On the dividend, my punt is that BYL will pay a final dividend...

On the dividend, my punt is that BYL will pay a final dividend of 1.25c to bring the DPS up to 3c for the year ended 30/06/2015. This is what I wrote in this thread earlier: “On the DPS holding at 3c for FY2015 specifically, management restated the $300m revenue target for FY2015, so expect about $165m in H2 FY2015. Costs will grow at a lower rate, so NPAT for H2 should be higher – say $6m, rather than the $5m that would happen if expenses went up in equal step proportionately. This would deliver an EPS of about 8c, and allow BYL to pay a 3c DPS (35% of EPS, rounded up a bit). It is possible that BYL pay a slightly lower DPS, say 2.75c, but because management held to the 1.75c DPS in H1, which was a poor performing half year, I think the DPS should hold to 1.25c for H2 – both the same as for FY2014.”

The so-called “policy” of paying between 25% and 35% that Peter McBain has referred in the past may relate to a time when BYL had a lot of debt, including money lent by the Brierty family. This debt was reduced, and BYL is now more inclined to pay at the top of that range, if not a bit higher. New debt taken up to finance equipment for the $300m RIO contract would be lease related, and I imagine substantially covered by the income derived from the 4.5-year RIO contract, so there is no compelling reason to reduce that debt quickly. Below is what happened in the three earlier years:

................2012 ........ 2013 ........2014
EPS ........ 8.6c ......... 9.3c ........ 8.8c
DPS ........ 2.8c ............ 3c ........... 3c
.......... 32.56% .... 32.26% .... 34.09%

There is good infrastructure work in the offing in WA and the NT, and with BYL's track record of securing roadwork and airport-related work (roadwork and parking areas), BYL has a chance to get some of the action. For instance, BYL is in one of the three consortia short-listed to bid for further work on the Perth Freight Link – see:

https://www.mediastatements.wa.gov....ortant-milestone-for-Perth-Freight-Link-.aspx

If you poke around the www.mediastatements.wa.gov.au/ site you will see other projects where BYL could get some work. As an aside, NWH is in one of the three consortia invited to tender for the Forrestfield-Airport link – see:

https://www.mediastatements.wa.gov....estfield-Airport-Link-call-for-proposals.aspx