BPP

About BPP

Babylon Pump & Power Limited (BPP, formerly IM Medical Ltd) is a speciality equipment rental and maintenance service provider. Babylon focuses in two niche areas, specialised equipment rental for the oil & gas and mining sectors and diesel engine services, with a focus on repair and maintenance of large diesel engines. The group is predominantly present in Australia.

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What does Babylon Pump & Power Limited (BPP) do and how does it make money?

Babylon Pump & Power (BPP) comes up with the goods. The company provides equipment rental and maintenance to the Australian resources sector, particularly oil & gas and mining.

As a whole, the company has three major areas of focus:

• Specialty equipment rental and servicing — the rental of specialty, diesel-driven pumping and power generation equipment, including positive displacement pumps, multistage pumps, compressed air dryers and diesel compressors.

• Heavy diesel maintenance and servicing — the provision of rebuild and maintenance services for large diesel driven equipment and high-pressure water blasting.

• Specialty pumping and industrial services — the provision of other ancillary services to the resources sector.

Babylon Pump & Power reports all of its revenue in four segments: Service and Repair, Equipment Rental, Sale of Goods and Labour Hire. In FY2021, the revenue for each of these segments arrived at A$7.8m, A$3.84m, A$9.58m and A$843.5k, respectively.

Babylon Pump and Power was founded by Executive Chairman Michael Shelby in 2017. The company is headquartered in Forrestfield, Western Australia.

Is Babylon Pump & Power a profitable company?

Babylon Pump & Power earned revenue of A$1.63m, A$11.51m, A$17.2m and A$21.33m in FY2018, FY2019, FY2020 and FY2021, respectively. Prior to FY2018, the company had earned no revenue since FY2012.

The company has also been reporting net losses since FY2012. These losses have deepened from A$1.12m, A$2.21m, A$1.78m to A$6.67m in FY2018, FY2019, FY2020 and FY2021, respectively.

Babylon has continued to operate by raising additional finances from debt and/or equity.

Is BPP stock a buy?

Sentiment around BPP stock appears to be mixed. 

BPP stock price reached a 6-month high of A$0.014 in January 2022, only to see-saw down to A$0.009 by the end of March 2022. The stock then climbed back up to A$0.014 by mid-April.

That upward movement of the BPP share price may be due to the appointment of new CFO Gary Credaro on 3 January 2022; the reporting of record revenue of A$13.7m for the half ending 31 December 2021; and positive operational cash flow of A$1.1M for the quarter ending 31 March 2022.

Executive Chairman Michael Shelby is positive about the future:

“The directors are confident in our ability to continue to grow and increase the

utilisation of our assets across rental and industrial services. Enhancing operational

efficiencies and profitability will continue to show improvement in cash flow and earnings as

we close out FY22. We continue to see increasing demand for quality services and

equipment from blue chip customers across the resources sector in particular, which gives us

the confidence of continuing strong growth in FY23 and beyond.”

Does BPP stock pay dividends?

BPP stock has no history of paying dividends to shareholders. The company has not announced any intention to pay dividends in the future.

Who owns BPP stock?

BPP stock’s biggest owners are a mix of public companies and individuals. These include Geoffrey Lord (16.62%), Chesapeake Capital Limited 3.84%), FGI Holdings (3.48%), CMC Industries (3.47%), Phillip Hearse (2.52%), William Martin (1.92%), Oodachi Pty Limited (1.84%) and T.T. Nicholls Proprietary Limited (1.68%).

Individual insiders with significant ownership include Executive Chairman Michael Shelby (1.24%), Executive Director Patrick Maingard (0.55%) and Non-Executive Director and Company Secretary Michael Kenyon (0.12%).

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