In the past year, Hellaby Holdings made two acquisitions which would together account for an expected operating profit increase of 40% in the current financial year.
However, managing director John Williamson told the Otago Daily Times that was just the start.
''We are playing a long game and we have a solid pipeline of opportunities under consideration which could have a significant impact on our combined business.''
At the group's annual meeting last week, Mr Williamson presented three key messages.
The first was about how the group's profile was changing substantially and it had changed in ways the market did not fully understand.
The purchase of Contract Resources and Federal Batteries had added significantly to the company's operating profit, but the acquisitions were not widely understood.
Secondly, Mr Williamson said the group performance was flat in some sectors and the next lift would come from acquisitions.
''We make no bones about this.''
The last message was he felt the share price was below what it should be, and where it was in December 2012.
''Yet since then, we have acquired two businesses which will significantly boost our operating earnings in the financial year.
"We have successfully raised $50 million with which to finance future acquisitions and we will make further progress on the start already made to reshape our investment portfolio to create a more balanced exposure to economic, geographic and currency risks.''
Furthermore, group return on funds employed (rofe) was 23%, he said.
Asked why he thought the share price was not performing as well as he expected, Mr Williamson said Hellaby was a conglomerate which attracted a certain type of investor.
Some investors were more interested in a ''pure play'' investments but Hellaby offered access to segments of the economy not accessible through other vehicles.
Hellaby, which owns the Hannahs and Number One Shoes chains, was seen as a retailer and apparel retailers had done it tough recently.
The footwear division made up only 15% of operating earnings and 85% of earnings came from non-retail.
Other reasons for the languishing share price included investors waiting to see how successful the group was integrating its large acquisitions and the fact a capital raising of $50 million earlier this year was not all spent.
''I understand all of that.''
Acquisitions were on the agenda but they would be bought ''per the plan'', he said.
''The ball's in our court to communicate better. I acknowledge I have to explain clearly in a cluttered market what we have bought and how those assets are fitting in.
"We won't be rushed. If that frustrates some, they should think about all the poorly executed acquisitions made in New Zealand and how it took to right those problems.''
Asked if the shoe division would be sold, Mr Williamson said he was comfortable with all businesses under the Hellaby brand but that did not mean the group would be a long-term owner.
There was a target of each division reaching $20 million of operating profit. Three did not reach that target in the past year, including footwear.
The footwear division reported $9 million of profit and a 20% rofe, performing as well as any apparel retailer in a tough market.
''We have the best management teams and we back the teams, but they operate in a tough space. Any divestment we make is all about timing.''
Two years ago, Mr Williamson said he wanted a third of the group's revenue to be generated offshore by 2015. At the time, only 5% was being generated from Australia.
Transtasman businesses would be the focus of any acquisition and the business needed to have a ''firm footprint'' in either New Zealand or Australia.
''With performance heading in the right direction, and consistent messaging, I am confident over time the markets will develop a greater understanding of our business and re-rate our share price accordingly,'' he said.
Forsyth Barr broker Suzanne Kinnaird has retained her accumulate recommendation on Hellaby shares.
Following the $50 million capital raising and after the Federal Batteries acquisition, Hellaby had the capacity to debt fund further acquisitions of about $85 million and maintain a gearing ratio of less than 45%.
''We believe future acquisitions will continue to target the Australian automotive parts sector.''
The debt-funded acquisition of Contract Resources was an encouraging start to the restructuring of the Hellaby investment portfolio, providing sector and geographical diversification and a positive growth profile, key objectives of the group's acquisition strategy, she said.
''Hellaby is continuing to pursue further acquisitions applying a rigorous framework and reviewing the composition of its investment portfolio,'' Ms Kinnaird said.
