19/01/2009 - 08:37

Nomad managing director resigns

19/01/2009 - 08:37

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Nomad Building Solutions managing director Phil Guy has resigned for health and family reasons as the board expresses its disappointment over the company's financial performance over the past six months.

Nomad managing director resigns

Nomad Building Solutions managing director Phil Guy has resigned for health and family reasons as the board expresses its disappointment over the company's financial performance over the past six months.

In a statement this morning, the company acknowledged Mr Guy's contribution to the company and wished him well for future endeavours.

Alan Thomas, who is currently chief executive of Nomad subsidiary Rapley Wilkinson, has accepted the position of acting managing director of the group.

Mr Guy's resignation comes one week after company secretary and chief financial officer Greg Dower announced he will be leaving the company in the coming six months.

Meantime, Nomad said it has started implementing its improvement program after saying it was "extremely disappointed" over the company's performance.

"The Board has been extremely disappointed by the inability of the Company to capture the potential performance in the last 6 months given the record revenues and is of the view that the company has very sound fundamentals which will be enhanced by the matters being addressed," Nomad said.

Last month the company cut its earnings forecast from around $33 million to $27 million following a review of the company's five businesses with the outlook for Rapley Wilkinson, Lifestyle Living, McGrath Homes and Halley Homes remaining positive.

However, due to Nomad Modular Building's exposure to the resource sector, margins on some projects have continued to deteriorate, particularly on two turnkey projects which are mostly completed.

Nomad said the deterioration is due to a range of cost pressures and operational inefficiencies, largely driven by the rapid growth of the modular division.

Shares in Nomad closed down 6.5 cents or 23.6 per cent to 21c today.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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