Well I am looking forward to ?years time when it will be trading at 2 or 3 times NTA.
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Well done HNZ>
Financial target met.
Guidance achieved.
Balance sheet strengthened.
2nd half profit of $14.7mil means they are going forward nicely.
Guidance and dividend policy to be announced at AGM.
More than I hoped for,so I very pleased.
Exceeds expectations and beats the brokers consensus by a mile.Looks like they're well on the way to becoming a Bank.
Heartland New Zealand Limited (Heartland) (NZX : HNZ) today announced a net profit after tax (NPAT) of $23.6m for the full year ended 30 June 2012, up $16.5m from $7.1m for the previous year ended 30 June 2011
Received 2 emails looks like they've revised their $23.6 m to $24.2 M.
Take out the one-off tax credit of 9.6m and it is fairly skinny for a finance company return on assets.
To say the impaired et al ratio will improve due the total book size growing is laughable - in $'s that number is sticky, as is 'investment property'
Not impressed, but no doubt the blue-eyed brigade will take it higher and assist the recent new entrants to exit at a nice profit
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Not impressed, but no doubt the blue-eyed brigade will take it higher and assist the recent new entrants to exit at a nice profit
You cynic and heathen zerof ......percy won't be buying you a drink next time you catch up
Of course it is a great result ....... 2 times NTA by Xmas
As I read the note at the bottom of page 31, it seems they are expecting to claim the entire $28.5m of losses that is the maximum they can claim from RECL (PGC) at the end of the 5 year period (in 2016).
Zerof what you make of the HNZ cash flow statement - cash received from operating $224m less cash applied to operating activities $227m .......gives negative $3m and no tax paid in the outgoings
Might have to delve deeper .....this was just the first glance at the accounts .....cash flow always the first stop .....rest can often be bull****
Good presentation though
Agreed - very skinny indeed - ROE of 4% compares to the trading banks at all over 10%. Gives a good indication of what the upside potential is.
Underlying trend of margins, costs, profits, assets growth (half year by half year) - all positive.
Underlying operating profit trend is excellent - 100% improvement.
Unfortunately, still dealing with legacy issues and key risk and major negative is non-core property book of $104.7m now that $30m loss underwrite fully utilized.
So NTA = 88 cps with non-core property book = 27cps so NTA (worse case scenario with non-core property being worth zero) = 61 cps.
Thanks balance for the enlightment
Fortunately, $55m of that non-core property is now in property title with updated valuations and not just loans of indeterminate security - so unlikely to be written off to zero.
Overall, I still thought quality of loan book not as good as would like to see from their rating system, but at least overdues reduced.
I would hope for $23m NPAT after impairments next year, but some concern - as Balance suggests - re bigger impairments/property write-downs now that RECL liability has been fully utilised.
Pity about the dividend. However i assume they are building towards that banking licence and trying to be as conservative as they can. Looking to the future, the results look good.
Not interested in a dividend for this year, bad use of cash.
Considering where they have come from then this is an encouraging result.
Rather surprised that the Tiger Secret Valuation Formula has produced a current value of $0.66.
best wishes
Paper Tiger
the market today, which is always right, says $0.54 and dropping....
So market was right when RBD was trading at 58 cents? Or Diligent when it was trading at 12 cents? Or Telecom when it was trading at over $6?
I think the market is right today on HNZ however - the results had no positive surprises and there's real concerns about the non-core legacy property assets. Will be a while before those concerns are gone.
"The share market is a popularity contest in the short term but is a weighing machine in the long term."