Profitable Hellaby plans changes

Hellaby Holdings is selling its footwear assets which include Hannahs and Number One Shoes. Photo...
Hellaby Holdings is selling its footwear assets which include Hannahs and Number One Shoes. Photo from ODT files.
Diversified business owner Hellaby Holdings has booked record revenue of almost $780million for its year to June and a slew of divestments and potential acquisitions are planned for the year ahead.

Total sales rose 6.3%, from $733.5million last year to $779.5million, earnings before interest and tax (ebit) rose 4.6%, from $42.7million, while after tax profit was up 5.9% from last year's $26.8million to $28.4 million.

Hellaby's (HBY) owns a portfolio of 15 industrial, distribution and retail businesses, structured into four divisions: oil & gas services, automotive, equipment and footwear, the latter being Hannahs and Number One Shoes, which are to be sold.

Outgoing chief executive after eight years in the role, John Williamson, said Hellaby's portfolio would continue to evolve in line with its investment strategy.

''Having divested packaging, we are focused on investing in our core divisions [Automotive and Equipment] which currently generate over 90% of our earnings,'' he said in a statement.

Mr Williamson was particularly pleased with the financial performance of its oil & gas services, automotive and equipment divisions with all delivering operating earnings ahead of last year.

''Within those divisions most businesses improved year on year,'' he said.

HBY's final dividend was 12.5 cents per share, fully imputed. The total 21.5c dividend for the year was up 43% up on last year's 15c.

Yesterday's result included the first full year's earnings from three businesses acquired during 2014, but only 11 months' earnings from the packaging division which was sold in late May.

Mr Williamson said Hellaby's footwear division continued to experience difficult trading conditions from consumers' tight discretionary spending, online competition and a late summer impacting winter sales.

While revenue declined 3.4% to $140.8million, Hannahs and Number One Shoes were both trading profitably, but the footwear division was now considered non core and would be sold, he said.

''Hellaby is financially very strong, and has ample capacity to invest in one or two significant businesses, or a number of smaller bolt on acquisitions to enhance our existing businesses,'' Mr Williamson said.

-simon.hartley@odt.co.nz

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