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 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Rashida Jones speaks out against male-centric porn saying 'women should have sex and feel good about it'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
16 Waitrose customers who could not cope with the end of free coffee
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...