Hills hoist shares are spinning higher

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Shares in Hills, the company behind the Australian backyard rotary clothes hoist, were soaring after confirming a better earnings forecast.

The technology product and services business today told the market its EBITDA (earnings before interest, tax, depreciation and amortisation) for the second half of 2016 is expected to be bigger than the first half result of $5.4 million.

A short time ago, its shares were up 38% to $0.18 but still a long way from the 12 month higher of $0.86.

“This result indicates that the company‚Äôs back to basics strategy has gained traction,” Hills said.

The company won a number of new contracts during the third quarter in key segments including hospitals, airports, higher education and correctional facilities.

Hills has been cutting costs, focusing on sales, restructuring and reducing debt by selling non-core assets. It posted an underlying loss of $2.9 million in the first half.

The company says it’s on track to secure new banking facilities before the end of April.

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