towie

Towie
Maybe HIL could have a crack at a takeover of NLX for their water tank business - it would seem logical (don't know what they would do with the remaining parts of the business tho)




Hills ready to hoist up water products

Justine Turner, Sydney
February 8, 2007

HARDWARE, building products and electronics company Hills Industries is looking to expand its water-saving products business, as Australians tighten up their water use.

Hills yesterday announced a 12 per cent rise in first-half net profit to $23.94 million. Managing director David Simmons said Hills expected to achieve a satisfactory result for the full year.

"The market expects us to be up 8 to 10 per cent and we would hope to deliver on that," he said.

The standout performer among Hills' three businesses in the first half was the home, hardwares and eco products division, which had 30.3 per cent growth in operating profit before tax and interest, to $8.83 million.

He said Hills would take advantage of its Team Poly business, which made water tanks.

"The heightened awareness around Australia of the need to conserve water combined with various government incentives has significantly increased the demand for Team Poly's water storage solutions," he said.

The Planet Ark-endorsed range would be marketed in the second quarter and could help push growth for the full year, Mr Simmons said.

Hills was also planning acquisitions, and had growth and profit improvement initiatives under way in all business units, he said.

Hills' total revenue grew 8.2 per cent to $511.07 million in the six months to December 31.

The building and industrial products unit's operating profit before interest and tax grew 8.4 per cent to $15.81 million. That came after a 13.7 per cent drop for the division in the year to June 2006.

Operating profit before interest and tax in the electronic security and entertainment division grew 7.6 per cent to $16.71 million.

"Overall it's a very strong result, something we have continued to do over the last couple of years. We are really pleased," Mr Simmons said.

Hills declared an interim dividend of 13.5¢ a share, fully franked, up from 13¢ previously.

Hills shares rose 10¢ to $5.55.