Cash Flow Statement and reconciliation to profit paints a different story
Less than 1% market share highlights potential ...probably about 3% share in Nz
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I believe we have had this discussion before. The bottom line is that all liabilities as at balance date on whatever terms must correctly be recorded in the balance sheet and trade payables are up just $5.973m and this was funding $626K more inventory so my calculation of the net effect of the change in payment terms is $5,973K - $626K = $5,347K.
Wonder what the $14.253m that pops up on the Cash Flow part is then. I've always assumed this is the cash benefit of a higher level of unpaid bills. I see on the Cash Flow Statement that payments to suppliers were about $34m less than pcp
Significant piece of the much improved cash flow in F20
Willing to learn
Yeah I noticed that too mate. Bottom line is trade payables for which they are liable absolutely must be recorded in the balance sheet so the change between years noted above is how I see it but I haven't looked into or tried to reconcile the difference. One clue could be that the figure you've highlighted includes employee benefits. I guess there could be other things in there too ?
Not too fussed about it to be honest because there is no doubt whatsoever they are in an extremely strong financial position and are very well placed to pay very high level's of fully imputed dividends going forward, (which if my memory serves me correctly is why you and I backed the truck up in the first place at ~ $2.75 in August 2016)....don't think you or I ever expected to more than triple our money inclusive of dividends in little more than 4 years. Oh my goodness, what a ride its been and plenty more fun to come !!!
How about seasonal changes & accounting for restocking coming out of Covid-19
accounting for payables variance - perhaps added stocks for what may have been
a bumper next HY ? Maybe delayed summer indent / inventory following C-19 ?
I'm not sure how much they would have to shell out upfront but deferred LC settlement
say 60D or 90D out on bumper buy ins may be enough as demand for volume starts ramping up..
Okay and then there's duty & GST - presumably on deferred account for August I presume
due 28th Sep -- again on bumper incoming goods too..
Through lock down they may have destocked to operate on minimal optimum Qty's just
to stay operating & perhaps online, then the gates open with Summer gear starting to really run
Why part with cash upfront unnecessarily for stock when trade terms may have no added cost
for a free ride ? ;)
Offshore suppliers may be late delivering dependent on how they were or are affected by C-19 too - who knows ..
With shipping - possibly big delays there, delays in clearing once it hits our border gates in 40 foot boxes too
The amount of gear to fill HLG warehouses & shops wouldn't be small .. smoothly moving is one thing but
bunching up likely distorts financials especially bridging a very near balance date ..
Very experienced management team to handle all the above and navigate the challenges. I'm feeling very relaxed and excited at the same time about the imminent trading update which will hopefully be forthcoming in the next week or so.
Aussie consumers on a high
Westpac Consumer Confidence Survey
This increase in the Index has recouped around half the loss we saw in January when the Index fell from 112.0 in December to 107.0.
Recall that the December print was a ten year high so the bounce-back in February signals that the consumer remains extraordinarily confident.
https://westpaciq.westpac.com.au/Article/46714/53404/
Bought last two days at 7.58 and 7.66 thinking wow the price is down and i bagged a bargain... duh... then I twigged the price is up a dollar actually from the 6.70 last time I bought HLG. Oh well the price popped a few cents higher in the afternoon and I am still very happy with HLG as these are trending on good earnings and divvie.
Longterm Holder