ALF - Allied Farmers Limited

[percy]

Volume traded suggests ALF are attracting serious investors' attention.
More than just a couple of Sharetraders, who had already bought in before the recent momentum build up.

Interesting noting ALF's volume today was 198,073 shares traded,compared with AGL's 202 shares traded...lol..

[nztx]

Volume traded suggests ALF are attracting serious investors' attention.
More than just a couple of Sharetraders, who had already bought in before the recent momentum build up.

Interesting noting ALF's volume today was 198,073 shares traded,compared with AGL's 202 shares traded...lol..

but most can probably call which one will fall or rise fastest of the two ;)

Let me know when ALF doubles in an upcoming 7 month period or pays 10x last year's dividend ;)

the smart ones are usually in, out and gone long before some wake up to what's happening too :)

[percy]

but most can probably call which one will fall or rise fastest of the two ;)

Let me know when ALF doubles in an upcoming 7 month period or pays 10x last year's dividend ;)

the smart ones are usually in, out and gone long before some wake up to what's happening too :)
Will be interesting seeing ALF and AGL's performance over the next six months.
ALF...today ..77cents.
AGL..today..$1.93..

[nztx]

Will be interesting seeing ALF and AGL's performance over the next six months.
ALF...today ..77cents.
AGL..today..$1.93..


In a Hawk's world both have been on the meal table before now

One looks like *it may be* again in the future. The other looks like it may not be

A Hawk likes juicy pickings (usually before others have noticed) ;)

[golden city]

I bet Alf will out performance the useless agl

[nztx]

I bet Alf will out performance the useless agl


A hawk will still be flying high overhead watching .. )


48c again might interest ? ;)

[Snoopy]

Volume traded suggests ALF are attracting serious investors' attention.
More than just a couple of Sharetraders, who had already bought in before the recent momentum build up.

Interesting noting ALF's volume today was 198,073 shares traded,compared with AGL's 202 shares traded...lol..


Ah yes, but remember seriousness can be measured in intent, not just volume. Those 202 AGL shares traded may well represent thousands of Sharsie's investors interests exuberant over their fractional share entitlements.....;-)

SNOOPY

[percy]

Ah yes, but remember seriousness can be measured in intent, not just volume. Those 202 AGL shares traded may well represent thousands of Sharsie's investors interests exuberant over their fractional share entitlements.....;-)

SNOOPY
I think you are right................lol.
Crikey they are now buying up big on ALF ;...,7 @ 77c,.....26 @ 77c,......38 @77c and one has gone overboard and bought 111 @77c..The momentum continues.Onwards and upwards driven by exuberant team at Sharsies.Welcome you are onto a winner..

[nztx]

I think you are right................lol.
Crikey they are now buying up big on ALF ;...,7 @ 77c,.....26 @ 77c,......38 @77c and one has gone overboard and bought 111 @77c..The momentum continues.Onwards and upwards driven by exuberant team at Sharsies.Welcome you are onto a winner..


Always easier to throw a few ALF overboard than the other though ;)

Likewise trying to acquire some too..

A handful in one of these outfits is scarcer than the other ;)

[golden city]

Steady she goes once we crack over 80c. It will be unstoppable

[nztx]

Any ALF multibagger here yet ? ;)

[golden city]

It is laughable Someone with no interests in Alf just keep barking

[nztx]

It is laughable Someone with no interests in Alf just keep barking


Aha but I do have a few ;)

[golden city]

That make more sense as a handover story

[Well Fed]

Interesting discussion amongst you hardened investors.
Could the behind the doors activities play out something like this ?
ALF have right of purchase of 100 % NZL management company.
Elevation and co make that happen but sale is by way of Alf shares (new).
Elevation and co are now firmly in box seat to use some of those 40 mil unrecognized deferred tax assets thats on page 6 of 2021 Alf financials.
Presumably the NZL management company will be taxed on shares or cash it receives as fees from NZL

Perhaps Im over thinking it

[percy]

Interesting discussion amongst you hardened investors.
Could the behind the doors activities play out something like this ?
ALF have right of purchase of 100 % NZL management company.
Elevation and co make that happen but sale is by way of Alf shares (new).
Elevation and co are now firmly in box seat to use some of those 40 mil unrecognized deferred tax assets thats on page 6 of 2021 Alf financials.
Presumably the NZL management company will be taxed on shares or cash it receives as fees from NZL

Perhaps Im over thinking it

I would call it "clear thinking" rather than "over thinking".
With both ALF and NZL's agms on 24th of this month,hopefully we will hear more of ALF's future strategy.
I have been thinking more funds will be used to grow their successful livestock lending book.
Maybe I have been "under thinking."..?

ps.I have read the agreement between NZL and the management company.Looks tight,which is positive for ALF shareholders.

[golden city]

I also believe the nzl might lending funds to Alf to lend to livestock in the future

[golden city]

Whole lots of possibilities when elevation use Alf as a vehicle to drive wealth growth

[nztx]

I also believe the nzl might lending funds to Alf to lend to livestock in the future


from the Management fees they didn't receive in cash, but in shares - you reckon ? ;)

[percy]

from the Management fees they didn't receive in cash, but in shares - you reckon ? ;)

Off course those shares will accure dividends.Win win situation.

[golden city]

They are receiving cash for management fees and transaction fees just the performance fees in shares

[Well Fed]

Go Percy
As I am a novice I like your style.
BUY the way:
I dont care who runs the company as long as its fair equally to all shareholders

[nztx]

Time to bail yet - boys & girls ? ;)

[percy]

Time to bail yet - boys & girls ? ;)

The excitement builds birdie.
NZL and ALF's agms just 9 days away,on Wednesday 24th..

[nztx]

The excitement builds birdie.
NZL and ALF's agms just 9 days away,on Wednesday 24th..


SP looks like it's falling - has there been an ALF news leak on something ? ;)


Multibaggers all over the place in the distance elsewhere & that's just the start
can't see many here for .. well years if that .. at best .. unless Farm revaluations
are counted twice or three times .. ;)

[golden city]

Take it easy Will be all review in couple weeks

[golden city]

NZtx if you smart enough to invest in all the multibaggers I don’t think you will have time to waste here just to attacked Alf.

[nztx]

NZtx if you smart enough to invest in all the multibaggers I don’t think you will have time to waste here just to attacked Alf.


Best chill there - Golden .. I may have more ALF onboard than yourself & the other fellow ;)

[golden city]

That will be great. See you in the top 20 shareholders register

[percy]

ALF's share price currently 80 cents.The momentum continues.
Looks as though people are expecting a very positive agm next Wednesday,24th November.

[golden city]

One dollar on the way happy day

[nztx]

Is there gold or something else precious that has recently been found buried on one of the new farms ? ;)

I really cant see many running fast towards a lonely 1.0 cps ALF div in January ;)

[percy]

Is there gold or something else precious that has recently been found buried on one of the new farms ? ;)

I really cant see many running fast towards a lonely 1.0 cps ALF div in January ;)

Divie or no divie it is soaring like an Eagle.
I am enjoying the flight...lol.

[golden city]

We are hitting for growth not dividends

[nztx]

We are hitting for growth not dividends


More Management fees for ALF = more Cap Raises for NZL to buy more farms ? ;)

The last NZL Cap Raise went well a few months back .. ;)

Sounds like a card stacking exercise to me :)


At these lofty levels I may have to SELL some, so other eager beavers can jump on the ALF escalator ;)

[golden city]

Glad you said that I reckon you should sold out and kiss good bye to Alf As the way you hate it

[nztx]

Glad you said that I reckon you should sold out and kiss good bye to Alf As the way you hate it


Mind you .. all your encouraging words may influence my wanting to hang in a bit further for north of a proverbial Buck :)

Once it gets up there, if things start shaking & shuddering - you'll know that I've pulled the chain ;)

[golden city]

Unfortunately I might act faster than you haha with the volume I got you might notice too

[nztx]

Unfortunately I might act faster than you haha with the volume I got you might notice too


Don't worry - I'm watching from high above .. but mostly on multibaggers elsewhere :)

The near future in the local NZ goldfish bowl looks 'interesting' if I could put it that way

Nothing like other insurance cover on a grand scale to cover the inherent future risks

After all. a few dividends received from a fleet sailing mostly south doesn't look very smart :)

[golden city]

New high comming. We are heading for milestone here

[nztx]

New high comming. We are heading for milestone here


My finger is poised near the button :)

+15% daily is looking 'just satisfactory' pickings grade of late :)

[golden city]

Go for it haha

[golden city]

How is your miltibaggar doing lately nzxt. Just not admiting you don’t even know anything about the company

[nztx]

How is your miltibaggar doing lately nzxt. Just not admiting you don’t even know anything about the company


Truly amazing thanks Golden .. couldn't have hoped to have found a better trio of fast moving express trains
leaving the station :)

[percy]

New high comming. We are heading for milestone here


Well done.
I am enjoying the ride too.
NZL presentation reads well.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZL/383290/359882.pdf

[golden city]

More to come

[nztx]

More to come


Do I ? / Don't I ? ;)

[Lola]

Happy day it is in a break out again. Will see 85c this week crack one dollar agm day

You won’t be far wrong

[percy]

I followed the agm online.
Very well presented.
Clear focus will reward shareholders in the longer term..
Agree not wise paying unimputated divies while carrying forward valuable tax losses.
Taking overhead costs out is good directorship.

