06.02.2008

Boom Logistics CEO quits

Mark Lawrence CEO of Australian Crane and access company Boom Logistics has resigned in the face of a surprise drop in profits. The resignation followed a request by the company to suspend the company’s shares on February first, pending a revision to its profits guidance.
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Jack Hebiton one of the Company’s founding directors has taken over all operational matters while chairman John Robinson is taking responsibility for company administration.

Peter O’Shannessy, formerly general manager at Brambles Industrial Services will join the company in early March and will take over operational control, He replaces Brian Praetz who resigned in November 2007.

Teresa Withington has also joined the company as general manager of Boom Sherrin, replacing Steven Goulding who resigned in October

Revenues for the half year increased by 19 percent to A$202.4 million, however net after tax profits for the first half fell 22 percent to A$15.3 million, well below the expected range of $17-18 million.

The company is conducting an audit before confirming this number. The result is impacted by a further one-off $4.0 million pre-tax, non cash accounting adjustment, predominantly representing additional depreciation relating to a prior period error as well as the writing down of some assets acquired in the Sherrin acquisition.

The company says that it expects to see an improvement in operating margins in the access equipment market in the second half, “with a lessening in competitive pressures already evident early in the second half”.

However a slow startup in New Year activity combined with an expected three month hiatus in the Bowen Basin due to the extreme floods, is expected to reduce profitability across the overall business.