HBY up, and then an announcement . . .

[LeBOJ]

Dodgy as usual[}:)]

HALFYR: HBY: HY to 31 12 03 $9.282m ($6.213m) + 49.4% Div 16cps

HELLABY INCREASES INTERIM PROFIT BY 49% AND LIFTS DIVIDEND

The Directors of Hellaby Holdings today announced the company's financial
results for the six months to 31 December 2003, details of which are
attached.

The Hellaby Group's tax paid earnings for the six months to 31 December 2003
increased by 49% to $9.3 million (last year $6.2 million).

This result represents a 19.8% annualised return on average shareholders
funds (last year 15.2%) with annualised earnings per share increasing to 37.7
cents (last year 25.2 cents) and asset backing rising to $1.93 per share
(last year $1.67 per share).

Hellaby directors have approved an increased interim dividend of 16 cents per
share fully imputed (last year 11 cents) payable 8 April 2004 (ex dividend on
2 April 2004).

Hellaby's net trading surplus before tax and transactional profits increased
by 35% to $11.4 million (last year $8.4 million) continuing the trend of
increasing operating profits from the group's subsidiaries and associate
companies.

The result reflects higher earnings from the retail division, in particular
Rodd & Gunn and the Australian operation of Hannahs, and the contribution
from recently acquired TRS Agri-Tire.

Trading conditions are expected to remain positive in the short term and
Hellaby expects that its full year earnings will comfortably exceed last
year's reported underlying tax paid operating surplus of $15.7 million.

[Gryffyn]

Yes, I wondered about the 10c jump (now 16c after the announcement).

Still, good news for holders.

Disc: Holder

[OldRider]

Quite remarkable,and here I was wondering if they were coming to the top of their cycle -just wondering hadn't sold.Looked at my records to see I purchased on 10 April 2001 for $1.89,div of 31cps giving present return on this cost of 16.4%
tax paid !
Return since purchase 186%
Average annual growth 50.87%
Average annual return 65.06%
I haven't figured how to get true IRR in my spreadsheet so these figues will probably be a little overstated.Nonetheless those who have been
in HBY during this time must be cheerful.

[huds]

Dodgy, but to be expected with this company

[KJ]

Fantastic result well ahead of expectations I think-was expecting 12-15% increase in NPAT

Happy holder

[Gryffyn]

Good rap on this share as one the Sunday Times picks as a good earner for 2004/05 (gross yield of 10.8%) protected by earnings growth.

Doesn't get a lot of airtime here in ST. Is that because trading vols are low, or is there another reason. Seems that they consistently produce the goods and pay a reasonable divvy.

Disc: HBY.

[Sid]

quote:Originally posted by Gryffyn
[
Doesn't get a lot of airtime here in ST. Is that because trading vols are low, or is there another reason. Seems that they consistently produce the goods and pay a reasonable divvy.

Disc: HBY.


I think the reason it doesn't get a lot of airtime is because its doubled in price since mid 2002, and most punters probably think thats the end of the run. I still think there's a case for more appreciation in share price to come as they are consistently growing both earnings and dividends. HBY still remains priced on undemanding multiples.

Disc. Hold HBY

[Gryffyn]

Any ideas why the sudden 10c surge on Friday?

Disc: HBY

[clearasmud]

quote:Originally posted by Gryffyn

Any ideas why the sudden 10c surge on Friday?

Disc: HBY

I doubt there's any reason.Don't expect this one to fly this yr(although i've be wrong before)

[KJ]

I hope you are wrong-forward PE around 11 to 12,history of earnings growth,high dividend yield,solid ROE.

Hold HBY

[clearasmud]

quote:Originally posted by KJ

I hope you are wrong-forward PE around 11 to 12,history of earnings growth,high dividend yield,solid ROE.

Hold HBY

Forward PE of 12 is nothing to get excited about.
Its the divi which is finally supprting the sp.
next divi 18c?

[Gryffyn]

Last divvy 16c. They forecast growth for this year and some analysts have picked it as one of the best yield buys on the market.

Disc: Hold at present.

[KJ]

IMO all of the factors that I mentioned support sp-none more so than its history of strong earnings growth.Given earnings growth PE in the 11 to 12 range is quite low.

ROE is in the 15 to 20 range which IMO is more significant.

