Nomad higher on $28m contract wins

Shares in troubled Nomad Building Solutions were higher after the modular builder reported a healthy outlook and secured more than $28 million worth of contracts.

The company said its Queensland and Halley Homes divisions had secured the contracts, which include accommodation units, modular housing, rental sales, specialty commercial buildings and education facilities.

The contract wins boost the company's order book to $170 million.

Nomad said the general increase in demand along with renewed activity in the resources and agricultural sectors is expected to support infrastructure and housing over the coming months, a situation the company was ready to pounce on.

Shares in Nomad climbed 3.5 cents, or 14.9 per cent, to a high of 27c before settling at 26c at 14:35 AEDT.

The company's share price was pounded earlier this year when it issued a profit downgrade, which resulted in then chief executive Alan Thomas demoting himself.

The announcement is below:

Nomad is pleased to announce that Nomad Modular Building Queensland and Halley Homes have secured over $28M of work has been awarded to these Business Units. The various contracts include accommodation units, modular housing, rental sales, specialty commercial buildings and education facilities. The new works commence shortly and are expected to be completed early in the 1st quarter of the 2010-2011 financial year. The source of the contracts is from existing and new clients demonstrating the confidence in Nomad to deliver. The Groups work in hand now stands at approximately $170 million.

A general increase in demand in line with renewed activity in the resources, agricultural sectors, supporting infrastructure and housing is expected over the coming months as the global financial crisis diminishes, Nomad is positioning to take advantage of the new market conditions.

Rick Blair, Executive Chairman of Nomad Building Solutions said "that the appointment of Brett McDonald, CEO of the Eastern States operations, has given clients the confidence to commit to Nomad and I expect this to only increase. The professionalism of the team and the quality of product produced will see the Eastern States Business Units grow in the coming years".

Brett McDonald said, "Our new organisational structure will see productivity increases and a decrease in our overhead once fully implemented. We aim to increase our new prototypes with client driven demand. Our design services and product knowledge will secure our position and growth in our market."

Mr. McDonald also believes that increased product diversification from several new suppliers has helped reduce construction constraints that will enable greater capacity for growth through increased efficiencies.