Nomad Building Solutions has forecast a $12 million second half profit for 2009/10 but has warned of a first half loss of $1 million due to a downturn in orders.
The announcement is below:
Nomad Building Solutions Limited ("Nomad") issues the following earnings guidance for the year ending 30 June 2010 ("FY10)".
Nomad expects to report a net profit after tax for the full FY10 financial year in the range of $10 million to $12 million on revenue of approximately $275 million.
The Nomad Group has recently benefited from winning significant orders and has noticed an encouraging outlook for the 2010 calendar year and beyond.
However, like many construction sector participants, the Nomad Group did suffer from a downturn in orders being awarded in the past 12 months because of the uncertainty caused by the Global Financial Crisis.
This lag effect, which was anticipated when the 2009 annual results were released, and the delay in final approval for some new significant orders have caused a longer than predicted delay in the Group's ability to generate accounting revenue and profit in the current 6 months. As a consequence, Nomad is forecasting to report a loss after tax of around $1 million for the six months ending 31 December 2009.
Recent order wins and improved enquiry levels provide Nomad with confidence that it will be able to achieve a second half profit after tax in the vicinity of $12 million.
Indeed, the strong outlook provides directors with a reasonable basis for expecting that the operating conditions expected in the second half of the FY10 financial year are likely to continue into the following FY11 financial year.
