Increased expenses and competition squeeze BAS Group margins
Competition and rising costs have put pressure on margins for the Bermuda Aviation Services Group, the company has reported.
The owner of BASFM, Otis, Weir Enterprises and Eastbourne Properties Limited made this observation as the group posted six-month results for the period to September 30.
It reported a six-month profit of about $800,000 compared with about $700,000 over the same period last year.
Revenues from continuing operations were $6.5 million, a $0.8 million increase versus the comparative period owing to additional revenues for projects.
Total cost of revenue was $2.7 million, an increase of $0.7 million, resulting in a gross margin of $3.8 million compared with $3.7 million in the comparative period.
In a filing with the Bermuda Stock Exchange, BAS said its margins are continuing to be affected by competition across various business lines and increasing costs of materials and shipping.
Total operating expenses were $3.1 million for the recent period, which was a slight increase over the comparative period.
The company said: “Management continues to find efficiencies at the subsidiary level despite rising costs of operations.”
Earnings per share from continuing operations was $0.16 a share compared with the prior period of $0.14 a share.
The company paid a special dividend of $0.10 per share on September 30, 2022, which, it said, reflects the strong operating results.
The statement said: “Over the past few years, the group has continued to implement several strategies that have positively impacted the financial performance of the company.
“Management continues to work closely with our clients to provide innovative and cost-effective solutions.
“The leadership team is fully committed to delivering the best financial performance possible with the goal of creating and increasing shareholder value.”