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BAS posts $783,000 half-year profit

Bermuda Aviation Services says it made a fiscal half-year profit of $783,000, results which it termed “respectable” as “profit margins that were attainable five years ago are no longer available”.

Reporting its interim results for the six months ended September 30 yesterday, BAS said in a letter to shareholders: ”Despite the continued pressures of the local economy we have kept income from operations of $980,000 generally in line with the previous year.

“This is a testament to the core strength of our underlying group. If there is a story to be told about our income from operations it is simply this; profit margins that were attainable five years ago are no longer available.

“As a service company we rely on our people as the cornerstone of our ability to deliver. We have made a concerted effort to retain our talent during this economic downturn so that we are able to accomplish future strategic objectives. The reality is that this has come at the expense of thinner margins in our service based companies.”

BAS said its consolidated statement of financial position shows “a company that remains robust and equipped to weather the current economy. With a greater than $2.5 million improvement of the company’s cash position from the previous period we have the additional liquidity to provide the company with the flexibility to execute some key strategic objectives to better position us for the future.”

BAS continued: “Our capital assets have been bolstered by nearly $7 million, reflecting the acquisition of the BAS building; however, this has been offset by new debt of $6.5 million. Readers will also note an over $5.7 million reduction in Goodwill which we noted in our March 2012 Annual Report as a necessary write down relating to the Cargo Handling segment of our operations.

Among strategic objectives executed, the company noted in August BAS launched a new HVAC subsidiary, Efficient Technologies (Eff-Tech).

And in October, BAS acquired a controlling interest in Bermuda Energy Services.

“Eff-Tech and BESCO, combined with the other service based companies in the group, serve to strengthen BAS’ position as the premiere one stop facilities company on the Island,” BAs said. “BAS now has the ability to service any infrastructure needs that a client may have through a combined group solution approach that will see us leverage all of the expertise we offer within the Group.”

For the six-month period ended, all of the companies in the group have performed to expectation, BAS added.

“They have been tested by the Bermuda’s new economic norm and they continue to persevere,” BAS said. “Earnings are expectedly more modest than in previous years but all things being considered, management believes the results to be respectable in this current economic climate.

“Although we anticipate the next half of the fiscal year will continue to be epitomised by the current challenging economy, Management is guardedly optimistic that we will generate some exciting opportunities for BAS by utilising the synergistic services base and skillsets offered by our Group of Companies.”

BAS CEO Kenneth Joaquin

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Published December 11, 2012 at 8:00 am (Updated December 10, 2012 at 6:52 pm)

BAS posts $783,000 half-year profit

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