AGL - Accordant Group. was previously AWF Madison, Allied...

[zigzag]

Thanks for your post.
I found the presentation very confusing.
Thought it was written by someone suffering bipolar disorder.
Talk of tough times,then set for record result.Increasing the dividend,then needing a capital raising??
Thanks for working through the eps.At 31cents they will beat the 30 cents target when Maddison acquisition was voted on.
Whatever way we look at it the fundamentals are very modest.ie low PE with high dividend yield.

Percy. This is a topic that Mr Gaynor touched on. i.e. You can't increase the dividend, raise capital,retire debt, and be a growth company all at the same time. Focus on one thing at a time and stop trying to be all things to all people.

[zigzag]

In general I got the impression that the outlook was good, once these immediate issues have been dealt with.

[percy]

Percy. This is a topic that Mr Gaynor touched on. i.e. You can't increase the dividend, raise capital,retire debt, and be a growth company all at the same time. Focus on one thing at a time and stop trying to be all things to all people.

Thanks Zigzag.
I had been waiting for the presentation.[Had hoped to go the the agm].Had a very quick read of the presentation,then went for a walk and had lunch,then read it again.Still did not make sense.Thanks to Noodles' and your posts, I coming to see I was "not alone" it thinking it was a very messy presentation.I share Brian Gaynor's concerns.

[percy]

In general I got the impression that the outlook was good, once these immediate issues had been dealt with.

I think the Maddison acquisition is turning out to be a cracker.
I wonder whether they would like a stronger balance sheet so as they can grow Maddison faster ?

[noodles]

Thinking about the capital raising. They could avoid it if they had a fully underwritten dividend reinvestment plan. This means that the company can declare a dividend, but not have any cashflow impact. They could probably raise the amount they need in a couple of years of dividends.

I remember CLH.AX employed this strategy.

[zigzag]

Thinking about the capital raising. They could avoid it if they had a fully underwritten dividend reinvestment plan. This means that the company can declare a dividend, but not have any cashflow impact. They could probably raise the amount they need in a couple of years of dividends.

I remember CLH.AX employed this strategy.

ABA also uses a DRP to manage capital ratios. My impression is that the major shareholder, Simon Hull, who owns 60% of the company, likes to get the dividend and at the same time does not want his holding diluted through a DRP. The fact that Simon owns such a large proportion of the shares also restricts liquidity and complicates capital raisings.

[zigzag]

I think the Maddison acquisition is turning out to be a cracker.
I wonder whether they would like a stronger balance sheet so as they can grow Maddison faster ?

I believe that Madison can grow organically. The debt is being retired as a matter of prudence, and they also noted that analysts preferred that they improve the debt ratio. They said they were coping comfortably in the present environment, but if the economic situation changed, then the debt would become more of a burden.

[noodles]

ABA also uses a DRP to manage capital ratios. My impression is that the major shareholder, Simon Hull, who owns 60% of the company, likes to get the dividend and at the same time does not want his holding diluted through a DRP. The fact that Simon owns such a large proportion of the shares also restricts liquidity and complicates capital raisings.

He was happy to flick a few off last year.

[percy]

Spoke to Mike Huddlestone this morning.Really do enjoy talking to him.A real straight shooter who is on top of his game.
Yes, they are carrying too much debt.Rather than muck around for years bringing it down,do the figures and sort it out,which they will do September/October.He noted from the agm shareholders want to be involved.No need for extra money for future acquisitions, as there are plenty of opportunities to grow the business organically,which will also include more services for customers .
Trading well and all targets will be met.

[percy]

Update confirms they are trading well and all targets will be met.
Can't ask for more!! Result for half year ending 30th september will be announced 30th October,and details of capital raising before the end of the year.