no div increase my pick with an announcement that future capital provisions might mean lower divs going forward , shares smashed unfortunatley ... hope im wrong i own a few
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no div increase my pick with an announcement that future capital provisions might mean lower divs going forward , shares smashed unfortunatley ... hope im wrong i own a few
no div increase and a profit downgrade
Jeez ....a profit downgrade ...bloody hell
And H1 EPS lower than last year
Has Jeff run out of things to get out of the bottom drawer?
2.1m in one off costs relating to capital restructure, listing on the ASX and unfavourable FX rate. Strip that out and the result looks pretty good. Remember these are one off costs and non recurring.
"In the absence of an unanticipated increase in growth or an acquisition, the Group has no current need to raise equity from shareholders other than thorough the Dividend Reinvestment Plan. A combination of retained earnings reinvested through the Dividend Reinvestment Plan and other sources are sufficient for funding business as usual growth".
$74m guidance, mid point represents 13.1 cps. Normalised for removal of one-off's above that would be 13.44 cps. Normalised the company is on a forward PE of just 10.0 As cheap as it has been in many years.
No capital raise ! Happy to hold as on the current price I think the shares are very cheap.
"Whilst Heartland considers that it could still achieve a result at thebottom end of guidance, it would come at a cost to further investment in growth. Accordingly, anupdated guidance range of $73 million to $75 million is now considered prudent. The midpoint of thatrange would see the delivery of approximately 10% NPAT growth for FY19 compared to FY18."
Beagle ..I thought you didn’t really approve of ‘normalising’ things
What’s the next ‘non-recurring’ item going to be?
Today is the day that yesterday we worried about,and all is well.
Steady divie,
Solid growth,
No need for extra capital.
Profit affected by "break fees" for the restructure and new IFRS9 impairments methodolgy.
Aussie REL growth 24.9%
Open for business growth 56.2%.
Good seeing large Rural and business loans being reduced.Good risk management.
Motor Vehicle lending still strong.
Very positve outlook.
The metrics look more than satisfactory to me. Forward PE just 10.0 as mentioned and gross yield assuming no divvy increase is 9.62% (adjusting the current price for the 3.5 cps one gets back next month). Company is growing fine and I think its a sound investment for modest growth going forward and the present yield is compelling.
I expect RBNZ to moderate their initial approach to capital adequacy after heavy criticism from virtually all industry participants so I don't see the capital raise that you and others think is coming but even if one is forthcoming on the above metrics I think it would be well supported by the market. I think what the market didn't see coming with this result is the present extremely high FX rate with Australia. I doubt it will remain up where it is for long so FX one-off's could easily reverse.
Agree and the result looks fine by me. Still good steady and profitable growth in their areas of focus and the result reasonable despite the one off costs of the restructure, ASX listing and regulatory changes that have increase impairment provisions. Clearly they are still looking at future funding mentioning they Australian bonds and exploring longterm offshore funding. No doubt a capital raise is still in the mix and as Balance points out, we may well still see one further down the track. I'm content.
Restructuring costs are a clear one-off. I expect FX one-off's to reverse. Going forward I think one is wise to look at the underlying growth in lending. I expect sound and steady eps growth in FY19 and for the foreseeable future. Forward PE is just 10 and they are growing eps nicely. How compelling does it need to get before one adds more to their position at the current price ?
I'm with Percy and Beagle on this one. Satisfactory result. Relax, move on. (Disc - v small holding.)
The shares are underpriced. glad I have been buying and will continue to build up.
Agree 100%. In case its not blindingly obviously already folks, first half is $33.1m and at the mid point of guidance this suggest second half profit of ~ $41m !
I think some people need to have a good think about what that suggests for FY20 profitability ! I know I am...could be in the region of $85m up nearly 15% on Fy19's $74m and all without the need for extra capital. Hmmmm. ~ 15 cps earnings next year should see the shares rerated to at least $1.50 in my opinion.
Suppose pretty solid result but not ‘stunnng‘ as Heartlands results are sometimes described as
Solid growth to continue