Modular building manufacturer Nomad Building Solutions has hinted at further changes to its business, including measures to deal with import competition and to lift its underperforming 'side' businesses.
Modular building manufacturer Nomad Building Solutions has hinted at further changes to its business, including measures to deal with import competition and to lift its underperforming 'side' businesses.
Modular building manufacturer Nomad Building Solutions has hinted at further changes to its business, including measures to deal with import competition and to lift its underperforming 'side' businesses.
Addressing the company's annual meeting today, new managing director Michael Bourke said the company's fundamental strengths remain in place and provide a platform for improved financial performance.
This followed last year's operating loss, before impairment charges, of $10.7 million.
He disclosed that one of the company's key challenges over the past 12 months was its contract to deliver kitchens, dining rooms and other buildings to the Gorgon gas project on Barrow Island.
The company said that fulfilling Gorgon contract had taken longer than expected, because of poor project management, the custom nature of the project and compliance requirements for projects on Barrow Island.
Since assuming the position in July, Mr Bourke has been engaged in a lengthy analysis of the company's strengths and weaknesses.
He has also continued to carry out several "turn-around" projects, initiated prior to his appointment, designed to address the shortcomings of internal management and production processes.
He found that most of these projects have delivered benefits as expected.
However, Mr Bourke's inquiries found the installation of a new computer system for the company still lags.
"Unfortunately, there is one key element of the turn-around projects, the Enterprise Resource Planning (ERP) computer system being installed in Nomad Modular, which has not yet delivered the expected benefits from the first stage of implementation" Mr Bourke said.
Discussions with the supplier Epicor were taking place to deliver the outcomes originally anticipated.
Putting the company's difficulties aside both Mr Bourke and chairman, Rick Blair, were confident of the company's ability to grapple with their difficulties and future prospects.
Both expressed their belief that the expected growth in the Western Australian and Queensland resources industries would feed demand for modular building and construction services.
"While further competition is anticipated in some areas, especially from imported camp accommodation with Australia's strong currency, the Company considers it is well placed to respond", Mr Blair said.