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BHP Group Limited — Capital/Financing Update 2008
Oct 12, 2008
14787_rns_2008-10-12_fe361d50-77a2-4e98-aa36-5995be19c27f.pdf
Capital/Financing Update
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MEDIA RELEASE
Date: 13[th] October 2008
BSA Limited secures more than $70 Million in new Building Services contracts
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Triple M order book up nearly threefold to $104 million
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Business now well established in growing Western Australian market
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Diversifies BSA’s revenue base into new sectors and geographical locations
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BSA continues to assess growth opportunities in building services
Sydney October 13, 2008: Building and telecommunications services company BSA Limited (ASX: BSA) announced that its Building Services division, Triple M, has won new HVAC (heating, ventilation and air conditioning) contracts valued at more than $70 million.
Triple M installs and maintains mechanical and fire services for many of Australia’s largest building and infrastructure projects. New contracts include:
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Installation works for The City Square project in Perth, Western Australia, the new Western Australian headquarters for BHP Billiton. In monetary terms this contract is the largest HVAC subcontract for a commercial building in Australia.
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A project with Diploma Construction, a division of Diploma Group Limited, for a 14 storey commercial office tower in the Perth Central Business District.
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A number of smaller installation works with blue chip customers in key markets in that Triple M operates.
BSA Managing Director Mark Foley said these projects confirm that Triple M continues to grow as part of BSA.
“We acquired the Triple M business a little over a year ago and since this time we have grown the order book to $104 million, up from $36 million. What is also encouraging is the combined value of these projects is almost a third of our total FY2008 revenue – a sign that we are experiencing strong revenue growth.
Managing Director of Triple M, Mark Lowe, said: “These project wins are evidence that Triple M continues to expand its already strong presence in the building services space. build its presence in the HVAC market. We are securing works at acceptable margins to our customers and to Triple M as the contracting partner.
“The expansion of the Triple M business into Western Australia is also a pleasing development. Our blue chip customers are actively supporting our entry into new markets and recognise the value of partnering with us in multiple locations.”
Mark Foley added: “BSA is well placed for continued growth in 2009. Our revenue is much more spread among multiple projects which helps us to better manage risk. The
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Unit 8, 79-99 St Hilliers Rd 49 Borthwick Ave 27 Irvine Drv Auburn NSW 2144 Murarrie QLD 4172 Malaga WA 6090 Phone +61 (0) 2 8748 2464 Phone +61(0 7 3902 7500 Phone +61 (0) 8 9247 8500 Fax +61 (0) 2 8748 2577 Fax +61(0) 7 3902 7550 Fax +61 (0) 8 9247 8588 Web: www.bsa.com.au
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pipeline of bidding opportunities across BSA is strong and we expect to announce more project wins shortly.
“We are also assessing other growth opportunities in the building services sector that will increase revenue and earnings.”
Mr. Foley said that BSA’s cash flow is strong, the company remains well funded, and conservatively geared with a net debt to net debt plus equity ratio of 28% and interest cover of 9.7 times.
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Further information:
Mark Foley – Managing Director BSA Limited: +61 2 8748 2464
Released through Ben Jarvis - Six Degrees Media & Communication: 0413 150 448
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Unit 8, 79-99 St Hilliers Rd 49 Borthwick Ave Auburn NSW 2144 Murarrie QLD 4172 Phone +61 (0) 2 8748 2464 Phone +61(0 7 3902 7500 Fax +61 (0) 2 8748 2577 Fax +61(0) 7 3902 7550 Web: www.bsa.com.au
27 Irvine Drv Malaga WA 6090 Phone +61 (0) 8 9247 8500 Fax +61 (0) 8 9247 8588