Said earlier should be good margin in this for both fuelled and Heartland .....SME might get his money the net day but it costs him heaps.
And if the debt goes bad ........
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Half Year Results are out!
https://www.nzx.com/files/attachments/253359.pdf
I'll summarize it in 2 words for you all to save you the time reading: Excellent Result
For what it's worth, ahead of Forsyth forecasts as well
I also hear they are getting quite a few UDC customers...
I'm expecting a strong 2nd half, with profit above $60m for the year
You can't argue with a good solid result like that.
14% profit growth through strong organic growth across all divisions is a very sound increase on last year.
Net interest margin remains very high at 4.44% compared to 4.52% in pcp
Very nice touch for shareholders to be able to subscribe for new shares under the share purchase plan at the same price as the institutions did in December ($1.46), notwithstanding SP growth since then and an extra nice touch that the size of the SPP pool has been expanded from $10m to $20m again matching the terms of the institutional placement.
To be honest I am slightly disappointed that the interim dividend of 3.5 cps wasn't increased in line with profit growth. 4 cps would have been nice and would have reflected the 14% growth in EPS but who can be bothered quibbling over half a cent per share in dividend considering the solid organic growth the company is achieving.
Agreed...would have been nice to have had a wee bit more on the dividend side of things. Maybe that will come with the final.
What is nice is that our new shares which will not cost more than $1.46 will be eligible for the 3.5c dividend.
Unfortunately I think I am going to have to sell some that I have at some stage....as they are getting to be to big a proportion of my portfolio.
I guess this is a good problem.
Cheers all
RTM
Regarding the SPP, and I'm only wanting to hear fellow investors opinions,but would you not be a bit ticked off if you had say 500,000 shares and you could still only apply for $15,000 worth compared to myself with only 30,000 and effectively(if I obtained the full $15,00 worth) increasing my shareholding by a third at a very good price. That would drop my average purchase price nicely.But for someone with a much larger holding, only a smidgeon.
Don't forget that institutional investors got already a free pick ...ahead of anybody else. I am sure they are quite happy with us getting some crumbs as well. I don't think anybody should expect to get the full $15k allocation ... even after the increase of the pool there will be very heavy scaling.
If HBL thinks it can have a good return on increased capital, why pay any dividend?
I am sort of more with you Forest although I don' t think they should stop paying a dividend. But I think it is very prudent of them NOT to increase the dividend while active with capital raisings through institutional placement and SPP.
At first reading, this sounds like a very solid results.
Kizame, you should direct your question to Percy and see how he feels as he's close to your example given :-)
My thoughts are that if someone was holding 500,000 shares they would probably already have heard from their broker regarding the institutional placement last December.
Let me answer that rhetorical question with another, why do you think they have the dividend reinvestment scheme ?
I for one would not own them then Forest. I have no desire to live off capital gains. I want to live off the dividends from my stocks.
I don't want the drama of having to sell and rebuy something else....or at least....I want to minimise that going forward.
What I am looking for in my share portfolio are stocks that will appreciate nicely over time, and pay a reasonable steady dividend. At the moment Heartland is meeting those requirements very nicely.
Has anyone else got an email from HBL offering the SPP - I noticed it said documentation has been sent electronically but I haven't received anything. Want to make sure I don't miss out!
Yes pleasing to have the SPP price set,and that shares issued will receive the dividend.
For me it looks as though my best course of attention is to apply for the SPP for both my wife and myself,and take the cash option for the dividend.This is because I will need to dip into our rainy day funds to take part in the SPP.
The result shows Heartland's strategy is on course.All through the result, it is pleasing to see the huge growth they are already achieving with DIGITAL LOAN ORIGINATION;"Open for business"up 142%.I-finance up 26%,Harmoney up 69%.
Interesting to note 25% of Australian REL origination is on line,and taking "open for business" to Australia makes sense.
Taking a cautious approach with their support of Spotcap, and paying $1mil for 25% holding of Fuelled ,and providing them with a $2mi debt facility,will be appreciated by shareholders.
Getting the ROE up to 11.6% is a very good achievement.
Overall Heartland can be proud of this result,as it continues to prove they achieve what they say they will do.
Shareholders can look forward to the future as Heartland Bank remains "well positioned"
How much would you expect to get when subscribing for the $15k?