BigAir increased earnings guidance for FY11 (BGL)

Today after the market close, BGL announced a significant increase to EBITDA guidance for FY2011 up 30%, from $4m to $5.2m.  Much of this uplift results from the contribution of the CVA and AccessPlus acquisitions.

Because BGL’s revenues are largely from subscription services, the current annual EBITDA run rate is $7.5m, which should grow well above that figure for FY12 when factoring in new orders activated from now until June 2012.

The acquisitions integration are proceeding on track with an additional $1.6m of annual cost reductions realised over the next 12-18 months.  This will further improve BigAir’s stellar profitability, with gross margins currently sitting at 80%.



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