IPO coming in a few weeks
Listing on ASX and NZX
Raising $400m to start with
Valued at about 13 times earnings or 9 times EBITDA so looks reasonably attractive
https://businessdesk.co.nz/article/m...l-titan-vulcan
Maybe paywalled
Printable View
IPO coming in a few weeks
Listing on ASX and NZX
Raising $400m to start with
Valued at about 13 times earnings or 9 times EBITDA so looks reasonably attractive
https://businessdesk.co.nz/article/m...l-titan-vulcan
Maybe paywalled
There is also an article on NBR.co.nz with a good interview with Peter Wells.
While the EBITDA multiples are higher than you would find at comparables like STU, vulcan's margins are dramatically higher and has lower capital intensity which translates into better cashflow and dividend payout. Plus its a bloody good business - the best in its industry in australasia - so some premium warranted. I hope it goes well. I don't have any allocation but will look to buy some on the aftermarket if I can get it near to issue price. Nice to have something new to watch & invest in. I see this as a good super long term investment for my own portfolio. Not advice DYOR.
hahaha - I hear ya. Anytime forbar are mentioned in a float I immediately wonder why the company had to go with a second rate broker. But I'd say Jarden are top tier and they have had some woeful floats too so who knows. Brent Sheather writes some great articles on the NBR about IPO performance interesting reading and enough to put you off investing in initial offerings.
Here they are a 2 bit player on the wings and not leading the charge - that is done by the aussie JLMs.
Vulcan has a lot of substance and is a grunty company with long term history and exceptional management - particularly relative to the list you have above. Question as always is if the valuation is too rich.
Listing day -- not sure whether they have a steel band to play them in and a buffet lunch after but I expect the action will be on the ASX and once the initial few days are over the SP will not be trending up for the first few months.
Disc: do not hold
Some interesting comments at www.chrislee.co.nz taking stock
Thanks Percy. Some people/books suggest not participating in the IPO. It seems that most of NZX IPOs 2021 are going under their IPO prices (DGC is an exception).
I used to work with Rhys Jones almost 30 years ago when he was an up & coming manager at Fletcher Steel. He was a sharp cookie back then & also was a straight shooter. All good attributes to take a company like this forward. I assume he just received a substantial pay day! Good for him.
Mother of all post IPO prospectus upgrades and there are only 860 shares available for sale on the NZX - classic. 10,000 on the ASX.
nice results always thought the stock looked interesting
What a sensational performance today, and post IPO this business has been. Would have been in my top 5 pick (which I am still to do) had it not run so much. Wish I had bought a bit more but a nice one to have in the portfolio
I still picked up a tranche of STU happy holder there too. About half the size of my VSL stake. At least with STU you have option value associated with a continued turn around. And i presumed better imputed dividends but not sure how their IC account is looking. VSL strong exposure into a fragmented AU market which I have a feel may grow and stay higher for longer. Happy days
First HY results being reported today with FB forecast of $ 74 Mil ...lets see how it does ?
Shareguy got his abacus ready
Vulcan H1 EBIT times 1.2 (to annualise) divided by 10 (Vulcan share price) multiplied by 50 (STU conservative esp EBIT) divided by 166m (number STU shares) equals what STU share price should be
Cool eh ..excitement builds
Me, just be happy to see VSL share price 11 buck tomorrow
Better than perfect then, alokdhir.
Read the end of presentation . Another upgrade of 11 percent for full year EBITDA and 15 percent NPAT. Oh yes
Jeez …$70m NPAT in first half ….full year $130m plus what further upgrades bring. They pretty down on second half prospects
Can’t do much better
It is Forbar pick for 2022 ...but they expected $ 74 mil NPAT ...divvy is better then 20 cents ...so great news ...think $ 11 possible ??
" Accordingly, Vulcan is increasing its proforma post-IFRS 16 EBITDA guidance by approximately 11% at the mid-point to NZ$194m-NZ$204m from previously $174m- $184m, and proforma post IFRS 16 NPAT guidance by approximately 15% at the mid- point to NZ$107m-NZ$114m from previously $93m-$100m."
