Hills restructure complete
Hills Holdings reduced debt, booked a net profit and completed its restructure in the 2013 financial year.
Releasing its full year results to the stock exchange today, Hills said its net cash flow was up 55 per cent, net profit of $19.2 million was in line with market expectations and debt had been reduced to $4 million, down from $92.4 million a year ago.
The company recorded a statutory net loss of $94.1 million after booking impairments and restructuring charges of $154.6 million.
“This loss reflects the after tax impact of impairment and restructuring costs, fair value adjustments associated with classifying assets as ‘held for sale’ and other associated gains or losses on the disposal of businesses,” it said in a statement.
Hills declared a dividend of 3.25 cents per share, fully franked.
The company said its strategy to restructure Hills “by exiting businesses non-core to its future strategy and closing unprofitable businesses and operations is on track”.
In the 2013 financial year it sold or closed Solar HW, Team Poly (water tank business), Korvest, Bailey Ladders and the Healthcare equipment business.
Yesterday, Hills entered into interdependent agreements to sell Orrcon and Fielders to BlueScope.
“As we have made very clear over the last 12 months, Hills will no longer pursue a broad diversification strategy but instead focus on businesses where innovation and technology can deliver improved margins and earnings growth,” managing director Ted Pretty said today.
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“Hills existing Electronics and Communications and Home divisions will continue with their established products and services, but we anticipate being able to undertake both organic and inorganic growth initiatives within these businesses during the year.
“We are concentrating on opportunities as an integrated solutions provider in technology and communications market segments, where higher returns are available,” he said.
No further restructuring charges and impairments are expected to be taken in respect of ongoing businesses from FY14 onwards as a result of the transformation program.
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