BSA.ASX: Appendix 4D and Half Yearly Accounts

Appendix 4D and Half Yearly Accounts

Stock	BSA Ltd (BSA.ASX)
Release Time	20 Feb 2025, 8:21 a.m.
Price Sensitive	Yes

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BSA Ltd Reports Half-Yearly Accounts

Key Points

Revenue and other income up 22.2% to $148.3 million
Profit after income tax up 1.8% to $7.9 million
Significant progress towards double-digit EBITDA margins
Uncertainty around future nbn contract renewal

Full Summary

For the half-year ended 31 December 2024, BSA Group reported revenue of $148.3 million, representing a 22.2% increase compared to the prior corresponding period. The improvement in revenue translated to a 39.6% increase in Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) to $14.1 million. The EBITDA margin also strengthened from 8.3% to 9.5% due to improved volumes and favourable work mix in fixed line platforms. This progress represents a significant step towards the Group's target of sustained double-digit EBITDA margins over the medium term. The Group remains focused on its key priorities of Safety, People, Clients and Profitability. Injury frequency rates have remained largely stable, with the Total Recordable Injury Frequency Rate (TRIFR) declining from 2.59 at 30 June 2024 to 2.49 at 31 December 2024. The Group also saw a material improvement in employee engagement scores and remains Great Places to Work certified. On 28 November 2024, BSA extended its nbn Unified Field Operations Services Contract through to 30 September 2025 with a 12-month extension option. However, subsequent to the end of the reporting period, the company was notified that it has not been selected as a preferred tenderer on the new nbn Field Services Contract. This development has created significant uncertainty around the company's future revenue and profitability, and the company has withdrawn its FY2025 EBITDA guidance as a result.

Outlook

Subject to client volumes being consistent with 1HFY2025, the current profitability run-rate can continue over the remainder of FY2025. However, the company faces significant uncertainty around the future of its key nbn contract, which represents approximately 80% of its revenue, and is actively evaluating strategic options to mitigate the impact if it is not successful in the new nbn tender.