The company behind the Hills Hoist plans to buy more security and healthcare technology businesses after completing a significant makeover.
Hills' transformation included the sale of its poorly performing steel assets to BlueScope and purchase of health and communications businesses.
The company is now focussed on providing technology such as security and monitoring systems, audio visual and lighting in hospitals, aged care facilities, schools, banks and shops.
It also continues to make household products like clotheslines and laundry products.
Hills made a profit of $24.8 million in the year to June 30, up from a $94.1 million loss in the previous year that reflected the costs of its major restructure.
"We are half the size but more profitable than we were when we started the restructure and transformation," chief executive officer Ted Pretty told AAP.
"We've morphed from this diversified holding company, where we had one of everything, to largely a technology company."
Underlying profit, which removes acquisition costs and business sales, grew by 42 per cent to $27.3 million.
The company has forecast a slightly lower underlying profit, in the range of $22 million to $24 million, in 2014/15, which Citigroup analysts said well below current market forecasts of $31 million.
Hills shares dropped 6.5 cents, or 3.8 per cent, to $1.66.
Mr Pretty said the company was aiming for further expansion.
"We'll use the balance sheet to do one or two very good acquisitions. Security and health technology services are the major areas we are looking," he said.
Those markets are among the fastest growing segments of the economy, as "health literacy" improved and the population ages, he said.
"The private sector is driving it because of a fall away in government spending," he said.
"The private health care market is growing very strongly in Australia."
HILLS RETURNS TO PROFIT AFTER MAJOR OVERHAUL
* Net profit of $24.8m, up from $94.1m loss in 2012/13
* Revenue of $448.3m, down nine pct from $492.5m
* Final dividend of 3.6 cents per share, up from no dividend
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