Asking for a bit of help for a newbie...
Can anyone explain how the June 2013 ROE of -6.5% is calculated as per slide 5 of the recent investor presentation?
(My own calculation was ridiculously different!)
Thanks
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Asking for a bit of help for a newbie...
Can anyone explain how the June 2013 ROE of -6.5% is calculated as per slide 5 of the recent investor presentation?
(My own calculation was ridiculously different!)
Thanks
Thank you for explaining that PT.
Another minor question, in the 2013 Annual Report total equity at 30 June 2013 is $370.5m. Is there a reason your figure of $372m (approx) above is different?
Sorry one more silly question, in the Annual Report there is share equity for both Company and Group. What is each figure referring to and which one should I be looking at?
As PT had pointed out on numerous occasions most things are in the Annual/Interim Reports
In response to your query re Company and Group here is Note 1 -
Note 1-.
Reporting entity
The financial statements presented are the consolidated financial statements comprising Heartland New Zealand Limited (Company) and its subsidiaries and joint venture (Group).
The Company, through a subsidiary, owns 100% of Heartland Bank Limited (Bank). The Bank was formerly known as Heartland Building Society. Heartland Building Society was established in January 2011, as a result of the merger of Canterbury Building Society (CBS) and Southern Cross Building Society (SCBS).
The Bank owns 100% of MARAC Finance Limited (MARAC) and PGG Wrightson Finance Limited (PWF). The Company owns 100% of Heartland Financial Services Limited (HFSL) which holds a 50% joint venture interest in MARAC JV Holdings Limited (MJV) with the New Zealand Automobile Association. Refer to Note 5 - Significant subsidiaries.
The Bank acquired PWF on 31 August 2011, as a result comparatives for the year ended 30 June 2012 only include the PWF result from the date of acquisition.
The Group includes Heartland ABCP Trust 1 and CBS Warehouse A Trust (collectively the Trusts), which are special purpose vehicles holding securitised loans purchased from MARAC and the Bank.
All entities within the Group offer financial services or are special purpose entities. The Group operates and is domiciled in New Zealand. The registered office address is 75 Riccarton Road, Christchurch.
OK clear as mud now?
The short answer is always look at the Group figures
Q2 seems to have been satisfactorily answered by winner69.
Q1:
A1: $372M approx is approximately $370.5M :t_up:
A2: $24.3M / $370.5M = 6.6% rounded to 1 decimal place (6.57% to 2 dp) So they:
A2.1: Forgot to round it up :t_down:
A2.2: Had a different figure for Equity calculated by:
A2.2.1: taking the average of the equity at beginning and end of the year :mellow:
A2.2.2: restated the equity like they restated the $24.3M which was $24.4M in the Annual report which was because:
A2.2.2.1: I will stop now :D
So I thought I would use an approx figure that looked right-ish, wish I had not now :scared:
Best Wishes
Paper Tiger
I have not decided what to do as yet.I have a rather large holding [for me] and will be receiving shares in lieu of dividend.
My wife will receive cash dividend.
Why I have not decided is because I get sick of applying for large amounts of shares and ending up with a small amount.It means taking money off deposit and tying it up for a few weeks.
With the HNZ issue only being for $5mil I doubt whether I would get more than $500 to $1,000 worth.
May just apply for the minimum $2,500 for wife and self.
Will scaling be proportional. ie. if 10 times oversubscribed, if you applied for $15,000, you will get $1,500 but if you apply for the $2,500 minimum, you only get $250 worth.
Or is applying for a smaller amount likely to give you a better proportional result.
I see that I can email the acceptance form so I am in for all I can get.
I will worry about portfolio weightings afterwards.
So I just need to print the scanned blank form, sign it, scan it and send it.
Bring on the day when if you send them the money electronically that is all you need to do to apply as per many ASX companies.
Best Wishes
Paper Tiger
That was my reading of earlier info. I haven't received my investor pack yet.
Catch 22 - I expect it to be heavily oversubscribed so no point applying as it will tie up too much cash, but if everyone does they same, then it I will have missed out on a great opportunity.
I'm not too familiar with SPPs, can someone explain how will this affect the share price once the new shares are issued? Will the price drop below the share issue price?
My son has an entitlement and may not take it up.
Is there a way for me to fund this and then have them transferred to my ownership after they have been issued ?