This company is rapidly establishing itself as one of the blue chips
Peers like EBOS, MFT, FPH, SKL, TRA, HGH, etc.
Steel prices on average up 29% and Metals prices up 14% with Total Group up 23%
Gross margin improved 6.1% points YOY to 41.3% in 1H FY22
That's pretty impressive
Pretty muted market response to that news
At least STU is winning the race thus far today, up about 5% compared to VSL's 3%. Punters realising STU has more deep value than VSL in times ahead.
Great result but market excitement dies pretty quick and back to about 10 bucks
Nearly 10% of recent high ..hmmm
Indeed it is Winner
Looking at the NZX announced NZD 32.353c Div payable 8 Apr 2022
there are no Imputation credits - so it gets slugged with full 33.0 DWT
by the long hairy arm of our IRD
Where do NZX get their figures for publishing on NZX site from though ? ;)
from the Company's filings - would you say ? :)
Nothing on Imputation here -
http://nzx-prod-s7fsd7f98s.s3-websit...094/364339.pdf
in fact NZD 27.5c is Unfranked if I'm reading correctly :)
It makes a heck of a difference on what a NZ holder sees in the hand IMO
NZX Main Board Dividends
Upcoming dividends
Code Ex Dividend Period Amount Supp. Imputation Payable Currency
SEK 27 Jan 2022 Final 13.000c 2.294c 5.056c 23 Feb 2022 NZD
HFL 27 Jan 2022 Interim 5.900p 0.000p 0.000p 25 Feb 2022 GBP
BIT 27 Jan 2022 Final 0.550p 0.000p 0.000p 28 Feb 2022 GBP
TCL 27 Jan 2022 Interim 4.800p 0.000p 0.000p 28 Feb 2022 GBP
AFI 09 Feb 2022 Interim 10.000c 0.000c 0.000c 25 Feb 2022 AUD
IPL 17 Feb 2022 Interim 2.313c 0.153c 0.338c 04 Mar 2022 NZD
SPN 22 Feb 2022 Interim 7.500c 1.324c 2.917c 08 Mar 2022 NZD
DOW 23 Feb 2022 Interim 12.000c 0.000c 0.000c 24 Mar 2022 AUD
GMT 02 Mar 2022 Interim 1.627c 0.114c 0.252c 17 Mar 2022 NZD
VSL 10 Mar 2022 Interim 32.353c 4.853c 0.000c 08 Apr 2022 NZD
That’s what they filed on the ASX for Aussies …note the Supplementary bitbtonhelp them out.
What does Point 3E.1 say …in NZ fully imputed eh
Usually a NZX Distribution Notice form has to filed ….but too sure if Vulcan need to do this as their main listing is on ASX (I think)
Good to be recognised this way - well done Vulcan
https://stocknessmonster.com/announc...sl.nzx-388292/
EBOS was runner up in this category with Warehouse third
Warm fuzzzies here - the Vulcan video entry
https://www.youtube.com/watch?v=qWt6U9cjdTE
Both NZX & Sharesies, possibly other participants still appear to incorrectly
reporting the 8 April 2022 Dividend as not having any NZ Imputation Credits attached
Vulcan Steel announcement 18 March 2022
https://www.nzx.com/announcements/389124
http://nzx-prod-s7fsd7f98s.s3-websit...124/366993.pdf
Part 3E
Clause 3E.1:
3E.1 Please indicate where and when information about tax components can be obtained (you may enter a url).
"New Zealand imputation credits are attached to 100% of the dividend"
Watch for grossly incorrect DWT being extracted if this is not fixed before payment date, as in
475% more DWT being taken out than should be, instead of 5% of Gross Div with full Imputation
Perhaps someone here in the loop can stir up NZX & NZRegCo on the incorrect NZX Reporting ? :)
Huge profit upgrade today
Will put a rocket under thee share price
http://nzx-prod-s7fsd7f98s.s3-websit...971/369226.pdf
Amazing what a marvellous company can achieve with marvellous trading conditions. Go vulcan.
