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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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