Hellaby out to expand after turnaround

Hellaby Holdings CEO John Williamson. Photo / Brett Phibbs

Hellaby Holdings is looking for investment opportunities after successfully completing its business turnaround and balance sheet reform, managing director John Williamson says.

"Since mid-2007 when this board and management began the reform of Hellaby, our businesses have generated a total of $150 million of free cash flow.

"We believe this outstanding achievement demonstrates the tight financial disciplines and clearly defined strategies we've introduced and continue to operate within."

Hellaby now had capacity to fund growth opportunities within the company's gearing targets, Williamson said. The investment group yesterday reported a much improved ebitda (earnings before interest, tax, depreciation and amortisation) of $34 million for the year ended June, up nearly 23 per cent on the year before.

Revenue was up 2.5 per cent at $469 million and the profit after tax of $15.3 million was up 48.5 per cent on the previous year.

Earnings per share rose to 22.6 cents and the dividend was increased to 10 cents per share from 8cps.

Gearing - the net debt to debt plus equity ratio - had fallen to 15.5 per cent in the year from 32.3 per cent last year, 55 per cent in 2009 and nearly 61 per cent in 2008.

Craigs Investment Partners broker Chris Timms said most of the credit for the "superb result" should go to Williamson, who had a large stake in the business.

"He has worked on every sector in the business and tried to streamline operations while working flat out on reducing debt."

Two capital raisings had been well supported by shareholders after they saw the group was building cash flow, profit building was under way and debt was being reduced, Timms said.

The capital raising was used to further reduce debt and now Hellaby had the capacity on its balance sheet and operating cash flow to bolt on additional businesses to its existing structure.

Williamson said Hellaby had not found an investment target that met all of the group's criteria but he remained patient and selective.

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