BAS GROUP REPORTS EARNINGS OF $2.8 MILLION
• Total consolidated net revenues total $39.4 million
• Earnings per share were $0.56
(Hamilton, Bermuda, July 1, 2016) – Bermuda Aviation Services Limited (the “Group” or “BAS”) today announces net earnings attributable to shareholders of $2.8 million for the year ended March 31, 2016. This compares to net income of $471,000 for the corresponding period in 2015.
The Group has posted total consolidated net revenues of $39.4 million, down from $40 million in the prior year. Gross profit is $15.5 million, an increase of $1 million from the prior year. Total operating expenses have decreased by $0.2 million to $14 million as a result of tight budgetary control and increased management oversight. Total equity attributable to shareholders is $27 million, an increase of seven per cent from the prior year.
Ian Cook, Group President & Chief Executive Officer, Bermuda Aviation Services Limited, says: “These positive results are underpinned by a strong business model, including continued solid performance from our core business operations, high client retention levels despite fierce competition, efficient management of operating expenses, increased governance and oversight and sustained efforts to optimise the Group’s working capital and synergies.”
Over the last ten years, the diversification of subsidiary companies has allowed the Group to reduce its reliance on the aviation industry. After a 30-year relationship of providing aviation-related services to L.F. Wade International Airport, the Group transferred these services as of March 31, 2016.
In November 2015, BAS decided to sell IBC in order to focus on providing integrated, infrastructure, maintenance and technology solutions, to our commercial and residential clients.
The wind-up of the defined benefit pension plan in prior years has allowed the Group to close off the uncertainty of the actuarial obligation, which means that the Group is no longer required to fund its pension deficit. This has allowed the Group to expedite repayment of its long-term debt.
BAS-Serco, CCS, Weir Enterprises and Otis Elevator Company all continue to perform well in their fields and BESCo and Eff-Tech produced an acceptable return in a fiercely competitive market. Integrated Technology Solutions Ltd. reported below expected earnings. However, Management is confident that there is potential to exploit internal synergies to make it more profitable.
Mr Cook continued: “After four challenging years, we are pleased to report improved earnings for the current year. Continued diversification, creation of synergies and restructuring has allowed BAS to focus on its core businesses. We continue to look at market opportunities where the Group can develop acceptable returns for its shareholders.”