The Adelaide technology company has reported a $21 million revenue decline, due to its decision to leave the “unprofitable NBSB satellite installation business” and a shortfall in antenna sales due to “the competitive Pay TV landscape”.
However, Hills says the half-year results are in line with previous guidance, with the performance marked by a reduction in debt and solid turnarounds in operating cash flow and earnings.
Hills CEO and newly appointed managing director David Lenz says he is “pleased” with the first half performance and expects a continued improvement in the remainder of the year.
“Based on the first half results and Hill’s current strategic initiatives, the company continues to anticipate delivering a trading profit in the second half of FY18,” Lenz said in a statement.
Hills says its security, surveillance and IT business – the group’s largest division – achieved 4 per cent growth in the first half.
The company’s health business also grew, while the audio-visual business saw revenues decline, albeit with the maintenance of “solid margins”.
EBITDA – earnings before interest, tax, depreciation and amortisation – increased to $8.4 million, compared with $3.6 million for the same period last year.
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