Hills Holdings (HIL) says its divestment plan is on track and believes it will see organic growth opportunities in its technology and communications segments in the coming year.
Reporting a day after it disclosed it would sell its Orrcon and Fielders steel businesses to Bluescope for $87.5 million, Hills posted a $94 million loss for the full year, sending its share price down 4.2% to $1.38 at 1057 AEST.
The numbers were affected by a number of writedowns primarily at Orrcon ($41.8m) and Fielders ($38.6m) but also across existing and discontinued businesses including its healthcare division, its tank business, its antenna business, home and hardware and solar.
At a group wide level the company also booked restructuring costs at $31 million. Total impairments for the year were $154.6 million.
As the company divested busineseses over the year, revenue dropped from $967 million to $408 million. In the core remaining Electronics and Communications division, revenue rose 11.5 per cent to $376 million.
The company used the proceeds of business sales to pay down debt, with net gearing falling from 19% to 1.4% and net debt to $4 million.
Hills expected below trend economic growth in 2014 and would continue to focus on operating efficiency. It planned to add bolt-on acquisitions for its communications solutions business.
The company declared a dividend of 3.25 cents fully franked payable in September.