Yes, I was just looking at this thinking perhaps I would arbitrage by selling shares at 91cps to buy back and make a few cents per share... but then my maths reckons I'll be lucky to get half of any application, so is a bit of a gamble that I'll end up with too few.
I purchased a parcel of these on March 5th through DB and it goes Ex on March 10th,will I get divvy? Money settlement occurs on 10th,cheers
I thought HNZ closed last week at 90 cents. Yet this morning DB says up 1.5 @88cents.
Realise it is ex dividend.....but ....I am a little confused. Can anyone educate me please !
Thanks
RTM
The trade at 88 is an off-market sp, which doesn't register as 'last price' for change calculation on DB
the sp doesn't register on ASB at all!
at 89, it is up 1.5 ex div
the inconsistencies drive me nuts too.......
Is ex dividend at the opening or closing time?
Thanks Xerof
the inconsistencies drive me nuts too.......[/QUOTE]
I'm sure someone can answer this for me,How am I able to claim my imputation credits?
they used to be paid out automatically,this last divie was worth $900+in credits.
Thanks in advance.
The amount you get paid into your bank account is correct for any 33c/$ tax payer. If your tax rate is less then you need to file an annual tax return to get a refund of any extra tax deduction or imputation credit. As winner says this payment is in the next tax year.
May be you should look site the IRD site and learn about them treatment of these credits and other tax obligations.
Tax 101 should be taught at school.
Off my soap box.
Imputation credits reduce your tax liability and therefore tax payable whether you are a IR3 filer or employed on PAYE,claim them in the applicable year on your IR3 or by phoning ird after getting your personal tax summary and they will make the adjustment for you,the only time they are not worth claiming is for PIE type investments which are taxed at 28% and you happen to be on the 33% rate
Thanks cout1, 777, winner,I better go check and get schooled up.
slightly wrong. They don't reduce your gross income. They are a tax credit, like RWT, that reduces you tax liability.
They are non- refundable, but to the extent you have other refundable tax credits, like RWT or PAYE, this is not an issue as that will get refunded. This can be an issue if you invest through a company structure etc which has no other income, but does have expenses.
Have amended first sentence in post #3179 above HS,cheers
I have a couple questions about how paying for the SPP works. It'd be great if anyone knows the answer.
If you're buying the shares using direct debit, when is the money withdrawn from the account?
Is it the allotment date (25 Mar) or earlier, when the deadline closes (18 Mar)?
Also, if you apply for $15k, do they take the full amount, then return the rest if there's scaling? Or do they just take exactly however much it is?
I had a look thru the SPP pdf, but it didn't seem to say.
Thanks
Direct debit - dont know but I assume they will take the cash as they process the form so expect it to be once applied for. Make sure you have the cash as if the transaction gets declined, so will your application.
The shares wont be allotted to the allotment date. The time between the deadline and that date is for them to count the cash and do the admin.
They take the full amount, and refund any oversubscription.
Today (Tuesday 18th Mar) at 5 pm NZ is the deadline for Link to have your application for the SPP.
You can fax or email if you have not posted it off.
Hopefully not too many of you have applied for many shares.
Little bit of price weakness at the moment, though not enough to take the SPP buy price below $0.855 - presumably a bit of arbitrage going on.
Best Wishes
Paper Tiger
Hope it works. I had filled in my application a long time ago and put the envelope to one side waiting for closer to the deadline to post it.....only to forget about it! So I had to do a quick scan and email yesterday!
You PT saying in an earlier post that we did not have to worry about being overweight with HNZ for the time being and Belgie's suggestion we should all apply for the full $15k to send a message (can't remember what message ) convinced me to apply for the full $15 amount, despite earlier hesitation. Who am I not to listen to the sound advice of such ST luminaries I thought
The money came out of the account moments after I posted the application and now only the wait to see if they send any of it back through scaling
Are there any forecasts for the share price on this stock in a years time? I probably paid to much at 91c but got the dividend but not entitled to participate in offer as only bought last week,thought it would be a good consistent dividend stock looking forward and I was a Marac customer for many years so a bit of a sentimental play as well.
Brokers have an average target price of 93c
http://www.4-traders.com/HEARTLAND-B...518/consensus/
Cheers Noodles obviously a dividend play then at this stage
Forbar have a 12month target price of 97 cents,while Craig's is 85 cents.
Should Heartland's credit rating improve, I think we will see a huge re-rating which will have an immediate affect on the share price.
Then will will see Paper Tiger's $1.15,Noodles's $1.16 and my $1.47 all being reached.From memory Sparky The Clown was either $1.25 or $1.35.
My cheque for the SPP was banked last night.Was getting a little concerned as I posted it last Tuesday night.I don't like SPPs so only applied for the minimum.
The bank of England has recently published a couple of little pdfs:
Money in the modern economy
Money creation in the modern economy
useful reading for all and essential reading for bank shareholders.
Best Wishes
Paper Tiger
They can only take oversubs if it was explicitly mentioned.
So when you & I get our monies back we will be buying on market given we think it is such a wonderful company and we wanted more.
Won't we?
Best Wishes
Paper Tiger
Course you will, psychologically you feel you've missed out so to get back in the perceived winning circle you may be compelled to buy;). I passed so i feel I'm a winner by doing nothing and can gloat to self as the s/p comes back; ....tricking myself again.
Well...I hope all the SPP money is in an interest bearing account and that Heartland gets the interest rather than Link! I prefer the traditional rights issue procedure.
GENERAL: HNZ: HNZ Share Purchase Plan Closes Oversubscribed
HNZ
19/03/2014 16:19
GENERAL
REL: 1619 HRS Heartland New Zealand Limited
GENERAL: HNZ: HNZ Share Purchase Plan Closes Oversubscribed
NZX Release
HNZ Share Purchase Plan Closes Oversubscribed
19 March 2014
Heartland New Zealand Limited ("Heartland") (NZX: HNZ) is pleased to advise
that its Share Purchase Plan ("SPP") has closed oversubscribed. The SPP
offer closed at 5.00pm on 18 March 2014. Under the SPP, Heartland sought to
raise up to $5,000,000 by offering eligible shareholders the opportunity to
subscribe for new shares having a maximum total value of $15,000 per
shareholder. The issue price will be announced upon market open on 20 March
2014 and will be calculated as the lesser of:
(a) a 2.5% discount to the average end of day market price of shares over the
5 day trading period from 13 March to 19 March 2014; and
(b) $0.855 per share (being the price paid by investors in the equity
placement, reduced by the amount per share of the cash dividend declared by
Heartland on 25 February 2014).
The SPP offer received strong shareholder support with Heartland receiving
applications totalling $20,475,000 which exceeded the offer maximum of
$5,000,000 by $15,475,000 or 309.5%. In accordance with the terms and
conditions of the SPP, Heartland will scale back all applications on a
proportionate basis, based on the total amount of application moneys received
from all applicants (and any rounding of the number of shares to be allotted
will be up to the nearest share).
Shares to be issued under the SPP offer are expected to be allotted on 25
March 2014, with refunds direct credited or mailed by cheque to shareholders
within 5 business days of the allotment date. No interest will be paid on
any application monies returned to shareholders.
- Ends -
For further information please contact:
Jeff Greenslade
Managing Director
Heartland New Zealand Limited
DDI 09 927 9149
End CA:00248417 For:HNZ Type:GENERAL Time:2014-03-19 16:19:01
No surprises there.
Confirms why I don't like SPPs.
Wasted effort.!
My situation is that HNZ is already on the limit of the self-imposed 15% of my portfolio in any one share. That includes a ridiculous (for the current market state) 23.91% cash so I really need to be spending the cents on other things (but what?)...
...or bending the rules :ohmy:
Best Wishes
Paper Tiger
Maybe this explains it...
Why is there a maximum application amount?
The offer under the SPP needs to comply with the conditions imposed
by New Zealand securities legislation and Listing Rule 7.3.4(c) which caps the
maximum application amount of each Eligible Shareholder at $15,000.
The SPP is being offered to EligibleShareholders under the terms of the
Securities Act (NZX — Share and Unit Purchase Plans) Exemption Notice
2010. That exemption notice also imposes an annual limit of $15,000 on
the total issue price of securities that may be offered to each shareholder.
Yes I think a lot of shareholders will be disappointed, but $5mil was always going to be massively oversubscribed.
My not be able to get "the good oil" on deposit rates.Was looking forward to Heartland's presentation with Macquaries at 5.30 pm on Wednesday 9th April,however it looks as though 20 plus schools in Nelson, may have the pleasure of availing themselves with opportunity of buying my books.
Was not really thinking of you.Was thinking the paperwork to send to all shareholders,then all the fees Link will charge.Same effort could have raised a decent amount.Say they were looking at $30mil plus, people would have applied for $15,000.I did not bother to apply for any for my wife,and a trust I am involved with did not apply either.I did not break a deposit and only applied for the $2,500 minimum.
The positive I suppose is they only raised the amount needed.
Most financial companies seen to have vey little organic growth,and growth comes from acqusitions.The Sentinel acquisition will work well for Heartland[plenty of growth].The board will have confidence to look for other acquisitions knowing shareholders are prepared to open their wallets. Rising confidence in NZ ecomony should benefit Heartland [an others] .
Yes I think arbitration was never on.Had the issue been bigger, and they had stated they would accept over subscriptions,then you could have had fun with arbitration.
You mean Arbitrage, performed by Arbitraguers
Mathematically it is defined as follows:
http://upload.wikimedia.org/math/c/7...12dc7adc50.pngwhere http://upload.wikimedia.org/math/a/1...75856a1a48.png and http://upload.wikimedia.org/math/f/2...41c9eaeba2.png denotes the portfolio value at time t.
I think the arbitrageurs will be left holding the refunds, and might scurry back into the spot market in a couple of weeks....Hmmmm, I might try and arbitrage them :p
Heartland New Zealand SPP Issue Price Fixed
20 March 2014
Heartland New Zealand Limited (“Heartland”) (NZX: HNZ) advises that the price at which shares will be
issued under its $5,000,000 Share Purchase Plan (“SPP”) has been fixed by the board at $0.8541 per share
which represents the lesser of:
(a) a 2.5% discount to the average end of day market price of shares over the 5 day trading period
from 13 March to 19 March 2014; and
(b) $0.855 per share (being the price paid by investors in the equity placement, reduced by the
amount per share of the cash dividend declared by Heartland on 25 February 2014).
The SPP offer received strong shareholder support with Heartland receiving applications totalling
$20,475,000 which exceeded the offer maximum of $5,000,000 by $15,475,000 or 309.5%. In accordance
with the terms and conditions of the SPP, Heartland will scale back all applications on a proportionate
basis, based on the total amount of application moneys received from all applicants (and any rounding of
the number of shares to be allotted will be up to the nearest share).
Shares to be issued under the SPP offer are expected to be allotted on 25 March 2014, with refunds direct
credited or mailed by cheque to shareholders within 5 business days of the allotment date. No interest will
be paid on any application monies returned to shareholders.
- Ends -
For further information please contact:
Jeff Greenslade Geoff Ricketts
Managing Director Chairman
Heartland New Zealand Limited Heartland New Zealand Limited
DDI 09 927 9149 DDI 09 377 7503
And that's exactly the point rocketship. They did not have to limit the shareholders pool to $5M and as it turned out, limiting the highest allocation to each shareholder to a lousy $ 3,663.
I am disappointed and hope the message Belgie suggested we sent, has been received and acknowledged by the Board.
Thanks to the posters on here that suggested the scaling would be very big as it made me increase my application significantly.
Hopefully they have learnt that next purchase, they dont need to get institutional investors if the amount is small or that (and I am not sure if this is practical), that the institutional placement should be after the SPP. I am sure a few funds would have effectively underwritten it at no fee other than the discount given.
Ok, so the name of the game is not to make a profit as such :blink: but to support the company in it's noble quest to allow old people to stay in their own homes instead of them signing up with the likes of MET, RYM & SUM :t_down: (Wait - hang on a minute - that can not be right :ohmy:).
So having applied for the full whack it seems I will get 4,289 new shares and a bonus $11,337 rebate.
Lost interest @ 3% on the $11k over two weeks is about $13.10 and the total price difference between the $0.8541 and the market price is $68.20 @ $0.87 or $111.09 @ $0.88.
So overall nearly a worthwhile exercise.
Best Wishes
Paper Tiger
Yes this is something I never understand. I posted my application on a Monday and the money came out of my account on Tuesday. Yet we have to wait a couple of weeks for return of our cash that they don't now want, despite them knowing already exactly how much each of us will/should get back. It could be returned at the press of a button ! I understand why HNZs biggest supporter Percy can't be bothered taking part in the SPP
The interest would either stay with Link or Link would be paid a fee for service provided.
Great to see that HNZ is still well positioned and should be for some time to come?!!
Just logged in and surprised to pick up my SPP scaleback on market at 0.86c considering there was $15m oversubscriptions at 85.5c
There seems to be a big seller/s around. What is the chance that the SP will drop below the SPP price?
