Hellabys reports higher earnings

Hellaby Holdings is attributing improved earnings in the year to June 30 to a better operating performance by its investments and lower financing costs.

The company owns retailers Hannahs and Number One Shoes, packaging and automotive businesses.

Earnings before interest, tax, depreciation and amortisation rose 23 percent to $34 million and earnings before interest and tax (Ebit) rose 32 percent to $26.8 million. Net profit after tax rose 49 percent to $15.3 million.

The profit increase was achieved even though revenue only rose 2.5 percent as challenging trading conditions were experienced by most of the company's subsidiaries.

Directors declared a final dividend of six cents per share, fully imputed, bringing the total dividend for the year to 10 cents per share.

Net debt was 67 percent lower at $24.5m.

Managing director John Williamson said Ebit rose 95 percent in the footwear division. Despite the major business interruption resulting from natural disasters, both the Hannahs and Number One Shoes delivered considerably higher margins, profitability and free cash flow.

He said that the rights issue and subsequent repayment of capital notes in December 2010 effectively completed the reform of Hellaby’s balance sheet and that shareholders were now reaping the benefits.

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