Business News, June 1 2012 - Mark Beyer
Nomad Building Solutions plans to wind down one of its core businesses, after concluding it was unable to profitably service the modular building market in Western Australia.
Nomad Modular Building (WA) accounted for 20 per cent of the group’s total revenue but has been unprofitable despite strong demand for modular products in WA.
The group attributed the poor performance to a “lack of leadership and poor operational management of this business unit over an extended period”.
“This has resulted in the business operating from an inadequate site, with high staff turnover, poor cost controls and low morale,” it said n a statement.
The decision followed a review by KPMG.
Nomad said the wind down will be completed by 30 June. The process will include the delivery of final project buildings, the surrender of leased premises at Bibra Lake and a reduction in staff numbers.
Acting executive director David Franklyn said the group had already scaled down the division, which now has about 15 staff. He said about half this number would be retained in the group.
The company said the rental activities of Nomad WA will be integrated with other rental and mining camp assets into a new business unit with its own management.
The group’s other divisions will continue as McGrath Homes, building company Rapley and Nomad Modular (Queensland).
