Hellaby, on hunt for acquisitions, posts 49% profit jump

Published: Mon 22 Aug 2011 03:02 PM
Hellaby, on hunt for acquisitions, posts 49% profit jump on shoes, equipment, less debt
Aug. 22 (BusinessDesk) – Hellaby Holdings Ltd., the diversified investment group, posted a 49% increase in full-year profit on improved earnings from footwear and equipment, and lower interest costs after its raised equity capital and repaid debt.
Net profit rose to $15.4 million, or 22.6 cents a share, from $10.3 million, or 20.3 cents a year earlier, the company said in a statement today. The per-share earnings reflect the dilutionary impact of the issue of 21.85 million shares from its rights offer.
Hellaby slashed its net debt to $24.5 million from $73.3 million a year earlier after using the proceeds of the $28.4 million rights issue to help redeem $50 million of capital notes last December, reducing gearing to 15.5% as at June 30 from 42% a year earlier. That about halved the company’s interest bill and gave it the balance sheet strength to resume its hunt for acquisitions.
“While we haven’t yet secured a target that ticks all boxes, we’ll continue to be patient and selective,” said managing director John Williamson. “We firmly believe that we can continue to deliver satisfactory results for our stakeholders.”
Shares of Hellaby rose 4.2% to $2.50 on the NZX today and have gained 17% this year. The company will pay a final dividend of 6 cents a share, making 10 cents for the year, up from 8 cents in 2010.
By division, the equipment business turned to an EBIT profit of $1 million from a year-earlier loss of $1.9 million as sales rose 9.4% to $92.2 million.
Footwear, which comprises the Hannahs and Number One Shoes retail chains, posted EBIT of $6.4 million, almost double last year’s $3.3 million. Sales climbed to $9.7 million from $7 million.
The auto parts business lifted earnings to $19.6 million from $18.2 million, as sales climbed 3% to $162 million
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk

Next in Business, Science, and Tech

Westpac NZ Sets Out Plan To Go Cheque-free
By: Westpac
Major New Zealand Upgrade Programme Projects Go To Tender
Reserve Bank Seeks To Preserve Benefits Of Cash
By: Reserve Bank
Double-dip recession next year, but housing rolls on
Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific
By: Microsoft New Zealand
Fonterra Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production
By: Fonterra
Businessman Eric Watson sentenced to a four-month jail term
OECD Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020
Spark Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities
By: Spark
Monthly Migration Remains Low
By: Statistics New Zealand
Proglacial Lakes Are Accelerating Glacier Ice Loss
By: University of Canterbury
Fonterra Sells China Farms
By: Fonterra
Inland Revenue Reminder About The End Of Cheques
By: Inland Revenue Department
Final countdown for Kiwibank cheques
By: Kiwibank
New Zealand Moves To Protect Cash
By: Next Payments
View as: DESKTOP | MOBILE © Scoop Media