver superior through-cycle returns."
