Hellaby Holdings, whose interests range from footwear to oil and gas services, said full-year profit may rise 35 per cent on improved performance of four of its five divisions, although footwear continues to lag behind and Contract Resources undershot its forecast. The shares fell.
Profit is expected to be about $25 million in the year ending June 30, from $18.2 million a year earlier, the Auckland-based company said in a statement. Earnings before interest, tax, depreciation and amortisation would be 43 per cent higher at $54 million.
Hellaby shares fell 3.1 per cent to $2.83 after the diversified investor said Contract Resources, the specialised engineering maintenance and industrial cleaning company acquired in March last year, was performing below initial forecast after it made up for the deferral of some contract in Australia and the Middle East with lower-margin work, having spent more in anticipation of the increased work.
Full-year Ebitda for that business will be a lower-than-expected $15 million, before rising to $20 million in 2015, it said.
"This variation in profitability is primarily a project timing issue, and is characteristic of contracting companies," managing director John Williamson said.
