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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news