24.02.2007

Boom up 40%- Harmon to retire

Melbourne based crane and access company Boom Logistics has reported its first half results, which show a 40 percent growth in revenues and a 25 percent increase in after tax profits.

Revenues for the first half to the end of December were a$170($135/£69m) million compared to a$122($97/£49m) million in 2005/2006. The 2006/2007 numbers include the contribution from Tadano Faun dealer, James Group like for like revenues and profits were not disclosed.

Earnings before tax and interest tax increased by 29 percent to a$34 million,($27/14m) while net profit after tax was up by 25 percent to a19.6 million ($15.5/£8). Profits lagged revenue growth, the company says, due to poor tower crane utilisation in Melbourne and the lower margins from the James Group, a sales business.

The company says that the tower business has already picked up in the second half and that the order book for James group is strong. It says that it is looking at 45 to 55 percent profit growth for the full year. It has also confirmed that it is looking at a number of acquisition targets.

Boom spent a$52 million in the first half, $23 million of which was replacement and $29 million on equipment for organic growth. Full year replacement spending is forecast at a$29 million.

At the same time the company confirmed that Rod Harmon (49) chief executive officer, is to retire on June 30th to “pursue business interests within the IT industry”.
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Rod Harmon is to retire at the end of June

The company’s finance director, Mark Lawrence (41) will succeed Harmon as chief executive. He joined the company in November 2002 from Bovis Lend Lease having started out with Deloitte Touche.

Chairman John Robinson, said, “Rod has done an outstanding job in his role as CEO. Boom has grown significantly under his direction and has become an industry leader in its field. Rod has created scale and value through the integration of 21 acquisitions since Boom’s inception.

The company today has a broad customer base across a range of industries and is the only national provider of lifting solutions. Under Rod’s leadership our financial performance has been excellent and this has been reflected in both the absolute and relative performance of our share price.”

“We are delighted to have been able to select a new CEO from within the company’s management ranks. Mark has been a member of the executive team since the company was formed and his appointment as CEO is a planned and natural transition”.

Robinson confirmed there would be a progressive handover of responsibilities over the next five months. During this time a replacement CFO will be appointed.

Boom Logistics recently appointed Brian Praetz as chief operating officer, and Jim Carr as business development officer. Praetz joined the company in August 2002 and was previously the general manager for Western Australia.

Carr joined the company as general manager business development in August 2006.