09.08.2006

Australian company presents sparkling results

Boom Logistics, the highly acquisitive, publicly traded Australian crane and access rental company has announced revenues of A$ 254 million (£101/$193 million), up by 92 percent. Net profits after tax rose by 111 percent to A$33.1 million (£13/$25 million).

The company also saw strong improvements in cash flow, its balance sheet and its gearing. All this in spite of a string of acquisition during the year, including:-

Sherrin Hire purchased for A$130 million (£52/$99 million) in August 2005.
Port Headland cranes, acquired from Brambles for A$13.8 million (£5.5/$10.5 million) at the end of June 2005 and Camilleri Industries, QLD, acquired for A$27.5 million (£11/$21 million) in March 2006.

The company also detailed the rationale behind its latest acquisition, that of the James group, completed on August first.

Boom Logistics paid $60 million (£24/$46 million) for the group, of which A$54 million was cash and debt and $6 million in shares.

The James group runs a fleet of 70 cranes which it hires out on bare lease terms.. or dry hire as it is know in Australia. Its revenues for the past 12 months were A$44 million (£17.5/$33 million). It is also the Tadano crane distributor for Australia. Boom Logistics, intends to continue with the Tadano business, seeing this as one of the key attributes to the purchase.

Brendan James of the James group has joined Boom Logistics from a minimum 12 month contract, his position will be general manager, fleet management.

The deal makes Boom logistics the largest “dry hirer” of mobile cranes in Australia with 158 units, which it says provides strategic access to new customers and additional services.

Boom logistics now claims a share of the total Australian crane hire market of almost 20 percent. Although it sys that this is only six percent of the total overall lifting market.

Rod Harmon, chief executive officer, said he was delighted with the acquisition, and that the James Group business is complementary to the company’s existing national
crane hire network, and consolidates its market leadership.

Harmon also said “The James equipment sales business, which includes used mobile cranes and the exclusive licence to sell new Tadano cranes, added a further degree of vertical integration to Boom’s operations, which will enable the company to offer its customers a more comprehensive and streamlined service”.

He continued “Boom has a history of successfully acquiring and strengthening businesses that can deliver sustainable earnings growth. We are confident that this acquisition will be no exception,”