Bermuda Aviation Services Financial Results
In a filing with the Bermuda Stock Exchange, Bermuda Aviation Services Limited, reported earnings to March 31, 2020.
The filing said:
Bermuda Aviation Services Limited [the Company] and its subsidiaries [the Group] today announces a total comprehensive loss of $1.9 million for the year ended March 31, 2020 compared to a comprehensive income of $0.3 million in the prior year. The main contributors to the comprehensive loss are the loss from discontinued operations related to the sale of CCS Group Ltd. [CCS] and CCS Group Sucursal EM Portugal [“CCS Portugal”] and the related impairment loss on goodwill.
In July 2020, the Company sold 100% 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. The majority of the proceeds from the CCS sale were used to reduce the Company’s bank debt by an additional $2.25 million, which strengthens the Company’s consolidated statement of financial position and reduces longer term cost of interest payments.
The CCS transaction occurred outside of the financial year ended March 31, 2020, as such the results for CCS have been reclassified and accounted for in these statements as “discontinued operations” and “assets held for sale”. This resulted in a loss from discontinued operations of $0.6M and the write-off of $1.8 million in goodwill related to this asset. Comprehensive Income, adjusted for this transaction, is $0.5 million.
Prior to that, in March 2020, the Company acquired the minority interest of BAS-Serco Ltd. from North American shareholder Serco Inc. As a result, BAS-Serco Ltd. is now a fully owned subsidiary of the Company and has been rebranded as BAS Facilities Management Ltd. [“BAS FM”].
Revenues from continuing operations were $15.6 million for the year, which is an increase of $0.7 million over prior year. Total cost of revenue was $6.5 million, an increase of $1.1 million; resulting in gross margin of $9.0 million compared to $9.5 million in the prior year. Total operating expenses from continuing operations decreased $0.5 million year over year. Management’s efforts to reduce operating expenses have been realized through all expense categories.
The Company has now reduced its bank loan by $3.0 million which included a one-time payment of $2.25 million after the year end together with paid interest of $0.4 million in the year.
A one-time prior period adjustment was made to the April 1, 2018 opening consolidated statement of financial position to record a receivable of $0.4 million, which relates to a selfinsured health plan surplus terminated in 2018, and returned to the Group in the current year.
The Company did not declare or pay dividends during the fiscal year ended March 31, 2020 as 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.
The outbreak of Covid-19 has heightened the cleaning standards and sanitization requirements for commercial office spaces. Clients have made additional requests to clean and disinfect all commonly-used areas, offices and facilities to prevent any risk around the virus. As a result, 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.
We take this opportunity to thank our employees for their commitment, hard work and dedication to the Group throughout the past several months particularly with the uncertainty around the COVID-19 outbreak.
The Company is continuing to monitor operations and remain change-agile as the needs of customers are evolving to ensure minimal impact to operations.