[golden city]

We are heading to Mt Everest

[golden city]

Very smart management board identify yard revaluation gain of four million

[Lola]

Very smart management board identify yard revaluation gain of four million

No word from the Hawk. Must be too complicated for him/her to get his/her head around.

[percy]

No word from the Hawk. Must be too complicated for him/her to get his/her head around.

Think the agm made him "road kill"............................lol

[golden city]

The agm give me more confidence of the future ahead I already had valuation in place for my big parcel

[golden city]

All clear to go. One dollar next week

[percy]

All clear to go. One dollar next week

https://www.nzx.com/announcements/383693


Nice.

[golden city]

Wonderful acqusition pay back time is so fast

[nztx]

No word from the Hawk. Must be too complicated for him/her to get his/her head around.


still high above in the thermals - send us a signal when we reach +300% :)

Otherwise I may miss it for other more loftier stuff going on ..

I be down instantly in a flash when you say ALF make everyone instant millionaires by this Christmas ..

[nztx]

https://www.nzx.com/announcements/383693


Nice.


divided by how many ALF shares ? ;)

[golden city]

Just accepted it. When it up 300%. You would said let’s show me 1000% haha

[nztx]

Most likely will be elsewhere by 2000% by the time ALF (if it manages to) reaches $1.20 ;)

but that might take more than raiding the Management Co wallet for a mere 1.0 cps or was it 0.5 cps this time round,
possibly accompanied by glossed Graphs of future possible revaluations that go up & off the wall into the Secretary's
Office next door .. or are they expressly reserved for release about 10 days after the next Cap Raise ? ;)

Remember that property can not only go up, but also down - as we are probably headed towards
soon in the Residential Property market when impact of rising Interest rates fully hits.. ;)

Are NZL operating any 'Other Peoples Money' borrowed or just hijacked Stakeowner Hard Earned ? ;)
Either way both may become either more expensive soon or more difficult to drag in, as things
get tighter for Joe Investor, Govt finds itself having to hike Tax rates & the glow off Her Ladyship's
dial dullens.. ;)

[golden city]

I will show you 1.20 very soon haha

[nztx]

I will show you 1.20 very soon haha

Good on you wanting to buy it all the way up there .. let me know when you reach the top of the goal posts
& I may even want to sell for better things elsewhere :)

[golden city]

You just beginning too smart nzxt. I can asure you I haven’t buying any shares for the last a few months. I accumulated for the last two years I am on the top already haha

[percy]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/ALF/383471/360160.pdf
From ALF's recent agm.I thought the presentation was excellent.
Interesting reading on ALF and NZ Rural Land Company.
NZ Rural Land Company buys Rural Land that would otherwise be sold overseas,keeping it in NZ ownership..So far approx $220 mil worth of farms.
ALF holds 50% of the management company that manages NZ Rural Land Company with the option to buy the other 50%.
We see a simpler better structure for ALF going forward,as well as overhead costs being taken out,such as ALF reducing directors from 5 to 3..
Pleasing seeing the high calibre of directors on the boards.

[golden city]

It is totally different company now. From surviving to super charge high growth

[nztx]

You just beginning too smart nzxt. I can asure you I haven’t buying any shares for the last a few months. I accumulated for the last two years I am on the top already haha


you haven't seen what I have far out on the horizon .. believe me it's potentially huge

the world's largest in the making at bargain entry -- like buying ALF shares @ 6c or 8c when they were
spitting out shares to all the out of pocket Hangover Finance Lenders decade or two back ;)

that's just one of a file of similar :)

[nztx]

I don't understand what's going on .. this thing was supposed to be going to the moon a few weeks ago .. ;)

Has Golden lost faith & sold out ? ;)

[golden city]

Of course you never understanding If you understood you won’t be here asking.

[golden city]

I am too busy with my skt nzxt.

[nztx]

I am too busy with my skt nzxt.


Hey - it went up after you posted .. don't run away too long while I still have a few - will you .. ;)

[golden city]

Nztx I told you. You never listen. Alf is in great shape. I don’t need to post all the time to entertains you. I got much better things to do. Be constructive nzxt

[golden city]

I will post to remind you when Alf make me million bucks

[nztx]

I will post to remind you when Alf make me million bucks


When you reckon that might be ? - sometime in 2113 by chance ? ;)

by that time the Kiwi buck will probably be flatter than a pancake, worth a millionth of what it was 2 years ago
and will have probably been consolidated 3 places at least once :)

[golden city]

Don’t worry about 2113 nzxt. I will make sure you can see it while you still alive

[nztx]

Don’t worry about 2113 nzxt. I will make sure you can see it while you still alive



So kind of you .. I'm eternally grateful .. must still be OK to have some ALFRED shares onboard :)

[percy]

Positive update.Pleasing seeing Veal back on track.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/ALF/385065/362091.pdf

[golden city]

Looking solid but not surprised More to improve

[golden city]

We need some corporate news to kick sp moving

[nztx]

We need some corporate news to kick sp moving


1/2c a share dividend in January should get the punters kicking it 3-4c upwards shouldn't it ? :)

Will that do ? ;)

[golden city]

Just waste my time to reply. Don’t you reading reports We are not paying dividends in near future. Why you keep saying stupid things

[nztx]

Just waste my time to reply. Don’t you reading reports We are not paying dividends in near future. Why you keep saying stupid things


No - I'm relying on you to post such things on here :)

[golden city]

Let’s see if we can break dollar this time

[Nigel]

Definitely heating up. PE still very low.

[nztx]

Low PE , lots of revaluation growth ... Ahem NO DIVIDEND ;)

what an exciting investment - a partially explored deep hole in the outback may be even more exciting
with loads more potential ;)

No need to build an empire of farming turf, structured so well that it no longer spits out even a small
payout annually to stakeholders ;)

[percy]

Page 12 of ALF's agm presentation.

- Allied Farmers had tax losses as at 30 June 2021 which amounted to $40,568,976
Unlikely that dividends will be paid until tax losses have been utilised - it makes little sense at present to pay unimputed dividends.
- Buy-backs will most likely be utilised as a mechanism to return capital to shareholders as and when opportunities present themselves.

[golden city]

We are heading to big milestone soon

[Monarch]

Page 12 of ALF's agm presentation.

- Allied Farmers had tax losses as at 30 June 2021 which amounted to $40,568,976
Unlikely that dividends will be paid until tax losses have been utilised - it makes little sense at present to pay unimputed dividends.
- Buy-backs will most likely be utilised as a mechanism to return capital to shareholders as and when opportunities present themselves.

Does this mean they can make $40,568,976 in NPBT and pay no tax on it? IE ~11 million worth of tax savings?

[percy]

Does this mean they can make $40,568,976 in NPBT and pay no tax on it? IE ~11 million worth of tax savings?

Yes.............................................

[golden city]

Yes.............................................

That is almost 5 to 10 years earning tax free From Nz rural land management if fully take over next year

[percy]

That is almost 5 to 10 years earning tax free From Nz rural land management if fully take over next year

Chris Swasbrook certainly knows those tax losses are a valuable asset.

[golden city]

Yes. This is a free shell for him to list Nz rural management company

[nztx]

Chris Swasbrook certainly knows those tax losses are a valuable asset.


have to have taxable income for that .. may take a decade or two to use em all up :)

[nztx]

We are heading to big milestone soon


Are we ?

Up, down, Up down further, Up Down further .. ;)

[nztx]

Oh look - ALF Profit projected forward elevated upwards by $200 k

https://www.nzx.com/announcements/386570

will ALF be over the buck by end of the week on this upgrade ? ;)

At Fri close of 79 c things might need a larger miracle IMO ;)

[Nigel]

When net profit is only circa $1m, $200k is a very welcome increase. That said, the income was expected in the next period anyway, so it makes no meaningful impact to FY result (unless that particular subsidiary can turn it up in the second half). Regardless, a market cap of under $23m and a PE of only 7... I think there's considerable value in this stock. GLTAH.

[nztx]

What happens when the NZL farm portfolio valuations plateau or start going backwards ? ;)

Not inconceivable in the present crazy volatile economic times - is it ? ;)

[Nigel]

Very nice volume through today. Are we on another run towards $1? Always interesting when a stock falls on very light volume then surges on higher volume.

