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

 

Planes: Jetstar Launches Regional Network

Jetstar, the Qantas Airways budget offshoot, launched its new regional network in New Zealand with special $9 one-way fares and has narrowed down its choices to five routes and four destinations - Nelson, Napier, New Plymouth, and Palmerston North. More>>

ALSO:

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news