IN FOCUS / BOOM LOGISTICS
A BOOMING PERFORMANCE Boom Logistics recently provided company results from the 2021 financial year. Announcing a net profit, after tax of $1.2 million, managing director, Tony Spassopoulos spoke to Cranes and Lifting about the company’s performance. DESPITE THE OBVIOUS IMPACTS RELATING to COVID, the financial year 2021 provided a solid result for the company. Boom Logistics have adjusted to new practices including border permits and travel restrictions and we work in a new environment of social distancing with stringent safety processes in place. This has led the implementation of new protocols, said Tony Spassopoulos, Boom Logistics managing director. “The impact of current border restrictions will create some challenges in the months ahead. Hard border closures are placing restrictions on labour as people are locked into their locations, and this is a major area we are working through,” he said. Revenue declined 6.6 per cent to $173.3 million reflecting the effects of pandemic-related supply chain constraints and deferred projects and shutdowns. With substantial new projects secured, net capital expenditure was $14.7 million as the company invested in new assets to service these projects, strengthening its fleet of cranes and travel towers. Asset sales during the year were $4.8 million. “By reducing overheads and costs, our first focus was to tighten up the organisation. We then looked at all our revenue streams and focused on the customer and service delivery. Some customers reduced their scope in terms of shutdowns and projects which created delays with projects rescheduled for later in 2021/22,” said Spassopoulos. Spassopoulos elaborates further on activities within the various states and market competition. “We had a solid year in both Queensland and Western Australia regions. We have renewed contracts, in particular with Anglo American and FQM 32 / CAL November 2021
Boom Logistics managing director, Tony Spassopoulos.
Nickel, which is proving to be positive for the business. “We also completed shutdowns with major customers in Queensland at BMA and Curragh and in WA at Boddington Gold and Alcoa, which provided solid work and consistency. We are also expanding back into the north-west where we have a depot in Port Hedland. There is strong potential for growth in this region,” he said “New South Wales, and the Hunter Valley region in particular, is a challenging and competitive market with high labour costs tightening margins. Spassopoulos goes on to discuss the planned infrastructure build across the nation and how Boom Logistics is placed to capitalise on these opportunities. “We have a strong pipeline and targeting specific projects, where we believe we have a strong value proposition for customers. Our focus is on the civil and engineering sector and bridge building for example. We are also focused
on the rail work which is coming online. And this is across Australia, not just one specific state or region,” he said. Another area of growth is around the Tunnel Boring Machines (TBMs) being deployed on major infrastructure projects. “We are heavily involved in the Snowy Hydro 2.0 project which we classify as an infrastructure project. On this significant project, we are building three TBMs. We’ve finished the first of these and we are now on to the second. “We have a number of machines onsite which are a combination of crawlers and supporting hydraulic cranes. The Snowy Hydro 2.0 has been a good project for us and for our major customer operating there,” he said. The renewable energy sector has been a key focus for Boom Logistics for some time. “We have certainly been strong in the renewable energy sector. Our strategy has been to diversify into growth sectors, in www.cranesandlifting.com.au
