BBA Aviation plc

2013 Final Results

Results for the year ended

31 December 2013

For further information please contact: Mark Hoad, Group Finance Director (020) 7514 3999 Jemma Spalton, Head of Investor Relations BBA AVIATION PLC David Allchurch / Christian Cowley (020) 7353 4200 TULCHAN COMMUNICATIONS A video interview with Simon Pryce, CEO and Mark Hoad, FD is now available on www.bbaaviation.com and www.cantos.com A live audio webcast of the analyst presentation will be available from 09:00 today on www.bbaaviation.com and www.cantos.com

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FINAL RESULTS FOR PERIOD ENDED 31 DECEMBER 2013

Results in brief ($m) Underlying results1

Statutory results

2013 2012 (restated)

2 % Change 2013 2012

(restated)2

% Change

Revenue 2,218.6 2,178.9 2% 2,218.6 2,178.9 2%

EBITDA 261.6 253.2 3% 239.9 228.1 5%

Operating profit 200.1 192.7 4% 169.4 160.0 6%

Profit before tax 170.5 157.8 8% 145.2 125.1 16%

Earnings per share 3 30.5¢ 27.9¢ 9% 28.9¢ 23.1¢ 25%

Return on invested capital4 10.0% 9.8%

Free cash flow5 146.5 121.2 21%

Net debt 478.5 416.4

Dividend per share 15.40¢ 14.65¢ 5%

(1) Before exceptional items (as defined in the condensed consolidated financial statements). (2) Restatement for IAS19 Revised as set out in Note 1 to the condensed consolidated financial statements. (3) Basic earnings per share. (4) Underlying operating profit return on average invested capital including goodwill and intangibles amortised or written off to reserves. (5) Cash generated by operations, plus dividends from associates, less tax, net interest and net capital expenditure. These definitions as outlined above are consistently applied throughout this results announcement.

Industry leading businesses

Good results in broadly flat markets Positive financial performance with 2% revenue growth, underlying profit before tax up 8% and EPS up 9% Continued strong cash conversion of 101% and a 21% increase in free cash flow ROIC progression despite continued investment for long-term growth Group’s strategic focus enhanced by value creative disposal of APPH for $128 million Good performance

Flight Support (53% of Group EBIT)

Organic revenue growth of 4%, underlying operating profit increase of 5% Signature: continued market outperformance and network expansion, good progress on key investment projects ASIG: costs incurred to address service levels led to improved operational performance in the second half and

significant new contract wins post year end

Aftermarket Services and Systems (47% of Group EBIT)

Organic revenue reduction of 2%, underlying operating profit up 2% ERO: weaker than anticipated revenue, partially offset by operational improvements, structural cost reduction

programme launched Legacy Support: revenue increased 14%, major contracts completed

Growth and value creation

$150m of strategic investments made or committed in 2013 o Four acquisitions in Flight Support including three FBO acquisitions o Six new licences signed across multiple OEMs

In 2014, FBO acquisitions in Biggin Hill and Detroit, the expansion of ASIG fuelling activities in North America via $16.8 million Skytanking acquisition and a new Legacy licence from Rolls Royce

Strong cash conversion supporting on-going creation of significant investment capacity $125 million share repurchase programme launched to return APPH disposal proceeds to shareholders

Simon Pryce, BBA Aviation Chief Executive Officer, commented:

“BBA Aviation produced another good performance in 2013, despite the low growth environment. Profit before tax was up 8% and earnings per share up 9%, driven in particular by Signature and Legacy, although ERO was weaker than anticipated. We also made strong strategic progress, with $150m of strategic investments across both divisions, the disposal of APPH and the planned return of $125m to shareholders. While inputs in ERO are expected to remain subdued in 2014, and growth in Legacy 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. Over the longer term, the underlying strengths of our market-leading businesses, the continuing improvement in their operational performance and the structural growth and consolidation in our major markets give us increasing confidence in our ability to generate superior through-cycle returns.”

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BBA Aviation plc – Final Results, 5 March 2014 FINAL RESULTS 2013 Overview BBA Aviation has made good progress in 2013 as expected, delivering further market outperformance and an improvement in key operating metrics, as well as continuing effectively to execute the Group’s growth strategy. Group revenue in 2013 of $2,218.6 million increased by 2% compared with the prior year (2012: $2,178.9 million), notwithstanding our key markets having remained broadly flat. There was a $27.1 million revenue contribution from acquisitions, but lower fuel prices reduced revenue by $20.6 million. The organic increase in revenue (excluding the impact of exchange rates, fuel prices, acquisitions and disposals) also totalled 2%. Underlying operating profit (excluding exceptional items) increased by 4% to $200.1 million (2012: $192.7 million) and the Group operating margin showed a modest improvement to 9.0% (2012 fuel adjusted: 8.9%). The progress in underlying operating profit was due to the contribution from organic growth in Flight Support and margin progression in Aftermarket Services. The previously announced reorganisation of the Group from five businesses to two divisions has begun to deliver benefits. Both management teams are now established and have started to implement more standardised processes and practices and to optimise management and support structures. There was a $5.3 million reduction in the underlying net interest expense to $29.6 million (2012: $34.9 million) due to a reduction in the blended average interest rate, principally as a result of closing out higher rate interest rate swaps in mid-2012. Interest cover improved to 8.8 times (2012: 7.3 times) as a result of the reduction in net interest charge, coupled with the improvement in underlying EBITDA. Underlying profit before tax improved by 8% to $170.5 million (2012: $157.8 million). The underlying effective tax rate of 14.5% was marginally lower than the prior year (2012: 15.4%). As a result of the improvement in underlying operating profit and reduction in net interest expense, basic adjusted earnings per share increased by 9% to 30.5 cents (2012: 27.9 cents). Profit before tax increased by 16% to $145.2 million (2012: $125.1 million) and profit for the period increased by 25% to $138.1 million (2012: $110.3 million). Net exceptional items after tax amounted to $7.6 million (2012: $23.2 million), a reduction of 67%. We once again turned operating profit into good operating cash flow with cash conversion of 101%. Free cash flow for the year increased by 21% to $146.5 million (2012: $121.2 million) with the increase principally as a result of improved operating profit, working capital and net interest payments. Net capital expenditure increased as planned to $76.3 million (2012: $55.4 million), equivalent to 1.2 times underlying depreciation and amortisation (2012: 0.9 times), with significant investments in key projects including the dedicated NetJets facility at Palm Beach, the new FBO terminal at Newark and the commencement of the redevelopment of our FBO at Luton. The Group’s strong cash conversion continued to support the on-going creation of significant investment capacity. Total acquisition and licence spend in the year amounted to $86.1 million (2012: $35.5 million), including the $67.0 million acquisition of the Maguire Aviation FBO at Van Nuys, California, the $3.0 million purchase of the 75% share of Starlink Aviation’s FBO in Montreal, ASIG’s $4.3 million acquisition of gategroup’s cleaning and de-icing business in London and Dublin, and the $11.8 million investment in Legacy licences. The agreed and previously announced $38.5 million acquisition of the Jet Systems FBO at Westchester County Airport, New York is expected to complete in the first half of 2014. As announced on 3 February 2014, we completed the disposal of APPH, further increasing BBA Aviation’s focus as an aviation support and aftermarket services provider. The total consideration of $128 million is equivalent to 17.8 times 2013 underlying operating profit. Further to the disposal of APPH, BBA Aviation intends to return the net cash proceeds to shareholders by way of a $125 million share repurchase programme. This is consistent with the Group’s disciplined approach to capital management, whilst retaining the financial headroom to continue to implement the Group’s acquisition strategy.

