John Williamson flags Hellaby resignation

John Williamson, managing director of Hellaby Holdings [NZX: HBY], will step down at the diversified investors' annual meeting, after nearly eight years with the company.

Williamson joined Auckland-based Hellaby in 2007, and led it on an acquisition spree last year, as it looked to diversify its investments to boost earnings growth. He will step down as head of the company in October, the company said in a statement.

"The board is fully committed to Hellaby's growth strategy, and we'll be starting the search immediately to find a new leader to steer the company through its next growth phase," chairman Steve Smith said. "We also have an excellent management team and capable divisional leaders, who will continue to drive the company while we move from one chief executive to another."

Over the past two years Hellaby has purchased a truck servicing business, an auto electrical, fuel and engine management components firm and 85 percent of Contract Resources, a specialised engineering maintenance and industrial cleaning company. Last December, the company reviewed its capital management policies due to an underperforming share price relative to earnings growth, and after deciding its balance sheet was strong enough to cope with making bigger dividend payments.

In August, the company posted a loss of $1.1 million, in the 12 months ended June 30, compared to a profit of $18.2 million, a year earlier. Stripping out a $26.8 million charge on the goodwill of its Hannahs and Number One Shoes brands, earnings rose 44 percent to $26.8 million, ahead of its $25 million guidance given. Revenue grew 35 percent to $736.4 million.

Shares of Hellaby last traded at $3.27 and have gained 3.8 percent since the start of the year.

(BusinessDesk)