Sharechat Logo

Godfrey Hirst pulls $50M dividend from profitable NZ business

Wednesday 4th December 2013

Text too small?

Godfrey Hirst, which acquired failed carpet maker Feltex in 2006, has pulled a $50 million dividend from its New Zealand business while reporting annual sales growth and one-time gains from asset sales and purchases.

Profit was $10.8 million in the year ended June 30 for Hirst's Avon Pacific Holdings unit, from $10.3 million a year earlier, according to the Auckland-based company's financial statements. Sales rose to $154.7 million from $142.9 million.

The Australian woollen and synthetic carpet maker bought Feltex from its receivers in 2006 for a price reported at the time as sufficient to repay the target's banking facilities. Having listed at $1.70 a share, Feltex's stock had sunk to as little as 1 cent before being suspended. Godfrey Hirst was the only bidder.

Avon Pacific's year-earlier results were bulked out by a $21.4 million earthquake insurance payment. In the latest 12 months the company recognised a gain of about $6.5 million on the bargain purchase of Summit Wool Spinners, which had net assets of $11.6 million and was acquired for about $5.1 million cash. It also had a gain of about $3 million from the sale of property in Christchurch that was no longer fit for purpose.

Cost of sales rose to about $125 million from $122 million, marketing and distribution expenses rose to $13.8 million from $10 million, while administration costs fell to $13 million from $16.5 million.

In October, the group restructured its trans-Tasman banking facilities with Westpac Banking Corp and the New Zealand arm drew down $17 million of an $18 million working capital facility and $17 million of a $22.7 million amortising debt facility. The total $34 million debt is equal to the net $34 million dividend paid to its immediate parent.

Godfrey Hirst competes with NZX-listed Cavalier in the New Zealand market. Cavalier is bigger by sales, with $201.7 million of revenue in the year ended June 30, generating a more modest net profit of $3 million after one-time costs to consolidate its tufting operations.

Cavalier shares rose 1.2 percent $1.70 and are little changed this year.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report