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Net debt increased to $478.5 million (2012: $416.4 million) with a total net cash outflow of $61.6 million, after total dividend payments in the year of $71.3 million, the $28.8 million cash cost of closing out the final remaining cross-currency swaps in the first half of the year and aggregate acquisition and licence spend of $86.1 million. At the end of the year net debt to underlying EBITDA was 1.8 times (2012: 1.6 times). Return on invested capital increased by 20 basis points to 10.0% (2012: 9.8%), despite investments made in the year which are expected to generate superior returns over the longer term. Business Review Flight Support Our Flight Support division provides specialist on-airport support services including refuelling and ground handling to the business & general aviation market through our Signature Flight Support brand and to the commercial aviation market through our ASIG brand. $m 2013 2012* Change Revenue 1,375.9 1,321.8 4% Organic revenue growth 4% (4)% Underlying operating profit 116.3 110.9 5% Operating margins† 8.5% 8.5% Operating cash flow 137.0 116.6 17% Divisional ROIC 9.7% 9.3%

* Restated for the implementation of IAS19R as set out in note 1 in the Condensed Financial Statements

† Operating margins at constant fuel prices Flight Support revenues increased by 4% to $1,375.9 million (2012: $1,321.8 million). Acquisitions contributed $21.7 million of increased revenue and lower fuel prices reduced revenue by $20.6 million. On an organic basis Flight Support revenues increased by 4%, which was largely driven by market outperformance as well as a return to more normal levels of de-icing activity following the weak comparator in 2012. The organic revenue growth drove an increase in underlying operating profit for the division of 5% to $116.3 million (2012: $110.9 million) with operating margins unchanged at 8.5% (2012: 8.5%) after adjusting for fuel prices. Flight Support again delivered good cash conversion of 118% (2012: 105%), which was in part driven by a working capital inflow linked to timing of fuel vendor payments, and there was positive absolute progress with a 17% increase in operating cash flow for the division to $137.0 million (2012: $116.6 million). Return on invested capital increased by 40 basis points to 9.7% (2012: 9.3%) despite the level of acquisitions and investments made to deliver future superior growth. Signature Flight Support (Signature) delivered a strong performance in 2013 as it outpaced its major market in North America and grew its network through meaningful acquisitions and the continued expansion of Signature SelectTM, its asset light licensing model. Signature’s revenue increased by 2% to $968.4 million (2012: $952.9 million). Adjusted for fuel price fluctuations, organic revenue increased by 4%. US B&GA activity increased by 2% in the year and European B&GA movements declined by 2%. In Europe, Signature was also impacted by slot availability at London Heathrow, although this issue has been largely resolved going into 2014. Continued outperformance in North America offset this European market softness. During the course of the year Signature completed or signed agreements to add five new FBOs to its market-leading network. There are now a total of 118 FBOs in the network globally, with 71 of these in North America. As previously announced, Signature extended its presence at Van Nuys Airport through the acquisition of Maguire Aviation Group, LLC making Signature the largest operator at this key B&GA airport. The acquisition completed in December 2013. Signature will also extend its leading position at Westchester County Airport through the acquisition of Jet Systems, which is expected to complete in the first half of

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2014. Since year end Signature has also agreed to acquire FBOs at London Biggin Hill and Detroit Metropolitan Wayne County Airport, Michigan for a total cash consideration of $7.0 million. Signature further extended its network in Europe, the Caribbean, Asia and South America as it commenced operations at Berlin Tegel Airport, won an RFP for a new FBO at Port of Spain, Trinidad, started handling operations at Singapore Changi International Airport and in early 2014, started construction for a new FBO in Panama through an airport licensing agreement with ASIG. In September Signature purchased a 75% share of Starlink Aviation Inc’s FBO in Montréal, Quebec, Canada, formerly part of the Signature SelectTM network, representing the first acquisition of a Signature SelectTM location. The Signature SelectTM network continued to grow with the addition of the Sonoma Jet Center at Sonoma County Airport. Signature also signed an exclusive licensing arrangement with Imperial Oil to provide its 37 Esso dealers in Canada with the opportunity to join the Signature SelectTM network. Signature continued progress in securing lease extensions across its network with the average residual lease life of Signature’s locations in the US at 18 years. In total, Signature has secured 12 lease extensions in the last 2 years, including a 10-year lease extension to our sole source facility in Washington DC. Signature also won the RFP to construct a new facility at Mineta San Jose International Airport, under a 50-year lease which is expected to be completed in 2015. Signature has completed two of its previously announced construction projects with the grand openings of the new dedicated NetJets private terminal at Palm Beach International Airport in June and the state-of-the-art private aviation terminal at Newark Liberty International Airport in November. Meanwhile, the ongoing redevelopment of Signature’s FBO at Luton remains on track for the new hangar to be operational in the second quarter of 2014 and the new FBO to open in the second half of 2015. Signature’s commitment to consistently exceed customer expectations by continuously improving the safety and quality of the services it provides resulted in another increase in its customer loyalty score to 85%, the highest level in the company’s history. ASIG’s revenue increased by 10% to $407.5 million (2012: $368.9 million) despite the reduction in commercial aviation movements by 1% in North America and by 2% in Europe. Half of the revenue increase related to the acquisition of PLH Aviation Services and Dryden Air Services in Canada that completed in August 2012 and the acquisition of gategroup’s cleaning and de-icing business in London and Dublin that completed in June 2013. The balance of the increase was organic. Under a new leadership team, ASIG has reinvigorated its focus on operational effectiveness, ensuring that it strives to maintain the highest safety standards, service differentiation and long-term is the lowest total cost quality service provider in its selected markets. Incremental short-term costs incurred to support this effort impacted ASIG’s financial performance in 2013, but have supported operational improvement in the second half and a number of encouraging new contract wins for 2014. ASIG’s industry leading position as an into-plane re-fueller and manager of fuel farms was reinforced with the addition of a new fuel farm operation at Nashville International Airport, and the successful renewal of three fuel farm management contracts. Furthermore, in February 2014 ASIG agreed to acquire the assets of Skytanking USA, Inc., an independent provider of aviation fuel handling services for a net cash payment of $16.8 million. Under the terms of the transaction, ASIG will divest to Skytanking its airport fuel operations at Linz and Klagenfurt airports in Austria along with its 50% joint venture operations (with Skytanking) at Munich and Vienna airports. The transaction is subject to customary approvals and is expected to complete in the first half of 2014. Upon completion the deal will create a further seven sole source commercial into-plane refuelling airports for ASIG in the US. In August, ASIG was awarded the contract for common check-in services for zones A and D of London Heathrow’s new Terminal 2 operation, which includes 14 airline customers. In addition, ASIG has also been awarded a number of ground handling contracts at Terminal 2. Terminal 2 will become operational in the summer of 2014.These contract awards build on ASIG’s prior acquisition of gategroup’s London cleaning and de-icing business and the acquisition of SGS at London Heathrow, supporting our strategy of achieving critical mass by line of business at hub airports.

