Listed automotive and equipment group Hellaby Holdings is reporting a 65% net profit after tax plummet from $13.5 million to $4.7 million for the half year to December 31, 2015.
Three out of the four current Hellaby groups had materially lower earnings when compared to the same period last year.
The Automotive Group (BNT, Autolign, Diesel Distributors, HCB, Dasko, TRS, Federal Batteries, Truck& Trailer Parts) benefited from the JAS Oceania acquisition in Australia and with strong trading it achieved $13.2 million (versus $12.4 million).
It says it most recent addition, Australian auto electrical parts wholesaler JAS Oceania, is providing cross-selling opportunities within the wider automotive Group.
Further acquisitions in this business group are likely in the future as the company cements a position in the Australasian automotive sector.
The Equipment Group (AB Equipment, New Zealand Trucks) earned $4.5 million (versus $5.2 million in the previous half year) due to slow equipment sales as the industry delayed capital expenditure decisions.
The Resource Services Group (Contract Resources) earning was $4.7 million (versus $12.1 million) due to the delay of numerous planned energy maintenance shutdowns.
The Footwear Group (Hannahs, Number 1 Shoes) lost $0.2 million (versus a profit of $0.9 million in the previous period) due to soft retail spending.
The result comparison is also impacted by the sale of the Packaging Group in May 2015, which contributed $1.6 million in the first half of the 2015 financial year and nothing in the current period.
Despite this soft first half result, the outlook for the full year remains positive, and Hellaby expects to be in line with the full year trading result achieved in 2015 of $59.1 million.
