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


Hellaby 2014 Forecast

Hellaby 2014 Forecast

NEWS RELEASE: 26 May 2014

Hellaby 2014 group net profit after tax forecast to rise 35 percent to $25 million

Investment company Hellaby Holdings Limited today advised that its projected trading EBITDA (earnings before interest, tax, depreciation and amortisation) for the year to 30 June 2014 is expected to be around $54 million, 43% higher than last year; and projected group NPAT (net profit after tax) to be around $25 million, approximately 35% higher than last year. Earnings per share, based on NPAT attributable to the parent company, are also expected to improve against last year.

Hellaby Managing Director John Williamson said the full year forecast reflected improved year-on-year profit performances by four of its five divisions, with the exception of Footwear.

“The forecasted group outcome is a creditable performance. Most of our subsidiaries have improved year-on-year. Our three recent acquisitions – Federal Batteries and Dasko in the auto parts sector and NZ Trucks in the heavy equipment sector - are integrating well and performing as expected. Our balance sheet remains very strong and we are continuing to pursue further growth opportunities that meet our investment criteria and will add value to our shareholders.”

Recently-acquired Contract Resources is expected to perform ahead of last year but below the initial forecast.

“Unfortunately a number of secured projects in Australia and the Middle East have recently been deferred, and will now start in the new financial year. While the scheduling gaps have been back-filled with other work, this has been at lower margins. Meanwhile, Contract Resources has invested to support the anticipated increase in work and the impact of this, combined with the lower margin projects, will result in a lower than expected EBITDA of around $15 million for the year to 30 June 2014. We remain confident that, with growth prospects, Contract Resources will deliver an EBITDA above $20 million in the next financial year.”

Mr Williamson said the rescheduling of petrochemical shutdown projects was not uncommon.

“This variation in profitability is primarily a project timing issue, and is a characteristic of contracting companies. Since acquisition, we have invested in additional management resources and worked hard to improve the company’s financial capability.”

Mr Williamson said that Hellaby’s Automotive, Equipment and Packaging divisions, which last year together generated around 80% of the group’s trading EBITDA, are performing solidly and are forecasting earnings in line with or ahead of last year.

“These divisions are tracking well, even before contributions from bolt-on acquisitions made earlier this year are included. The Equipment division continues to benefit from the strong capital equipment cycle and is performing well ahead of expectations.”

While the Footwear division performance has improved over recent months, trading conditions have remained tough and the division has forecast a full-year EBITDA of around $6 million, which is below last year’s $9.1 million.

Hellaby will release its results for the year to 30 June 2014 in late August.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news