From the announcement
Vulcan’s overall revenue is up 34% year-on-year (“yoy”) for the nine months to 31 March
2022 to approximately NZ$700 million (unaudited). The Company’s Steel segment
revenue lifted 42% yoy while its Metals segment revenue grew 21% yoy during this
period. Overall sales volume recorded a 5% yoy increase for the same period. Steel
volume lifted 6% yoy while Metals volume grew 2% yoy during this period
I assume they are all 9 month comparisons (yoy)
So revenues up 34% yoy over 9 months - after 6 months they were up 35% you so not too bad
Volume up 5% yoy over 9 months but after 6 months they were up 10% yoy
Seems to suggest that volume growth over the last 3 months have declined yoy (the 10% falling to 5%)
Great that prices are holding at elevated levels and the extra margin no doubt feeding to increased profits as per guidance
Bit of worry looking forward if volumes are on the decline
Good on mr and Mrs wells gifting nearly 300,000 shares to Vulcan employees
Well done
https://www.nzx.com/announcements/393009
Vulcan Steel delivers a record result for FY22 - NZX, New Zealand’s Exchange
Vulcan (ASX: VSL, NZX: VSL) an Australasian-wide steel and metal products distributor and value-added processor has announced a record performance for year ended 30 June 2022 (FY22).
Reported NPAT of NZ$124 million (m), up 91% from NZ$65m in FY21
Reported EBITDA NZ$224m, up 68% from NZ$133m in FY21
Adjusted NPAT NZ$142m, up 119% from NZ$65m in FY21
Adjusted EBITDA NZ$243m, up 82% from NZ$133m in FY21
37.5 NZ cents per share final dividend1, bring total dividend declared for the financial year to 65.0 NZ cents per share
....................
Interesting article how Vulcan grew from a scratch …and Peter Wells early connections with Steel and Tube
https://www.nzherald.co.nz/business/...3T2LCTAIL56HU/
Hopefully not paywalled
Vulcan ASM today
• Reaffirming FY23 EBITDA guidance of NZ$215m - NZ$235m (compared with NZ$243m recorded in FY22)
So ebitda could be 12% less than last year
Start of tougher times over next year or two
I see that the share price at the moment isn't that far above the IPO price
At least as they proudly pointed out at the ASM those who got at IPO price got a dividend with a 11.6%
.... and share price done well - VSL share price: +31% vs Peer & +11% vs S&P/ASX 300 since IPO and 22% ahead of NZX50 Gross Index
Inclusion in NZX50 doing wonders for share price
Be 10 bucks by Christmas
Vulcan an Australasian-wide industrial product distributor and value-added processorannounced today the company’s financial performance for the six months ended 31 December2022 (1H FY23).
Adjusted EBITDA was NZ$115 million (m), down 3% from NZ$118m in 1H FY22
Adjusted NPAT NZ$54m, down 22% from NZ$70m in 1H FY22
Reported EBITDA was NZ$115m, up 12% from NZ$102m in 1H FY22
Reported NPAT of NZ$54m, in line with the level recorded in 1H FY22
Revenue of NZ$638m, up 38% from NZ$463m in 1H FY22
http://nzx-prod-s7fsd7f98s.s3-websit...616/388433.pdf
https://www.nzx.com/announcements/406614
Bob, on the face of it seeing there’s 5 months of Urlich included not the greatest result
Things don’t look too hot in the market
Market is disliking the result.
If STU presents an average result n same outlook like Vulcan....then SP will follow the downhill
So Vulcan going to report that NPAT is about 15% DOWN on guidance issued a few months ago.
http://nzx-prod-s7fsd7f98s.s3-websit...750/398545.pdf
F22 Adjusted NPAT was $142m ….this year $94m
Thats some decline …..indicative of construction market these days I suppose
The SP has performed contra to the economy & now results. Be interesting to see what the SP does today.
