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BAS buoyed as profits increase

Improved results: Bermuda Aviation Services have reported a profit of $1.65 million for the second quarter of the year, up $375,000 compared with the corresponding quarter last year

Bermuda Aviation Services (BAS) is flying high after posting total profits of $1.65 million for the six months to the end of September.

The figure is an increase of $375,000 compared to the same period last year.

The firm’s revenues also increased — up $1.7 million to $29.8 million in comparison to $28.1 million for the corresponding months in 2013.

BAS CEO Ian Cook predicted that an Island buoyed by the decision to stage a series of America’s Cup races and the 2017 finals in Bermuda would boost the firm further during the next few years.

“We’re encouraged by our performance, and we’re quite excited about the opportunities that are on the horizon,” he said.

“The America’s Cup is a huge scale operation and we’re extremely excited about putting Bermuda where it needs to be.”

Mr Cook said that ending the firm’s defined benefit pension scheme last year had “removed the uncertainty of the pension obligation and has allowed BAS to focus on its core operations.”

In a report to the Bermuda Stock Exchange, Mr Cook added: “This will allow the long term cash position to improve with the elimination of pension deficit funding requirements.

“Pension administration costs have also been reduced significantly.

“Senior management is confident that this will serve the company well for many years.”

BAS also reported that operating expenses had been trimmed by $237,000 due to restructuring and more efficient working.

Total company assets have also increased by $2.3 million, with the majority ($2 million) coming from an increase in the cash position.

The report said: “It was expected that the cash position would improve with the windup of the defined benefit pension plan.”

BAS accounts receivable have also increased by $2.6 million — attributed to greater sales during the report period, which has also led to an increase in current liabilities.

The report to the BSX added that the company continued to integrate its newest acquisitions, including green energy firm BESCO, into its operations.

“Management is cautiously optimistic that the economy is showing signs of improvement and is buoyed by potential prospects.”