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


Hellaby writes off $26.9M goodwill on struggling shoe stores

Hellaby writes off $26.9 mln goodwill on struggling shoe stores

Aug. 1 (BusinessDesk) - Hellaby Holdings, the diversified investment company, will take a $26.9 million impairment against its 2014 earnings to write off goodwill on its shoe stores Hannahs and Number One Shoes, after two years of poor performance.

Footwear has been a laggard for Auckland-based Hellaby, contributing to a 21 percent drop in first-half profit. Today the company said excluding the non-cash impairment, full-year earnings before interest, tax, depreciation and amortisation would be $54 million and net profit would be $25 million, the forecast it gave in May. The final dividend would be calculated on that basis, it said.

The impairment "reflects a change in retail trading conditions which has resulted in two years of below-expectation performance by the two businesses," the company said. "Hellaby’s board and management believe this decision will leave the carrying value of each retail company at a level more reflective of market conditions and performance."

Hellaby has broadened its portfolio in the past 12 months, buying truck servicing business New Zealand Trucks South Island and auto electrical, fuel and engine management components firm Dasko Marketing NZ in April. It raised $40 million in a placement to institutions in March. In December it acquired 85 percent of Contract Resources, a specialised engineering maintenance and industrial cleaning company, for $73 million.

Hellaby shares fell 1.8 percent to $2.75 and have declined 14 percent this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


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>>


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>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news