Number 1 Shoes achieved same-store sales improvements despite flat consumer demand. Photo / Bay of Plenty Times
Hellaby Holdings looks set for a turnaround in its performance after last year's disappointing full-year loss of $9.8 million.
Net profit after tax for the six months ended December 31 was $5 million, up 81 per cent from the surplus recorded over the same period last year.
Group
earnings before interest and tax were up 70 per cent to $13.9 million.
The outlook is also looking positive, with the company expecting group sales and profit to improve in the second half of the financial year.
Based on current profit performance trends and the company's portfolio diversification, the company believes it is on track to achieve about $45 million earnings before interest, tax, depreciation, amortisation (ebitda), and one-off transactions.
That would bring it back in line with its earnings before last year's 28 per cent drop in ebitda after profits were hit by poor performances in all divisions and an $18.8 million writedown of its BBQ Factory business.
Chief executive John Williamson said the main focus for the rest of the financial year would be to improve the balance sheet and to improve the retail business performance.
Despite a slowing economy, most of its businesses had performed better than the same period last year, with the automotive parts and industrial equipment divisions the standouts.
Shoe retailers Hannahs and Number 1 Shoes achieved modest same-store sales improvements despite relatively flat consumer demand over Christmas but the BBQ Factory stores continued to underperform.
Analyst Jason Familton, of First NZ Capital, said the results were in line with expectations.
An interim dividend of 5c a share, unimputed, has been declared for the year ending June 30, compared with 10c, fully imputed, for the previous corresponding period.
Shares closed yesterday at $2.07, up 13c.
HELLABY HOLDINGS
Six months ending December 31
Revenue
2007: $270.8m
2006: $229.9m
Ebit
2007: $13.9m
2006: $8.2m
Net Profit
2007: $5.0m
2006: $2.8m
