In my previous post, I should have added to my comment that BYL is still hiring that there are three things that we could see in other stocks in BYL's sector, but are unlikely to witness in BYL, and they are, there will be no:
a) retrenchment costs;
b) no impairment of Goodwill (there being none to impair); and
c) no fleet impairment (being utilised, it is adequately depreciated via the usage-based method).
In contrast to BYL, NWH will have huge Goodwill and fleet impairments in FY2015.
FY2014 results looked better than they would have if the depreciation policy had remained static. In FY2014, BYL switched to usage-based depreciation, the sector norm. This shifted some depreciation expense into FY2015 and later years, and hence relative to reported FY2014 metrics, FY2015 metrics should not show the improvement over FY2014 that would have occurred if FY2014 had carried more depreciation.
I am particularly interested to see what BYL has done to reduce administrative costs, which have historically been very high for reasons that allude me. For something like seventeen years I made a good living as a freelance expense reduction consultant, and hence that large expense excites my interest - there may be much room for improvement. This is a topic I intend discussing with Peter McBain if the expense remains high.
