South Fremantle company, Nomad Modular Building, one of Australia’s biggest manufacturers of portable accommodation for the mining sector, is planning a stockmarket float to take advantage of the current boom conditions.
South Fremantle company, Nomad Modular Building, one of Australia’s biggest manufacturers of portable accommodation for the mining sector, is planning a stockmarket float to take advantage of the current boom conditions.
The company is expected to formally launch a $77 million public share offer next week, with most of the proceeds used to pay out private equity investors ANZ Bank and DB Zwirn, which funded a management buy-out in late 2005.
Nomad chief executive Phil Guy, who led the management buy-out, told WA Business News in April the company had tripled revenue in the past three years and expected to generate sales of about $100 million in 2005-06.
Nomad’s total revenue is expected to increase to about $180 million in the current financial year, though this is understood to include some one-off contributions.
Marshall Allen, who previously ran ANZ Bank’s private equity arm in Western Australia, has been advising Nomad through his new firm, Platanus Management.
Nomad is one of three major suppliers of manufactured accommodation to the mining sector, along with East Perth-based Fleetwood Corporation and Brisbane-based Ausco.
Fleetwood recently reported that its manufactured accommodation division, which is run by former Austal managing director Bob McKinnon, suffered an 11 per cent fall in annual revenue to $84 million, affected in part by a major restructuring.
Fleetwood targets sales to both the park homes sector and the mining sector, and noted that production was currently running at record levels.
Fleetwood also has a large caravan manufacturing division, which achieved a 1 per cent increase in revenue to $168 million last year.
The company’s overall result was an 11 per cent increase in net profit from continuing operations, to $20.7 million.
Ausco is a privately owned business and does not disclose its turnover, but it has about 200 staff and sub-contractors in WA, putting it on a par with Nomad and Fleetwood.
A small but fast-growing rival is Blue Ridge, established by former Fleetwood manager Alan Mackenzie in 2005.
Now owned by listed insulation and air-conditioning supplier Cool or Cosy, Blue Ridge generated nearly $4 million in sales in its first year of operation.
It is aiming to double and possibly triple sales in the current financial year, and will be moving to larger premises in Kewdale early next year to support its growth.
Like Nomad, most of its sales are to the mining sector but it has also entered the park home sector, signing a $1.35 million contract with Aspen Parks last month.
Its clients in the resources sector include Aztec Resources, Clough and Monadelphous.
Nomad has secured several big contracts in the past year, including for Newmont’s Boddington gold mine, Rio Tinto’s Hope Downs iron ore mine and BHP Billiton’s Ravensthorpe nickel project.
The Ravensthorpe contract was for about 1,200 rooms for the construction camp and 300 units for the permanent camp, while the Boddington contract was for a similar-sized construction camp.
Nomad operates several manufacturing sites in Perth, including purpose-built premises at Henderson, and opened a Queensland operation earlier this year.
The company has put in place a heavyweight board that includes former Multiplex managing director Geoff Allen, who is chairman, former Macmahon Holdings chief financial officer Rick Blair, and Monto Minerals executive chairman Peter Slaughter.
