Scoop has an Ethical Paywall
License needed for work use Register

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


Hellaby lifts FY profit 26% on equipment, automotive units

Hellaby lifts FY profit 26% on equipment, automotive earnings

By Hannah Lynch

Aug. 27 (BusinessDesk) - Hellaby Holdings, the NZX-listed diversified investment group, posted its third year of profit growth, led by an increase in earnings across its equipment and footwear and automotive divisions.

Profit rose 26 percent to $19.3 million in the 12 months ended June 30, the Auckland-based company said in a statement. Sales increased 6.1 percent to $497.7 million.

"Hellaby has delivered a strong group result through outstanding performance from our equipment and footwear divisions, a steady performance from our automotive division," managing director, John Williamson said. "Despite strong economic headwinds, we achieved our goal to outpace the markets in which we operate."

"Sales growth was well ahead of broader economic growth and we saw a satisfactory uplift in profits, margins and return on funds from most subsidiaries," he said.

Earnings before interest, tax, depreciation and amortisation increased 10 percent to $37.4 million. The footwear division made up 21 percent of earnings as margins, profitability and cash flow was freed up in the company's Hannahs and Number One Shoes subsidiaries.

Earnings in the equipment division rose to $6.4 million from $2.6 million, while the automotive division's ebitda was up 3.7 percent on last year.

Hellaby's packaging division, Elldex packing group, bucked the trend with earnings down $3.6 million due to lower volumes into supermarket, horticulture and dairy sectors.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Hellaby had no new acquisitions during the year but is "actively seeking investment opportunities” targeting “clearly defined sectors which complement our business mix," Williamson said,

"We are confident that our portfolio growth will begin in this financial year," he said.

Shares in the company were unchanged at $3.20. The stock has gained about 33 percent this year.

The board declared a fully imputed final dividend of 8 cents a share, payable on Oct. 19. That takes the total dividend for the year to 13 cents up from 10 cents a year earlier.


© Scoop Media

Advertisement - scroll to continue reading
Business Headlines | Sci-Tech Headlines

FMA: MAS To Pay $2.1M Penalty For Making False Representations

Following proceedings brought by the FMA, MAS has been ordered to pay a $2.1M penalty for making false and/or misleading representations to some customers. MAS admitted failing to correctly apply multi-policy discounts and no claims bonus discounts to some customers, failing to correctly apply inflation adjustments on some customer policies, and miscalculating benefit payments.More

IAG: Call On New Government To Prioritise Flood Resilience

The economic toll of our summer of storms continues to mount, with insurance payouts now topping $1B, second only to the Christchurch earthquakes. AMI, State, & NZI have released the latest Wild Weather Tracker, which reveals 51,000 claims for the North Island floods & Cyclone Gabrielle, of which 99% (motor), 97% (contents), and 93% (home) of claims have now been settled. More


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.