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

 


Hellaby sinks into the red on footwear writedown

Hellaby sinks into the red on footwear writedown, sweetens dividend

By Paul McBeth

Aug. 28 (BusinessDesk) - Hellaby Holdings, the diversified investment company, sank into the red in the latest financial year as it wrote down the value of its footwear unit in a flat retail market. Still, it sweetened its dividend as underlying earnings grow.

The Auckland-based company posted a loss of $1.1 million, or 1.2 cents per share, in the 12 months ended June 30, compared to a profit of $18.2 million, or 22.9 cents, a year earlier, it said in a statement. Stripping out a $26.8 million charge on the goodwill of its Hannahs and Number One Shoes brands, earnings rose 44 percent to $26.8 million, ahead of its $25 million guidance given earlier this month and Forsyth Barr's estimate for a profit of $25.2 million. Revenue grew 35 percent to $736.4 million.

"Four of our five divisions performed ahead of last year, and within those divisions most businesses improved year-on-year," managing director John Williamson said. "We remain committed to improving total shareholder return, and are confident that our growth strategy will deliver the higher earnings to drive this."

Hellaby broadened its portfolio over the past 12 months, buying a truck servicing business, an auto electrical, fuel and engine management components firm and 85 percent of Contract Resources, a specialised engineering maintenance and industrial cleaning company.

The company anticipates bigger contributions from its new acquisitions, and Williamson said it has more acquisitions in the pipeline.

The board declared a final dividend of 9.5 cents per share, payable on Oct. 3 with a Sept. 26 record date, taking the annual payout to 15 cents. That's up from 13 cents a year earlier, and ahead of Forsyth Barr's expectations for a 14.5 cent dividend.

Chairman John Maasland said the board discounted the goodwill impairment in making its decision.

"The board took this decision in recognition of the company's record earnings growth, its strong positive outlook and because the impairment had no impact on group cash flow," he said.

The Contract Resources acquisition boosted external sales in the oil and gas services segment by about 300 percent to $165.2 million, and more than doubled operating profit to $9.78 million.

Hellaby's equipment division more than doubled operating profit to $10.56 million on a 45 percent lift in sales to $194.7 million, while the packaging unit delivered a 12 percent increase in operating profit to $3.02 million on a 0.5 percent gain in external revenue to $44.6 million.

The footwear unit showed a 5.6 percent decline in external sales to $145.7 million, and posted an operating loss of $23.8 million due to the impairment charge, compared to a profit of $6.08 million a year earlier.

Hellaby generated an operating cash flow of $32.6, up from $24.5 million a year earlier. It had cash and equivalents of $7.4 million as at June 30, and core bank debt of $64.7 million.

The shares rose 0.4 percent to $2.85, and have dropped 13 percent this year. The stock is rated an average 'buy' based on four analyst recommendations compiled by Reuters, with a median target price of $3.31.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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