News: BSA BSA Ltd Posts FY Net Profit Attributable Of A$1.5 Mln, page-4

It is a false claim from the directors to suggest that its cost base has been reduced. In fact, over the last two three years, they were bleeding from discontinued business, then decided to heavily upgrade technology which yet to see any benefits, it might be the case that those upgrades were so necessary for them just be in the game.

Financially, they lost $10m from the gross profit compared with the normal trading of FY19, while cost the cost base increased by more than $10m over the same period, so that's $20m at least out of the cash flow.

Because the board is controlled by the large shareholder, they have been forced to pay dividends out of borrowing two years in a row. They might realize soon they need a substantial cap raise given there is no sight of the end of lockdown, and that will be a double whammy for the company by paying div from borrowing and raising at a lower price.