BBA Share News (BBA)

(ShareCast News) - BBA Aviation's full year pre-tax profit came in broadly flat as revenue declined, reflecting lower fuel prices and foreign exchange headwinds.The aviation services giant reported a 1% drop in underlying pre-tax profit to $170m (£120.8m) and a 7% fall in revenue to $2.12bn in the year to 31 December 2015.Excluding the impact of fuel prices, foreign exchange, acquisitions and disposals, group revenue rose 2%.BBA said growth in its flight support business offset a disappointing performance of its aftermarket services, specifically in engine repair and overhaul.The robust results in flight support were driven by the Signature business, which supplies support for business and general aviation travel, refueling, hangar and office rentals, and other technical services.The company has expanded its flight support network with the acquisition of Landmark Aviation, completed on 5 February."The acquisition of Landmark Aviation has impacted these results in terms of the rights issue to finance the acquisition, which completed in October 2015, and fees associated with the acquisition, but not in terms of any contribution to profit as the acquisition itself completed after the year end," BBA said in a company statement.Underlying operating profit rose to $202.0m from $201.2m in 2014, including an $8.3m contribution from acquisitions.The group underlying operating profit margin fell to 9.5% from 9.7% in 2014, reflecting lower margins in aftermarket services.Earnings before interest tax, depreciation and amortisation rose 2% to $273.1m while basic earnings per share fell 8% to 20.1 cents.Free cash flow increased to $88.4m from $51.2m a year earlier."Against a background of a low growth aftermarket environment we will be undertaking additional actions in 2016 to further reduce the cost and complexity of our ERO business. Importantly, despite ERO's challenges, the Group delivered further growth in 2015, in line with expectations," said chief executive Simon Pryce."We anticipate further progress in 2016, driven mainly by Signature's continued outperformance, the application of its operational excellence across a much larger network of high quality locations and the realisation of the Signature/Landmark combination benefits which enhance the group's prospects for cash generation and value creation. The board therefore expects further good growth in 2016 and beyond."The company proposed a final dividend of 8.68 cents per share, down from 11.58 cents in the prior year, taking the full year dividend to 13.53 cents per share (2014: 16.20 cents)However, BBA said it represented a 5% increase in the dividend on a historical basis after adjusting for the impact of the rights issue.Shares rose 2.15% to 194.70p at 1130 GMT.