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Hellaby Announces Retail Goodwill Impairment

Hellaby Announces Retail Goodwill Impairment

1 August 2014

Investment company Hellaby Holdings today announced that it will write down the full $26.9 million value of goodwill in its Footwear retail subsidiaries Hannahs and Number One Shoes, effective 30 June 2014. This non-cash write-down follows Hellaby’s annual goodwill impairment review, and reflects a change in retail trading conditions which has resulted in two years of below-expectation performance by the two businesses. Both Hannahs and Number One Shoes are trading profitably.

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.

Given Hellaby’s strong earnings growth during the financial year to June 2014 and a positive outlook for the year ahead, the board has determined that the group’s final dividend will be calculated as if no goodwill impairment had occurred. This reflects the non-cash nature of the impairment.

The company today advised that its profit for the financial year to June 2014, pre the goodwill impairment, is still expected to be in line with or slightly exceed the 26 May 2014 profit guidance of around $54 million EBITDA and around $25 million group NPAT.

Hellaby’s full year results will be released on 28 August.

For further information please visit www.hellabyholdings.co.nz

ENDS

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