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Aftermarket Services Our Aftermarket Services division is focused on the repair and overhaul of engines through our ERO businesses and the support of maturing aerospace platforms through our Legacy Support business. In 2013, APPH which manufactures and services landing gear and hydraulic sub-systems, formed part of the Aftermarket Services division. This business was sold in February 2014. $m 2013 2012* Change Revenue 842.7 857.1 (2)% Organic revenue growth (2)% 3% Underlying operating profit 101.3 99.5 2% Operating margins† 12.0% 11.6% Operating cash flow 98.4 93.1 6% Divisional ROIC 11.3% 11.1% *Restated for the implementation of IAS19R as set out in note 1 in the Condensed Financial Statements

Revenue in Aftermarket Services declined by 2% to $842.7 million (2012: $857.1 million) with the organic reduction also 2% and there was a $5.4 million revenue contribution from acquisitions. Despite the organic revenue reduction, there was a 2% increase in underlying operating profit to $101.3 million (2012: $99.5 million), with operating margins improving by 40 basis points to 12.0% (2012: 11.6%). The division delivered a 6% increase in operating cash flow to $98.4 million (2012: $93.1 million) with cash conversion of 97% (2012: 94%). Return on invested capital improved by 20 basis points to 11.3% (2012: 11.1%). In Engine Repair and Overhaul (ERO), revenue was $597.8 million (2012: $641.2 million), an 8% organic revenue reduction. This was against a particularly strong 2012 comparator and amidst a weaker overall market for its authorised programmes, particularly Tay and TFE731. In the first half of the year ERO implemented a sales organisation restructuring, which resulted in some short-term disruption and loss of market share. Whilst we are seeing the broader benefits of the sales force restructuring and there was some recovery in the third quarter, demand for Tay overhauls in particular was weaker than anticipated in the fourth quarter and is expected to remain subdued in 2014. ERO continues to focus on improving operational efficiency and expanding its global field support organisation through its F1RST SUPPORT™ network. Additionally, ERO launched a mobile app for customers to track work in progress. ERO added the Honeywell RE220 auxiliary power unit (APU) line authorisation bolstering its field service portfolio for Gulfstream and Bombardier long-range aircraft. In early 2014, ERO signed an authorisation with Woodward to handle the maintenance, repair and overhaul for PT6 and TPE331 Fuel Controls & Governors, and signed agreements to be authorised maintenance, repair and overhaul centres for the RR300, which powers the rapidly growing fleet of Robinson R66 helicopters. ERO’s investments in 2012 began to deliver benefits with an increased inflow of field repair work on the Bombardier Challenger 300 and Gulfstream G280 business jets as a result of the Consolidated Turbine Services acquisition and the first series of on-field engine removals for the BR710 turbofan engine following the authorisation from Rolls-Royce CorporateCareTM for mobile repair support. There was also a steady flow of engine inputs following the agreement signed with GE Aviation to handle all engine care and maintenance programme commercial shop visits for the CT7-5A and -9B engines used on Saab 340 aircraft. In late May, ERO’s Singapore Regional Turbine Centre (RTC) completed its first Honeywell TFE731 Major Periodic Inspection (MPI), the first of several engines to be serviced at the facility. The Singapore RTC is the only Honeywell authorised facility in the region and also houses a F1RST SUPPORTTM centre. In line with our continued assessment of ERO’s operational effectiveness, we undertook a detailed review of ERO’s capacity which has confirmed the opportunity for significant structural cost improvement. Over the course of the next two years we will be undertaking a phased rationalisation of our ERO footprint, transitioning products to existing facilities and to a new facility to be constructed in the Dallas Fort Worth

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area. The total cash cost of the project is expected to amount to $16 million, with annualised savings of $10 million, which are expected to begin to accrue from mid-2014. Total exceptional charges of $11 million are expected to be incurred over the life of the project which is likely to be more than offset by exceptional gains on the disposal of APPH. Legacy Support’s revenue increased by 14% to $168.2 million (2012: $147.3 million), the majority of which was organic. Sales were driven by the substantial completion of large contracts for landing gear shock strut assemblies for the AH-64 Apache, and LANTIRN environmental control units for the F-15, together with strong demand for Airbus 320 and B777 fuel gauging system upgrades, and significant sales for landing gear cylinder assemblies for the EA-6B Prowler to the US government. Organic revenue growth was 15%, although the substantial completion of these larger contracts resulted in a decrease in order book of 14% year over year. In the first half of 2013, Legacy Support successfully transferred the product lines and staff from its facility in Slough, UK to its Cheltenham, UK facility. A regional base was also established in Singapore, co-located with ERO’s regional turbine centre, to provide component and accessory spares and MRO services in-region. Additionally, Legacy successfully transitioned two new product lines from licence agreements signed in December 2012 into its Cheltenham and Chatsworth facilities; further proving Legacy’s successful adoption and transition process. Legacy Support extended its OEM relationships and grew its portfolio of products under licence in 2013, signing three new licence agreements with Curtiss-Wright Controls, and two new licences with Safran Power Systems. These new licences for electronic and electro-mechanical products used on a range of military and commercial platforms represented a total $35.2 million investment, with $11.8 million paid in the year. Since year end, Legacy Support has signed a licence agreement with Rolls-Royce, another new OEM relationship, for the complete support of spare components for the Dart engine, which powers the HS-748 and YS-11 aircraft. The new licences signed during 2013 are expected to begin to contribute to revenues from the second half of the year. In APPH, revenue increased by 12% to $76.7million (2012: $68.6 million), with 13% organic growth principally driven by increased original equipment sales for the Hawk, C27 and AW159 programmes. Sales of spare parts remained broadly flat. This strong performance built on the significant operational and financial progress the business had made over the last two years. In February 2014 we announced the sale of APPH to Héroux-Devtek Inc. for a total cash consideration of US$128 million, representing 17.8 times $7.2 million of underlying operating profit for 2013. APPH was the only part of BBA Aviation that focused on product design and development, with significant manufacturing activities and a higher fixed cost base than the rest of the Group. The disposal enhances the Group’s focus on aviation support and aftermarket services, as well as delivering good value for our shareholders. Other Financial Information Unallocated central costs were broadly unchanged at $17.5 million (2012: $17.7 million). Exceptional items after tax amounted to $7.6 million (2012: $23.2 million), a reduction of 67%. Included within exceptional items were $6.1 million of restructuring expenses (2012: $17.0 million), relating principally to the costs of the transition to the two divisional structure; $8.7 million of M&A related costs (2012: $6.6 million) principally incurred in pursuit of value creative investment and acquisition opportunities; $6.9 million of environmental costs in relation to disposed business (2012: $1.5 million); and non-cash amortisation of acquired intangibles of $9.0 million (2012: $7.6 million). There was a $5.4 million accounting gain in relation to a restructuring of our investment in Lider in Brazil (2012: $nil). There was a $6.5 million tax credit on these exceptional items (2012: $9.5 million), together with a $11.2 million tax credit relating to a reduction in our tax risk provision as a result of the progress made in relation to open tax years (2012: $nil).

