BAS reports $4.3m loss
Bermuda Aviation Services Limited made a net loss of $4.3 million for the year ended March 31. That compares to a profit of $0.8 million the year before.
In a statement, the company said it had completed a comprehensive strategic and functional review of all aspects of its operations and the financial results for the year reflect “multiple initiatives to reposition the group which include one-time strategic planning expenses, restructuring costs as a result of senior management changes, refocus on more profitable business lines in Besco, and the sale of Eff-Tech, which was deemed to be a noncore business subsidiary”.
BAS incurred non-recurring charges of $4 million. Overall, the net loss attributable to shareholders adjusted for these one-time charges as a result of the strategic review was $0.3 million.
The group had total consolidated net revenues of $31.3 million, down $1.4 million. While the sale of goods was down $2.1 million from 2017, the supply of services increased by $0.7 million, which the group said was in-line with its strategy to grow recurring service revenues across all subsidiaries.
Total operating expenses increased $1.9 million, of which $1.8 million were one-time restructuring costs. Other direct expenses and overheads include non-recurring charges for accounts receivable and inventory write-downs of $1 million. Operating expenses for the year, adjusted for these one-time charges, were $11.3 million, a $0.7 million improvement over prior year.
BAS paid dividends of $0.5 million during the financial year. In December, the board of directors decided to temporarily suspend the dividend payment, while the company focused on executing its strategic plan.
The group accelerated its debt repayment by $0.6 million during the fiscal year, making additional payments on debt principal. Total bank debt was reduced by $1.3 million.
Leslie Rans, chief executive officer, said: “The recent comprehensive strategic and functional review included initiatives to reposition and refocus the group on profitable business lines and margin maximisation. Operational growth, benefits and synergies from these initiatives will be the focus for the Group during the fiscal year 2018-19.
“We would like to take the time to thank our employees for their hard work and our clients for their continued support. Additionally, we would like to thank Dr James King and Mrs J. Patricia Lynn for their long years of invaluable service to the group as they retire from the board of directors.”
BAS is a holding company with multiple subsidiaries, including BAS-Serco, Besco, CCS, Otis, Weir Enterprises and Eastbourne Properties Ltd.