BBA returns to £64m profits
Tuesday 07 March 1995
However, turnover was down slightly to £1.38bn from £1.4bn as the company disposed of some non-core businesses.
The loss last year was on the back of a one-off restructuring charge of £76.8m. This is paying for a redundancy programme involving the loss of 2,000 jobs and the closure of three factories in Europe. The redundancies have reduced payroll costs by £46m, a 10 per cent saving.
As a result of cost cutting, margins have increased from 6.4 per cent of turnover last year to the 9.4 per cent achieved in the second half of this year. The company hopes to increase these to 10 per cent by 1996.
BBA's automotive division had a strong year. It has won significant new contracts from car makers in Germany and the UK.
Roberto Quarta, the group chief executive, said: "These results show we have made significant progress on our restructuring programme. We expect to be able to build on this next year. We will complete our restructuring programme next year and expect to see a big increase in automotive demand."
The £130m disposal programme has turned BBA from a diversified collection of industrial enterprises to a more tightly focused group of specialist businesses. Further disposals are expected during the current year.
The company said it plans to make a number of selective acquisitions to give the company sufficient scale in some of its core businesses.
The cash position is strong with £204m in the bank, up from £105m last year. Earnings per share were 6.4p, up from a loss per share of 9.6p last year.
The company is conserving cash by reducing the dividend to 4.75p, compared with 7.5p last year. However, the dividend is ahead of the 4.5p forecast earlier in the year. Shares closed up 4p at 196p.
- 1 Kim Jong-un shows off airport designed by architect he likely had executed
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 German ethics council calls for incest between siblings to be legalised by Government
- 4 Fifty Shades of Grey author E.L James's Twitter Q&A didn't go exactly as planned
- 5 Facebook rainbow profile pictures likely being tracked by social network
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
Tunisia beach attack: How can British Muslims respond to the latest outrages?
iJobs Money & Business
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...