[Paper Tiger]

6 Aug, 2004, 10:15 ASSET Hellaby to acquire BBQ Factory
Full Text of Announcement
Hellaby Holdings today notified the NZX that it has entered into an agreement to acquire 100% of the shares in BBQ Factory Limited.

BBQ Factory is New Zealand's largest specialty retailer of barbeques and has an extensive range of spa pools, out-door heating products and accessories and a growing range of opne flame gas heating appliances. The company operates through a New Zealand-wide network of company owned, franchise and licensed stores.

David Houldsworth, Managing Dierctor of Hellaby Holdings, noted that the business achieved earnings before interest and tax in excess of $4 million for the year to 30 June 2004 and updated management forecasts indicate EBIT in excess of $4.7 million for the year to 30 June 2005 reflecting improved trading conditions and the strong contribution from the new stores.

Mr Houldsworth said that from its analysis, Hellaby expects the future profitability of the business from the existing network of stores to comfortably exceed Hellaby's benchmark of 20% return on investment and that the projeced growth in the network of company owned and franchise stores will further enhance returns for Hellaby shareholders.

Details of the transaction are confidential in terms of the agreement entered into between the parties.

Hellaby was attracted to BBQ Factory because of its strong brand and market position, excellent management and the opportunity to grow the business through new stores and by expanding the company's product lines and categories.

For further information please contact:

David Houldsworth, Managing Director
09 306-7405 or 021-722 455

[Nimble]

This appears to be quite a big purchase for HBY. Although no price is disclosed it equates to 17.5% of 03 EBIT. (Based on BBQ Factory 04 EBIT of $4.0m in relation to HBY 03 EBIT of approx $22.8m.) Assuming it will be funded out of cash & debt i.e. no dilution will have very positive effect due to its size on 05 sales, NPAT & EPS.
disc: long term holder

[Gryffyn]

Well they had some cash floating around from recent asset sales which I believe pushed up the sp. Not sure how this will effect short term sp.

Disc: Recent seller.

[KJ]

Due to report today I think -fingers crossed!

[Gryffyn]

Market making positive noises so I'm sure I may have jumped a little early but sometimes ya gotta book profits.

[KJ]

Very good result-underlying surplus up from $15.8m to $18.5m-final div increased by 27% to 19 cents.Total for yr 35cps fully imputed.

Profit for the 2005 expected to grow by 20%.Forward PE around 12,ROE above 20%.Still looks good value.

[Nimble]

Plus a yield of 9%!

There will also be the 12 revenue/profits from their latest acquisition BBQ Factory to include in next years result. The BBQ Factory a forecasting an EBITDA of 4.7 for 05. Good solid performer for a long term portfolio.

[nelehdine]

As an ex HBY holder and fan of the management and company I have taken advantage of the pull-back today to get back into the share. Am determined to hold for the long-term as I think this could be a great share to own for the next few years ... huge dividend makes it pretty easy to own as well !!

Disc: Purchased HBY today at 561

[Gryffyn]

Nice one Nele - also thinking about reacquiring some.

[k1w1]

I joined the posse last week at 5.42. Its clear that ASB got raped on the BBQ Factory purchase. HBY benefits from a strong NZ dollar as it is an importer not an exporter.

Go, you good things...!

[huds]

You paid over $5/share for a company that deals in shoes, pet food, truck parts & bbq's??

[nelehdine]

A silly comment huds ... some of the most succesful companies around deal in the less glamourous side of everyday life ...

By the way if they had half the shares on issue they actually have I would have paid over $10 for them ... according to you that would make me twice as stupid !!

[KJ]

Huds-what is your point? I don't follow.

[huds]

I thought I made myself fairly clear, the price absolutely CANNOT be justified.

[k1w1]

Huds, you need to get out more ....

[huds]

Disappointing but predictable. An unimaginative, unintelligent response.
I thought by now someone would have challenged my statements, detailing reasons why I’m so wrong.
Don’t forget this is a public forum, potential sucke...buyers could be influenced by how you respond.

[KJ]

Huds-you take the prize-you say nothing-so it's overvalued-why do you think that?What's the basis for your valuation?

Say something intelligent and you may get an intelligent response.You are entitled to your opinion but what is the basis for it.

IMO it is not overvalued.

