BBA reports rise in profits as Finance Director steps down

5th Mar 2014 08:00

- Pre-tax profit and revenue rise- Finance Direct steps down- Dividend raised five per centBBA Aviation has reported an eight per cent rise in annual profit and announced that Finance Director Mark Hoad would leave on June 30th. The company also confirmed that it will return $125m to shareholders by way of a share buyback after completing the sale of its aftermarket APPH unit last month.The British aircraft services provider said underlying pre-tax profit increased to $170.5m in the year through December 2013 from $157.8m a year earlier.Operating profit grew 4% to $200.1m and revenue climbed 2% to $2.2bn, as a strong growth at its flight support unit Signature mitigated a weaker-than-expected performance at Engine Repair and Overhaul (ERO) businesses.During the period the group made four acquisitions in flight support, which contributed $27.1m to revenue. It was offset slightly by lower fuel prices, which reduced revenue by $20.6m.Earnings before interest, tax, depreciation and amortisation (EBITDA) edged up 3% to $261.6m and earnings per share jumped 9% to 30.5 cents.The company ended the year with free cash flow of $146.5, up 21% on 2012. The dividend was raised by 5% to 15.40 cents. In 2014, inputs in ERO are anticipated to remain subdued. Growth in the Legacy Support division will pause following the completion of several major contracts in 2013. North American B&GA flying, although still volatile, is showing some signs of a recovery."This, together with the incremental contribution from strategic investments already announced, an additional $24m of acquisitions and new licences agreed since year-end, continuing operational improvements and a solid investment pipeline, gives us confidence that 2014 will be another year of progress for BBA Aviation," the group said.Alongside its results, the BBA revealed that Hoad will step down after nine years with the firm.The process to find a successor is underway, BBA added. "I have greatly enjoyed my time at BBA Aviation and am immensely proud of the progress we continue to make," Hoad said. "However, after nine years with the group I feel that it is now the right time for me to seek a new set of challenges. I am confident in the strategy the group is pursuing and that the great people at BBA Aviation will continue to deliver success and I wish the company and the team all the very best for the future."Shares fell 2.58% to 344.30p at 08:20 on Wednesday.RD