Hills Holdings says it will consider paying dividend at year-end MANUFACTURER Hills Holdings says its shares are undervalued and the company may pay a dividend at the end of the financial year. Electronics, building materials and lifestyle products supplier Hills booked a net loss of $73.6 million for the six months to the end of December 2012 and did not pay an interim dividend. Hills held a general meeting of shareholders in Adelaide today to update them on the progress of the company's restructure and its strategic direction. Hills chairman Jennifer Hill-Ling said that since Hills' annual general meeting in November 2012, the company's share price had increased by 30 per cent in comparison with the ASX 300 index which had risen 10 per cent. "Notwithstanding the improvement in the share price, your board remains of the opinion that the current share price does not reflect the underlying value of our assets, our business capability and our strong capital position," Ms Hill-Ling said in a statement. As a board, we recognise how important the dividend is to our shareholders and, the directors will consider the distribution of a dividend at the full year subject to market conditions and working capital requirements. Ms Hill-Ling said that as a result of the impairment, restructuring and closure costs incurred in this financial year, any dividend at the full year was likely to be unfranked. Ms Hill-Ling said that so far in the restructuring process, Hills had sold its healthcare equipment business and its interest in engineering firm Korvest. Hills aims to reduce its exposure to the steel industry and to rationalise the businesses within its lifestyle and sustainability division. Net debt had been reduced from $90.5 million at the half year to below $40 million at the end of February. Hills remained well within its banking covenants and had plenty of headroom in its current debt facilities to expand in areas where there were good growth opportunities. Shares in Hills were 0.5 cents lower at $1.10 at 12.02am AEST.