[Lola]

What happens when the NZL farm portfolio valuations plateau or start going backwards ? ;)

Not inconceivable in the present crazy volatile economic times - is it ? ;)

Sorry Old Agri Bear but thats not likely to happen any day soon. Dairy payout tipped to go to 10 bucks tonight.

[nztx]

Sorry Old Agri Bear but thats not likely to happen any day soon. Dairy payout tipped to go to 10 bucks tonight.

Was that Buy Order that I saw yours ? :)

Just remember that the Fee for managing the job is just that - no include Moo moos, nor Dairy dirt :)

[Lola]

Was that Buy Order that I saw yours ? :)

Just remember that the Fee for managing the job is just that - no include Moo moos, nor Dairy dirt :)

Nup. Im udderly full up actually ....at 50 cents.

[nztx]

Nup. Im udderly full up actually ....at 50 cents.


that's udderly good .. I was seriously worried for you when it was showing signs
of sliding down a greasy slope :)

[golden city]

Just nicely patiently enjoying the way the company improving on every aspect of the business

[nztx]

after an udderly encouraging wee market bounce :)

that buck is certainly elusive - will it buck the faithful off again after the 2c two step finishes ?

[Sideshow Bob]

Half Year Results to 31 December 2021 - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/388013)

The Directors of Allied Farmers Limited (AFL.NZX) report an unaudited consolidated net profit before tax (NPBT) of $1.438 million for the six months ended 31 December 2021. This is above the updated HY22 NPBT range of $1.2m to $1.4m provided to the market on 28 January 2022.

[golden city]

Super good management

[nztx]

must be to decide after looking in the crystal ball that everyone onboard didn't need a dividend in January :)

it saved the Registry costs of shelling out many small amounts to all and sundry - didn't it ? :)

Were Director's fees and the Staff Christmas party downsized, so all were on the same plain ?

[percy]

Page 12 of ALF's agm presentation.

- Allied Farmers had tax losses as at 30 June 2021 which amounted to $40,568,976
Unlikely that dividends will be paid until tax losses have been utilised - it makes little sense at present to pay unimputed dividends.
- Buy-backs will most likely be utilised as a mechanism to return capital to shareholders as and when opportunities present themselves.

Nothing has changed since I posted this on 22-12-2021.
Made sense then and still makes sense today.

[mfd]

must be to decide after looking in the crystal ball that everyone onboard didn't need a dividend in January :)

it saved the Registry costs of shelling out many small amounts to all and sundry - didn't it ? :)

Were Director's fees and the Staff Christmas party downsized, so all were on the same plain ?

The crystal ball readings were performed last year, nothing new on dividends in this announcement. They are holding on to capital to allow them to buy the other half of the NZRLM cash cow.

To your other point, you may remember at the ASM late last year there was a focus on reducing corporate costs, including the removal of the group CEO role.

[percy]

The crystal ball readings were performed last year, nothing new on dividends in this announcement. They are holding on to capital to allow them to buy the other half of the NZRLM cash cow.

To your other point, you may remember at the ASM late last year there was a focus on reducing corporate costs, including the removal of the group CEO role.

Buying the other half of NZRLM would be in ALF shareholders' best interest.

[Nigel]

Anyone a little concerned at the recent price action? Down from almost $1+ to under 80c today, and effectively no buyers until 60c. Surely people will see value here. Or is there too much fear regarding the macro situation?

[nztx]

I see some buyers at 77c 79c - more buyers than sellers infact

The fall is likely part of the cross the market fall seen recently IMO

Discl: Not a holder

[Lola]

Anyone a little concerned at the recent price action? Down from almost $1+ to under 80c today, and effectively no buyers until 60c. Surely people will see value here. Or is there too much fear regarding the macro situation?

Some holders may be expecting another cap raise if they want to exercise the option to purchase the balance of the NZ Land management company. So not at all concerned.

[nztx]

Some holders may be expecting another cap raise if they want to exercise the option to purchase the balance of the NZ Land management company. So not at all concerned.


Someone want their Cash out already, instead of leaving it in ? ;)

The Management Company probably cost the vendors 4/5 of 5/8 of FA in the beginning..
until ALF put the pingers on the table for half ..

Is one of the ALF Board Members short of coin ? :)

[nztx]

Oh Eric - are you hiding under a desk in the ALF Office anywhere ?

Uncle Sam wants to have a word about something ;)

https://www.nzherald.co.nz/business/wheres-eric-watson-us-regulators-seek-to-serve-embattled-kiwi-in-insider-trading-case/GZLNQQAIUXLFRXNZTFB5FHBNMA/

Where's Eric Watson? US regulators seek to serve embattled Kiwi in insider trading case



"According to KPMG's most recent report, filed January 21, 2022, Mr Watson is indebted to the liquidated entities for approximately 57 million New Zealand dollars."

The most recent liquidators report notes KPMG has recently filed proceedings against Watson in the High Court seeking this sum.



Watson, a former New Zealand rich-lister and once the owner of the Warriors rugby league club, was also previously co-owner of Hanover Finance, which left thousands of New Zealand investors hundreds of millions of dollars short after it collapsed at the beginning of the global financial crisis.

Looks like poor old Eric may have got himself quite deep in a fair bit of strife ;)

Wonder if his Mum or Sister can help out with a very large loan ? ;)

A quarter of a Billion should just about cover Debts to Owen, the Liquidators and Kiwi Taxman
maybe a bit more needed to settle Uncle Sam and shut things up for good :)

[percy]

Just love this announcement....lol
https://www.nzx.com/announcements/389754

[nztx]

Just love this announcement....lol
https://www.nzx.com/announcements/389754


Less Directors to get sign off from ? :)

sounds like simplifying things - how much did ALF save from this ?

Will the Auditor's pot increase again the year after though in line with the fee for managing the revaluations ? ;)

[golden city]

Every bit counts. The board is working hard to improve the earning per share currently love the attitude

[nztx]

Every bit counts. The board is working hard to improve the earning per share currently love the attitude

If the Factor of Materiality is considered and the Muddy Boots Empire is remotely near adding in in total
then ALF's books may only require a brief 5 minutes look in by the Auditors ;)

What was the new Auditor's scoop out of this ? Are they also doing the captive "Untold Farming Dirt' empire as well ?
If they have both on board then maybe they should throw in ALF as a free Bonus job for signing off the bit of paper
stating they saw nothing curious ? :)

At worst - perhaps ALF should pay the Auditors in shares to conserve cash for a rainy day ? :)

[nztx]

https://www.nzx.com/announcements/389893

Heartland to acquire livestock business in Australia

Looks like the new competition just brought the Livestock financing game home :)

perhaps ALF should sell their financing division and concentrate on managing plots of
farming dirt ? ;)

[golden city]

Something is cooking here sudden large volume traded at 85c today

[nztx]

Something is cooking here sudden large volume traded at 85c today


it wasn't me running away, because I'm still watching from a safe distance :)

[golden city]

Ready for a big profit upgrade soon

[nztx]

When ?

Are Lease costs for the Farm Dirt which ALF collects a small % of for managing the lots due to increase
by 2x or 3x or even quadruple in a month or so's time ? ;)

[nztx]

Where art thou be hiding Watson - surely not hanging out under a desk in the ALF Offices ? ;)


https://www.nzherald.co.nz/business/eric-watson-pleads-advancing-years-in-standoff-with-sec/VLOEJL7XYSZPRISQU2YD4AQNBQ/


Eric Watson pleads 'advancing years' in standoff with SEC


Hopefully still no hangovers from HANDOVER Finance .. ;)

[Sideshow Bob]

Strong Investment Performance Drives Earnings Growth - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/397671)

The Directors of Allied Farmers Limited (“Allied Farmers” or “Allied Group”) (ALF:NZX) are pleased to report an audited net profit before tax for the year to 30 June 2022 of $3.556 million (FY2021$2.481 million), with an audited net profit after tax attributable to Allied Farmers’ shareholders of $2.876 million (FY2021 $2.021 million) which was a +42% increase from the previous year.

A segmental contribution comparison is provided below which reflects the contribution to Allied Farmers of our two principal investments and our holding company operating and financing costs:

This year we generated growth in earnings per share (EPS) of +16%. Allied Farmers Net Tangible Assets (NTA) per share based on 67% direct ownership of NZ Farmers Livestock (NZFL), and 50% ownership of NZRLM equals $0.48 per share (versus $0.38 per share as at 30 June 2021).

In a strategic shift Allied Farmers also decided to wind down Rural Funding SolutioNZ Limited (RFS) and enter into (via New Zealand Farmers Livestock Finance Limited) a referral agreement with Heartland Bank. This provided increased scope to facilitate livestock lending with the backing of a specialist and sophisticated lender in Heartland.

In September 2021, we repaid a $1 million bond eliminating all debt at the parent company level.

