BYL added two tiddlers to the pail. Two small (a few million dollars, typically less than $10M) contracts were added to its contracts-won list for March 2016 – namely:
Tindal Airbase Erosion – Client: Department of Defence
Lakelands Shopping Centre Forward Works – Client: PEET
In the light of the major win of the 4.5 year RIO contract in 2015, the regular Main Roads WA work, plus the long-term housing estate project at Mitchell Creek Green, NT (over 500 residential lots progressively delivered through to 2017), I am unconcerned about the decline in numbers and value of small contracts booked relative to two and three years ago.
Mitchell Creek Green is the Zuccoli Stage 2 project, which BYL's subsidiary, Bellamack Pty Ltd, won about two years ago. Bellamack Pty Ltd, which trades as Territory Life, was incorporated in February 2009 as a vehicle to deliver a 5-year contract to develop the suburb of Bellamack for the NT Government. When that project drew to a close in FY14, Territory Life won the Zuccoli Stage 2 contract. Territory Life pays BYL for services, which one sees recorded as a client in BYL's presentations – e.g, in FY15 you can see under “Value in Small Projects” work obtained from Territory Life recorded for Zucolli Stages 2A, 2B and 2C.
As an aside, Zuccoli Stages 3, 4 and 5 went to Costojic Ltd. BYL may not have wanted more land-development commitments at that juncture – it is not BYL's core business. If PEET, or a similar land developer, wanted to operate in the NT, and use BYL as a service provider, I imagine that BYL would be happy to cut a deal that resulted in it handing over the land-developer role, but keeping the earthmoving and related work (road building, kerbing, guttering, pipe laying and the like).
BYL Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
