Ride Wit Me
Hey must be the money!!
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Ride Wit Me
Hey must be the money!!
Is it Bargain time yet ? ;)
The $35m pre-tax movement (loss) in hedge reserves booked through comprehensive income for the interim period catches the eye.
It's enough to wipe out profit twice over. Enormous.
If the figure went through the income statement and was split between unrealised and realised income, then after tax the company lost around $10m rather than the $17m profit claimed.
In fairness, in the pcp there was a profit in the same account and this was booked as a reserve also.
Bottom line, the company is sitting on very large derivative losses in HY23.
Take a look also at the Statement of Movements in Equity. At the start of the interim period equity was $421m. By the end of the interim period it was $376m. Dividend declared and paid of $35m of course.
Doesn't look like a $17m gain for shareholders does it?
Unless they are planning on unwinding derivative contracts because of a stressed capital raise (FBU, RYM come to mind) then the derivative valuations are just that, valuations. Well run company's hedge for their day to day risk and let the hedge run its course as it was designed too.
The accounting around these hedges and marking to market is just a distraction from the real world.
How many times has the WHS been rejigged over the last 10 years !!! are we due for another one ?
Another fall today -
Quote:
The Warehouse Group Limited
$1.900 -$0.040 / -2.06%