As RFS has largely wound down throughout the year and capital was released this was reinvested into New Zealand Rural Land Company’s capital raisings.
Allied Farmers also implemented several initiatives throughout the year to reduce corporate costs, including a significantly smaller Board, reduced IT spend, reduced professional services spend, disestablishment of the Allied Farmers’s CEO role, and lower recurring consulting fees. The full benefit of these cost reductions will appear in FY 2023.

The Directors will update shareholders at the Annual Meeting in November as to whether a dividend (or other forms of capital return) will be paid.

New Zealand Rural Land Management (NZRLM) - 50% owned:
NZRLM is the external manager of NZX listed New Zealand Rural Land Company (NZL). As at the date of this Annual Report NZL has acquired approximately 11,710 hectares of rural land in the South Island.

The Allied Farmers’s result includes, for the first time, a full year contribution from NZRLM, delivering earnings of $1.624 million for the year ending 30 June 2022. The Board is pleased with NZRLM’s performance and return on investment, which was driven by NZL’s further farm acquisitions partly funded by a successful capital raise during the year, and increased property revaluations that underscore that NZL acquired its assets at very attractive prices.

Under the NZL Management Agreement, in addition to management and transaction fees that are paid in cash, NZL issues shares to the owners of NZRLM, including Allied Farmers, as consideration for performance fees earned by NZRLM. In addition, Allied Farmers has supported NZL’s capital raisings, not only because it considers this to be an attractive stand-alone rural sector investment, but, as the 50% owner of NZRLM, NZRLM’s earnings grow as a result of the increase in NZL’s assets funded by these capital raises. Allied Farmers currently owns 2,900,000 NZL shares (~2.6% of NZL shares on issue).

NZRLM Outlook:

NZL has scaled impressively since its listing on NZX on 21 December 2020 under the guidance of its Manager NZRLM. It is reasonable to expect a period of consolidation for NZL after such rapid growth and accordingly we expect NZRLM may earn lower transaction fees in the year ahead as the Manager focuses on Investor Relations and broadening the shareholder base offshore with ~25% of NZL’s register still open to foreign investors who have traditionally had a strong appetite for high quality rural land assets globally.

New Zealand Farmers Livestock Limited (NZFL) - 67% owned:

The NZFL result reflected a vastly improved contribution by its veal processing business, However, this improvement was partially offset by a lower contribution from its livestock agency business reflecting reduced tallies related to periodic weather and market conditions, Covid disruption, and several small yard share losses. Dairy herd sales were strongly improved on earlier years.

Finance activity continued a contribution consistent with earlier years, as this business transitioned to a referral-based model. During the year NZFL subsidiary NZ Farmers Livestock Finance Limited (NZFLFL) entered into a referral agreement with Heartland Bank, whereby NZFLFL earns commissions on livestock finance lending referred to Heartland. This arrangement is gradually replacing the direct lending by NZFLFL that until late in the reporting period has been supported by an ANZ Bank facility. The Heartland arrangement has had a pleasing start and continues to support and integrate well with the livestock agency business. This has de-risked and strengthened NZFL’s balance sheet (as it runs-off its own loan book), provided a greater capacity for clients to borrow, and enabled reliance on Heartland’s risk management and compliance processes. This change, along with NZFL’s solid financial performance, enabled repayment of a range of mortgage and loan liabilities to materially improve balance sheet resilience that saw NZFL end the year with no net debt.

NZFL Outlook:

NZFL plans to grow its national presence with agile digital innovation and deployment, focus on improving agent performance, and cost management. Effort continues to grow veal tallies, though Covid impacts on processing capacity have temporarily constrained this. Despite this, strong product prices should drive a solid FY23 result for the veal processing business. Finance is forecast to see continued growth, with investment in additional resourcing, removal of earlier funding constraints, expected market growth, and the excellent synergy with our wider business.

The Board wish to thank and acknowledge the hard work and initiative of our NZFL and NZRLM teams over the last year.

[percy]

An excellent result.

[golden city]

The best section is we don’t need funds to funding the finance operation anymore more cash to invest or capital return

[percy]

The best section is we don’t need funds to funding the finance operation anymore more cash to invest or capital return

There is still the option that is exercisable for a year from this December to buy out the other half of NZL management.
They will need to retain profits/capital should they want to exercise the option.
While they have the tax losses to use up, a share buy back would be better than an unimputated dividend.
I was rather surprised the chairman mentioned the word dividend.

[nztx]

how's the rate of inflation going in comparison to returns from the Muddy Boots empire and captive satellite
or is it now running well ahead of ALF and NZL ? ;)

[mfd]

how's the rate of inflation going in comparison to returns from the Muddy Boots empire and captive satellite
or is it now running well ahead of ALF and NZL ? ;)

42% increase in net profit is comfortably ahead of inflation. NZL claim to have CPI linked rents so should do alright although I wouldn't be surprised to see them squeezed a little between inflation and higher interest costs.

No existential threat though, so ALF will continue to take their cut. NZL have also announced today they will be chasing foreign funding through placements and will allow a higher gearing ratio, all meaning more acquisitions and therefore more money for ALF as the manager.

[nztx]

42% increase in net profit is comfortably ahead of inflation. NZL claim to have CPI linked rents so should do alright although I wouldn't be surprised to see them squeezed a little between inflation and higher interest costs.

No existential threat though, so ALF will continue to take their cut. NZL have also announced today they will be chasing foreign funding through placements and will allow a higher gearing ratio, all meaning more acquisitions and therefore more money for ALF as the manager.


How much of that is hoisted up on unrealised Associate Company property revaluations ? :)

Bear in mind that no dividend paid for last 12 month period

(undoubtedly a different story for the Board overseeing the job)

No sign of attaining the mythical $1.00 SP level yet either .. wonder why ? ;)

[mfd]

How much of that is hoisted up on unrealised Associate Company property revaluations ? :)

Bear in mind that no dividend paid for last 12 month period

(undoubtedly a different story for the Board overseeing the job)

No sign of attaining the mythical $1.00 SP level yet either .. wonder why ? ;)

Your guess is as good as mine. With a single digit PE, great growth record, and the opportunity to double their lucrative stake in a growing NZRLM I will certainly be keeping my shares, it's not my problem if the market isn't paying attention.

The thinking on dividends has been explained - they have a better use of the money in mind and better ways to return any excess. Like Percy I was surprised by mentioning dividends at all as they had been off the table previously.

[nztx]

https://www.nzx.com/announcements/402332

New Chairman needed as Mark Franklin has been summoned to go upstairs through the Pearly Gates

R I P Mark - the ALF ship has changed a bit in recent times

[mfd]

Looks like ALF will be buying the other half of the golden goose, presumably a little more expensive than the first half but no need for extra capital. Also confirming no dividends for the foreseeable future while they whittle away at the pile of tax loses. Possible buy backs in the coming years. Trucking along nicely.

https://www.nzx.com/announcements/402937

[percy]

Looks like ALF will be buying the other half of the golden goose, presumably a little more expensive than the first half but no need for extra capital. Also confirming no dividends for the foreseeable future while they whittle away at the pile of tax loses. Possible buy backs in the coming years. Trucking along nicely.

https://www.nzx.com/announcements/402937

Agree buy backs look the best way to go.

[golden city]

Significant tax loss how much are we talking about Any body knows?

[Muse]

Significant tax loss how much are we talking about Any body knows?

No idea re: ALF but you can always find them in the latest annual report. You can find both the on balance sheet tax losses & the off balance sheet tax losses, the later of which will be disclosed in the notes in the stat accounts. Off balance sheet losses are still available to be utilised regardless if they are on balance sheet or not, but subject to shareholder continuity rules in NZ and same business tests if they happen to be operating in australia.

[nztx]

Shareholder continuity rules being satisfied could be interesting :)

25 years losses ahead to offset or not quite ? ;)

best hope that Robbo's & Orr-some's peculiar stamp on agriculture sector going forwards
with an ominous unhelpful green tint doesn't tip the ALF pack of cards upside down ;)

Let's face it, there aint much that the current bunch of high level Beehive clowns haven't managed
to mangle or cripple in our local economic goldfish bowl across the past 6 or so years ;)

[percy]

In this regard, the Independent Directors – Philip Luscombe and Shelley Ruha - have, with the assistance of an expert external
advisor in Northington Partners, determined that it is in Allied Farmers’ best interests to exercise its Call Option to acquire the 50%
of NZ Rural Land Management (NZRLM) it does not already own. This option becomes available for exercise from 18 December
2022, and is open for exercise for a period of one year.
By way of background, when Allied Farmers exercises its Call Option:
• The five individual sellers of NZ Rural Land Management shares – “Vendors” – on receipt of notice of exercise of the Call
Option, can ask for the purchase price to be either paid in cash, or in Allied Farmers shares at the 20-business day volume
weighted average price over the period immediately preceding a market announcement of the exercise (“VWAP”);
• Individual Vendors cannot ask for a mixture of cash and shares, but some Vendors may ask for all cash, and some may ask
for all Allied Farmers shares;
• Only if a Vendor asks to be paid in cash, Allied Farmers can opt instead to pay that Vendor in shares, but at a 10% discount
to the VWAP.
Allied Farmers at this stage does not anticipate a need to raise capital to fund this acquisition if it proceeds, albeit this is subject to
the final notification received from each of the Vendors as to their preferences. We will of course keep shareholders updated as
this matter progresses.

