Hellaby unveils NZ plans
Hellaby Holdings sketched its New Zealand plans in a presentation to the Dunedin branch of the NZ Shareholders Association yesterday. The business described itself as a long-term committed business owner in the Automotive and Resource Services sectors where it focuses on providing innovative essential solutions and services. In New Zealand the company owns six automotive businesses: BNT (Brake & Transmission), Autolign (steering and suspension specialists), Diesel Distributors, Dasko, HCB Technologies, and TRS Tyre and Wheel Ltd. Hellaby also says its core purpose is to generate long-term shareholder value by long-term ownership and growth in its core markets. The intention is to achieve that through a combination of performance improvement and organic growth in the core business groups as well as through smart, focused acquisitions. Its automotive business in New Zealand and Australia is worth around $3 billion a year. In Australia, Hellaby also owns automotive businesses Federal Batteries, JAS Oceania (lighting, auto electrical, air conditioning) and PAT (Premier Auto Trade). Hellaby has a staff of over 3,000 across New Zealand, Australia, the Middle East and North America employed and engaged in its two core groups. Its current share price is sitting around $2.95 to $3. The future for Hellaby is described as moving from a listed private equity investor to being a committed long-term owner and builder of core businesses. The group says the acquisition of TBS Group this month for $51 million, and adding to the Resources Services Group, has reduced earnings volatility. Next month, the Hellaby Equipment Group is to be settled, having been sold in July for $81 million. Hellaby says its strategy for 2017 includes:
- Refining Resource Services strategy and refocusing onto a wider base to reduce volatility;
- Strengthening automotive management and refining and refocusing the strategy to extend auto-electric opportunities;
- Taking the new Hellaby Group strategy on a road show around New Zealand to all provincial and main centres;
- Developing several investment and growth opportunities in the two core businesses – Automotive and Resources Group.