You have to take into account that not everyone who participates in the placement or SPP is a loyal LT holder. There is almost always an overhang, no matter how sought after the placement was.
Give it time to be absorbed by the proletariat and all should be well in the camp again
no holding (but would like them to up their interest rates)
The squiggles or whatever they are on the chart
The blue line is heading down and just crossed over the purple line ... and the actual line is below the purple line
Is that good?
Sent in $2500 and got 715 shares. Looks like I'll get most of my money back. Probably will add it to my WYN SPP, and see how I get on there.
Could this be bad for Heartland?
http://www.stuff.co.nz/business/indu...in-liquidation
Or is it just part and parcel of doing business and a mere blip on the landscape?
Remember that they called the receivers in last year and almost certainly the HY accounts impairment provisions would have included an amount for this particular item [$5M13 of new individual impaired assets was added).
When this is all settled then they might have to write off more or less than the amount currently set aside.
Best Wishes
Paper Tiger
SP down to 86 cents ... another cent and we can buy the shares cheaper on market than what we paid through the SPP.
Huge sales overhang (600k at average 90 cents) and hardly any buyers (80k at average 84 cents) around.
Looks like the board missed a huge opportunity by not accepting over-subscriptions.
Maybe the SPP allocation to institutions should have been substantially less and the amount allocated to small investors should have been more.
Posted on 03-01-2014.
The acquisiton was certainly a surprise,[was expecting $25mil to $35mil to be funded by cash reserves].The acquisition is a lot better deal than I could have hoped for.Sentinel is the dominate player is the reverse mortgage market.This market is growing with an ageing property owning population, and will grow quicker, with the security people will have dealing with the listed bank Heartland behind it.
Only the capital needed was raised .In fact the SPP was massively over subscribed.
The interim result confirmed the year's guidance is on track.
As we have come to expect Heartland declared an imputed dividend.
Where to now? Well, we now can have confidence Heartland will prosper with the improving NZ economy.We may even see another acquisition before 31st June balance date.Runs on the board is what Heartland had to do.They have certainly done that,and done it well.!
Yes...Impressive volumes of Heartland today at 86c.
Good to see.Attachment 5632
It looks like some of the institutions who got a got a generous spp are trying to flick them on at a profit to private shareholders who got a severely throttled spp. At the moment, it looks like the private shareholders are not obliging!
David Chaston who writes in interest.co.nz no fan of reverse mortgages and is disappointed in Heartland
4. The pitfalls of reverse mortgages
I admit I am no fan of reverse mortgages when the lender is a bank or financial company. It is very disappointing to see Heartland Bank adopting this 'product' as a key element of their growth plans. The social sting in these arrangements can leave some very unpleasant outcomes. Dealbook has been looking at them in the US:
And links to this article from the US
http://dealbook.nytimes.com/2014/03/...gs&src=me&_r=0
Surely hnz won't ed up being this mean
Quote Be great if Heartland can refresh the reverse annuity model so the oldies see it as a viable option in future.cheers JT[/QUOTE]
I think people taking out reverse mortgages will be a lot better dealing with Heartland .
From the link you gave it appears to me the people complaining, are expecting to have their cake and eat it too.
ie "their inheritance has been spent keeping their parents in their home."Yes that's right.Yet, it was their parents, whose house it was,who decided to take out the reverse mortgage.Any one looking to take out a reverse mortgage will get legal advice,and this will be spelt out to them.Most will discuss this issue of reduced inheritance with their children.
From what I read US and UK governments are encouraging people to take out reverse mortgages,because it is seen to be good for their health and well being to stay in their home.
A bit much when the kids complain they did not inherit as much as they would have like."Damm dad was rotten enough to live too long, and spent all his money before we could get our hands on it.And we waited for years for the old sod to die!! ." Tough.
Its the same as buying a $70,000 car on HP.At the end of the day your car is worth $20,000 and you have paid the finance company $30,000 in interest. Toatal cost $100,000.Today's resale value $20,000. $80,000 done cold.! [approx. figures] .Tough.
If I lend money I want interest and the capital repaid when due. Tough.No, just good commercial practice.All banks are the same.
The tooth fairy died.[poor].
Touche Percy. And Heartland are savvy enough to modernise/ poplarize reverse mortgages. And re their Inheritage its quite sickening how little support many offspring give their parents anyway.