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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news