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

Thursday 25th February 2010

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.

Businesswire.co.nz

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