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Net debt at the end of the period was $478.5 million (2012: $416.4 million) with a net cash outflow of $61.6 million and an adverse foreign exchange movement of $0.5m. During the year the final $125 million of cross currency swaps were closed out at a cash cost of $28.8 million. $432 million of the total borrowing commitments of $1,050 million remained undrawn at the year-end and reported net debt to EBITDA was 1.8x (2012: 1.6x) with the increase being driven by acquisitions and investment in new licences. Interest cover stands at 8.8x (2012: 7.3x). Of the $1,050 million of total borrowing facilities, $250 million matures in April 2014. During the year we agreed a settlement with HMRC in relation to the 2006 to 2012 tax years, as a result of which we have agreed to make total payments of $42 million of which $8 million was paid in 2013, with the balance to be paid in 2014. The settlement was fully provided for. The combined accounting deficit for the UK and US pension schemes decreased to $57.6 million (2012: $66.3 million), principally as a result of cash contributions and positive asset returns. The 2012 triennial valuation of the UK defined benefit pension scheme was completed during the year, resulting in a funding deficit of £30 million (c. $49 million). The Company will continue to pay scheme expenses on an as incurred basis. The next triennial valuation is due to be undertaken in 2015. As a result of the disposal of APPH post the year-end, a participating employer in the UK defined benefit scheme, ordinarily a section 75 debt would have been triggered. We have agreed with the Trustees of the scheme to apportion the section 75 debt and at the same time have agreed to put in place an asset backed funding structure , which will replace the previously agreed schedule of deficit contributions. As a result of this we expect to make payments of £3.7 million (c. $6 million) in 2014 and £6.9 million (c. $11 million) in 2015. Thereafter the payments will reduce to approximately £2.7 million (c. $4 million) per annum for a further 18 years, unless the scheme becomes 110% funded in which case the payments will be suspended. The accounting deficit at 31 December 2013 does not reflect the impact of this new structure. A revised pensions accounting standard, IAS 19, was effective from 1 January 2013. Prior year comparative figures have been restated to reflect this change. The impact of the restatement is set out in Note 1 to the condensed consolidated financial statements. Dividend

The Board is proposing a final dividend of 11.00 cents per share (2012: 10.45 cents per share), taking the full year dividend to 15.40 cents per share (2012: 14.65 cents per share). This is a 5% increase and reflects the Board’s progressive dividend policy and continuing confidence in the Group’s medium-term growth prospects. Board changes During the course of 2013 there were a number of changes to the Board. As previously announced, Hansel Tookes and Mark Harper stepped down as non-executive directors to focus on their increasing personal and business commitments. In August we welcomed Wayne Edmunds as a non-executive director and in December we welcomed Sir Nigel Rudd as Deputy Chairman, with the intention that he will succeed Michael Harper as Chairman following Michael’s retirement from the Board in May 2014. It is also announced separately today that Mark Hoad, Group Finance Director will be standing down from the Board on 30 June 2014 after nine years of service. The process of appointing a successor is underway and a further announcement will be made in due course. Outlook BBA Aviation produced another good performance in 2013, despite the low growth environment. Profit before tax was up 8% and earnings per share up 9%, driven in particular by Signature and Legacy, although ERO was weaker than anticipated. We also made strong strategic progress, with $150m of strategic investments across both divisions, the disposal of APPH and the planned return of $125m to shareholders. While inputs in ERO are expected to remain subdued in 2014, and growth in Legacy 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

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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. Over the longer term, the underlying strengths of our market-leading businesses, the continuing improvement in their operational performance and the structural growth and consolidation in our major markets give us increasing confidence in our ability to generate superior through-cycle returns. Going Concern

The Directors have carried out a review of the Group’s trading outlook and borrowing facilities (as outlined above), with due regard to the risks and uncertainties to which the Group is exposed, the uncertain economic climate and the impact that this could have on trading performance. Based on this review, the Directors believe that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis. Directors’ Responsibilities The responsibility statement below has been prepared in connection with the Company's full annual report for the year ending 31 December 2013. Certain parts of the annual report are not included within this announcement. We confirm that to the best of our knowledge: the financial statements, prepared in accordance with IFRS as adopted by the European Union, give

a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole; and

the strategic report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties they face; and

the annual report and financial statements, taken as a whole, are fair, balanced and understandable

and provide the information necessary for shareholders to assess the performance, business model and strategy of the company.