The above should make keeping shareholder continuity interesting.

[Sideshow Bob]

https://www.nzx.com/announcements/404303

Allied Farmers Limited (ALF.NZX) is pleased to announce that it has today exercised its call option to purchase the 50 percent of NZ Rural Land Management (NZRLM) that it does not already own (Call Option) *.

[nztx]

SP continuing to loose elevation too .. market dont look interested or impressed :)

wonder why ? ;)

these sort of announcements of newest best thing after sliced bread were expected to see it belting up through the buck level and into the sky above by some, not so long ago ;)

[nztx]

https://www.nzherald.co.nz/business/eric-watsons-brother-and-friend-fail-to-get-courts-to-protect-their-assets/BJUFQESMHNDYTAKAAQ6XYZMDUE/

Eric Watson’s brother and friend fail to get courts to protect their assets

(sorry folks .. but it's Premium viewing)


Poor Eric .. it looks like Owen Glenn has seen likely ferrets hiding in Eric's well hidden woodpile :)

Any work available for Eric doing a bit of consulting for ALF, or does Eric's shadow still carry too much of a stink from the Hangover Finance days ? ;)

[nztx]

Looks like the magical $ Buck level some dreamed of a while back for ALF may have been too much
of the invisible never never pie-in-the-sky stuff :)

Passing over on the Jan 2022 & Jan 2023 Divs may have been final nails in the coffin for those aspirations ..

[percy]

The company is progressing well.
An exciting year ahead.
Be interesting to learn the full amount of the extra substantial tax losses.
Exercising the option to take over the other 50% of Rural Land Company's management company is a sound decision.

[nztx]

Tax Losses are usually never very exciting for shareholders
The tax free gravy train usually associated with them in some cases
doesn't last forever before being pulled in or stopping in its tracks.

Might be more excitement in the paddock over two or three the other way :)

[percy]

https://www.nzx.com/announcements/405442

Incredible.

[Snoopy]

https://www.nzx.com/announcements/405442

Incredible.

'Tax losses', A reward for being so incredibly unsuccessful in business that your previous poor performance gets to cast a shadow over your business results for years or decades to come. $190m of tax losses on the books is a lot. Will any current ALF staff or shareholders still be alive by the time these tax losses are used up?

SNOOPY

[winner69]

https://www.nzx.com/announcements/405442

Incredible.

Suppose one of few who benefited from the Hanover days?

PEB getting close to that amount lol

[golden city]

Never pay tax again haha. Will be good for management to buy some acqusition to use it quick

[percy]

'Tax losses', A reward for being so incredibly unsuccessful in business that your previous poor performance gets to cast a shadow over your business results for years or decades to come. $190m of tax losses on the books is a lot. Will any current ALF staff or shareholders still be alive by the time these tax losses are used up?

SNOOPY
The ability to utilise the tax losses is dependent on continuing to meet shareholder continuity requirements of prevailing income tax legislation.

[nztx]

Never pay tax again haha. Will be good for management to buy some acqusition to use it quick


only be any good if anything acquired makes a buck or two .. the existing dairy acreage might be a real proft offset slow mover :)

[Snoopy]

The ability to utilise the tax losses is dependent on continuing to meet shareholder continuity requirements of prevailing income tax legislation.


So if enough shareholderrs die, it is bye bye tax losses? If I was on the ALF board I would be taking some pro-active action. Full medical checks and a health camp for all shareholders. I would bring back the Colin Meads fitness program, jogging up and down hilly farms with a fence post strapped to your back. Adidas footwear out and Red Bands in. Mutton chop side burns and mutton chops for lunch. Don't touch any of that namby pamby lettuce on your plate. Use it as bait for rabbits you can chase after dark with a stick.

Of course dear old Colin is no longer about to implement such a program. So we would need a new head coach. Someone with enough grey hair so as not to scare shareholders, but who is nevertheless in good enough physical shape to pull it off. There is this expat bloke I heard about who might fit the bill. He has endured a special diet regime, supervised by her majesty in 2020 in England. Furthermore he has been doing a lot of running keeping out in front of this group called 'the creditors' (hadn't heard of them before, but I think they are some kind of international harrier club with a presence on many continents). He is reputedly very difficult to catch, so he must be a very very fit guy. Mentioned his name 'Eric Watson' to an ALF shareholder the other day whose eyes lit up, (into a kind of bloodshot red). So NZ name recognition remains strong after all these years. I reckon if Eric was appointed there would be plenty of ALF shareholders that would 'join the fitness wagon' and go after him.

SNOOPY

[nztx]

So if enough shareholderrs die, it is bye bye tax losses? If I was on the ALF board I would be taking some pro-active action. Full medical checks and a health camp for all shareholders. I would bring back the Colin Meads fitness program, jogging up and down hilly farms with a fence post strapped to your back. Adidas footwear out and Red Bands in. Mutton chop side burns and mutton chops for lunch. Don't touch any of that namby pamby lettuce on your plate. Use it as bait for rabbits you can chase after dark with a stick.

Of course dear old Colin is no longer about to implement such a program. So we would need a new head coach. Someone with enough grey hair so as not to scare shareholders, but who is nevertheless in good enough physical shape to pull it off. There is this expat bloke I heard about who might fit the bill. He has endured a special diet regime, supervised by her majesty in 2020 in England. Furthermore he has been doing a lot of running keeping out in front of this group called 'the creditors' (hadn't heard of them before, but I think they are some kind of international harrier club with a presence on many continents). He is reputedly very difficult to catch, so he must be a very very fit guy. Mentioned his name 'Eric Watson' to an ALF shareholder the other day whose eyes lit up, (into a kind of bloodshot red). So NZ name recognition remains strong after all these years. I reckon if Eric was appointed there would be plenty of ALF shareholders that would 'join the fitness wagon' and go after him.

SNOOPY


You and I had better stand out of the way to avoid being crushed in the rush :)

[nztx]

The market seems to like the announcement

Up 1c so far on Untold New Tax Losses added, that probably wont be capable of offset for donkey's years :)

Somewhere, some poor sucker has had to pay dearly dollar for dollar on every single $ of the increased tax losses

[Snoopy]

Somewhere, some poor sucker has had to pay dearly dollar for dollar on every single $ of the increased tax losses.


Yes they do and to remind us all of who that person is, most homes in NZ have a picture of that person on their wall, but under a not so eponymous title called 'the mirror'.

SNOOPY

[nztx]

Did someone say FREE SHARES for PERFORMANCE FEES in September 2022 ?


https://www.nzx.com/announcements/398145


New Zealand Rural Land Company (NZL.NZX) confirms today it has issued 2,499,747 fully paid ordinary shares to satisfy the Performance Fee for FY22 at an issue price of NZ$ 1.6462.

Total number of shares on issue is now 115,601,570. An NZX capital change notice is attached to this announcement.

Rob Campbell
Independent Chair

What a wonderful amazing investment ;)

Issue Cost $1.65 each
Closing Mkt Friday $1.08m

Almost 2.5 million of the little beggars issued in early Sep 2022

Provisional Impairment provision to date needed $1.425 MILLION in the Red to ALF or was it just half ALF's at that point ?


Still no prospect of dividend either - and no cash, infact reduced value of Fees from managing the NZL Muddy Boots Empire evaporating off into fresh air - with things looking to worsen with even heftier borrowing costs over yonder @ NZL to come..

[nztx]

https://www.stuff.co.nz/business/131171698/liquidators-will-move-to-bankrupt-eric-watson-if-he-doesnt-pay-57m-debt

Liquidators will move to bankrupt Eric Watson if he doesn't pay $57m debt



The liquidators of Cullen Investments are chasing former high-flying Kiwi businessman Eric Watson for repayment of $57 million he borrowed from his failed company.

In the High Court in Auckland on Tuesday, Justice Neil Campbell ruled in favour of the liquidators KPMG, noting it was a straightforward claim for money owing as a result of advances made to Watson over several years when he was a director of the company.

Justice Campbell said he was satisfied that Watson had no defence to the claim. Neither Watson nor his lawyer were present.

Leon Bowker of KPMG said they would now be looking to enforce the judgment.

Oh dear - poor Eric .. Any jobs going at Alfred, to help Eric try to get out of a tight spot, or not ? ;)

The Cullen Investments can of worms appears to be turning into very bad Hangover for Eric :)

[percy]

A very strong interim.
https://www.nzx.com/announcements/407545

[WAIKEN]

Once we have 100% of NZRLM we should see some capital distributions

Does anyone know who WAF are who have acquired over 5% on market?

