Ann: FORECAST: HBY: Hellaby Holdings Ltd - 2014 F

• Release Date: 26/05/14 11:46
• Summary: FORECAST: HBY: Hellaby Holdings Ltd - 2014 Forecast
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					HBY
26/05/2014 09:46
FORECAST

REL: 0946 HRS Hellaby Holdings Limited

FORECAST: HBY: Hellaby Holdings Ltd - 2014 Forecast

Hellaby Holdings Limited - NZX / Media Release 26 May 2014

Hellaby 2014 group net profit after tax forecast to rise 35 percent to $25
million

Investment company Hellaby Holdings Limited today advised that its projected
trading EBITDA (earnings before interest, tax, depreciation and amortisation)
for the year to 30 June 2014 is expected to be around $54 million, 43% higher
than last year; and projected group NPAT (net profit after tax) to be around
$25 million, approximately 35% higher than last year.  Earnings per share,
based on NPAT attributable to the parent company, are also expected to
improve against last year.

Hellaby Managing Director John Williamson said the full year forecast
reflected improved year-on-year profit performances by four of its five
divisions, with the exception of Footwear.

"The forecasted group outcome is a creditable performance.  Most of our
subsidiaries have improved year-on-year.  Our three recent acquisitions -
Federal Batteries and Dasko in the auto parts sector and NZ Trucks in the
heavy equipment sector - are integrating well and performing as expected. Our
balance sheet remains very strong and we are continuing to pursue further
growth opportunities that meet our investment criteria and will add value to
our shareholders."

Recently-acquired Contract Resources is expected to perform ahead of last
year but below the initial forecast.

"Unfortunately a number of secured projects in Australia and the Middle East
have recently been deferred, and will now start in the new financial year.
While the scheduling gaps have been back-filled with other work, this has
been at lower margins. Meanwhile, Contract Resources has invested to support
the anticipated increase in work and the impact of this, combined with the
lower margin projects, will result in a lower than expected EBITDA of around
$15 million for the year to 30 June 2014. We remain confident that, with
growth prospects, Contract Resources will deliver an EBITDA above $20 million
in the next financial year."

Mr Williamson said the rescheduling of petrochemical shutdown projects was
not uncommon.

"This variation in profitability is primarily a project timing issue, and is
a characteristic of contracting companies.  Since acquisition, we have
invested in additional management resources and worked hard to improve the
company's financial capability."

Mr Williamson said that Hellaby's Automotive, Equipment and Packaging
divisions, which last year together generated around 80% of the group's
trading EBITDA, are performing solidly and are forecasting earnings in line
with or ahead of last year.

"These divisions are tracking well, even before contributions from bolt-on
acquisitions made earlier this year are included.  The Equipment division
continues to benefit from the strong capital equipment cycle and is
performing well ahead of expectations."

While the Footwear division performance has improved over recent months,
trading conditions have remained tough and the division has forecast a
full-year EBITDA of around $6 million, which is below last year's $9.1
million.

Hellaby will release its results for the year to 30 June 2014 in late August.

ENDS

For further information please contact

John Williamson
Chief Executive Officer
T +64 9 307 6844
M +64 21 271 4960

Richard Jolly
Chief Financial Officer
T +64 9 307 6844
M +64 27 497 6710

www.hellabyholdings.co.nz

Hellaby at a glance

Hellaby Holdings is an NZX-listed investment holding company, which owns a
diversified portfolio of 15 industrial, distribution and retail businesses.

Our vision is to be a leading Australasian investor, based on the value we
add to our portfolio, the returns we deliver to our shareholders and the
calibre of our people.

Hellaby's core purpose is to generate long-term shareholder value by building
better businesses. We achieve this through a combination of performance
improvement and organic growth in the businesses we own, as well as smart
acquisitions and divestments. We describe this strategy simply as 'Buy,
Build, Harvest'.

Our investment portfolio is structured through five divisions - Oil & Gas
Services, Automotive, Equipment, Packaging and Footwear - with 3,000 people
across New Zealand, Australia, Middle East and North America. We have a
variable investment horizon, and our portfolio will evolve as opportunities
arise in target investment areas.

We actively manage our investments through a lean corporate office, and
decentralise leadership and performance accountabilities to our companies.

We seek to generate total shareholder returns superior to the NZX50.
End CA:00250866 For:HBY    Type:FORECAST   Time:2014-05-26 09:46:34