Guidance today implies H223 npat normalised of $40m …down a whooping 45% on last years $72m in same period
Challenging times indeed and the man is hinting that things aren’t going to get much better in near future.
Normalised npat of $94m is an eps of 72 cents so currently on a PE of 12 trailing earnings ……..some would say not too outrageous
Cylical stock and with the appetite for construction waning its got to hurt the sale of rebar & aluminum from their Ulrich purchase in the residential housing market.
Higher interest rates will also hit commercial builds.
Good company but not the time to buy yet.
Hopefully they decent credit control as steel fabricators are notorious for going broke.
Needs to be around the $5 - $6 mark for me to become interested.
"………….duplicated
From Vulcan -
Speculation on Vulcan Steel’s interest in Metro Performance Glass Vulcan (ASX: VSL, NZX: VSL) is aware of recent media reports speculating that the company is in some way associated with Peter Wells, Vulcan’s founder and former director who remains a substantial shareholder (through his interest in Takutai Limited), and who together with an associate has initiated a proposal to acquire Metro Performance Glass Limited (NZX: MPG). Vulcan wishes to clarify that this is not the case and that it has no financial or commercial interests, directly or indirectly, in that proposal.
http://nzx-prod-s7fsd7f98s.s3-websit...241/401634.pdf
Vulcan (ASX: VSL, NZX: VSL), an Australasian-wide industrial product distributor and valueadded processor has announced its results for the financial year ended 30 June 2023(FY23).
Return on capital employed of 21%, equivalent to 32% on a pre-NZ IFRS 16 basis4, thesecond highest for the company in the last 10 years
Reported NPAT of NZ$88m*, down 29% from NZ$124m in FY22
Reported EBITDA NZ$209m, down 7% from NZ$224m in FY22
Adjusted NPAT NZ$95m, down 33% from NZ$142m in FY22
Adjusted EBITDA NZ$219m, down 10% from NZ$243m in FY22
30.5 NZ cents per share final dividend, bringing the total dividend declared for FY23 to55.0 NZ cents per share
Dealt with these guys as a first time retail purchaser.
Very impressive.
Friendly and helpful and know their stuff.
AGM Preso
http://nzx-prod-s7fsd7f98s.s3-websit...234/406655.pdf
EBITDA down 29% for the 1st 4 months of this year, on the corresponding period last year.
It shouldn't take the deflating of a commodity bubble to provide the evidence that earnings were unsustainable...should have been evident enough when earnings (& margins) shot up when steel prices inflated
From april 2022...
Whether it be steel, freight, retail, etc...always interesting how the market is surprised when a bubble pops.
I still believe Vulcan to be a very good business with a high class management team. I'm patiently watching the share though not committed to purchasing...the financial metrics at the current price don't do much for me.
Probably a little worse than expected.
NPAT down 52% on pcp
Last three 6 monthly NPAT has been 54m then 33m and last half 26m
But well positioned for growth
http://nzx-prod-s7fsd7f98s.s3-websit...062/412410.pdf
Rhys said at ASM that first 4 months EBITDA was down 29% on pcp
For the whole 6 months EBITDA down 36% …… Nov/Dec must have been tough
note ….a few different EBITDA measures so maybe not apples to apples
STU is doing better.....no bank debts....$26m cash in the account n $11m ebit
VSL trading 17x last 12 months earnings
About right at bottom cycle when PEs expand
Yes...profit down but....no debts....Vulcan has a lot of debts!!!
Tough results... Cant see it imprving for quite a while. Building permits in NZ cratering.
I think this has quite a bit to drop before there is value.
having bit of a run at the moment , outlook must be good eh
Wonder how the bad & doubtfull debts provisioning is going ?
If the number of building companies falling over & Com Property outfits writing back on creative revaluations is any indication - things wont likely be merry or exciting for a while in construction ;)
On the back of a recessionary economy - only the most vibrant of companies out there is not going to be reviewing their forwards Capex very closely I would imagine..