Profitability Of BZCS

Ok, whan can you say about the profitability of BZCS and its sub divisions? Any comments!

BZCS is a profitable subsidiary, but there are a couple of concerns.

Firstly, the margin is very low, but this is also in line with the industry average. Could it be the case that BZCS deliberately has low margins in order to win the contracts, thus securing the long term revenue streams for the other subsidiaries within BeeZed, who I would assume, would operate at much higher margin levels. It should be noted though that ROCE is 8%, whilst debt is 5%, so the profit levels are viable.

Secondly, approx 83% of their revenue comes from Europe and USA, the two areas most affected by the current economic climate...what effect will this have one the amount of projects won, and subsequently revenue received?

Finally, whilst they are profitable now, there is no guarantee they will continue to do so. Current profit levels are based on projects in place / completed this year. If fewer projects are won, profit will be affected. We know from the unseen that 10 projects are due to end this year, currently only leaving four for next year?

Good analysis! Their margins are in line with the industry! I also don't see a big issue in their profitability!
83% of the revenue comes from US and Europe, this is quite risky, they might have to diversify.
Debt is 6%, 7.5/125, and we can not consider this as debt, because this is given by the parent company, so BZCS is 100% equity financed, cost of the equity provided by the parent company is 6% (pre tax)