[OldRider]

HUDS:I'm a holder enjoying the dividend return, this helps pay the bills and lets me enjoy a lazy life,though I would rate HBY only about number 30 or so for growth prospects from existing businesses on the NZX.

My data is about two weeks old, but then it was selling for 3.37 times NTA (at $1.598 per share) and earning at about 32% on assets,in my opinion should earnings/dividend falter some price correction might occur. However,those figures I quoted are impressive regardless of what they did to earn them.

[nelehdine]

Can see HBY breaking out of its current trading range soon ... big divi still to come but can see a $6.00 price sooner rather than later. Shares look really good , sellers few and far between ...

Disc: HBY holder

[nelehdine]

590 +4 ... 591/595 only a few on the offer , could we see $6 by the end of the week ??

[KJ]

Nele-I think you could be right-ex div 3/10 could keep it heading north.

[nelehdine]

$6.00 +14 , plenty more upside here I think

[nelehdine]

215,000 shares traded at 4.45pm at $6 , that's pretty decent volume for Hellaby

[KJ]

Strong run this week following AGM-more acquisitions in sight.
Was looking to add more but missed my chance.
Running ahead of budget for 3 mths to Sept.

[nelehdine]

Wow .. +13 to 635. Still have to say there is great long term value here. BBQ Factory was probably the best deal HBY have done for quite a while ... reading between the lines from the AGM speeches I think the company is really humming along, won't be selling any of my precious shares any time soon , that's 4 sure !!

What do you think Huds ... still don't like pet food and tractor tyres ?? I lov 'em !!

[nelehdine]

Another smallish boly-on acquisition yesterday. Packaging co. for about $10m with estimated EBITDA of 3-3.5m for Y/E 31.03.05. Typical HBY and looks to be EPS enhancing immediately. Shares look excellent value although this crap weather we've had the last few months probably hasn't done BBQ Factory ant favours ... lots of pent up demand for Jan05 though when summer finally does arrive ....

Disc: Hold HBY

[Gryffyn]

Media release
Wednesday 22nd December 2004

Hellaby Holdings today notified the Stock Exchange that the company has agreed to acquire the business and assets of Elldex Packaging Ltd, on 1 February 2005.

Elldex is a specialist manufacturer and importer of flexible packaging products for a wide variety of customers.

David Houldsworth, managing director of Hellaby Holdings, stated that the purchase price is expected to be between $9.5 million and $10.0 million (depending on settlement provision etc) and that the company is on track to achieve an EBIT of more than $3.2 million for the year to 31 March 2005.

Houldsworth commented that Elldex has experienced excellent growth in recent years and is expected to continue this trend, particularly in Australia where a branch has been operating for over a year.

[nelehdine]

Are you back in Gryff ???

[Gryffyn]

Not at present unfortunately - still divvy averse. Share has certaily yo-yo'd a bit lately. A good bottom drawer investment I reckon.

[nelehdine]

Nice quite move up to $6.80 over the last few days ... on very small volume however. Stock is tightly held so any reasonable buying order is going to have trouble picking up stock unless they "pay up" ... share split is looking odds on at next results announcement ... anyone been into BBQ Factory recently , weather has really picked up here in Blenheim recently so hopefully BBQ F will have a great couple of months ahead !!

Disc: Hold HBY

[nelehdine]

700/750 close on Fri with sales at 700 ... who knows what this week will bring. Shares now in very unchartered territory, exciting times ahead for the few lucky holders ?? ......

[Gryffyn]

HBY25/02/2005HALFYR REL: 1230 HRS Hellaby Holdings Limited HALFYR: HBY: HELLABY INCREASES INTERIM PROFIT AND DIVIDEND The directors of Hellaby Holdings today announced the Company's financialresults for the six months to 31 December 2004, details of which areattached. The Hellaby Group's tax paid profit for the six months to 31 December 2004was $10.3 million an 11% increase on the $9.82 million achieved in the sameperiod last year and is in line with the budgeted profit for the six months. However, David Houldsworth, Managing Director of Hellaby Holdings noted thatthe prior year's surplus was boosted by a higher level of one-offtransactional profits and that the Group's net trading surplus increased by20.3% from $11.148 million to $13.421 million, continuing the trend ofincreasing operating profits from the Group's subsidiaries and associatedcompanies. This result represents a 20.9% annualised tax paid return on averageshareholders funds (last year 19.8%) with annualised earnings per share of41.9 cents (last year 37.7 cents) and asset backing rising to $2.01 pershare, (last year $1.93 share). Hellaby directors have approved an interim dividend of 19c per share fullyimputed (last year 16 cents), payable on 8 April 2005 (record date 1 April2005). The result reflects a higher level of earnings from the Group's retaildivision (Hannahs and Rodd & Gunn) and the contribution from recentlyacquired BBQ Factory, which achieved a profit contribution in line withforecasts. Trading conditions are expected to remain positive for the balance of thefinancial year and Hellaby directors anticipate that the full year earningswill be in line with market expectations and comfortably ahead of last year'sunderlying after tax operating surplus of $18.5 million.

