Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Hellaby forecasts 35% gain in annual profit; shares fall

Hellaby forecasts 35% gain in full-year profit as four out of five units perform

By Jonathan Underhill

May. 26 (BusinessDesk) - Hellaby Holdings, whose interests range from footwear to oil and gas services, said full-year profit may rise 35 percent on improved performance of four of its five divisions, although footwear continues to lag behind and Contract Resources undershot its forecast. The shares fell.

Profit is expected to be about $25 million in the year ending June 30, from $18.2 million a year earlier, the Auckland-based company said in a statement. Earnings before interest, tax, depreciation and amortisation would be 43 percent higher at $54 million.

Hellaby shares fell 3.1 percent to $2.83 after the diversified investor said Contract Resources, the specialised engineering maintenance and industrial cleaning company acquired in March last year, was performing below initial forecast after it made up for the deferral of some contract in Australia and the Middle East with lower-margin work, having spent more in anticipation of the increased work. Full-year Ebitda for that business will be a lower-than-expected $15 million, before rising to $20 million in 2015, it said.

"This variation in profitability is primarily a project timing issue, and is characteristic of contracting companies," managing director John Williamson said.

Strong growth was expected for Hellaby's full-year profit after it posted a 60 percent jump in first-half profit, driven by the contribution from recent acquisitions. The first half included a full six months contribution from its 85-percent stake in Contract and three months from Federal Batteries which it acquired in September. Last month, the company said it expected to add some $20 million in annual sales and $2.5 million in Ebitda from the acquisition of New Zealand Trucks South Island and Dasko Marketing NZ.

The footwear business has forecast full-year Ebitda of about $6 million, down from $9.1 million a year earlier, which reflected "tough" trading conditions, the company said. Its automotive, equipment and packaging divisions were "performing solidly and are forecasting earnings in line with or ahead of last year," Hellaby said, without giving details.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news