29 Aug 2014

Hellaby Holdings posts $1.1 million loss

8:59 am on 29 August 2014

Hellaby Holdings has posted a $1.1 million annual net loss, reflecting a previously flagged decision to write off $27 million of goodwill in its shoe retailers.

Excluding the writedown of the goodwill in Hannahs and Number One Shoes, Hellaby's net profit for the year ended June rose 42 percent to $25.8 million.

Hellaby managing director John Williamson said that reflected the first full-year contribution from Contract Resources, the oil and gas services business Hellaby bought in April last year, as well as creditable performances from its other businesses.

Nevertheless, the $16.4 million operating profit from Contract Resources was below expectations.

"I think overall it's been a very positive year for us," Mr Williamson said.

"With Contract Resources, although it didn't meet our $20 million EBITDA forecast, it has nonetheless performed 28 percent ahead of last year and earnings were ahead of the guidance that we gave to the market a few weeks ago."

Hellaby has been criticised in recent years for being slow to make acquisitions and it has $72 million in committed but undrawn bank facilities.

"Well, we've bought four businesses in a 15-month period and we did spend $23 million in the last 12 months on three acquisitions," Mr Williamson said.

"So we have been buying assets. We do buy sensibly. We walk away from a number of businesses that we look at, after careful due diligence, and we will continue to be patient. We would certainly have liked to buy more businesses in the last 12 months but we're happy with what we did buy."

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