[SueJ]

Share price fell 26c on the announcement. Maybe people were disappointed that the BBQ Factory just "met expectations". But considering that the period end was 31 Dec 04, and the weather was Siberian up till at least the middle of January, I think there may be better to come.

[Steve]

SueJ, maybe people inflated the shareprice higher than the results can justify and the drop is simply back to a fairer value?

[rmbbrave]

Continuous disclosure

17.04.05
By Ellen Read


Shares in investment firm Hellaby Holdings have slipped from a year high of $7.32 to $5.76 in six weeks, going as low in the interim as $5.65.

It’s hard to pinpoint a reason - the company and analysts are at a loss to explain it - but one explanation could be that Hellaby shares rose more than the wider market rally at the start of the year so they are now paying the price.

The move has also happened on relatively thin volume, which can exaggerate moves.

History shows the second half of its financial year is often better for Hellaby. That said, the company’s late February interim profit announcement didn’t disappoint.

Hellaby reported an 11 per cent rise to a net profit of $10.3 million for the six months to December, up from the $9.82 million in the previous corresponding period.

Given that managing director David Houldsworth said then that trading conditions were expected to remain positive for the rest of the financial year, it’s hard to explain the slump.

The company says all information is in the public domain and February’s forecast that full-year earnings will be "comfortably ahead" of last year’s $18.5 million, is unchanged.

Hellaby was formed out of the remnants of the collapsed Renouf Corp.

The company relisted on the stock exchange in 1994 as an investment company with interests including stakes in the automotive, industrial and retail sectors.

Hellaby owns the BBQ Factory and has majority shareholdings in both Hannahs and Rodd & Gunn.

[Gryffyn]

Cheers RMB.

What is your take at the moment - good buying?

[rmbbrave]

Not yet.

The SP is still falling. Better to wait until it stops at least.

[Gryffyn]

Divs often cause big fluctuations with this share too.

[winner69]

The old 5pm on a Friday trick ..... nobody will notice

SShhhhh ..... profits not guite as good as expected

No wonder shareprice down 23% odd over last few months

Bugger those shoes and clothes shops and that BBQ thing a bit of a struggle as well

[nelehdine]

Monday could be ugly in this thinly traded stock. As a big ex-fan I will be watching closely

Disc: Sold reasonably large holding down to zero over the last few months ... 705,680,595

[dingdong]

quote:Originally posted by nelehdine

Disc: Sold reasonably large holding down to zero over the last few months ... 705,680,595


O Helen of the Troys I think you exaggerate when you said you sold 705,680,595 HBY shares. I mean there are only about 49,000,000 shares on issue and it would be a bit difficult to conceal such a sale to the market.

[k1w1]

:D:D:D

Of all the splinters of the True Cross still in existence, over 300 metric tonnes alone are currently in the possession of the Roman Catholic Church.

Thats not where you have stashed your HBY certificates, Nele is it?

Ask the man who used to be a Baby Nazi but now is Pappa Ratzi !

[dingdong]

quote:Originally posted by k1w1

Ask the man who used to be a Baby Nazi but now is Pappa Ratzi !


More like Emperor Ratzi....

http://photos7.flickr.com/10068757_afdd9a87bf.jpg

[limegreen]

quote:Originally posted by Abdab
I think you exaggerate when you said you sold 705,680,595 HBY shares.


