12.08.2010

Boom reduces losses

Australian based crane and access company Boom Logistics has reported its full year results to the end of June.

Revenues for the year to the end of June were down almost 18 percent on last year to A$328.3 million.

The company recorded a pre-tax loss of $1.2 million, substantially better than last year when the company posted a loss of $25.9 million.

Boom’s consolidated results include Sherrins the access and general equipment rental company, Boom Logistics the crane operation and James Equipment the crane distributor. Rental revenues were $302.7 million, while sales were $22.9 million.

Boom Logistics reported a drop of 15 percent in revenues while Sherrin slipped seven percent. James Equipment saw a more significant fall of 53 percent and continued to decline further in the second half.

Vertikal Comment

The results while not good are in line with expectations and tax refunds have meant that the company made an after tax profit this year. Boom has been the subject of acquisition overtures in recent months but has promised that it can do better on its own.

It is true that the offer, said to be worth $52 cents, is well below asset value but is still a substantial premium on the recent share price. Boom is saying that the business is improving and that it is expecting great things, but it has not put this into numbers.