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


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news