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Scotland-based BBA Aviation (LSE:BBA) benefited from higher oil prices and acquisitions during the previous year as it revealed 17% increase in revenue for the 2011 financial year amounting to US$2.136 billion, acknowledging a slower than expected growth.
Gaining US$303 million more from a year ago operations, the aviation support and aftermarket services group earned US$130.7 million in higher fuel prices as well as US$56.5 million in net revenues for acquisition and disposals, and the rest from organic growth.
Profit before tax reached US$170.2 million (excluding exceptional items) represented a 15% increase from a year ago, while tax was partially offset by a tax refund of US$23.7 million as settlement of tax claim in Germany.
“BBA Aviation produced another strong set of results in 2011 with good profit conversion and strong cash generation, despite the relatively low growth environment,” the group said in its annual report.
Acquisitions and Disposals
BBA Aviation made seven acquisitions amounting to US$129 million and allocated another $37 million for organic expansion backed by a strong cash flow of $185.8 million.
The group expanded its network of fixed-based operation in Montana, Florida, and Alabama in the United States; in Edinburgh, Scotland; in St. Maarten in the Carribean; in Puerto Rico, and the fuel management and fuel measurement system of GE Aviation Systems Limited, in the UK.
Dividends
As a result of the strong financial year, BBA Aviation revised its earlier dividend offering of $3.99 to $9.95 per share, totaling $63.7 million.
This is the first year that the group will base their dividends in US dollars rather than in Pound Sterling, as the company shifted its currency.
CEO Comments
In looking forward to 2012, BBA Aviation is positive of further progress for the current year, despite expecting an uncertain economic climate “in a continued slow and somewhat volatile recovery.”
Simon Pryce, Chief Executive Officer of BBA Aviation said:
“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… 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.”
Company Spotlight
BBA Aviation is a UK-based holding company providing flight support and aftermarket services with operations in more than 100 locations spanning five continents.