[percy]

Once we have 100% of NZRLM we should see some capital distributions

Does anyone know who WAF are who have acquired over 5% on market?
WAF Ltd directors as per NZ Companies Office.
Christopher John Whittington MARSHALL
Residential Address:26 Paora Street, Orakei, Auckland, 1071 , New Zealand
Appointment Date:09 Nov 2022
Consent:View Consent Form
Full legal name:Matthew William Donald RILEY
Residential Address:56 Bay Road, Glendowie, Auckland, 1071 , New Zealand
Appointment Date:09 Nov 2022
Consent:View Consent Form
Full legal name:Pieter Jacques VENTER
Residential Address:28 Castor Bay Road, Castor Bay, Auckland, 0620 , New Zealand
Appointment Date:09 Nov 2022
Consent:View Consent Form

[winner69]

WAF Ltd directors as per NZ Companies Office.
Christopher John Whittington MARSHALL
Residential Address:26 Paora Street, Orakei, Auckland, 1071 , New Zealand
Appointment Date:09 Nov 2022
Consent:View Consent Form
Full legal name:Matthew William Donald RILEY
Residential Address:56 Bay Road, Glendowie, Auckland, 1071 , New Zealand
Appointment Date:09 Nov 2022
Consent:View Consent Form
Full legal name:Pieter Jacques VENTER
Residential Address:28 Castor Bay Road, Castor Bay, Auckland, 0620 , New Zealand
Appointment Date:09 Nov 2022
Consent:View Consent Form

Waterman guys …. Good sign

What were Waterman famous for now?

[percy]

Waterman guys …. Good sign

What were Waterman famous for now?

My Food Bag.?

[winner69]

My Food Bag.?


Thats right percy ….amongst other investments

WAF set up last November to hold investment in ALF?

[nztx]

A very strong interim.
https://www.nzx.com/announcements/407545


That's the Interim to 31.12.22

No sign of any ImPearment provisioning on those NZL shares that have lost elevation since issue
date in H2 2022 for Performance Fees ;)

Must be a EOY wash up job ;)

[nztx]

Waterman guys …. Good sign

What were Waterman famous for now?


I just tipped over my coffee reading that :)

Tah - Winner

[WAIKEN]

Thanks Percy and Winner
The Waterman website looks good. Hopefully they have soaked up many of the nervous ALF sellers.

[stoploss]

Thanks Percy and Winner
The Waterman website looks good. Hopefully they have soaked up many of the nervous ALF sellers.
This looks to be a private investment vehicle - Waterman Capital are not the investors.

[nztx]

Did someone tell them that script in this little tin pot outfit needs to be made as scarce as bee's knees ? ;)

Might be too late to do an "MFB" on this one

If things turn to custard the whole stacked pack of cards might go over ;)

[percy]

Getting interesting.
https://www.nzx.com/announcements/407740

[nztx]

Getting interesting.
https://www.nzx.com/announcements/407740


Wonder if Rabo would be interested in providing some hock at a respectable cost to ALF to allow buy out of the remaining 50% ? ;)

After all, it wouldn't look good to deprive ALF of their look in securing full ownership of the Muddy Boots Management Co, after Rabo have stepped in to save the day for NZL on the Forests deal in a time of grave need and hand outstretched :)

Or perhaps they mightn't want to, after having gotten in gumboots deep on financing NZL out of a tight
spot on a forestry deal that NZL appears to have signed up for in Oct 2022 without the necessary dough
in kitty before interest rates started climbing and the NZL SP lost 38% or so of it's elevation in the following 5 or so months ;)

[nztx]

Wonder if the Muddy Boots Management Co have the dough to take up their NZL rights
on the Cap Raise - on shares they received satisfying last year's Performance Fee that was
done in NZL Shares issued at $1.65 in Oct 22, now down 36% or so since,
sitting at a buck + 5 pennies on last close ? ;)


Or is that another job for "Find some new wealthy mates with a large bundle of loose loot" to fill a gap ?

Maybe some of those wealthy Europeans NZL attracted in might be able to assist, but ALF might have
to pull a Dual Frankfurter listing job out of the bag, like NZL announced it was doing yesterday ;)

but they might like to see more of a smell of a regular dividend than ALF has been managing to put
out in recent times ..

Oh dear .. the trials and tribulations of keeping a delicately balanced pack of cards all upright
and in position, whilst having to plug the gaps and fill significant financial holes in the wall ;)


With all this going on, oriiginal ALF stakeholders will be wondering whether ALF still has
any of it's core original activities going - which are hardly mentioned - funding beefies,
farming REA's etc ;)

[Nemology]

Wonder if Rabo would be interested in providing some hock at a respectable cost to ALF to allow buy out of the remaining 50% ? ;)

After all, it wouldn't look good to deprive ALF of their look in securing full ownership of the Muddy Boots Management Co, after Rabo have stepped in to save the day for NZL on the Forests deal in a time of grave need and hand outstretched :)

Or perhaps they mightn't want to, after having gotten in gumboots deep on financing NZL out of a tight
spot on a forestry deal that NZL appears to have signed up for in Oct 2022 without the necessary dough
in kitty before interest rates started climbing and the NZL SP lost 38% or so of it's elevation in the following 5 or so months ;)

glancing into their half year...Not much cash sitting in ALFs balance sheet...is borrowing money from rabo (@6.5%??) the best use of shareholder's equity...? otherwise alf will have to issue shares to muddy boots management...muddy boots knows all about issuing shares ;) robbing peter to pay paul...Or Is It...
issuing shares to pay paul...?

[percy]

Getting interesting.
https://www.nzx.com/announcements/407740

Allied Farmers Limited (ALF.NZX) has this morning received from PwC a binding
valuation of $8.3 million for the 50 percent of NZ Rural Land Management (NZRLM)*
that it does not already own (Valuation).
ALF will be paying the $8.3 mil by paying a mixture of ALF shares and cash.
I would guess if half of NZRLM is valued at $8.3 mil I could asume the whole value of NZRLM would be $8.3mil times two.ie $16.6mil.
So at the end of the day ALF will own 100% of NZRLM.
What is the cost to ALF of this $16.6mil business.?
Well we know their original half cost them $2.5 mil.Add to buying the other half $8.3 mil, we have a total cost of $10.8mil.
A nice $5.8mil difference.Well done ALF.

[nztx]

Allied Farmers Limited (ALF.NZX) has this morning received from PwC a binding
valuation of $8.3 million for the 50 percent of NZ Rural Land Management (NZRLM)*
that it does not already own (Valuation).
ALF will be paying the $8.3 mil by paying a mixture of ALF shares and cash.
I would guess if half of NZRLM is valued at $8.3 mil I could asume the whole value of NZRLM would be $8.3mil times two.ie $16.6mil.
So at the end of the day ALF will own 100% of NZRLM.
What is the cost to ALF of this $16.6mil business.?
Well we know their original half cost them $2.5 mil.Add to buying the other half $8.3 mil, we have a total cost of $10.8mil.
A nice $5.8mil difference.Well done ALF.

It will be interesting to see how ALF intends to raise the binding necessary dallop of Cash to buy out
the inflated 50% of Muddy Boots Management Company.

Shares sound great - but there is no ALF dividend - so are probably a donation style contribution
for donkey's years with ALF now carrying more tax losses than it can eat in the next 50 or 100 years ;)

How much impairment did/will ALF wear on that $4.3m Performance fee satisfied in NZL Shares
from last year @ $1.65 issue price in Oct 2022 .. now worth just $1.03 a shot on Friday close ? ;)

How to earn large Performance Fee then promptly lose a decent slab out of it, after the market
gets a bit lethargic and nervous about things over a few months ? ;)

How did the ALF Board not see that coming ?

Surely the uptake on the Capital swallowing NZL Card Stacking exercise must have rung a bell or two somewhere, or was everyone busy elsewhere in other empires / with all signals switched off ? ;)

[nztx]

glancing into their half year...Not much cash sitting in ALFs balance sheet...is borrowing money from rabo (@6.5%??) the best use of shareholder's equity...? otherwise alf will have to issue shares to muddy boots management...muddy boots knows all about issuing shares ;) robbing peter to pay paul...Or Is It...
issuing shares to pay paul...?


Good point - potential Lenders might get a bit nervous about the vast extent of Loans and INTEREST expense
flowing out of the captive satellite outfits, all stocked up high in slow moving estates & farms
especially when the hands are spread far and wide trying to hover up new capital into the net globally ;)

[nztx]

glancing into their half year...Not much cash sitting in ALFs balance sheet...is borrowing money from rabo (@6.5%??) the best use of shareholder's equity...? otherwise alf will have to issue shares to muddy boots management...muddy boots knows all about issuing shares ;) robbing peter to pay paul...Or Is It...
issuing shares to pay paul...?


