17.07.2007

Gloom at Boom Logistics

Boom Logistics, the Australian crane and access rental company, has announced that its results for the full year to the end of June 2007 will be considerably lower than expected.

The company had anticipated that its profit after tax would be comfortably above a$40 million, with most analysts expecting $41 million,

It has announced today that a result in the A$36 to $37 million ($31-32/£15.4-15.8 million) range is more likely, due to poor weather in some of its major markets.

Including heavy rain, high winds and flooding along the east coast of Australia, which has caused unplanned outages and delayed planned maintenance activities by many customers.

The company also claims that its performance has been hampered by delays in the receipt of new equipment as a consequence of worldwide supply shortages.

Boom Logistics CEO, Mark Lawrence, said that he was disappointed by the impact of the abnormal weather conditions on the company’s result but "remained confident about the outlook for the business and strength of the underlying customer demand profile."

Boom logistics spent a$4.3 million to acquire D+D crane hire in March and over a$30 million to buy Moorland hire in May.