12.10.2011

Boom sells tower crane fleet

Australian based crane and access group Boom Logistics has sold its Victoria based tower crane business for A$7.5 million. The sale is expected to result in a net gain of around $3 million.

The deal includes 34 tower cranes and all supporting materials, including some dedicated mobile cranes used for erecting and dismantling the fleet.

The sale is part of a move to free up capital in order to focus on its core business of providing cranes for infrastructure related businesses, primarily in the resources and energy sectors.

It also follows the approval of a new $150 million three year revolving debt facility that the company agreed with its banking syndicate earlier this year.

Boom reported total revenues for its fiscal year 2011 to the end of June of $340.4 million, four percent up on 2010, but generated a loss of $35.4 million before tax. $43.1 million of which came from write-downs and impairments in the Boom Sherrin operation and restructuring costs resulting from the exit from its James Equipment sales business. Part of its new focus on crane contract business will also see it withdraw from the access and general equipment business.

The company has said that its first quarter earnings, before interest and tax, were considerably better than in the first quarter 2011 at $9 million.