Hellaby sees improved earnings on horizon 

Source: ONE NewsOne dollar coins

Hellaby Holdings Ltd first quarter earnings are behind last year's, it told shareholders at its annual general meeting in Auckland on Thursday.

Market conditions continued to be difficult in the agricultural, equipment and retail sectors, resulting in a slow first-half in earnings, chief executive John Williamson said.

It was expected the company would end the year stronger, he said.

"Whilst our automotive and packaging divisions are performing relatively well for the first quarter, we do not expect to see an uplift in our equipment and footwear divisions until the second half of this financial year," Williamson said.

"Overall, we are expecting to see gradual economic improvement from the third quarter of this financial year - in other words after January 2010, rather than before."

Hellaby Holdings, an investment company with holdings in New Zealand and Australian industrial, distribution and retail businesses, will focus on improving its return on investment this year.

Given the economic environment, Williamson said it was difficult to forecast the company's performance at the end of the financial year.

"We simply repeat what we said in late August for our year-end announcement - which is that we expect to achieve significantly improved earnings for the coming year."

For the year ended June 30, 2009, Hellaby recorded a net profit of $707,000, down from $4.7 million in the 2008 year.

The huge decline was due to the deterioration in trading conditions, which affected all of the businesses to a greater or lesser degree, said chairman Bill Falconer. Hellaby's total revenue was down 7.6% with $481 million compared to $520 million in the previous year.

It resulted in a 0.8% return on average shareholders' funds, while last year it was 5.5%.

"Your board and management team are committed to delivering superior shareholder returns in the future," said Williamson at the annual meeting.

"Our priority is therefore to ensure that the company performs and grows, thereby improving shareholder returns and restoring investor and market confidence in Hellaby."