Story image

Hills revenue declines as company becomes 'solely' technology VAD

21 Feb 17

Hills saw its revenue slip for the half year ended December 31, with the company saying it is now ‘solely focused on the value added distribution of technology and services’.

Top line revenue was down 4% on the same period last year, but first half EBITDA was up AU$3 million to AU$8.4 million. Net debt was also down from $24.2 million one June 30, 2015 to $20.9 million on December 31, 2016.

Hills says the decline in revenue was higher costs to service the Ericsson contract, due to the cessation of the Crestron separation income, competition from Chinese brands impacting low end CCTV sales, reductions in antenna volumes following changes to a major customer’s distribution model and the loss of rental income following the sale of properties.

The company also incurred $0.6 million in costs relating to the proposed merger of Hills Health Solutions. That merger was dumped earlier this year.

“Despite the focus on the proposed merger, Hills Health Solutions had a strong first half, exceeding prior year performance in both revenue and margin,” the company says.

David Lenz, Hills’ new chief executive, says he believes the health category is the right fit for Hills Group, providing the company with the opportunity for greater leverage across the HBT products and services portfolio.

Lenz says the focus for the second half of the financial year is on achieving growth, implementing a new digital transformation project and delivering improved customer service.

“Hills will start to move beyond the recent stabilisation phase and focus on profitable growth opportunities in the remainder of FY17 and beyond,” Lenz says.

Hillstone CTO's 2019 security predictions
Hillstone Networks CTO Tim Liu shares what key developments could be expected in the areas of security compliance, cloud, security, AI and IoT.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
Oracle Java Card update boosts security for IoT devices
"Java Card 3.1 is very significant to the Internet of Things, bringing interoperability, security and flexibility to a fast-growing market currently lacking high-security and flexible edge security solutions."
How SMBs can use data to drive business outcomes
With the right technology, companies can capture consumer, sales, and expense data, and use it to evaluate and construct future plans.
Survey shows that IoT is RoI across Asia Pacific
A recent Frost & Sullivan survey across Australia, Hong Kong and Singapore shows that IoT deployment improves business metrics by around 12%.
IDC: Aussie spending on IT Services to hit $23.5B by 2023
the project-oriented market which is predicted to achieve the highest CAGR through to 2023; though no market is expected to decline
Sophos hires ex-McAfee SVP Gavin Struther
After 16 years as the APAC senior vice president and president for McAfee, Struthers is now heading the APJ arm of Sophos.
Security platform provider Deep Instinct expands local presence
The company has made two A/NZ specific leadership hires and formed several partnerships with organisations in the region.