27 Feb 2009

Hellaby profit falls, downgrades full-year forecast

11:13 am on 27 February 2009

Hellaby Holdings has seen a substantial fall in profit, as the economic downturn affected all its divisions.

The investment company made $372,000 in the six months to December, compared to $5 million in the same period a year earlier.

Revenue fell 4% to $242 million in the same period.

Hellaby Holdings chief executive John Williamson says the revenue drop is due mainly to the loss posted by its equipment division which distributes forklifts and construction equipment.

The company will reduce inventories within that division and restructure the business during the second half to take account of the drop in demand.

The company has cut debt by a third to $80 million compared with a year ago.

Mr Williamson says Hellaby has again downgraded its full year profit forecast. It is forecasting a $5 million profit rather than a profit of between $8 million and $11 million.