BAS loses $3 million in two years
Bermuda Aviation Services Limited and its subsidiaries have reported a total comprehensive loss of $1.1 million for the year ended March 31, 2021, compared to a comprehensive loss of $1.9 million in the prior year.
In a filing with the Bermuda Stock Exchange, the company said the main contributors to the comprehensive loss are impairment loss on goodwill and the impairment of non-financial assets.
In July 2020, the company said it sold 100 per cent of its ownership in CCS as part of its strategic decision to focus on the company’s core businesses of facilities management and automotive services.
Revenues from continuing operations were $12.5 million for the year, which is a decrease of $3 million over prior year.
Total cost of revenue was $4.6 million, a decrease of $1.9 million; resulting in a gross margin of $7.9 million compared to $9 million in the prior year.
The company said it has now reduced its bank loan by $3 million, which included a one-time payment of $2.25 million during the year from the proceeds of the CCS sale and an additional $400,000 of interest in the year.
This has strengthened the company’s consolidated statement of financial position and reduced longer term cost of interest payments, it said.
Total operating expenses from continuing operations decreased by $1.8 million year-over-year. Management’s efforts to reduce operating expenses have been realised through all expense categories, the company said.
Total operating income for the group is $1.5 million for the current year compared to prior year, which was $900,000. The group has been focusing on new revenue opportunities while realising operating efficiencies through improvements in internal processes and margin management.
The company said it did not declare or pay dividends during the fiscal year ended March 31as the board of directors continues to consider it prudent to suspend dividend payments while the company executes its strategic plan and strengthens the financial position of the group, including the significant reduction in borrowing.
The company said the outbreak of Covid-19 has heightened the cleaning standards and sanitisation requirements for commercial office spaces.
Clients have made additional requests to clean and disinfect all commonly-used areas, offices and facilities to mitigate risk in connection with the virus.
As a result, the company said BAS FM is experiencing new growth opportunities through BAS FM’s facilities management and cleaning services.
Automotive services continue to make a positive contribution to the results of the group despite the current economic climate.
The company said it is continuing to closely monitor operations and remains change-agile as the needs of customers continue to evolve such that it is positioned to respond accordingly.
BAS Group said it is a holding company with multiple subsidiaries providing a myriad of services that are distinct in nature but are also strategically complementary and synergistic. Companies in the group include: BAS-FM, Otis, Weir Enterprises and Eastbourne Properties Limited.