28th February 2006
BBA GROUP PLC
UNAUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31st DECEMBER 2005
Financial highlights
• Sales from continuing operations up 10% to £1,511 million
(2004: £1,374 million)
o Aviation up 9% to £892 million (5% excluding impact of fuel
price increases)
o Fiberweb up 12% to £619 million (8% excluding impact of higher
raw material costs)
• Underlying operating profit* from continuing operations up
2% to £130 million (2004: £127 million)
o Aviation up 9% to £94 million, underlying operating margins
maintained at 10.6% after absorbing impact of higher fuel prices which
reduced margins by 0.5 percentage points
o Fiberweb down 10% to £44 million after absorbing the impact
of higher raw material costs of £12 million
• Operating profit from continuing operations £81 million
(2004: £98 million)
• Underlying profit before tax down 6% to £108 million
(2004: £115 million)
• Profit for the period up 11% to £75 million (2004: £68
million)
• Adjusted earnings per share (continuing operations) of 17.9p
(2004: 18.3p)
• Basic earnings per share (continuing and discontinued operations)
of 15.9p (2004: 14.3p)
• Free cash flow** £86 million (2004: £60 million),
strong second half performance
• Final dividend increased by 4.4% to 8.3p (2004: 7.95p) bringing
dividend for the year to 11.8p (2004: 11.3p)
Separation of Fiberweb
On the 2nd November 2005, BBA announced that it was exploring the
separation of Fiberweb, its non-wovens business, through demerger
or sale. Having received a number of expressions of interest regarding
a possible sale of Fiberweb, the Board is keeping this option open
whilst now giving priority to preparing for the demerger of Fiberweb.
Board Change and Succession
BBA Group announces that Roy McGlone has stepped down as Group CEO
by mutual agreement. Michael Harper, a non-executive Director of BBA
Group since February last year and the former Chief Executive of Kidde
Group, has agreed to be interim CEO until a permanent replacement
is appointed.
Roberto Quarta, Chairman, said: “We thank Roy for his contribution over 10 years, first as Finance Director and then, from 2001, as Chief Executive. He has led the company successfully through some difficult times. However BBA is undergoing significant change. Both the Board and Roy believe it is the right time for Roy to step down as CEO of the company as it separates Fiberweb and concentrates on aviation services. Michael will lead the separation process before handing over to a long term successor.”
Roberto Quarta, Chairman since 2001, will delay his planned retirement from the company until BBA separates Fiberweb and appoints a permanent CEO. He will be succeeded as Chairman by Michael Harper.
Acquisitions
BBA Group announces the $65 million cash acquisition of Ontic Engineering
& Manufacturing, a leading global provider of parts, accessories
and repair and overhaul services for the aviation industry. Ontic
joins BBA Aviation Services Group’s component repair, overhaul
and distribution business. BBA also announces the acquisition of a
new Signature location at La Quinta in California for £5 million.
Commenting on today’s announcements, Michael Harper, BBA Group
Chief Executive, said:
“The Board continues to believe that BBA’s Aviation business and Fiberweb would be better placed to pursue their individual strategies and operational development as individual entities. Having received a number of expressions of interest regarding a possible sale of Fiberweb, the Board is keeping this option open whilst now giving priority to preparing for the demerger of Fiberweb.
Both the Aviation and Fiberweb businesses are expected to continue to make progress during 2006. They are highly cash generative with good market positions globally and in a fragmented market there are many opportunities for the Group to explore. Today’s announcement of the acquisitions of Ontic and La Quinta are a good example of these opportunities.”
*Continuing operations before restructuring costs and other non-recurring
items (see below).
**See definitions below.
For further information please contact:
Michael Harper, Chief Executive (020) 7514 3990
Andrew Wood, Finance Director (020) 7514 3950
BBA GROUP PLC
Mike Smith or Emily Kerr (020) 7404 5959
BRUNSWICK
2005
Preliminary Results Presentation, 28th February 2006