Signed on behalf of the Board, Simon Pryce Mark Hoad Group Chief Executive Group Finance Director 4 March 2014 4 March 2014 This final results announcement contains forward-looking statements including, without limitation, statements relating to: future demand and markets of the Group’s products and services; research and development relating to new products and services; liquidity and capital; and implementation of restructuring plans and efficiencies. These forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Accordingly, actual results may differ materially from those set out in the forward-looking statements as a result of a variety of factors including, without limitation: changes in interest and exchange rates, commodity prices and other economic conditions; negotiations with customers relating to renewal of contracts and future volumes and prices; events affecting international security, including global health issues and terrorism; changes in regulatory environment; and the outcome of litigation. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. This report is available in electronic format from the Company’s website, www.bbaaviation.com

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Consolidated income statement

For the year ended 31 December

2013

2012

Underlying1

Exceptional

items Total Underlying1

Restated2Exceptional

ItemsTotal

Restated2

$m $m $m $m $m $m

Revenue 2,218.6 - 2,218.6 2,178.9 - 2,178.9 Cost of sales (1,789.2) - (1,789.2) (1,766.5) - (1,766.5)

Gross profit 429.4 - 429.4 412.4 - 412.4

Distribution costs (38.0) - (38.0) (38.8) - (38.8) Administrative expenses (194.8) (9.0) (203.8) (185.0) (7.6) (192.6)

Other operating income 2.4 - 2.4 2.8 - 2.8 Share of profit of associates and joint ventures

1.4 - 1.4 1.6 - 1.6

Other operating expenses (0.3) (15.6) (15.9) (0.3) (8.1) (8.4)

Restructuring costs - (6.1) (6.1) - (17.0) (17.0)

Operating profit 200.1 (30.7) 169.4 192.7 (32.7) 160.0

Investment income 4.6 5.4 10.0 5.8 - 5.8 Finance costs (34.2) - (34.2) (40.7) - (40.7)

Profit before tax 170.5 (25.3) 145.2 157.8 (32.7) 125.1

Tax (24.8) 17.7 (7.1) (24.3) 9.5 (14.8)

Profit/(loss) for the year 145.7 (7.6) 138.1 133.5 (23.2) 110.3

Attributable to:

Equity holders of BBA Aviation plc 146.1 (7.6) 138.5 133.8 (23.2) 110.6

Non controlling interest (0.4) - (0.4) (0.3) - (0.3)

145.7 (7.6) 138.1 133.5 (23.2) 110.3

Earnings per share Adjusted

Unadjusted

Adjusted

Restated2 Unadjusted

Restated2

Basic 30.5c 28.9c 27.9c 23.1c

Diluted 30.1c 28.5c 27.5c 22.7c

1 Underlying profit is before exceptional items. Exceptional items are items which are material or non-recurring in nature, costs relating to acquisitions and disposals, and the amortisation of acquired intangibles (see note 3).

2 IAS 19: Employee Benefits (Revised) (IAS 19R) is effective for financial reporting periods beginning 1 January 2013 with retrospective application required. The results for the year ended 31 December 2012 have been restated for the impact of applying IAS 19R and more detail is set out in note 1 to these consolidated financial statements.

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Consolidated statement of comprehensive income

2013

2012 Restated1

For the year ended 31 December $m $m

Profit for the year 138.1 110.3

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss

Actuarial gains/(losses) on defined benefit pension schemes 26.0 (22.3)

Change in pension asset under IFRIC 14 (22.3) 4.5 Tax relating to components of other comprehensive income that will not be reclassified subsequently to profit or loss 3.7 7.0

7.4 (10.8)

Items that may be reclassified subsequently to profit or loss Exchange difference on translation of foreign operations

(15.7) (24.6)

Gains on net investment hedges 5.7 33.2

Fair value movements in foreign exchange cash flow hedges 3.7 5.1 Transfer to profit or loss from other comprehensive income on foreign exchange cash flow hedges (2.1) (0.8) Fair value movement in interest rate cash flow hedges 2.6 (5.4) Transfer to profit or loss from other comprehensive income on interest rate cash flow hedges

6.1 10.3

Tax relating to components of other comprehensive income that may be reclassified subsequently to profit or loss 0.6 0.8

0.9 18.6

Other comprehensive income for the year 8.3 7.8

Total comprehensive income for the year 146.4 118.1

Attributable to:

Equity holders of BBA Aviation plc 146.8 118.4

Non-controlling interests (0.4) (0.3)

146.4 118.1

1 IAS 19: Employee Benefits (Revised) (IAS 19R) is effective for financial reporting periods beginning 1 January 2013 with retrospective application

required. The results for the year ended 31 December 2012 have been restated for the impact of applying IAS 19R and more detail is set out in note 1 to these consolidated financial statements.

12

Consolidated balance sheet 2013 2012

As at 31 December $m $m

NON-CURRENT ASSETS

Goodwill 837.6 834.7

Other intangible assets 219.7 174.1

Property, plant and equipment 557.0 511.5

Interests in associates and joint ventures 8.1 5.0

Trade and other receivables 21.6 53.7

Deferred tax asset 8.6 6.0

1,652.6 1,585.0

CURRENT ASSETS

Inventories 199.7 261.8

Trade and other receivables 352.8 377.3

Assets classified as held for sale 91.5 -

Cash and cash equivalents 162.1 151.1

Tax recoverable 5.7 11.0

811.8 801.2

Total assets 2,464.4 2,386.2

CURRENT LIABILITIES

Trade and other payables (447.2) (471.1)

Tax liabilities (69.6) (96.1)

Obligations under finance leases (1.4) (1.5)

Borrowings (18.2) (11.2)

Provisions (3.2) (3.9)

Liabilities associated with assets held for sale (17.9) -

(557.5) (583.8)

Net current assets 254.3 217.4

NON-CURRENT LIABILITIES

Borrowings (627.5) (580.6)

Other payables due after one year (25.9) (23.5)

Retirement benefit obligations (57.6) (66.3)

Obligations under finance leases - (1.4)

Deferred tax liabilities (87.8) (82.0)

Provisions (14.1) (27.2)

(812.9) (781.0)

Total liabilities (1,370.4) (1,364.8)

Net assets 1,094.0 1,021.4

EQUITY

Share capital 251.8 251.5

Share premium account 733.0 732.8

Other reserves 6.9 6.9

Treasury reserve (17.1) (5.5)

Capital reserve 40.6 34.4

Hedging and translation reserves (37.7) (38.0)

Retained earnings 121.2 43.8

Equity attributable to equity holders of BBA Aviation plc 1,098.7 1,025.9

Non-controlling interest (4.7) (4.5)

Total equity 1,094.0 1,021.4

13

Consolidated cash flow statement

For the year ended 31 December

2013 $m

2012 $m

Operating activities

Net cash inflow from operating activities 242.7 207.2

Investing activities

Interest received 4.1 7.3

Dividends received from associates 1.3 0.8

Purchase of property, plant and equipment (71.0) (51.1)

Purchase of intangible assets1 (18.8) (5.4)

Proceeds from disposal of property, plant and equipment 1.7 0.7

Acquisition of subsidiaries (71.3) (35.1)

Investment in joint ventures (3.0) -

Net cash outflow from investing activities (157.0) (82.8)

Financing activities

Interest paid (25.2) (38.3)

Interest element of finance leases paid (0.1) (0.4)

Dividends paid (71.3) (67.9)

Losses from realised foreign exchange contracts (36.2) (20.8)

Proceeds from issue of ordinary shares 0.5 1.8

Purchase of own shares (15.0) (12.4)

Increase in loans 68.5 52.5

Decrease in finance leases (1.5) (1.5)

Increase /(decrease) in overdrafts 8.5 (12.1)

