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2nd September 2004

BBA GROUP PLC

INTERIM RESULTS FOR THE HALF YEAR ENDED 30th JUNE 2004

Interim Results

  • Earnings per share* increased by 10 per cent to 10.1p (2003: 9.2p), basic earnings per share (unadjusted) 7.1p (2003: 6.1p)
  • Underlying Profit Before Tax* £65.7m (2003: £61.4m), increased by 7 per cent (14 per cent on a constant currency basis)
  • Statutory Profit Before Tax £49.9m (2003: £44.9m)
  • Sales from continuing operations increased by 3 per cent to £675m (2003: £653m), (12 per cent on a constant currency basis)
  • Interim dividend increased by 5 per cent to 3.35p (2003: 3.2p)
  • Free cash flow up 51 per cent to £42.3m (2003: £28.0m)
  • Important new business wins in both divisions
  • Aviation Services: sales growth of 8 per cent, margins improved, underlying operating profits increased by 11 per cent (on a constant currency basis)
  • Significant geographic expansion of business aviation network
  • Materials Technology: sales growth of 18 per cent, margins impacted by increased raw material costs, underlying operating profits increased by 5 per cent (on a constant currency basis)
  • Net debt reduced to £446m from £460m at 2003 year end
  • Interest cover increased to 13.6x (2003: 7.5x)

Commenting on the results, Roy McGlone, BBA Group Chief Executive, said:

"In the first half of 2004 both of our businesses delivered strong revenue growth compared to the first half of 2003. Despite higher raw material prices in our Materials Technology division and a significantly weaker dollar our earnings per share* have increased by 10 per cent and our pre tax profits* by 7 per cent. We continue to generate strong free cash flow which in the first half has increased by over 50 per cent compared to the prior period.

Raw material costs have continued to increase since the half year and this will have some impact on the second half, but we anticipate that demand will continue to be strong in both our businesses and this should give rise to a satisfactory result for the year as a whole."

* Continuing operations before goodwill amortisation and all exceptional items

For further information please contact:

Roy McGlone, Chief Executive (020) 7514 3990
Andrew Wood, Finance Director (020) 7514 3950
BBA GROUP PLC

Mike Smith or Catherine Hicks (020) 7404 5959
BRUNSWICK

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