ship without a rudder

http://news.smh.com.au/breaking-news-business/nomad-ceo-demotes-himself-20100112-m4mc.html


25c tmrw


Nomad CEO demotes himself
DAVID MCINTYRE
January 12, 2010 - 7:34PM
Ads by Google
Want to buy Nomad ?

Buy/sell NOD using a licd Austbroker. Trade today using Halifax.

www.halifax.com.au

AAP

Nomad Building Solutions Ltd's chief executive has demoted himself a day after issuing a profit downgrade which halved the value of the stock.

Nomad's board says it has accepted Alan Thomas's offer to step down as chief to return to lead the Rapley Wilkinson division.

Nomad bought Rapley in 2008 and identified it as an area of concern when announcing the profit downgrade.

The move and an action plan announced on Tuesday by the builder of temporary and modular buildings failed to reassure the market - Nomad shares slipped 9.5 per cent to an almost 10-month low, following Monday's 48 per cent plunge.

They closed down 3.5 cents at 33.5 cents, the lowest since March 18, 2009.

Mr Thomas will replace Darren Staunton, who has left Rapley.

Chairman Rick Blair will take the role of executive chairman while Perth-based Nomad searches for a replacement chief, the company said in a statement.

"The processes and checks and balances failed to work on this occasion, that's not excusing it by any means," Mr Blair said.

"Rapley was his (Mr Thomas') business ... and he feels somewhat responsible for it and said `I'm better going back and doing what I do best and fixing up Rapley'."

Mr Thomas was one of two principles of Rapley when Nomad bought it.

Nomad downgraded its 2010 financial year guidance on Monday to a $2 million loss.

It had previously forecast a $10 million to 12 million profit, blaming poor market conditions, poor management and systems and a failure to secure anticipated work.

Mr Blair said he hoped the company would be profitable again in the first half of 2010/11.

"We have to focus on winning the right type of work and executing the jobs properly," he said.

Mr Blair said the profit downgrade was the result of one project that cost more than expected to deliver, one that Nomad failed to win during the financial year and another that was deferred in that timeframe.

"We've actually delivered an excellent product to the client, and that's what hurts," he said.

2010 AAP
Brought to you by aap