ALF result for first half to 31-Dec-2016 out today.
No dividend and no signal of one.
Profit is up 50% on their guidance of 2 or 3 weeks ago but bear in mind this percentage equates to a modest amount of money.
After a preliminary review of the interim result I see good news. However focussing on dividends, and in particular operating cashflow surplus which is what they will need to pay one.
H1 net cashflow from operating activities is down $1.83 million from the pcp.
This is not a trivial sum. To achieve the equivalent cashflow surplus as last full FY, $3.47 million in operating cashflow surplus needs to occur in this H2.
The final paragraph of the H1 Chairmans report states "The Directors expect that the 1st half impact will be recovered in the 2nd half".
Assuming this recovery just meets and does not exceed last year's result, there will be $705,000 (profit attributable to the owners of the parent) available to pay as a dividend without disturbing normal company liquidity. Assuming they pay 1/2 of it, then a dividend of $352,000 can be expected and this equates to 0.22 cents per share.
From an optimistic viewpoint, the language in the last paragraph of the Chairman's report suggests the recovery is already in the bag and that an H1 recovery is the minimum to expect. Have copied the paragraph below so readers can decide for themselves.
Will follow this up with another post in due course as this post is only focussed on dividends.
Final Paragraph on the Chairmans report for ALF first half to 31-Dec-2016:
"The Group continues to focus on expanding its livestock business with several new agents contracted and more in discussion. For the second six months of the year dairy herd sales contribute a significant proportion of the profit. Many of these dairy herd sales are contracted well in advance of settlement. To date the forward sales herd contracts due for settlement predominantly in May are significantly ahead of the same time last year, other livestock tallies and values are tracking well, and the directors expect that the first half impact will be recovered in the second half. While the processing business has always been subject to annual market price movements, the directors are satisfied that the increase in livestock turnover and the addition of new agents are promising signs for future growth."