Net cash outflow from financing activities (71.8) (99.1)

Increase in cash and cash equivalents 13.9 25.3

Cash and cash equivalents at beginning of year 151.1 125.1

Exchange adjustments - 0.7

Cash and cash equivalents at end of year 2 165.0 151.1

Net debt at beginning of year (416.4) (403.6)

Increase in cash and cash equivalents 13.9 25.3

Increase in loans (68.5) (52.5)

Decrease in finance leases 1.5 1.5

(Increase)/decrease in overdrafts (8.5) 12.1

Exchange adjustments (0.5) 0.8

Net debt at end of year 3, 4 (478.5) (416.4)

1 Purchase of intangible assets includes $11.8 million (2012: $0.4 million) paid in relation to Ontic licences. 2 Cash and cash equivalents includes $2.9 million (2012: $nil) included within assets classified as held for sale (see note 12). 3 Net debt includes $2.9 million (2012: $nil) of cash and cash equivalents and $2.5 million (2012: $nil) of borrowings included within net assets classified as held

for sale (see note 12). 4 Within the Group’s definition of net debt the US private placement is included at its face value of $300 million reflecting the fact that the liabilities will be in place

until maturity. This is $6.1 million (2012: $27.2 million) lower than its carrying value.

14

Consolidated statement of changes in equity

Share capital

Share premium

Retained earnings

Other reserves

Non-controlling

interests Total

equity

$m $m $m $m $m $m

Balance at 1 January 2012 250.1 732.4 19.8 (18.7) (3.9) 979.7

Total comprehensive income for the year - - 100.6 17.8 (0.3) 118.1

Dividends - - (67.9) - - (67.9)

Issue of share capital 1.4 0.4 - - - 1.8

Movement on treasury reserve - - - (12.4) - (12.4)

Credit to equity for equity-settled share-based payments - - - 0.9 - 0.9

Tax on share-based payment transactions - - 1.5 - - 1.5

Changes in non-controlling interests - - - - (0.3) (0.3)

Transfer to retained earnings - - (10.2) 10.2 - -

Balance at 1 January 2013 251.5 732.8 43.8 (2.2) (4.5) 1,021.4

Total comprehensive income for the year - - 146.5 0.3 (0.4) 146.4

Dividends - - (71.3) - - (71.3)

Issue of share capital 0.3 0.2 - - - 0.5

Movement on treasury reserve - - - (15.0) - (15.0)

Credit to equity for equity-settled share-based payments - - - 9.4 - 9.4

Tax on share-based payment transactions - - 2.4 - - 2.4

Changes in non-controlling interests - - - - 0.2 0.2

Transfer to retained earnings - - (0.2) 0.2 - -

Balance at 31 December 2013 251.8 733.0 121.2 (7.3) (4.7) 1,094.0

15

Notes to the financial statements 1 Basis of preparation

The consolidated financial statements of BBA Aviation plc, for the year ended 31 December 2013 have been prepared in accordance with International Financial Reporting Standards (IFRS) endorsed for use in the European Union and the Companies Act 2006 applicable to companies reporting under IFRS. They have also been prepared in accordance with IFRS as issued by the International Accounting Standards Board.

The financial information for the year ended 31 December 2013 contained in this preliminary announcement was approved by a duly appointed and authorised committee of the Board of Directors on 4 March 2014. The announcement does not constitute statutory accounts of the Company within the meaning of section 435 of the Companies Act 2006, but is derived from those accounts.

Statutory accounts for the year ended 31 December 2012 have been delivered to the Registrar of Companies. Statutory accounts for the year ended 31 December 2013 will be delivered to the Registrar of Companies following the Company’s Annual General meeting.

The Group’s annual financial statements for the year ended 31 December 2013 have been reported upon by the Group’s auditor. The report of the auditor was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.

Except as described below, these consolidated financial statements have been prepared in accordance with the accounting policies, presentation and methods of calculation as set out in the Group’s consolidated financial statements for the year ended 31 December 2012.

New reporting requirements

Amendments to IAS 1: Presentation of Financial Statements are applicable for financial reporting periods commencing 1 January 2013 and require items within other comprehensive income that may be classified to the income statement to be grouped together. This amendment relates to presentation only and has no impact on the reported results or balance sheet of the Group.

IAS19: Employee Benefits (Revised) (IAS 19R) is effective for financial reporting periods beginning 1 January 2013 with retrospective application required. The principal impact of IAS 19R is that the concepts of expected return on assets and interest expense on the defined benefit obligation as separate components of the defined benefit cost have been replaced by a single concept such that interest is now calculated on the net defined benefit deficit. This calculation uses the discount rate previously used to measure defined benefit pension liabilities after allowance for any asset ceilings and additional liability under IFRIC 14: The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (IFRIC 14). In addition, plan administration expenses, previously deducted from the expected return on scheme assets, are now included within operating profit. As a result of these amendments, the comparative financial information in the income statement and statement of comprehensive income for the year ended 31 December 2012 has been restated. For the year ended 31 December 2012, the impact on the income statement is to reduce operating profit by $2.7 million and increase net finance costs by $2.5 million, and reduce actuarial losses by $5.2 million in the statement of comprehensive income. The pension deficit has remained unchanged and so the balance sheet has not been restated. The impact on earnings per share is to decrease basic adjusted and unadjusted earnings per share by 1.1c per share to 27.9c and 23.1c per share respectively, and to decrease diluted adjusted earnings per share by 1.0c per share to 27.5c per share and diluted unadjusted earnings per share by 1.1c per share to 22.7c per share.

IFRS 13: Fair Value Measurement (IFRS 13) is applicable for financial reporting periods beginning 1 January 2013. It aims to improve consistency and comparability in fair value measurements and related disclosures by providing a precise definition of fair value and a single source of related disclosure requirements for use across other IFRSs. The standard has clarified the method for measuring fair value to incorporate credit adjustments for the Company in addition to credit adjustments for counterparties. The requirements do not extend the use of fair value accounting. The Company has determined that any such adjustments are immaterial for the year ended 31 December 2013. Amendments to IAS 36: Impairment of assets (IAS 36) clarifies the disclosure requirements with respect to recoverable amounts of cash generating units. These amendments have been early adopted with effect from 1 January 2013.

16

Notes to the financial statements (continued) A number of EU - endorsed standards and amendments to existing standards and interpretations, which are listed below, are effective for annual periods beginning on or after 1 January 2014 and have not been applied in preparing these consolidated financial statements. None of these standards are expected to have a material impact on the consolidated financial statements of the Group. New standards and amendments to existing standards:

- IFRS 10: Consolidated Financial Statements; - IFRS 11: Joint Arrangements; - IFRS 12: Disclosure of Interests in Other Entities; - amendments to IAS 27: Consolidated and Separate Financial Statements; - amendments to IAS 28: Investments in Associates.

