CEO Mark Lawrence seems to be saying that the construction boom...

CEO Mark Lawrence seems to be saying that the construction boom will be good for business too

Here is what he said Oct 19 just prior to the lending problems in the US and the downturn in the DOW.

Hoister Boom Logistics lifts prospects
Email Printer friendly version Normal font Large font October 19, 2007 - 4:49PM


Mobile crane provider Boom Logistics Ltd expects more acquisitions combined with existing business growth will put a solid lift its bottom line this year.

Managing director Mark Lawrence gave an upbeat assessment of the company's prospects to shareholders in his address in the new role.

"Our largest segmentation is toward industrial maintenance followed with resource maintenance, and both have very favourable outlooks," Mr Lawrence told the annual general meeting.

"Added to that, infrastructure works being undertaken across the country and we have a very favourable outlook for our business."

In 2007, Boom spent close to $100 million buying four eastern seaboard crane hire companies and spent another $48 million on capital equipment to expand its operations.

Mr Lawrence said there were still plenty of opportunities for more acquisitions.

"I get this question every year - that you must have exhausted all the opportunities that are out there.

"I'm here to say that's not the case.

"Every year, as we go along, the horizon changes and there are still many opportunities for this business to expand its operations, going forward."

After the meeting Mr Lawrence told AAP to "expect further acquisitions in the balance of this financial year".

Through one of its acquisitions, the James Group, Boom picked up the Australian distribution rights to sell new Japanese Tadano cranes.

That opportunity will go some way to addressing the hoist hirer's problems in sourcing new equipment amid a global supply shortfall.

It will also enable Boom to drive further growth by selling customers both new cranes linked with its after-sales services - a key driver for crane sales.

Boom was forced to scale back its profit guidance during 2007 after severe storms took a toll on maintenance schedules.

Nevertheless it was still able to report an 11 per cent lift in net profit to $36.6 million.

Mr Lawrence acknowledged the limited supply of new cranes and the possibility of adverse weather could still play a role in Boom's bottom line this year.

"In the short-term our organic growth rate is going to be impacted somewhat by the available supply of cranes," he told AAP.

Mr Lawrence, who was previously the company's finance director, acknowledged investors had punished Boom after the surprise resignation of his predecessor, Rod Harmon, earlier this year coincided with bad weather.

Boom's stock is now trading more than 25 per cent lower than it was one year ago.

Wilson HTM analyst David Arter said the broking house has forecast a 16.6 per cent lift in earnings to $42.7 million this year.

Mr Arter said the forecast growth represented a recovery on the 2007 result that was depressed by the extreme weather events.

"The message was that they remain acquisitive and there are still good opportunities for growth, both organic and acquisitional growth," he said.

Boom shares closed down eight cents at $3.10.