Hellaby result virtually flat

Listed investment group Hellaby Holdings Ltd today announced a net surplus of $23.1 million after tax.

The company said the surplus was just below its $23.2 million profit last year under new international accounting standards, but 11 percent ahead under the previous accounting system ($20.8m).

Hellaby said its bottom line had been hit by a higher tax bill of $9.3 million , $3m higher than last year.

Its trading surplus before interest, tax, depreciation, was a record $47.6 million, up 11 percent from last year's $43 million, under the new standards.

Hellaby noted that the result included one-off gains of $10.2 million from the sale of Rodd & Gunn, its shareholding in NZ Wool Services and four properties.

Goodwill impairment was $5.1 million for BBQ Factory and Bindons.

Shareholders will get an after tax return of 21 percent on average shareholders funds employed.

Earnings per share were 46.9 cents (against 47.1 cents), and the asset backing was $2.28 per share compared with $2.08 per share last year.

A final , fully imputed dividend of 16 cents per share will be paid in October, bringing the total dividend to 31c per share -- down from last year's 39cps.

Hellaby said its increased surplus was partly due to earnings growth in its automotive division , and a significant profit in its retail division from No1 Shoe Warehouse.

This helped offset lower profit from Hannahs, and a disappointing result from BBQ Factory.

In its diversified division, a full year contribution from Elldex was offset by an increased loss from Teamwork Inteletrac, sold in March.

Hellaby's industrial division saw AB Equipment and Eurolift record higher profits but reduced spending in the farming sector hit TRS Tyre and Wheel's profit.

The directors expected the group's underlying profitability would reflect the trends of the overall economy.

Funds from asset sales and a $50 million capital notes issue would be used to fund new acquisitions, the company said.

Shares in Hellaby had slipped a cent to $5.05 in early afternoon trading. The stock has traded between $6.22 and $4.10 during the last 12 months.

- NZPA