Hellaby Holdings full-year profit up 49%
Profit, ebitda improve for the listed investment company despite flat revenue.
Hellaby Holdings (NZX:HBY) has reported an after tax profit of $15.3 million for the year ended June 30, 49% higher than the previous year’s profit of $10.3 million.
Trading ebitda increased by 23% to $34.0 million and trading ebit increased by 32% to $26.8 million, despite group revenue only growing 2.5% to $469 million due to “challenging” trading conditions.
Hellaby chairman John Maasland says all Hellaby’s businesses are now contributing positively to the bottom line.
“Despite strong economic headwinds, we have seen a dramatic uplift in profits, margins and return on funds from all our subsidiaries, and believe they are well positioned to reap benefits from an economic upturn.”
Managing director John Williamson says the previous year’s underperforming divisions – equipment and footwear – achieved significant operational improvements during the year.
The footwear division (Hannahs and Number One Shoes) achieved a 95% ebit improvement in tight trading conditions despite interruption from the Christchurch earthquakes.
The equipment division returned to profitability this year, due mainly to the operational restructuring of AB Equipment following a severe recession in the heavy equipment sector over recent years.
Free cash flow was $34.9 million, while total net debt (interest-bearing debt including core bank debt) reduced to $24.5 million, 67% lower than the $73.3 million at June 30 last year.
Gearing (total net debt to total net debt plus equity) fell to 15.5%, from 42.3% at June 30 2010, well within the company’s target gearing levels of 45% or below.
Mr Williamson says the rights issue and subsequent repayment of capital notes in December 2010 effectively completed the reform of Hellaby’s balance sheet and that shareholders are now reaping the benefits.
Niko Kloeten
Mon, 22 Aug 2011
Mon, 22 Aug 2011
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Hellaby Holdings full-year profit up 49%
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