BOOM Logistics (ASX:BOL) - CEO and Managing Director, Tony Spassopoulos
CEO and Managing Director, Tony Spassopoulos
Source: Boom Logistics
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  • Boom Logistics (BOL) spiked on the ASX ahead of a potential one-cent final dividend for the 2021 financial year
  • The industrial lifting equipment specialist says it expects to reach roughly $36 million in earnings for the 2021 financial year, up from $23.8 million last year
  • With a “strong” projects pipeline, BOL CEO and Managing Director Tony Spassopoulos says the company is expecting further growth in FY22
  • As such, Boom says it will pay an unfranked one-cent final dividend to shareholders in November provided audits confirm its FY21 results
  • Shares in Boom Logistics are up 9.38 per cent and trading at 18 cents each at 2:59 pm AEST

Industrial lifting equipment specialist Boom Logistics (BOL) has spiked on the ASX today ahead of a potential one-cent final dividend for the 2021 financial year.

The company said in a market update this morning it expects to hit roughly $36 million in earnings before interest, tax, depreciation and amortisation (EBTIDA) for the financial year, in line with company expectations.

For reference, Boom tabled $23.8 million in EBITDA over the 2020 financial year.

The expected earnings result comes despite an expected slight fall in revenue to $173 million compared to the $185.5 million over the previous financial year.

Nevertheless, BOL said it invested some $15 million into important assets over FY21 — like cranes and travel towers — to service projects like a major smelter shutdown maintenance project, dubbed SCM21, at BHP Olympic Dam signed in May this year.

This project alone is expected to generate $15 million in revenue over the 2022 financial year.

In light of this, Boom CEO and Managing Director Tony Spassopoulos said the company is forecasting further growth during FY22.

“We have strong bookings for the first half,” Mr Spassopoulos said.

“These include the SCM21 project which is additional to our ongoing maintenance work for Olympic Dam, further shutdown activity in central Queensland and Western Australia, ongoing Bango wind farm construction for GE Renewables and Snowy 2.0 infrastructure projects.”

He added that the company’s investment into its growth assets will help it bid competitively for future projects in the mining and wind farm maintenance, infrastructure, and energy markets.

On the back of the FY21 financial result and the predicted FY22 growth, Boom told investors today that subject to audits confirming its 2021 financial year result, it plans to pay out a one-cent final dividend to shareholders in November.

The dividend will be unfranked but is double the half-cent interim dividend announced in February this year.

Boom Logistics had to defer its 2020 financial year interim dividend because of the COVID-19 pandemic and, as such, did not pay a final dividend last year.

Shares in Boom Logistics were up 9.38 per cent and trading at 18 cents each at 2:59 pm AEST. The company has a $75 million market cap.

BOL by the numbers
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