Profits for Hellaby Holdings well not meet expectations, but will be in line with last year’s results according to the company.
Hellaby, among other businesses, is in to truck servicing and vehicle parts.
The listed-firm says annual trading profit before interest, tax, depreciation and amortisation is expected to be “broadly in line” with the $59.1 million it reported last year. At its annual meeting two months ago, the company said it expected to beat last year’s profit.
“While the overall New Zealand economy is growing, the farming/agriculture market is depressed to flat and Australian economic conditions and confidence remains depressed,” the company says in a statement to the NZX. “The USA has also been variable, especially in the oil and gas segment, and major Middle East economies and refineries have been affected by the variability in oil and gas pricing.
“This volatility is expected to continue for the remainder of this financial year.”
Hellaby, which owns 15 businesses, wants to sell some of its assets and use the capital to expand its business in the core areas of automotive, equipment and oil and gas services. It’s also seeking to reduce volatility in its earnings.
“There is an opportunity for targeted expansion in our key markets funded by the recycling of capital from the rationalisation of some assets,” says incoming managing director Alan Clarke. “I would describe it as incremental rather than fundamental change.”
In the first half of the current financial year, the automotive business is expected to post an improved result. Sales at the oil and gas services division are expected to be “well down” due to delays in several large contracts.
