HILLS HOIST MOVING HOUSE IN THE WAKE OF MASTERS COLLAPSE

Written on the 5 January 2017 by Business News Australia

HILLS HOIST MOVING HOUSE IN THE WAKE OF MASTERS COLLAPSE

HILLS Limited (ASX: HIL), creator of the classic Aussie Hills Hoist clothesline, has decided to hang up its hat on homewares, deeming the sector no longer financially viable to pursue.

AMES Australasia, the company responsible for brands including Cyclone, Nylex and Northcote Pottery, has now taken over the Hills home living business and is set to kick off manufacturing and sales in the coming months.

Previously Hills had outsourced its homewares branch to Woolworths (ASX: WOW), but, following the collapse of Masters stores nationwide, Hills was forced to make a choice: resume the old business, or find a new buyer for it.

Hills CEO David Lenz said the board carefully weighed its options before deciding to stay out of the homewares game for good.

"We have undertaken a comprehensive strategic review of the Hills Home Living (HHL) business and determined that it was not viable for Hills to resume the manufacture and sale of HHL products," says Lenz.

"Hills will work closely with AMES Australasia to ensure the successful transition of the HHL business directly from Woolworths."

Assured that his company's homewares legacy is in good hands, Lenz says Hills will continue to focus on its other core business activities.

"The Hills of today is a value-added distributor of technology products and services and the company is focused on delivering security and surveillance solutions, audio visual, IT, communications and health solutions."

Lenz also expects the AMES acquisition will maximise the value of HHL for Hills shareholders, countering a recent financial rough patch.

"The benefits of the HHL transition from Woolworths to AMES will result in an improvement in Hills' EBITDA for the first half of FY17 over the first half of FY16 and will more than offset weaker trading results from our Hills Building Technologies (HBT) business," says Lenz.

"Even with an improved second quarter for the HBT business this has not made up for the underperformance of the HBT business in the first quarter of FY17 as outlined at our AGM in November."

Hills shares fell almost 3.53 per cent yesterday, and are currently trading at $0.41.


Author: Business News Australia

Latest News

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter