I received dividend payment check yesterday, and saved to my bank account today:)
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I used to wait for the post to arrive...now computershare transfer it direct. was in.my account last Thursday evening. Gotta love progress.
QSTF, total PGW earnings in the first half were 1cps. The dividend of 2.2cps was therefore mostly composed of earnings retained from the previous year. That 2.2cps interim dividend is not indicative of what you will get as a final dividend for FY2013 (if anything), nor would I expect it to be repeated next year.
The whole purpose of the bumper interim dividend IMO was to provide liquidity for major shareholder Agria, who are in the process of renegotiating their own US bank loans. This is a case of past dividends not being indicative of what we can expect in the future!
SNOOPY
I feel there's a good chance agria will look for another bumper later in the year. PGW also stated they were resuming with a dividend policy. Agree it may not be 2.2c but perhaps a little drip feed to keep shareholders happyish?
The PGW Australian seed business is in deep trouble Sparky. This from 'sharechat' yesterday.
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Senior Aussie PGG Wrightson exec to head Landcorp
Thursday 4th April 2013
PGG Wrightson's Steve Carden, who heads up its Australian seeds unit, will leave the country's biggest rural supplies firm to take up the reins at New Zealand government-owned Landcorp Farming in July.
The Wrightson general manager will take up the chief executive role being left vacant by long-standing Landcorp boss Chris Kelly, the company said in a statement.
Carden has been with Wrightson since 2008, and responsible for the Australian seeds business since 2010, overseeing the acquisition and integration of a number of businesses while confronting some challenging climatic and market conditions.
AgriTech group GM John McKenzie will act as manager of the Australian business until a replacement is found.
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The only positive I can take from this is that by 30th June, when shareholders finally realise how bad all those seed acquisition businesses were, the fall guy will already have gone and they won't have to offer him a big bonus for the year to go with his golden parachute.
The other thing you need to bear in mind is that when assessing goodwill on the books as at 30th June 2012 (see note 26, AR2012). EBITDA growth assumption for Agritech is 40% this year. No that is not a misprint. Unless EDITDA at Agrtech improves by 40% in the year to June 30th, PGW will be looking at some significant goodwill writedowns. This was tagged in the accounts by the auditors last year for those with short memories.
Currently the goodwill on the books at Agritech is $216.6m. OK I know that when the write down comes it will all be 'non cash'. But it was cash once, not too many years ago. And such a write down will still make the balance sheet look sick. What chance that the CEO at PGW is an ANZ banker within twelve months?
SNOOPY
The problem is QStF, PGW will have to satisfy their bankers first. Note 8 in the HY2013 interim report shows an 'amortising facility ' of $NZ20m maturing on 31st July 2013.
Translation: Unless PGW pay their banks back $20m by 31st July, the new CEO for PGW come August will be an ANZ banker. PGW have effectively emptied their accounts with the interim dividend. So all of that $20m due will have to be accumulated from 1st January 2013. A $20m after tax profit may still be achievable in the second half, although personally I don't believe they will do it. But even as an optimist $20m earned and paid to the banks, leaves nothing for distribution as a final dividend for shareholders. So I am picking a final PGW dividend of 0c.
If the second half profit is less than $20m, PGW could raise the cash balance by selling their small holding in Heartland. This was the holding acquired at 90c IIRC, so once again PGW shareholders will be looking at more losses. Ironically because this HNZ shareholding has already been written down in value, PGW will probably attempt to pass off such a share sale as 'profitable'. Can you believe that? My understanding of the term 'long suffering shareholder' is deepening by the day!
SNOOPY
Snoopy! Why not just cut your losses and get out??
bit late on that one Snoopdog....Sir John A was installed ages ago.Quote:
Translation: Unless PGW pay their banks back $20m by 31st July, the new CEO for PGW come August will be an ANZ banker