15/02/2008 - 16:06

Nomad net profit soars 45.7% to $10.4m

15/02/2008 - 16:06

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Nomad Building Solutions Ltd has revealed a 45.7 per cent increase in net profit after tax to $10.4 million for the half-year to December 2007, on the previous corresponding period.

Nomad Building Solutions Ltd has revealed a 45.7 per cent increase in net profit after tax to $10.4 million for the half-year to December 2007, on the previous corresponding period.

The profit windfall was driven by 53.1 per cent growth in revenue for the half year to $145.5 million.

The Henderson-based company has declared an interim dividend of 4.0 cents per share, fully franked, which is an increase of 1.2 cents per share on a normalised basis over the previous corresponding period.

Nomad said its balance sheet remained in a solid position with net assets increasing from $58.9 million to $68.1 million during the current half year.

As part of the group's strategy to further invest in the hire fleet and to provide working capital for expansion including the acquisition of the Rapley Wilkinson business, the group's banking facilities with Westpac have increased by $15 million subsequent to December 31, 2007.

The proposed $26 million acquisition of Rapley Wilkinson, announced in January, is expected to be completed this month, and Nomad said it was excited about the prospects of the building business and the opportunities it provided including resort style mine site accommodation villages and facilities management.

Looking ahead, Nomad said its full year forecast for the 2008 financial year of $22.4 million to $24.1 million remained in line with previous guidance after allowing for a contribution from Rapley Wilkinson from 1 March 2008 and expensing the cost of employee options excluded from the original guidance.

"The group has a strong order book for the remainder of the financial year and recent contract awards provide a solid base for the 2009 financial year" the company said in a statement.

"Current levels of project tenders and project feasibilities continue at extraordinary high levels and support a sustained demand for the group's products and services across all sectors."

Nomad said the buoyant outlook for the group was forecast to continue for the 2009 and 2010 financial years with forescast revenue for the 2009 financial year in excess of $400 million of which around 50 per cent is already contracted.

The strong profit result follows that of competitor, Fleetwood Ltd, which yesterday reported a 25 per cent rise in profit to $16 million for the half year ending December 2007, on turnover of $160 million.

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