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

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news