Yes it seems trite to have a presentation to analysts and round the EPS to the nearest whole number. I smelled a rat straight away.
Off note 8
http://nzx-prod-s7fsd7f98s.s3-websit...214/284523.pdf in the financials and based on diluted shares on issue last year I get EPS rising from 12.24 cps to 12.535 cps a gain of just 2.4%. The reason is the growth in impairments. But wait there is more....
We have a new accounting standard that requires them to model impairments over the expected life of the loan
http://nzx-prod-s7fsd7f98s.s3-websit...214/284490.pdf - see more at page 14.
Two things occur to me.
1. This is proof of what I have been saying all along that their methodology of measuring impairments in the past has been to understate them.
2. Its does seem awfully convenient that they are taking this charge of $14-18m net directly as a charge against equity, i.e. an extraordinary item below the normal profit line...after all we can't have such mundane things impacting management's performance bonus next year can we !
Holding.... but less enthusiastic than I was.
But wait there's even more...its all okay because based on this year's forecast EPS will grow from 12.535 cps to 13.5 cps, growth of 8% !
Once the guru analysts work out that EPS is going to grow at 8% this year the share price will really take off !