6 Nov 2009

Hellaby Holdings looking for capital to fund growth

9:08 am on 6 November 2009

Investment concern Hellaby Holdings says it will need to raise capital this financial year to fund growth.

The company has interests in automotive parts, industrial equipment, footwear and packaging.

Speaking at the company's annual meeting in Auckland, chief executive John Williamson declined to say how much it needed, or when it would do this.

Mr Williamson says the company is not yet seeing any signs of green shoots in its trading, but believes there are significant growth opportunities in the coming year through acquisitions and organic growth.

Meanwhile, Hellaby has made a provision for the $4.4 million owed to it following the sale of the BBQ Factory chain last year, as the new owners have fallen behind in their payments.

Capital Group and BBQ Factory management bought the chain for $5.8 million, but it has only paid $1.3 million and has fallen behind in its payments by $1 million.

Shareholders at the meeting expressed concern about the liability.

Mr Williamson says the board has not written off the money yet, but indicated it may not get all of it.