The company announced today that it had achieved an $8.3 million turnaround on the previous financial year’s figures, delivering a net profit after tax of $400,000.
The results included a 20 per cent reduction in expenses, a trimming of debt, and steady margins. Revenue declined by $26.3 million due to the company’s decision to exit NBN satellite installations and lower antenna sales. In the past financial year, the company also got out of its Hills Home Living business.
The iconic South Australian company, now run substantially out of Sydney, has had a torrid period after posting its first loss in 2011.
For the past three years, the company has been a loss-making venture, prompting Hills to describe the results today as a “significant turnaround for the business”.
“In recent years the company instigated a strategy to redefine and restructure the business and I am pleased for our shareholders, customers, vendors and employees that Hills has returned to profitability,” said CEO and managing director David Lenz.
“In FY18 Hills set about delivering on a number of key initiatives outlined in detail at our AGM, and it was pleasing to see the business deliver against these objectives during the year, in particular the e-Commerce platform and the establishment of a National Distribution Centre and Trade Centre at Seven Hills in New South Wales.
“Hills will continue to deliver the best possible customer experience and we remain focussed on implementing key business improvements in FY19.”
The company, originally famous for the Hills Hoist, is now focused on technology.
Its security, surveillance and IT business grew sales by 2 per cent, while its health business grew strongly by 26 per cent. However, the audio-visual business declined in revenue.
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