Hellaby pulled down by industrial equipment and retail division difficulties

Investment company Hellaby Holdings has told its shareholders that trading conditions remain difficult with earnings in the first quarter of this financial year behind last year's.

Speaking at the company's annual meeting in Auckland yesterday, chief executive John Williamson said Hellaby had yet to encounter the so-called "green shoots". Its industrial equipment and retail divisions in particular had suffered.

"Between October 2008 and June 2009 market demand for new forklifts and construction equipment declined more than 50 per cent year-on-year," he said.

The equipment division faced another six months of depressed trading.

In its footwear retailing businesses, the final quarter of the June 2009 year was "arguably the toughest quarter faced in the last two years". Same-store sales for Number 1 Shoes improved 1.3 per cent in the year, because of heavy discounting. Hannahs Australasian same-store sales fell 2.7 per cent.

However, the company had reduced core bank debt by 40 per cent and improved free cashflows by 55 per cent.

The company would continue to improve its balance sheet and begin pursuing acquisition opportunities which met its investment criteria.

Hellaby Holdings shares closed yesterday up 2c.