2 Segmental information

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Executive to allocate resources to the segments and to assess their performance.

The Group provides information to the Chief Executive on the basis of components that are substantially similar within the segments in the following aspects:

the nature of the long-term financial performance; the nature of the products and services; the nature of the production processes; the type of class of customer for the products and services; and the nature of the regulatory environment.

Based on the above, the primary reportable segments of the Group have been deemed to be Flight Support, which comprises Signature Flight Support and ASIG, and Aftermarket Services, which comprises Engine Repair and Overhaul, Legacy Support and APPH. The businesses within the Flight Support segment provide re-fuelling, ground handling and other services to the business, general and commercial aviation markets. The businesses within the Aftermarket Services segment maintain, and support engines and aerospace components, sub-systems and systems. Sales between segments are immaterial.

Flight

Support Aftermarket

Services Total

Unallocated Corporate

Total

Business Segments $m $m $m $m $m

2013

External revenue 1,375.9 842.7 2,218.6 - 2,218.6

Underlying operating profit 116.3 101.3 217.6 (17.5) 200.1

Exceptional items (9.8) (6.0) (15.8) (14.9) (30.7)

Segment result 1 106.5 95.3 201.8 (32.4) 169.4

Underlying operating margin 8.5% 12.0% 9.8% - 9.0%

Net finance costs (24.2)

Profit before tax 145.2

Other information

Capital additions 2 53.0 31.7 84.7 5.1 89.8

Depreciation and amortisation 49.5 20.5 70.0 0.5 70.5

Balance sheet

Total assets 1,397.5 890.0 2,287.5 176.9 2,464.4

Total liabilities (229.1) (193.7) (422.8) (947.6) (1,370.4)

Net assets/(liabilities) 1,168.4 696.3 1,864.7 (770.7) 1,094.0

1 Segmental results includes $1.4 million profit of associates and joint ventures within Flight Support 2 Capital additions represent cash expenditures in the year

17

Notes to the financial statements (continued)

2 Segmental information (continued)

Flight Support Aftermarket

Services Total Unallocated

Corporate Total Restated Restated Restated Restated Restated

Business Segments $m $m $m $m $m

2012

External revenue 1,321.8 857.1 2,178.9 - 2,178.9

Underlying operating profit 110.9 99.5 210.4 (17.7) 192.7

Exceptional items (16.5) (14.4) (30.9) (1.8) (32.7)

Segment result1 94.4 85.1 179.5 (19.5) 160.0

Underlying operating margin 8.4% 11.6% 9.7% - 8.8 %

Net finance costs (34.9)

Profit before tax 125.1

Other information

Capital additions2 34.2 20.5 54.7 1.8 56.5

Depreciation and amortisation 47.4 20.4 67.8 0.3 68.1

Balance sheet

Total assets 1,303.3 853.9 2,157.2 229.0 2,386.2

Total liabilities (206.7) (200.1) (406.8) (958.0) (1,364.8)

Net assets/(liabilities) 1,096.6 653.8 1,750.4 (729.0) 1,021.4

1 Segmental results includes $1.6 million profit of associates and joint ventures within Flight Support 2 Capital additions represent cash expenditures in the year

Revenue by destination

Revenue by origin

Capital additions1

Non-current assets

Geographical segments $m $m $m $m

2013

United Kingdom 260.7 423.5 18.7 233.3

Mainland Europe 132.3 41.8 0.3 46.0

North America 1,701.9 1,741.5 69.6 1,359.3

Rest of world 123.7 11.8 1.2 14.0

Total 2,218.6 2,218.6 89.8 1,652.6

2012

United Kingdom 282.0 401.0 13.8 253.1

Mainland Europe 125.7 42.1 0.8 44.0

North America 1,650.9 1,720.6 41.9 1,278.8

Rest of world 120.3 15.2 - 9.1

Total 2,178.9 2,178.9 56.5 1,585.0

1 Capital additions represent cash expenditures in the year

18

Notes to the financial statements (continued)

2 Segmental information (continued)

An analysis of the Group’s revenues for the year is as follows:

Revenue from sale of goods Revenue from services

2013 2012 2013 2012 $m $m $m $m

Flight Support 837.7 821.1 538.2 500.7

Aftermarket Services 271.9 247.5 570.8 609.6

1,109.6 1,068.6 1,109.0 1,110.3

3 Exceptional items

In the year ended 31 December 2013, exceptional items amounted to a charge of $7.6 million (2012: $23.2 million) of which $30.7 million (2012: $32.7 million) is included within operating profit and a credit of $5.4 million (2012: $nil) within investment income. Exceptional items comprise restructuring expenses of $6.1million (2012: $17.0 million); amortisation of intangible assets arising on acquisition and valued in accordance with IFRS 3 of $9.0 million (2012: $7.6 million) included within administrative expenses; $8.7 million (2012: $6.6 million) of transaction costs and $6.9 million (2012: $1.5 million) of environmental costs in relation to previously disposed of businesses included within other operating expenses. $5.4 million credit (2012: $nil) within investment income comprises the gain on disposal of the Group's investment in Lider Signature SA. Restructuring expenses for the year of $6.1 million principally relate to the reorganisation of management into two operating divisions. Restructuring expenses of $17.0 million incurred during the year ended 31 December 2012 comprised $8.6 million in respect of re-sizing manufacturing capacity, $3.6 million for management reorganisation and $4.8 million investment in efficiency projects. In the year ended 31 December 2013, an exceptional tax credit of $17.7 million (2012: $9.5 million) has been recognised in the income statement. This credit relates to a tax credit on the exceptional items explained above of $6.5 million (2012: $9.5 million) and $11.2 million release of tax provisions following progress made in relation to open tax years. Underlying profit is shown before exceptional items on the face of the income statement because the directors consider that this gives a useful indication of underlying performance and better visibility of key performance indicators.

4 Net capital expenditure

2013 $m

2012 $m

Net capital expenditure 88.1 55.8

Net cash capital expenditure to depreciation and amortisation - times 1.2 0.8

5 Number of employees

Average monthly number of employees 2013 2012

At 31 December 10,873 10,379

19

Notes to the financial statements (continued) 6 Income tax expense

2013 2012

Recognised in the income statement $m $m

Current tax charge 17.0 8.2

Adjustments in respect of prior years – current tax (16.6) (1.5)

Deferred tax 7.8 11.5

Adjustments in respect of prior years – deferred tax (1.1) (3.4) Income tax expense for the year 7.1 14.8

Domestic income tax is calculated at 23.25% (2012: 24.5%) of the estimated assessable profit for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. The $16.6 million of Adjustments in respect of prior years – current tax, includes $11.2 million in respect of the release of tax provisions as explained in note 3.

