NZX-listed investment company Hellaby Holdings has reported a big improvement in net profit after tax, up $9.6 million to $10.3 million in the year to June 30.Hellaby group EBITDA was $27.7 million, up 4.6% against last year, despite group revenue falling
NZX-listed investment company Hellaby Holdings has reported a big improvement in net profit after tax, up $9.6 million to $10.3 million in the year to June 30.
Hellaby group EBITDA was $27.7 million, up 4.6% against last year, despite group revenue falling 4.8% to $457 million due to lower market demand across most subsidiaries.
Group EBIT was $20.3 million, up 11.8% against last year.
The company generated $36 million free cashflow, largely through working capital improvements, which enabled further balance sheet reform with a 51% reduction in core bank debt to $25 million.
Total net debt (interest-bearing debt including core bank debt, trade loans and capital notes) reduced by 29.2% to $73.3 million.
Managing director John Williamson said the company’s debt reduction programme over the previous three years had significantly improved Hellaby’s balance sheet and debt gearing.
Hellaby today also announced a 3:7 pro-rata renounceable rights offer, which Mr Williamson said would enable the company to adopt a more conservative capital structure, increase financial flexibility, and position the company for improved profitability and growth.
Hellaby has received a firm commitment from its largest shareholder, Castle Investments, to subscribe for its full rights entitlement, with the remainder of the issue underwritten by Forsyth Barr Group.
Mr Williamson said that the rights offer gave all shareholders the opportunity to participate, and would raise approximately $28.4 million.
Hellaby owns a number of companies in different sectors including automotive, packaging, equipment and footwear.
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