# BSA - BSA Limited



## So_Cynical (3 October 2012)

BSA is a neat little business, Listed in 1999 they started out as a pay TV installation contracting firm called Broadcast services Aust, i think they did cable as well as satellite installs for Foxtel  (i worked for a rival company) anyway now they do it all for both providers and have added to there services offering with the Triple M group, All Staff and BurkeAir...they also own the Mr Antenna and Mr Alarms Franchising business and brands.

http://www.bsa.com.au/

They have grown both organically and thru acquisition over the last 13 years, never being over ambitious or taking unnecessary risks...revenues have diversified and will continue to as the company grows, Pay TV and foxtel are in a little trouble for sure but there is great potential for revenue growth from the NBN roll out and FTA Digital TV growth as the old VHF and UHF signals get turned off over the next few years.

Lots to like about BSA especially at the current share price...i entered 3 weeks ago at 0.195 and they traded today at the same price, i have been on holidays so didn't post earlier.

5 year chart below..sitting pretty much right on the long term bottom trend line even though revenue has doubled over the last 4 years.
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## tinhat (4 October 2012)

Interesting So_Cynical. I the first thing that popped out at me looking at their figures is that their earnings per share plummeted last year - almost halved from FY11 (4.9cps) to 2.5cps. Those figures are the Thompson Reuters figures which don't match with what is in the company's last shareholder presentation. I had a quick squiz at their last shareholder presentation and note that earning in the "Technical Design & Construction Project" unit, which makes up 57% of earnings crashed due to margin squeeze on projects. So they are increasing revenue (largely due to acquisitions?) but their margins on current construction projects have been heavily squeezed.

The cash flow looks OK but to see headline revenue rising year on year yet EPS falling year on year - something doesn't seem right. What is your take on their strategy? What catalyst do you think there might be for improved performance? They mention that the outlook for construction projects is soft and they also say they are hopeful of picking up work in the resource sector. Those prospects might turn out to be soft? So the NBN looks like the main big opportunity on the horizon?


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## Country Lad (4 October 2012)

tinhat said:


> The cash flow looks OK but to see headline revenue rising year on year yet EPS falling year on year - something doesn't seem right.


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## Klogg (4 October 2012)

tinhat said:


> Interesting So_Cynical. I the first thing that popped out at me looking at their figures is that their earnings per share plummeted last year - almost halved from FY11 (4.9cps) to 2.5cps. Those figures are the Thompson Reuters figures which don't match with what is in the company's last shareholder presentation. I had a quick squiz at their last shareholder presentation and note that earning in the "Technical Design & Construction Project" unit, which makes up 57% of earnings crashed due to margin squeeze on projects. So they are increasing revenue (largely due to acquisitions?) but their margins on current construction projects have been heavily squeezed.




The last FY earnings drop is partly due to the Hastie Group collapse, isn't it?

But yes, I agree with others. The extremely thin operating margin for this company is a little bit of a worry for me. It may turn out to be nothing, but I guess that's a risk that I'm not willing to take.


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## sydboy007 (10 December 2012)

I bought in to BSA a few months ago.  They seem to have a solid profile in the markets they operat in.

I'm suspecting this years figures don't look so hot as they lost access to some R&D credits and similar offsets.

They did maintain the last dividend at 1c, but the payout ratio hit 80% so depending on how much capital they required they may cut back on the dividends.

Still even if they dropped the dividends back to 1.5c annually that is still a nice income stream into a SMSF that will love the 30% tax credit as well


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## So_Cynical (13 February 2013)

So_Cynical said:


> (3rd-October-2012) entered 3 weeks ago at 0.195 and they traded today at the same price, i have been on holidays so didn't post earlier.




Trade # 93 completed today for a trade profit of 21.58% 

Sold half my shares and will keep the rest for dividend yield and future capital growth, BSA fits nicely into my small and Micro cap dominated portfolio, i only hold 2 service contracting type stocks and they are both niche operators.

At 0.24 BSA like a lot of other stocks looks to be fairly priced.... especially in comparison to 4 and 5 months ago.


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## Serpentis (15 February 2013)

Announcement out today, and it looks like the downward trend has continued for BSA. The already tight margin is still going down, debt is creeping up. And that huge dividend has finally been cut, much to the dismay of the market, which has dropped it 15% already, and I suspect it'll go lower.

I bought into BSA a while ago as a small speculative purchase, hoping to benefit from a possible rise in profit margin that would send the share price up and lock in that wonderful high dividend. But all the indicators pointed to the downward trend continuing.

Which is why I sold out yesterday. 

I would just like to thank the gods of market timing, who have seen fit to bless me, ha ha  BSA might reverse its fortune eventually, start generating more profit from that huge revenue and creating shareholder returns as a result, but for me at least, I'm happy to take a strong profit and leave this one for the speculators.


