HELLABY HOLDINGS LIMITED – NZX ANNOUNCEMENT 12 December 2008
Hellaby gives profit guidance
Investment company Hellaby Holdings Limited today provided market guidance for the financial year ending 30 June 2009,
based on current trading conditions and the deteriorating New Zealand economic environment.
Hellaby Managing Director John Williamson said that the group’s performance in the five months year-to-date had been
affected by the worsening economy across each of its four divisions: automotive, equipment, packaging and footwear
retail.
As a consequence, unless there were a significant improvement in economic conditions during the first half of 2009, the
company assesses that the Hellaby group trading surplus before interest, tax, depreciation, amortisation and before
one-off transactions (EBITDA) could be between $30–36 million for the year to 30 June 2009. This compares to an EBITDA
of $40.6 million in the previous financial year, including results from the discontinued operations of BBQ Factory.
Correspondingly, Hellaby group after tax profit (NPAT) may be within a range of $8-11 million for the year. This
compares to an NPAT of $4.7 million in the previous year, which included the results of the BBQ Factory divestment.
Revenues for the automotive parts and packaging divisions experienced a slow start to the financial year due to lower
demand.
Although same-store footwear sales through Hannahs and No 1 Shoes are approximately 2% ahead of the same period last
year for the five months year-to-date, Mr Williamson said that overall margins have been lower due to increased
competition for the consumer dollar. Results from the equipment division, which supplies the construction and materials
handling sectors, are also expected to be behind those for last year reflecting a 20% lower demand for new equipment.
Mr Williamson said that Hellaby would continue to streamline the performance and balance sheet productivity of its
subsidiaries during 2009. “We are still targeting bank debt to be below $70 million at 30 June 2009, compared to $85.5
million at the previous year end.
“Our key focus across the group remains on cashflow and return on investment, and we are expecting our working capital
initiatives to deliver further improvements during the second half year. We will also continue to tighten financial
disciplines and management processes irrespective of economic conditions, in order to take advantage of future growth
opportunities when the economy improves.”
ENDS