Hamilton, Bermuda, December 15, 2017 – Bermuda Aviation Services Limited (the “Group” or “BAS”) today announces net loss attributable to shareholders of $0.3 million for the six months ended September 30, 2017. This is down from the net earnings of $1.0 million for the same period in 2016.
The Group has posted total consolidated net revenues of $18.6 million, an increase from the corresponding period in 2016 of $0.4 million.
Against that background of increased revenues, the downturn in profits was largely driven by increased cost of sales related to the successful support and provision of services for the America’s Cup event, the increase in competition squeezing margins across all Group industries and a general tailing off of construction projects locally.
To improve the Group’s profitability and establish the brands’ market leadership, the Board has begun an extensive strategic and functional review of all aspects of the Company’s operations. This is being led by BAS Group Chairman David Pugh, in an executive role, with external consultants and advisors. Certain aspects of this review will be announced during the 4th quarter of the fiscal year 2017/18.
While the company paid dividends of $0.5 million during the reporting period, the Board has decided to temporarily suspend payment of a dividend commencing with the quarter ending December 2017.
The facilities management operations, grew revenues by $1.1 million over the past six months, demonstrating modest growth.
The automotive segment continues to be a strong performer for the Group. Despite continued downward pressure on margins arising from increased competition, it continues to provide excellent service to its customers at reasonable prices.
Integrated Technology Solutions Ltd. was this year merged into fellow subsidiary CCS Group Ltd. to achieve greater synergies. The one-off costs associated with this restructure were realised during the six-month period.
David Pugh, Executive Chairman, Bermuda Aviation Services Limited, says: “Earlier in the year, the Board commenced a strategic and functional review of the Group. This review and resulting plan, will provide the path to reposition the various subsidiaries in the changing Bermuda market place and streamline operations to improve overall profitability and shareholder return.”
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