My initial reaction to receiving BSA Ltd as my company of focus was a feeling of defeat. Who are BSA Ltd? What do they do? How am I going to find this remotely interesting if BSA turns out to be super boring? Nevertheless, I soldiered on, BSA was what I was given and I was determined to find something interesting about them. So, I downloaded 3 years’ worth of their Annual Reports, looked at them briefly and thought to myself “accounting is not for me, I have absolutely no idea what any of this means!” Cue minor meltdown and 2 days worth of avoidance. No more time for avoidance. I have spent nearly all of my Sunday researching BSA and reading their most recent Annual Report. Admittedly, I still don’t understand the Report as I have not read Chapter 3 of the Study Guide yet, but this is what I have discovered so far.
BSA is a comprehensive technical services contracting company in 25 locations Australia wide. Their Vision, according to their website, is to revolutionise asset implementation, operation and maintenance through the application of technical expertise, smart solutions and innovative client service.
BSA is divided into three business units: BSA|BUILD (formerly TDCP – Technical Design and Construction Projects), BSA|CONNECT (formerly TFFS – Technical Field Force Solutions) and BSA|MAINTAIN (formerly TMS – Technical Maintenance Services). The Business Unit name change is due to company consolidation and restructuring during the 2016 financial year. This consolidation and restructuring (amongst other things) lead to a $38.1 million revenue loss for the 2016 financial year.
BSA|BUILD – YOUR TRUSTED DESIGN & CONSTRUCT PARTNER FOR HVAC & FIRE SOLUTIONS
BSA|BUILD is an innovative and solution driven building services supplier to all sectors of the construction industry. They specialise in the use of 3D BIM (Building Information Modelling). BIM uses 3D real time building modelling software to assist in the design and construction phases of projects. It helps with the building geometry, spatial relationships and geographic information of a project and can be used for material ordering, costing estimates and material tracking. Some of BSA|BUILD’s projects include the BHP Corporate Head Office in Perth, the new Royal Adelaide Hospital in Adelaide (obviously) and the Fiona Stanley Hospital in Perth.
BSA|CONNECT – EXPERIENCED, CAPABLE & COMMITTED
BSA|CONNECT specialises in telecommunication networks and technologies. It is a national provider of strategic advice, design, implementation, operations and maintenance of these telecommunication networks. BSA|CONNECT recently won a five year contract with nbn to be their delivery partner in Brisbane, Melbourne and Sydney. BSA expects first year revenue from this contract to reach $50 million.
BSA|MAINTAIN is a national technical services provider specialising in HVAC (Heating, Ventilation and Air Conditioning), Fire, Electrical, Plumbing and general repairs. Some of BSA|MAINTAIN’s projects include the Queensland Institute of Medical Research in Brisbane, the Olivia Newton-John Cancer & Wellness Centre in Victoria, Housing NSW and the Department of Defense in Victoria.
BSA|MAINTAIN developed the CPU II Pressurisation Unit which eliminates dust from areas such as labs and clean rooms. CPU II Pressurisation Units are widely used throughout Western Australia in the resource mining industry. They also developed a software suite called SECURE. SECURE has many features including asset level reporting, serialisation and barcode scanning, viewing of data and work order status and the instant communication of faults.
BSA FINANCIAL POSITION
The current share price is $0.38.
The 2016 financial year was not a good one for BSA. They recorded at revenue loss of about $38 million. From what I can find at the moment this was due to restructure costs and legal cost in regards to legal issues with the new Royal Adelaide Hospital and the NSW Office of State Revenue (payroll tax issue). But this only accounts for $18.6 million. What happened to the rest? Will I be able to find out through closer scrutiny of the Annual Reports? Stay tuned to find out…..