Wonder if Eric the Great still has some left over out of the stash hidden in the Bahamas to help out
at inflated consultancy rates ? .. nothing like a slight Hang Over returning to help out with a rescue
mission, in times when the hand is being stretched far and wide to try to save the day :)

[mfd]

ALF paying for the rest of NZRLM using cash (debt) and some of their NZL shares. As signaled and expected, no cap raise needed. Good stuff.

https://www.nzx.com/announcements/408504

[percy]

ALF paying for the rest of NZRLM using cash (debt) and some of their NZL shares. As signaled and expected, no cap raise needed. Good stuff.

https://www.nzx.com/announcements/408504

I think all ALF shareholders will be more than happy.
Know I am.

"The NZRLM Consideration will be satisfied by payment of $6.55 million of cash, and the transfer of $1.75 million worth of NZ Rural Land Company Limited shares owned by Allied at their 20-day volume weighted average price prior to completion date. The cash component will be funded from a combination of cash reserves and debt facilities."

I read it no ALF shares will be issued,so there will still be only 28,806,634 ALF shares on issue,and ALF's massive tax losses will be able to be carried forward.

PS.ALF's borrowings will be tax deductible,while no tax will be paid on profits [because of carried forward tax losses].

[golden city]

Just waiting patiently Alf will have its day

[nztx]

Just waiting patiently Alf will have its day



Still waiting for the day when SP hits the Buck mark :)

It probably wont be next week or next month ..

Somehow, it could be quite a while if ALF continues taking Performance fees for 100% rather than 50%
in Muddyboots Empire NZL scrip, only to loose their pants badly when the guts drops out of NZL SP
just a matter of 4-5 months later ;)

Then there's the rapidly escalating INTEREST bill NZL have looking forwards on growing borrowings
and increased Interest Rates .. gobbling up even larger chunks of the Lease Revenue..

Having a large wad of Tax Losses aren't going to be much use if the satellite Management outfit
can't afford to be paid it's fees and NZL itself looks to be headed into deeper strife servicing what it has
borrowed further, to cover forestry it signed up for without having dough in kitty - months earlier ;)

Let's see now - are the NZL shares being hocked off now, the same ones that MuddyBoots Management Co
received Oct/Nov last year for Fees and a large bundle of dough has evaporated off since as the NZL share price collapsed by 30-40% since from $1.65 lofty issue price heights back then ? ;)

Some may have difficulty wondering how ALF is managing to stay at circa 75c levels in market view.

No dividend, tax losses coming out it's ears and major revenue source fees from a captive NZL outfit
that seems to be fairly well borrowed up at increasing interest rates, adding more to the pile from Rabo
and where Cap Raise efforts may or may not have seen best of support on not one but further
fundraising efforts of recent times. It's all very well stacking the cards, but a change in wind
direction and velocity may not do many wonders .. ;)


The apparent risks now present look more challenging than those before NZL came along, merchant bankers
clambered onboard and ALF quite happily was paying out some dividend 1-2c back then off it's farming services, broking and financing and real estate activities ;)

[nztx]

https://www.nzx.com/announcements/409019

NZ Rural Land Management Purchase Completion


NZ Rural Land Management Purchase Completion

Allied Farmers Limited (ALF.NZX) is pleased to advise that it has today completed the purchase of the 50 percent of NZ Rural Land Management (NZRLM) that it does not already own.

NZRLM is now wholly owned and controlled by Allied Farmers.

The purchase price of $8.3 million was satisfied by payment to the vendors of $6.55 million of cash, and the transfer to the vendors of 1,800,227 million NZ Rural Land Company Limited (NZL:NZX) shares owned by Allied at their 20-day volume weighted average price prior to completion date of 0.9721 per share, being a total of $1.75 million.


Wonder how much Red Ink ALF wore on that 1.8 million NZL Shares shot out sideways as part of the deal ?

Note C2:
2022 Annual Report


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/ALF/397671/377579.pdf


In December 2020 Allied Farmers Limited acquired 900,000 shares at an issue price of $1.25 per share in New Zealand Rural Land Company Limited ('NZRLC').

In September 2021, Allied Farmers Limited acquired 600,000 shares at an issue price of $1.10 at a total cost of $660,000.

In June 2022 Allied Farmers Limited acquired a further 783,057 shares at an issue price of $1.05 per share in NZRLC.
The total cost was $823,973.

A further 35,362 shares were issued under a dividend reinvestment plan.

A further 581,581 shares were issued under the performance fee arrangement referred to below.

This holding represents a 2.56% ownership in NZRLC as at 30 June 2022 (2021: 1.49%). These shares are equity investments quoted in the active market which the Group has elected to designate as a financial asset at fair value through other comprehensive income.



Under the Management Agreement NZRLC is to pay NZRLM a performance fee which, subject to certain adjustments, is to be equal to 10% of the increase in net asset value of NZRLC in each financial year. The performance fee payable by NZRLC to NZRLM for the year ended 30 June 2022 comprised 2,499,247
(2021: 1,163,162) shares in NZRLC. Fifty percent of these shares were then distributed by NZRLM to Allied Farmers Limited in proportion to Allied's ownership of NZRLM.


These Performance Fee Shares must be the $1.65 a shot NZL jobs issued in Sep 2022 ;)

They really performed well in just 5 or 6 months, didn't they - only losing about 41% of their value ;)

Obviously no parachutes were thought necessary at the time to cushion things in case of
descending rapidly into the thick Taranaki muck below :)


Here are the pricey Muddy Boots jobs, as recorded in the NZL Announcements:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZL/398145/378300.pdf


2 September 2022

Issue of Performance Fee Shares

New Zealand Rural Land Company (NZL.NZX) confirms today it has issued 2,499,747 fully paid ordinary shares to satisfy the Performance Fee for FY22 at an issue price of NZ$ 1.6462.

Total number of shares on issue is now 115,601,570. An NZX capital change notice is attached to this announcement.

Rob Campbell
Independent Chair

[percy]

https://www.nzx.com/announcements/409561

Interesting.

[nztx]

Still doesn't make me any more interested in either NZL or ALF based on the way things are structured

Any trading bank deposit account probably enthuses more ;)

[winner69]

So Waterman have been taking a lot of ex Chair and Rural Land guy guy Swasbrook’s shares

Waterman now have 14% of ALF

[nztx]

Chris Lee's latest newsletter has a bit to say about the "Clip the Ticket" Property Management regime
very similar to what's operating with ALF socking NZL for fees on most things NZL does ;)

Let's see how NZL goes in a higher Interest, Inflationary, Cash Crisis environment where
revaluations might become next years unmentioned Swear word, if they exist at all
in coming periods, also at risk of a predatory Labour CGT regime, if the current mob
dont impale themselves on their own swords first :)

NZL holders might at worst be left sucking the kumara and licking an empty bowl ..

[golden city]

Financial report should come out next week should we expect some surprise

[nztx]

Financial report should come out next week should we expect some surprise


Yep .. No Div from NZL .. now deep in debt with hefty financing rates .. could it have it's hand out for a prop up
from ALF & other stakeholders ?

Maybe the NZL Management fees might have to be suspended, if things get really rough in the NZL camp ? :)

So on this likely still no ALF Dividend being paid out - continuing on as the Rural Sector encounters headwinds going forwards ?

[Lola]

Yep .. No Div from NZL .. now deep in debt with hefty financing rates .. could it have it's hand out for a prop up
from ALF & other stakeholders ?

Maybe the NZL Management fees might have to be suspended, if things get really rough in the NZL camp ? :)

So on this likely still no ALF Dividend being paid out - continuing on as the Rural Sector encounters headwinds going forwards ?

When Chair of NZL ( Campbell) pulls the plug we will know it’s all really packing up. Being tainted ain’t his thing.

[nztx]

When Chair of NZL ( Campbell) pulls the plug we will know it’s all really packing up. Being tainted ain’t his thing.


The smart ones might be more happy to have all four legs of their chairs & stools intact .. regardless of the forecast incoming winds :)

Did we make the magical buck or did things merrily romp down the hill following the axe falling on dividends ? ;)

[percy]

A good result.
https://www.nzx.com/announcements/417229

[golden city]

Very promising result eps almost 12c

[nztx]

The Directors will update at the Annual Meeting in November as to whether a dividend will be paid.

Hahaha .. very good :)

Are they still out busily counting the trees being managed ? ;)


https://www.nzx.com/announcements/417229


No mention of those Fees converted to NZL shares @ 1.65 a pop now a shadow of what was paid for them :)


Obviously the large impairments must have gotten lost under someone's boardroom chair ..


Wonder how the spiralling interest costs look in NL along with captive fees grab against where the
estates are sailing in more diffucult times ? ;)

More borrowing & vast acreages for acquisition needed to keep the ALF Management fees side from
looking a bit shaky or would that amount to too much card stacking in ensuing economic gales ? ;)

[Sideshow Bob]

https://www.nzx.com/announcements/417396

WAF Limited – Unsolicited Offer

Allied Farmers Limited (Allied) advises that WAF Limited (WAF) has notified its intention to write to Allied shareholders with an unsolicited offer to purchase up to 1,650,000 shares in Allied at $0.715 per share. This is a 3.5 cent, or 5.15%, premium to yesterday’s closing price for Allied shares of $0.68 per share.

