And a reasonable update from building and communications service company BSA Limited, despite weak underlying conditions in the markets it operates in.
After a rough first half, the company seems to have had a calmer six months.
The company told the ASX yesterday that it now expects revenues of around $475 million for the year to June, down from the $491 million for the 2011-12 financial year.
Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) is expected to be around $16 million compared to the $16.5 million figure for the 2012 financial year.
"We note that there have been abnormal write offs in FY13 amounting to $1.5million, associated with tier 2 Builders defaulting, or entering into administration," directors said in the statement.
Net Profit After Tax (NPAT) for the full year to June is now expected to be $4.4million, "which has been impacted by higher than planned interest costs" the company said.
That’s well under the $5.8 million earned in 2011-12 and guidance for this year at the time of the release of the interim results in February.
BSA earned $8.58 million in the 2010-11 year, so no chance of regaining that level this year.
Interim profit for the current year was just $1.8 million less than a third of the $6 million in the first half of the 2011-12 year.
That was a after a 34% drop in EBITDA to $7.2 million.
Despite the obvious strains during the year, the company said that the "Cash and Net Debt position of the Company remains comparable to that at 31st December 2012",
"With a construction order book exceeding $280million (including the new Royal Adelaide Hospital contract), the recent award of the Foxtel regional contract and further expected growth in the Technical Maintenance Services annuity based business, the Company continues to be well positioned in each of its markets .
"The priority of the business in the short to mid-term is prudent cash flow management and Balance Sheet strengthening.
"Further information will be provided once the Company finalises its FY2013 accounts," directors said.
No mention of dividends for the second half was made in yestersday’s statement.
BSA paid 2c a share in 2011-12 and has already paid an interim of 0.5c a share for this year.
BSA shares fell 5.2% yesterday to 18c.
BSA 1Y – Weaker Earnings For 2012-13