Abdab, I think you must get your intelligence the same place as Blair or Bush. Or do you really think that's a holding size, and not $7.05, $6.80, $5.95. And now $5.65

[Paper Tiger]

quote:Originally posted by limegreen


quote:Originally posted by Abdab
I think you exaggerate when you said you sold 705,680,595 HBY shares.


Abdab, I think you must get your intelligence the same place as Blair or Bush. Or do you really think that's a holding size, and not $7.05, $6.80, $5.95. And now $5.65


I often noticed that the more garish colours have no sense of humour.

[dingdong]

quote:Originally posted by limegreen

Abdab, I think you must get your intelligence the same place as Blair or Bush. Or do you really think that's a holding size, and not $7.05, $6.80, $5.95. And now $5.65


O Lime's Disease I prostrate myself in front of the world's greatest investor. How could I ever have thought our good friend Nelehdine could have held all those shares, a thousand apologies for I am obviously so stupendously unworthy to make any humorous comments on some accidental double entendre how could I have been so stupid back to the dung heap for me.

[halcyon9]

yes it certainly seems limey is indeed GREEN

[rmbbrave]

quote:Originally posted by Abdab


quote:Originally posted by limegreen

Abdab, I think you must get your intelligence the same place as Blair or Bush. Or do you really think that's a holding size, and not $7.05, $6.80, $5.95. And now $5.65


O Lime's Disease I prostrate myself in front of the world's greatest investor. How could I ever have thought our good friend Nelehdine could have held all those shares, a thousand apologies for I am obviously so stupendously unworthy to make any humorous comments on some accidental double entendre how could I have been so stupid back to the dung heap for me.


Rub abdab dub
Three men went to sea,
In a beautiful lime-green tub,
They took some NOG,
And plenty of grog,
But forgot their sense of humour,
So got lost in the fog.

[limegreen]

quote:Originally posted by rmbbrave
And plenty of grog,
But forgot their sense of humour,
So got lost in the fog.


Heheh. Nice work all:). Definitely some grog involved...

As you were.

[rmbbrave]

Down 10% today!

[Dough Boy]

Oh no oh no,

Push the panic button, sound the alarm, another well run company making and selling real things has just announced that its 20% profit increase for the uncoming current year may not be quite reached and its current PE ratio exceeds 10.

Oh well it PE ratio really does need to be less than 10, maybe closer to 5 sell sell sell until that PE ratio is at least half of that of a comparable company on the world market.

Don't you just love the little olde NZX for providing cheap stocks and great dividends and a never ending stream of short sighted fools and investment brokers.

[halcyon9]

For people who have wanted to buy into a very good NZ investment company...an opportunity.


@ $5 HBY if it achieves $20.3m FY profit will have a PE of 12.3
with a healthy Divvy, good to have in current times.
this forecast is using last years $18.5m and the companys` ANN today of not improving 20%, I have used 10%.

$5 looks like massive support, and it bounced back from this today.


really worth watching for that $5 mark...hard to see this proven company drop back to a PE of 10 Dough Boy...but as you say, we do have generally lowish PEs and some of the best divvies but ALL markets are harsh on revised downward forecasts.


WATCHLIST

[winner69]

Held up very well last week being only down 30 cents or 5% for the week

You would have to think that 500 is a real good support level for this stock so could be good buying (long term)

Didn't seem too many buyers around though

[Gryffyn]

Healthy bounce back. Why the proponents of long-term share holding on this site never discuss or hold this share is beyond me. Compare both capital and div returns to NZ big players like SKC or WHS or TEL.

[belgarion]

quote:Originally posted by Gryffyn

Healthy bounce back. Why the proponents of long-term share holding on this site never discuss or hold this share is beyond me. Compare both capital and div returns to NZ big players like SKC or WHS or TEL.


I have no enthusasm for ensuring HBY is on peoples radar screen. [}:)]

[SueJ]

Does anyone have a view on Hellaby's purchase of 80% of the Number 1 Shoe Warehouse?

I've noticed it in the last couple of years. Seems to be competing well in the bottom end of the market.

[warthog]

quote:Originally posted by SueJ

Does anyone have a view on Hellaby's purchase of 80% of the Number 1 Shoe Warehouse?

I've noticed it in the last couple of years. Seems to be competing well in the bottom end of the market.


Yep. And as DH noted, it won't eat their current marketshare.

HBY are pretty savvy when it comes to structuring their investments, and leave something on the table to motivate key people on both ends of the equation.

