HBY
01/08/2014 09:55
GENERAL
REL: 0955 HRS Hellaby Holdings Limited
GENERAL: HBY: Hellaby announces retail goodwill impairment
Investment company Hellaby Holdings today announced that it will write down
the full $26.9 million value of goodwill in its Footwear retail subsidiaries
Hannahs and Number One Shoes, effective 30 June 2014. This non-cash
write-down follows Hellaby's annual goodwill impairment review, and reflects
a change in retail trading conditions which has resulted in two years of
below-expectation performance by the two businesses. Both Hannahs and Number
One Shoes are trading profitably.
Hellaby's board and management believe this decision will leave the carrying
value of each retail company at a level more reflective of market conditions
and performance.
Given Hellaby's strong earnings growth during the financial year to June 2014
and a positive outlook for the year ahead, the board has determined that the
group's final dividend will be calculated as if no goodwill impairment had
occurred. This reflects the non-cash nature of the impairment.
The company today advised that its profit for the financial year to June
2014, pre the goodwill impairment, is still expected to be in line with or
slightly exceed the 26 May 2014 profit guidance of around $54 million EBITDA
and around $25 million group NPAT.
Hellaby's full year results will be released on 28 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:00253382 For:HBY Type:GENERAL Time:2014-08-01 09:55:00