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## So_Cynical (15 February 2013)

Serpentis said:


> Announcement out today, and *it looks like the downward trend has continued for BSA*. The already tight margin is still going down, debt is creeping up. And that huge dividend has finally been cut, much to the dismay of the market, which has dropped it 15% already, and I suspect it'll go lower.
> 
> I bought into BSA a while ago as a small speculative purchase, hoping to benefit from a possible rise in profit margin that would send the share price up and lock in that wonderful high dividend. But all the indicators pointed to the downward trend continuing.
> 
> ...




Down-trend has continued?, i suppose over 12 months you could say that but really i don't think so, up-trend broken for sure but its not really a down trend unless we see new 52 week lows..who knows, next week maybe.

Market gods smiled on me too having sold on Wednesday and sold at the top even better, i kept half my shares for dividend yield and suspect i will buy more next week if the SP goes lower....i don't consider myself a speculator.

Half year presentation http://www.asx.com.au/asxpdf/20130215/pdf/42d1lpj5bd158m.pdf

12 month chart below showing my brilliant timing 
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## Serpentis (15 February 2013)

I meant the overall long-term downward trend over the last few years, as illustrated by your chart at the start of this thread. If BSA had reported some great results it might have broken out of that, but as usual it got slapped back down and the descending triangle trend continues. 

I've been following BSA for years and that strong dividend has kept the share price from falling too low, despite margins lowering and debt rising. But that dividend has just been halved, the first drop in 4 or so years. Without that yield to prop it up, this stock doesn't have a huge amount of upside for shareholders.

I MIGHT buy into it again when it starts to hit around 0.140 over the next couple months, but nah, I think my BSA adventure is over.


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## So_Cynical (15 February 2013)

If the dividend holds at 1.5 CPS that's roughly a 8.5% gross yield so with a contract win or 2 its not hard to see the margin at least maintained and with a small revenue increase the yield sustained...i mean its been a tough few years for non mining services businesses, not hard to imagine conditions improving in general and the fundamentals for NBN and FTA connections work is exciting.

I'm keen on BSA, at the right price....like most stocks...at the right price.


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## Knobby22 (17 February 2013)

Well done on selling. The company says the results will be much better in the 2nd half. 
This could lead to the rise continuing imo but probably a lacklustre 3 months are coming up.


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## Dona Ferentes (9 July 2020)

Australian communications and technical services company, focused on the delivery of infrastructure projects, services and equipment to the building services industry. BSA provides installation and maintenance solutions to the broadcast and telecommunications industries. BSA has three business segments namely: BSA |Connect, BSA| Build and BSA |Maintain.


_"BSA provided a trading update in June, after numerous months of providing little to no information to the market, which we believe was a major factor in the share price hitting a 12-month low of $0.23. The update covered a number of key points with commentary on expected profitability for FY20, capital management initiatives, dividend policy and balance sheet flexibility. FY20 underlying EBITDA is expected to be in the range of $20-$22 million, with a strong cash position enabling the board to pay the deferred interim dividend in July 2020. _

_Looking forward, the board expect to implement a dividend payout ratio between 40-60% of earnings and are also looking at various capital management initiatives which may allow the release of the significant franking credit balance. No commentary was provided on the current tender pipeline, but we believe that the actions of the board with regard to *capital management implies that the potential workload ahead of BSA may well be significant."*_
(from NCC monthly update)

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## Dona Ferentes (13 January 2021)

> _BSA made two significant releases that we believe provides the company with an excellent base of work with tier-1 clients for the foreseeable future. Most significantly BSA was able to secure a renewal contract with NBN for up to 8 years commencing in early CY21. Based on the initial contract revenue figures, BSA has secured a greater share of the overall NBN maintenance work due to what we believe has been high levels of service and customer satisfaction, which has allowed BSA to gain market share from far larger competitors. Pleasingly, BSA also announced in the month that they had successfully secured a five-year contract with Telstra, focusing on property and telecommunication asset works in Tasmania and Victoria. _





> _In addition to these two contract wins, over the course of CY20 BSA has also been able to secure a new contract with Foxtel as its sole contract provider and successfully move into the mobile/wireless space with clients such as the NSW Telco Authority. If BSA can continue to innovate in the way it meets and exceeds its clients requirements then we believe BSA has the potential to be a >$650 million revenue business._



from NCC Monthly


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## mullokintyre (8 September 2022)

BSA used to be a must have in my portfolio back in the day when they regularly paid high dividend in excess of 6% yields.
Of recent times, the divs were around 2% , and most recently there have been no half yearly divs and the annual report said no  eoy divs either.
Made a loss this year after a minuscule [profit last year.
Price reflects its fall from grace.
Would like to get back into it, but can find no reasons to, compelling or otherwise.
Mick


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