press notice

Back to press notices

23rd February 2005

BBA GROUP PLC

PRELIMINARY RESULTS FOR THE YEAR ENDED 31st DECEMBER 2004

Preliminary Results

  • Underlying* Profit Before Tax £128.1m (2003: £130.5m), increased by 5 per cent on a constant currency basis.
  • Statutory Profit Before Tax £73.4m (2003: £55.2m).
  • Adjusted* earnings per share unchanged at 20.0p (2003: 20.1p), basic earnings per share (unadjusted) 10.2p (2003: 5.5p).
  • Sales from continuing operations increased by 12 per cent to £1,372m on a constant currency basis.
  • Final dividend increased by 5 per cent to 7.95p (2003: 7.6p) bringing the dividend for the year to 11.3p, an increase of 5 per cent over 2003 (10.8p).
  • Free cash flow** £60.0m (2003: £87.2m) after absorbing exceptional restructuring cash costs of £17m (2003: £10m).
  • Acquisitions completed in 2004 of £98m are expected to contribute sales of circa £120m in 2005.
  • Aviation: sales grew by 9 per cent (on a constant currency basis), with operating margins maintained. Operating profits increased by 8 per cent (on a constant currency basis). Fifteen new locations added to the Signature network, particularly in Europe, and today we are announcing the acquisition of two further bases at New Orleans and Heathrow.
  • Materials Technology: sales grew by 16 per cent (on a constant currency basis), although operating profits and margins were impacted by increased raw material costs. Further expansion in European Wipes market.
  • Net debt £512m (2003: £460m) after acquisitions of £98m.
  • Interest cover** increased to 11.6x (2003: 8.8x).

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

"In 2004 we have seen strong growth in sales in both of our businesses but our earnings have been held back by the translation impact of the weakening dollar and by significant increases in raw material costs in our Materials Technology division. Despite these difficulties, our underlying pre tax earnings increased by 5 per cent compared to the prior year. We have invested almost £100 million on nine acquisitions which are expected to contribute approximately £120 million of sales in their first full year and have also continued to focus on improving productivity across the Group.

For 2005 we are confident that, with the benefit of the acquisitions and rationalisation projects completed during 2004 and continuing strong demand in both our businesses, we will deliver good progress in constant currency terms over 2004."

* 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 Emily Kerr (020) 7404 5959
BRUNSWICK

If you would like to read more, download this PDF (487kb)