[SueJ]

And it seems they've structured the deal so that how much they pay depends on how much profit No 1 makes over the next four years. Seems like a good deal.

[Gryffyn]

Hey Phaedrus, any chance of a chart and commentart on HBY.

I've bought back in recently on its bounce up from the low 5s and think it may still be good buying in the 530s.

[Gryffyn]

Seems to have passed without comment but HBY increased its stake in Hannahs over the 90% mark. They obviously see money in shoes these days.

Disc: HBY

[Phaedrus]

Gryffyn,
HBY is looking technically weak at the moment. It is still in a long-term uptrend, but anyone trading the medium-term trends would currently be out of this stock. Medium-term Buy/Sell signals are marked, derived from trendline breaks of the price and the On Balance Volume indicator. These are in quite close agreement as you can see, with the OBV usually triggering first. (It is supposed to be a leading indicator). The Trailing Stop ....trails. As it should.
I suspect that trading at this level of activity is not your thing. You can see the worth of it though - some retracements have been nearly 30%. A high price to pay for the luxury of simply buying and holding!

http://img.photobucket.com/albums/v418/789456/HBY722001.gif

[Gryffyn]

Thank you Phaedrus. Indeed trading at this level is not me, more a question of (hopefully) buying in at a low point in a long-term up trend for the longer term :-) I did buy in a bit before your buy single and was curious as to whether around now is still worth it (similar level) for a long term hold.

I can see why you'd advise against a sort-term or maybe even a med term proposition.

[Gryffyn]

What does your chart show now Phaedrus? It has been an excellent week since I topped up last Friday :-) This share continues to be a stand-out long-term performer and is still some way down on highs of a year ago.

[Gryffyn]

What does your chart show now Phaedrus? It has been an excellent week since I topped up last Friday :-) This share continues to be a stand-out long-term performer and is still some way down on highs of early this year.

[Phaedrus]

Gryffyn,
Here is an updated HBY chart. I have plotted 5 separate indicators on the chart - you can see how well their signals correlate.
I have added a Stochastic Oscillator - this indicator compares where a security's price closed relative to its trading range over the last x time periods. The Stochastic Oscillator always ranges between 0% and 100%. A reading of 0% shows that the security's close was the lowest price that the security has traded during the preceding x time periods. A reading of 100% shows that the security's close was the highest price that the security has traded during the preceding x time periods. This oscillator is often used (with a 5 day period) by short-term traders. Selecting a much longer time period makes it more suited to trading longer-term trends.
http://home.ripway.com/2003-11/39768/HBY729001.gif

[Gryffyn]

Cheers P.

[luckysexice]

can some one tell me what date is the announcement .

[Gryffyn]

About the date of the first post on this thread. It would be nice if the poster renamed the thread back to just HBY or maybe a new one is called for.

[Jac]

[quote]Originally posted by Phaedrus

Gryffyn,
Here is an updated HBY chart. I have plotted 5 separate indicators on the chart - you can see how well their signals correlate.
What does the chart indicate. A buy or sell signal ?

[Phaedrus]

Jac,
The green arrows are Buy signals, the red arrows are Sell signals. The 5 plotted indicators each gave a Buy signal between 22/7 and 27/7.
So.... HBY is now a "Hold".

[Jac]

Thanks for that

[Gryffyn]

Also buy signals were k9s post a while back and mine the other week ;) Seems to be back around 600 :-)

Disc: HBY

[KJ]

Sell signal-sold some today.

[Gryffyn]

Hopefully for you later in the day rather than earlier.

[Gryffyn]

Whilst I expect this share's rally to take a breather sometime soon, $6 may prove to be a resting place that it sits at for a while. A good divvy in a couple of months should help support also. Still down on previous exuberant highs.

[KJ]

Yes-it was late in the day-I still have some left to trade and hold some in LT portfolio.

[Gryffyn]

Have you seen a better place for the profits or are you just expecting a drop, i.e. trading?

[KJ]

Just some I bought about 2 wks ago to trade.

[Gryffyn]

Sweet.

