Better trading turns profit for Hellaby

Hellaby Holdings owns Hannahs (above) and Number One Shoes, AB Equipment, Eurolift and car parts firms. Photo / Martin Sykes

Investment company Hellaby Holdings has reported a 138 per cent rise in interim net profit and 51 per cent rise in underlying profit as funding costs fell and investments performed better.

Net profit after tax rose to $5.5 million in the six months to December 31 from a year ago, while earnings before interest, depreciation and amortisation rose to $14.6 million. The company declared an interim dividend of 4c a share, payable on May 6.

The improved profit reflected a combination of better subsidiary trading performances, particularly in the equipment and footwear divisions, as well as reduced group funding costs following a capital restructuring.

The company owns Hannahs and Number One Shoes, AB Equipment, Eurolift and car parts firms.

Chief executive John Williamson said the company had not quantified the impact of the earthquake in Christchurch. It had 20 sites in Christchurch across four divisions, half were still closed yesterday but it was opening as many as possible within the next week. Some sites were, however in the the central city cordon. "The business impact of the earthquake is unclear at this stage. Our focus is the welfare of our 300 staff."

Total group revenues of $229 million for the half-year were 2 per cent up on last year.

The footwear division produced earnings before interest and tax of $1.4 million, compared to a $1.5 million loss for the same period in the previous year.

"The improvement follows the restructuring and repositioning of Number One Shoes. Consumer demand generally remains subdued and inconsistent for the footwear sector," Hellaby said.

The company was cautious about trading conditions for its equipment and footwear divisions during the second half year period, and was unable to see many "green shoots" across its trading sectors.

Williamson said that the group's key operational challenges this year would be to further improve the profitability of its equipment and footwear subsidiaries, and to drive organic growth in its automotive and packaging subsidiaries.

- NZPA