Tax credited to other comprehensive income and equity is as follows:

2013 2012

Recognised in other comprehensive income $m $m

Tax on items that will not be classified subsequently to profit or loss

Current tax credit on actuarial gains/losses 2.2 2.0

Deferred tax credit on actuarial gains/losses 1.5 5.0 3.7 7.0 Tax on items that may be classified subsequently to profit or loss Current tax credit on foreign exchange movements 0.6 0.8 Total tax credit within other comprehensive income 4.3 7.8 Recognised in equity Current tax credit on share-based payments movements 0.6 1.0 Deferred tax credit on share-based payments movements 1.8 0.5 Total tax credit within equity 2.4 1.5 Total tax credit within other comprehensive income and equity 6.7 9.3

20

Notes to the financial statements (continued) 7 Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data

2013

2012

Restated

$m $m

Basic and diluted

Earnings

Profit for the year 138.1 110.3

Non-controlling interests 0.4 0.3

Basic earnings attributable to ordinary shareholders 138.5 110.6 Exceptional items (net of tax) 7.6 23.2 Adjusted earnings 146.1 133.8 Number of shares

Weighted average number of 29 16/21p ordinary shares:

For basic earnings per share 478.5 478.8

Exercise of share options 7.1 8.4

For diluted earnings per share 485.6 487.2

Earnings per share:

Basic:

Adjusted 30.5c 27.9c

Unadjusted 28.9c 23.1c

Diluted:

Adjusted 30.1c 27.5c

Unadjusted 28.5c 22.7c

Adjusted earnings per share is shown calculated as earnings before exceptional items because the directors consider that this gives a useful indication of underlying performance.

21

Notes to the financial statements (continued) 8 Cash flow from operating activities

2013

2012 Restated

$m $m

Operating profit 169.4 160.0 Share of profit from associates and joint ventures (1.4) (1.6)

Profit from operations 168.0 158.4

Depreciation of property, plant and equipment 53.9 52.7 Amortisation of intangible assets 16.6 15.4

Profit on sale of property, plant and equipment (0.7) (0.3)

Share-based payment expense 6.0 0.9

Increase in provisions 2.5 -

Decrease in net pension liability (8.3) (8.3)

Other non-cash items 0.7 4.8

Unrealised foreign exchange movements 0.1 1.3

Operating cash inflows before movements in working capital 238.8 224.9

Decrease /(increase) in working capital 21.7 (12.8)

Cash generated by operations 260.5 212.1

Income taxes paid (17.8) (4.9)

Net cash inflow from operating activities 242.7 207.2

Dividends received from associates 1.3 0.8 Purchase of property, plant and equipment (71.0) (51.1)

Purchase of intangible assets1 (7.0) (5.0)

Proceeds from disposal of property, plant and equipment 1.7 0.7

Interest received 4.1 7.3

Interest paid (25.2) (38.3)

Interest element of finance leases paid (0.1) (0.4)

Free cash flow 146.5 121.2

1 Purchase of intangible assets excludes $11.8 million (2012: $0.4 million) paid in relation to Ontic licences since the directors believe these payments are more akin to expenditure in relation to acquisitions, and are therefore outside of the Group's definition of free cash flow. These amounts are included within purchase of intangible assets on the face of the cash flow statement.

9 Acquisitions and disposals

During the year the Group made the following acquisitions to continue the expansion of its Flight Support network. On 21 June 2013, the Group acquired substantially all the assets of Fernley Heathrow Limited, an aircraft cabin cleaning, de-icing and aircraft exterior washing business based at London Heathrow Airport and London Gatwick Airport for a consideration of $3.2 million. On 2 July 2013, the Group acquired substantially all the assets of Fernley Ireland Ltd a de-icing business based at Dublin airport for a consideration of $1.1 million. The fair value of the net assets acquired of these businesses has been initially assessed as a total of $3.8 million. On 31 December 2013, the Group acquired substantially all the assets of Maguire Aviation Group LLC (Maguire), an FBO operating in Van Nuys, Los Angeles for a consideration of $69.3 million. The fair value of the net assets acquired has been initially assessed as a total of $59.1 million. The goodwill arising on these acquisitions is attributable to the anticipated profitability arising from the growth of the Signature network, expansion of the Group's ASIG business, together with anticipated future operating synergies. In the period from the date of acquisition to 31 December 2013, the acquired businesses have contributed an aggregate total revenue of $4.0 million and a net loss of $0.1 million.

22

Notes to the financial statements (continued)

10 Retirement obligations

The 2012 triennial actuarial valuation of the UK defined benefit pension scheme, the BBA Income and Protection Plan (the IPP) was completed during the period. Following this valuation the Company has agreed to pay additional contributions of £3.75 million ($6.01 million) per annum from March 2012 to December 2012, £4.75 million ($7.69 million) in 2013 and £6.80 million ($11.02 million) per annum from January 2014 to March 2017 to repair the funding shortfall of £30.4 million ($49.2 million) calculated at 31 March 2012.

The IAS 19R defined benefit obligation at 31 December 2013 for the IPP is estimated based on the latest triennial valuation, with assumptions updated to reflect market conditions at 31 December 2013 where appropriate. The defined benefit plan assets have been updated to reflect their market value as at 31 December 2013. The Group’s foreign retirement obligations relate to a number of funded final salary defined benefit pension arrangements in North America. Pension costs are calculated by independent qualified actuaries, using the projected unit method and assumptions appropriate to the arrangements in place.

As at 31 December 2013, the IAS 19R valuations of the UK and US schemes indicate a net deficit of $34.0 million (2012: $66.3 million), which when combined with the minimum funding liability recognised in accordance with IFRIC 14, of $23.6 million (2012: $nil) gives a combined liability recognised on the balance sheet of $57.6 million (2012: $66.3 million).

11 Dividends

The directors propose that a final dividend of 11.0c per share will be paid to shareholders on 23 May 2014. The proposed dividend is payable to all shareholders on the register of members at the close of business on 11 April 2014. This dividend is subject to approval by shareholders at the Annual General Meeting and in accordance with IAS 10: Events after the Reporting Period has not been included as a liability in these financial statements.

12 Event after the balance sheet date

On 19 December 2013, the Board resolved to dispose of the Group's APPH business, part of the Aftermarket Services segment. On 3 February 2014, BBA announced the completion of the sale of its 100% shareholding in APPH, for a total cash consideration of $128.0 million to Héroux-Devtek, a Canadian company specialising in the design and manufacture of landing gear systems and components. The assets and liabilities of APPH have been classified as held for sale as at 31 December 2013. As a result of the disposal of APPH, ordinarily a section 75 debt would have been triggered. The Group has agreed with the Trustees of the IPP to apportion the section 75 debt and put in place an asset backed funding structure which will replace the previously agreed schedule of deficit contributions.