[Gryffyn]

$6 seems to be providing resistance/support. Happy happy joy joy :-)

Disc: HBY

[Sid]

Hellaby Holdings (HBY.NZ) - Auckland, New Zealand
Full year to June 30
2005 2004
Revenue NZ$390,377,000 NZ$331,312,000
Pretax Profit 26,941,000 25,322,000
Taxation 5,318,000 4,007,000
Minorities 765,000 875,000
Net Profit 20,858,000 20,440,000
Per Share
Earnings 42.4 cents 41.5 cents
Dividend 20 cents 19 cents

Looks solid.

[Gryffyn]

HBY
26/08/2005
FLLYR

REL: 1311 HRS Hellaby Holdings Limited

FLLYR: HBY: Hellaby Achieves Record Trading Profit and Lifts Dividend

FY to 30/06/2005 $20.858m ($20.440m) Div 20cps

LISTED ISSUER: Hellaby Holdings Limited

CONSOLIDATED OPERATING STATEMENT FOR THE FULL YEAR ENDED 30/06/2005

Audited NZ$'000

Current Period; Previous Corresponding Period

OPERATING REVENUE

Trading revenue 390,230; 322,951
Other revenue 47; 8361
Total Operating Revenue 390,277; -

OPERATING SURPLUS (DEFICIT) BEFORE TAXATION 26,941; 25,322

Less taxation on operating profit (5,318); (4,007)

OPERATING SURPLUS (DEFICIT) AFTER TAX 21,623; 21,315

Extraordinary items after tax -; -

Unrealised net change in value of investment properties -; -

NET SURPLUS (DEFICIT) FOR THE PERIOD 21,623; 21,315

Net Surplus (Deficit) attributable to minority interests 765; 875

NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF THE LISTED ISSUER 20,858;
20,440

EPS 42.4cps; 41.5cps

Final Dividend: 20cps
Record Date: 30/09/2005
Payment Date: 07/10/2005
Imputation Credit Details: 9.850746 cents

Media Release

The directors of Hellaby Holdings today announced the company's financial
results for the year to 30 June 2005, details of which are attached.

Earnings before interest, tax, depreciation and amortisation (EBITDA)
increased by 20% to $43 million (last year $35.8 million) and the pre-tax
operating surplus increased by 7% to $26.2 million (last year $24.4 million),
reflecting the continued growth in profitability of the operating divisions
and an overall record performance.

The Group achieved a tax paid surplus of $20.9 million for the year (last
year $20.4 million).

However, last year's after tax surplus was boosted by a one-off tax benefit
of $2 million (this year $1 million) and on a comparable basis with prior
year's, the Group's underlying after tax surplus increased by 8% to $19.9
million (last year $18.5 million).

Hellaby's directors have approved an increased final dividend of 20 cents per
share fully imputed (last year 19 cents) to be paid on 7 October 2005. This,
together with the interim dividend of 19 cents per share, gives a fully
imputed distribution for the year of 39 cents per share (last year 35 cents).

The increase in profitability was a result of higher contributions from all
of the Group's trading divisions.

The Automotive and Industrial divisions both recorded sound earnings growth
with AB Equipment achieving record earnings before interest and tax.

The improved contribution from the Diversified Companies division reflects
higher earnings from Levana and a part-year contribution from newly acquired
Elldex Packaging.

The increased profit from the Retail division reflects a record Hannahs
result and a part-year contribution from BBQ Factory. However, Rodd & Gunn
was below last year, and the contribution from BBQ Factory was less than
expected due to the impact of adverse weather conditions on sales and margins
in both the summer and winter seasons, and because of one-off restructuring
costs expensed in the year's result.

Since balance date Hellaby has acquired an 80% shareholding in No1 Shoe
Warehouse and increased its shareholding in Hannahs from 85% to 94%.

Trading conditions remain challenging for a number of the Group's
subsidiaries but the directors are confident that the contribution from No1
Shoe Warehouse, a full year's contribution from Elldex Packaging and a
forecast improved profit from BBQ Factory will lead to a further sound
improvement in the Group's trading surplus in the coming year.

Hellaby directors note that timing differences and other one-off tax benefits
enjoyed by the company are no longer available and as a consequence the tax
e

[Gryffyn]

as a rock Sid.

[warthog]

quote:Originally posted by Gryffyn

as a rock Sid.


Yes but bigger tricks are needed every year ;)

[Gryffyn]

Good job HBY are in the automotive trade then ;)

People must have bought a lot of shoes this year.

