Originally Posted by
toddhunter
Morning everyone...good to see so much discussion on our company! Couple of things I wanted to clarify...
1. Annual report will be out in June. We run a "lean and mean" head office finance team and they have been fully focused on the year end audit and wrapping up the year end results. They now turn their attention to the Annual Report.
2. The point of the "$5/share plan" was merely to help shareholders or those interested to understand our internal goals and targets over the next 3 years. Nothing more nothing less. Clearly we have more control over the actual profits the company makes, and this is what we will be focused on...the share price will be what it will be. One of the analysts cheekily asked us yesterday was the $5 price a ceiling? We do think the PE is undemanding (you would expect that) but consistently producing sustainable growth in EPS will change this (as Beagle rightly pointed out)
3. As RAWZ points out above this company is very different from what it was 4 years ago. For me the step change occurred probably half way through FY20 and putting Covid aside we have seen consistent progress since then. The second half has had no one-off impacts and seen us consistently deliver $3m+ earnings per month. As you all know I have ben around this business for a while and it has never been in better shape.
4. I would argue that this business is not a cyclical business at all...maybe it used to be Black Peter but not anymore. The used car market continues to demonstrate resilience no matter what is happening in the broader economy. Most people change their used car out of necessity not whim. 20% of the vehicle fleet is older than 20 years ... there is still a huge replacement program to happen. With used cars comes the need for finance and insurance. We are very confident we can continue to target and win market share in the high quality borrower segment. The combination of our activity revenues (Auto Retail and Credit) + a bigger proportion of annuity revenues (Finance and Insurance) results in far more consistency of earnings.
5. Our property investments are now just over $60m. We carry all these at cost on the balance sheet...this is building up very nicely with some significant capital upside in market valuations. We will keep cycling this capital as opportunities arise.
6. Sorry there isn't a recording of the results presentation. We will make sure we do this next time.
7. Directors and management are 100% focused on growing the business within the capital base we have. We are confident in the plan, we have seen the traction from this over the last 18 months and we think there is more to come. But in the end results will speak for themselves!
Thanks Todd