Wednesday, August 24, 2011

Hills FY11 - On-Market Share Buy Back?

Hills posted a reasonable end on FY11 - and if Orrcon and Team Poly weren't in the mix - it would have been much better - ending in a $75 million loss!
Here's the section with Fielders

Building & Industrial Summary
The big hit here is in profit - indicating margins have been reduced to keep revenue within 2% of FY10. The comment within the results stated that "a number of cost reduction intiatives have been implemented in Fielders".

The big question is "What do Hills Know That We Don't?" as asked by SILENTWITNESS.
The On-Market share buy back is normally related to cash flush end of year results and the company of the opinion that investing in its own shares is better than other business investment. Normally resulting in reduction of business unit investment (consolidation) and sometimes to enable payment of share bonuses especially to directors and staff. Shareholders don't seem to mind a cancelation of an On-Market Share Buy Back compared to a reduction in dividend?


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