[Gryffyn]

Looking good this week. People buying for the divvy perhaps?

Disc: HBY

[warthog]

quote:Originally posted by Gryffyn

Looking good this week. People buying for the divvy perhaps?

Disc: HBY


Why would anybody buy a stock to receive a pending dividend?

Invest $10k. Stock goes ex-dividend and falls 5%. Receive equivalent 5% (of original price) dividend. Tax has been paid on the dividend (imputation credits). So it is easy to get into a situation where you are worse off than if you sat tight and waited for a dip following the dividend.

Biggest parcel today was 5k. Not much momentum behind the price movement today really.

Or am I being too cynical here? [8D]

warthog it depends on your tax rates and situation in australia for some people and institutions it can result in a big cash windfall. So each one has to be examined on individual circumstances.

[warthog]

quote:Originally posted by ENIGMA

warthog it depends on your tax rates and situation in australia for some people and institutions it can result in a big cash windfall. So each one has to be examined on individual circumstances.


Fair enough - if you have a moment, can you give a couple of examples?

The market reaction to a dividend payment is by no means completely rational, so this could go both ways too.

warthog email me through forum and I will give you a phone number to hard to explain through typing here.

[warthog]

quote:Originally posted by ENIGMA

warthog email me through forum and I will give you a phone number to hard to explain through typing here.


Thanks for the offer. Maybe just the big picture? Others here might find it interesting ...

[Gryffyn]

Example - divvy worth more to people on tax rate less than 33% as they can get back some of the WHT at the end of the year.

[warthog]

quote:Originally posted by Gryffyn

Example - divvy worth more to people on tax rate less than 33% as they can get back some of the WHT at the end of the year.


Hmmm.

Imagine imputation credits didn't exist, and no tax had been paid in respect of your dividend.

Individual A is taxed at the top tax rate. So they pay tax at a higher rate on the dividend.

Individual B is taxed at a lower rate. So they pay less tax than individual A.

So there is a marginal difference for people at lower rates of tax in that the dividend is worth more to them because they pay less tax.

Question is, how much is this a market-mover?

[Gryffyn]

HBY is pretty low vol most of the time. A long term hold for insts and many others. Small players worry about a few dollars in tax while big players don't

Disc: HBY

[warthog]

quote:Originally posted by Gryffyn

HBY is pretty low vol most of the time. A long term hold for insts and many others. Small players worry about a few dollars in tax while big players don't


My point exactly. I just don't think there's a large enough market out there of people buying HBY just before dividend to have any significant impact on price.

Thanks Gryff.

[Gryffyn]

ah but that is my point - look at the queues for HBY. puny trades with sometimes large jumps up and down in sp. Small timers sell their couple grand or less holdings while others hope for a bargain etc.

[warthog]

quote:Originally posted by Gryffyn

ah but that is my point - look at the queues for HBY. puny trades with sometimes large jumps up and down in sp. Small timers sell their couple grand or less holdings while others hope for a bargain etc.


Interesting theory. Do you know anybody who does this?

[Gryffyn]

yes but I try and talk them out of it!

[Gryffyn]

Not a lot of sellers and sp holding up nicely at the moment. Still CD perhaps.

Disc: HBY

[Gryffyn]

Finishing the week up and with unusually high volume.

Disc: HBY

[winner69]

Profit downgrades becoming a regular habit with HBY now .... the old cockroach theory eh

Market soon forgave them in May when they said they wouldn't deliver the 20% earnings growth

But delivering another profit warning so soon into the new year the market might not be so forgiving ... especially as the latest downgrade is not about meeting expectations of growth but signalling quite a downturn in profitability ... just wait for another announcement after Xmas?

Interestingly in May when HBY said earnings would only be about $20M the market 'punished' the shareprice down to 500 .... today says earnings will be $17M and 'punished' to 500 again ..... you would have expected more on this basis ... maybe over the next few days more 'punishment' will be dished out.

Even at 500 a pe of around 15 ... for a stock whose eps would have only gone up by 7% over the last 3 years (not per annum) thats a bit rich ... esp as there have been a few acquisitions etc

Wouldn't want to be holding if the retail scene in NZ gets really desparate ... overall retail sales (Stats NZ data) says they have been holding up pretty well ... obviously not for HBY