Sharechat Logo

Hellaby first-half profit soars as it recoups provision on BBQ Factory sale

Thursday 25th February 2010

Text too small?

Hellaby Holdings got a 509% boost in its first-half profit after it recouped $1.2 million of provisioning on the sale of its BBQ Factory chain in 2008.

Net profit surged to $2.3 million, or 4.5 cents a share, in the six months ended December 31 from $372,000, or 0.7 cents, a year earlier, after it recovered part of the $4.4 million provision it made on the sale of its BBQ unit.

Profit before finance costs fell 7.6% to $6 million as revenue declined 7.3% to $224.5 million.  

“The rate of recovery has been slower than expected and this has impacted on Hellaby’s sales revenue,” chairman John Maasland said in a statement.

“Although the economic outlook remains patchy and uncertain across some of our sectors, the tough decisions and restructuring are now largely behind us.” 

Maasland took over the top job on the board in November when he replaced 14-year veteran Bill Falconer. 

The company declared a fully-imputed interim dividend of 3 cents a share, and resumed "our stated policy of distributing approximately 50% of NPAT,” Maasland said.

The shares rose 2.7% to $1.52, and have gained 15% in the past six months.  

Hellaby flagged it will look at expanding its business through acquisition this year and is considering raising equity to pursue these opportunities.  

Earnings were underpinned by the company’s automotive segment which gained 17% to $9 million and its packaging business, which boosted earnings to $2.3 million.

Hellaby’s equipment segment, which includes AB Equipment made a loss of $1.7 million, compared to its loss of $602,000 in the six months ended December 31 2008, while its footwear business made a loss of $1.5 million compared to a profit of $973,000.  

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Hellaby buys Sydney-based Ryde Batteries for about A$12 mln to boost largest unit
Hellaby FY profit falls 5.8 percent , meets guidance; Contract helps lift sales
Hellaby shares fall 2.7 percent after halt for $40M placement lifted
Hellaby halts shares for $50M capital raising at 10 percent discount
Hellaby first-half profit falls 21 percent on weaker shoe sales, corporate costs
Hellaby finally finds acquisition in Contract Resources
Hellaby lifts FY profit 26 percent on equipment, automotive divisions
Former Frucor head Mark Cowsill named to Hellaby board
Hellaby Holdings
Hellaby lifts 1H net profit 42%