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

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news