Ann: Appendix 4E - Full Year Results 2015, page-2

By my calcs, excluding the non-recurring expense items and excluding profits from asset sales, they made just $2.6m EBITDA in the June half, recorded a $9m EBIT loss, and an $11m loss at the NPAT line.  

Those are all record low profits for the company, despite the fact that Revenues are more than double the all-time lows for the business.  Again,that speaks volume for just how out of sync the cost base of the business currently is.

In this light, the comments of BOL's CEO in this latest result is telling:

"The majority of Boom's Enterprise Agreements were put in place during the era of the "mining boom"when all industry participants were faced with significant shortages in labour supply" (No sheet, Sherlock!) "Boom has been working to realign its labour cost structures with current market realities. In the second half of FY15, Boom has successfully put in place two national EAs that will enable it to achieve:
  - higher labour cost recoveries through increased flexibilities that will allow rosters to be more closely matched with customer demand patterns.
   - lower overall labour costs by bringing rates and allowances in line with standard industry levels.
- Greater use of casual labour pools, compromising appropriately trained and inducted operators and riggers.

Put another way:   "As a management team we were way behind the curve for some time, but now that the company is virtually on its knees, we have no choice but to be galvanised into doing our jobs properly."  (*)


The thing that surprised me with this result was the rapid deterioration in the top line in JH2015: Revenue was down 10% on DH2014, and down a massive 30% on the pcp.

No wonder the banks upped the ante on them.

NIBD fell by some $19m in over the past 12 months (and by $45m over the past 24 months), and over the next 12 months they are targeting a further $30m reduction.

Not one for the impatient investor.


(*) I note that the CEO has voluntarily taken a 10% pay cut to his fixed remuneration.