Recent VWAP’s (Volume Weighted Average Price) for Allied’s shares to 29 August 2023 are listed below:

• 5-Day VWAP $0.68 per share
• 20-Day VWAP $0.689 per share

WAF currently owns a 14.25% shareholding in Allied. WAF’s offer is for a maximum of 1,650,000 shares out of Allied’s total shares on issue of 28,806,434. If WAF acquires the maximum number of shares under the offer, its shareholding will increase to 19.99%.

WAF has advised there will be no brokerage payable by shareholders selling into the offer.

Allied recommends that shareholders who receive an offer from WAF should:

- read WAF’s disclosure document and terms of offer carefully and thoroughly; - contact an authorised financial adviser; and - check the most recent market price for Allied shares.
Shareholders are under no obligation to accept any offer or to take any action in respect of the WAF offer. Unsolicited share offers are subject to the Financial Markets Conduct Regulations 2014. Under these regulations, unsolicited offers must be made within a clear and concise disclosure document that outlines certain prescribed information. Shareholders have the right to cancel any acceptance of the offer up to 10 working days after the date of their acceptance.

If shareholders need or desire further advice on this mater we suggest they contact an authorised financial adviser, a list of whom can be found on the Financial Markets Authority website htp://fma.govt.nz/.
-ENDS-

[golden city]

Too cheap the offer. The share is worth 1.20 at least

[winner69]

Those guys from Waterman seem keen on building a decent portfolio …and not just ALF

[golden city]

This is vote of confidence ,they bought from market and from elevation Capital and now takeover offer ,even lowball

[stoploss]

This is vote of confidence ,they bought from market and from elevation Capital and now takeover offer ,even lowball
They are only trying to top up 5% odd, how is that a take over offer ?

[nztx]

Those guys from Waterman seem keen on building a decent portfolio …and not just ALF


They must think this thing can fly - even with trying to keep the Forest & Farm Dirt Management sideline facing
managing a difficult puppy in turbulent times ;)

NZL seems to be losing altitude today..

[golden city]

We will see I believe it

[WAIKEN]

Interesting trading today. There were a few tiny trades then a large parcel went. I wonder if that went to Waterman or another buyer looking to spoil their quest for 19.9%

[nztx]

ALF probably needs some cornerstone holders in there with the approaching economic turbulence,
NZL results being eroded by hefty financing charges and all the boys & girls showing so much love
every time NZL tries to dig it's way out with a Cap Raise ;)


Any 2024 ALF dividend indication yet .. or still waiting to examine the economic forecasts into early 2024 ? ;)


If things get real bad NZL might have to borrow a further bundle to pay ALF's Fees for all the array
of Managing & Performing duties, that is if the boys and girls still dont want to throw more pocket money
at NZL Cap Raise begging bowls ;)


The last share issue job from NZL @ $1.60 a shot or so for all the Management fees must have gone down like a bad lingering case of indigestion for Management Co when NZL shares then lost so much value in just 6-8 months subsequently - was it half the value of fees lost in impairments on new shares ? ;)



These sort of things happen when cheap dough becomes as scarce as hens teeth and approaching storm
clouds scare most into holding onto their pennies hoping things dont get worse ..

But it could be or get even worse .. Receivers & Liquidators are now having difficulty seeing interest in failed businesses .. imagine what could happen if advanced Primary Sector doom and gloom hits which is possible and if a whole cupboard full of distressed non performing Ag & Forestry hits the skids at Firesale values, possibly less in attempts to stop things totally sliding down a slippery slope. ;)

Once a slide starts and damage done, there won't be many smiles anywhere .. ;)

[Muse]

NZTX - once again (or as always) - I don't think you have a good grasp on what you are talking about or in a position to talk about in any constructive way about ALF's fundamental value. While I certainly wouldn't buy anything from Waterman, I get a whole lot more interested when they are buying something, and have a lot more faith in their track record over yours.

For whatever reason you love to dump on this share but consider this. At 70cps, and using FY23's statutory NPAT attributable to shareholders, gives it a PE of just 6x. ALF holds what 2.8m NZL and at closing price gives that holding a value of $2.3m, so mcap net of surplus NZL assets is $17.9m, or a PE net of surplus assets of 5.35x.

Did you consider that now that ALF fully owns the rural land management company (for only 1/4ths the year, but has now fully paid for the company by way of cash issue (partially funded by debt) and transfer of NZL shares) it will now be able to fully consolidate its earnings going forward whereas previously it just equity accounted its earnings? Holding all else equal, that will give rise to a large rise in NPAT. So if you did a pro rata adjustment for the (at least) 1H result that would result in another $417k is profit. Accounting rules require the contract to be amortised which is a bit like goodwill amortisation which is bogus (in my view) so you could easily addback that at $131k, and then less say a proforma full year interest expense associated with the debt they took on to fund the acquisition. Plus one off transaction expenses associated with the tax loss revenue and costs associated with the valuation of the rural land mgnt company, you are talking about a sub 5 PE multiple.

That doesn't include the full year going forward contribution from the enlarged forestry estate. Yes, performance fees are likely to be lower, but they already have been in the full year just been, and quite well reflected in the go forward position. ALF's holding in NZL shares may be volatile but you can account for that by doing to mark to market on the shares ALF holds in NZL at the prevailing SP. and even if you don't think any performance fees will be payable going forward (ever), all you have to do is look at a broker report showing the ongoing (high margin) base management fees payable to RLM/ALF, and it puts its all in perspective.

This has the hallmarks of a pivot in strategy, away from traditional livestock business (which has been going very well) to a more predictable, higher margin, higher value rural investment/asset management focus. And no, no dividends, but why would you want to declare unimputed dividends when you have massive tax losses that you can utilise to buy other adjacent rural asset management companies and use the tax free cashflows to rip down debt and grow shareholder value? That is, in my view, unarguably the strategy that's been put in place.

No chance Waterman will be buying my shares that I recently purchased well below their entry cost (they want to make 2-3x their money over 5 years, and were very keen paying 75cps recently, so offering 71.5 is taking the absolute piss in my view) but I look forward to the shenanigans they may put forward in their unsolicited offer to get to 19.99%.

[percy]

Excellent research and analysis.
Thank you for sharing as we have a modest holding in the wife's name..

[Muse]

I have a few pennies. Couldnt buy much.

[WAIKEN]

Thanks Fiordland for your excellent analysis and cogent presentation.
I see ALF as massively undervalued. If we add the tax losses the undervaluation is even greater. I believe Watermans will have a plan to utilize these tax losses. The trading was strange yesterday. It looked like an algorithm was operating trading little amounts. The large seller looked like a blocking sell to force sellers below its price. If it was Watermans buying it should be noted in a substantial security holder notice soon. If it wasn't it may be game on as another party may share our view of massive undervaluation and may soak up nervous holders. I see this going to 1.40 over the next few years and sooner if another party is building a large stake.

[golden city]

The uptrend just start ,it is hugely undervalued Alf

[nztx]

NZTX - once again (or as always) - I don't think you have a good grasp on what you are talking about or in a position to talk about in any constructive way about ALF's fundamental value. While I certainly wouldn't buy anything from Waterman, I get a whole lot more interested when they are buying something, and have a lot more faith in their track record over yours.

For whatever reason you love to dump on this share but consider this. At 70cps, and using FY23's statutory NPAT attributable to shareholders, gives it a PE of just 6x. ALF holds what 2.8m NZL and at closing price gives that holding a value of $2.3m, so mcap net of surplus NZL assets is $17.9m, or a PE net of surplus assets of 5.35x.

Did you consider that now that ALF fully owns the rural land management company (for only 1/4ths the year, but has now fully paid for the company by way of cash issue (partially funded by debt) and transfer of NZL shares) it will now be able to fully consolidate its earnings going forward whereas previously it just equity accounted its earnings? Holding all else equal, that will give rise to a large rise in NPAT. So if you did a pro rata adjustment for the (at least) 1H result that would result in another $417k is profit. Accounting rules require the contract to be amortised which is a bit like goodwill amortisation which is bogus (in my view) so you could easily addback that at $131k, and then less say a proforma full year interest expense associated with the debt they took on to fund the acquisition. Plus one off transaction expenses associated with the tax loss revenue and costs associated with the valuation of the rural land mgnt company, you are talking about a sub 5 PE multiple.

That doesn't include the full year going forward contribution from the enlarged forestry estate. Yes, performance fees are likely to be lower, but they already have been in the full year just been, and quite well reflected in the go forward position. ALF's holding in NZL shares may be volatile but you can account for that by doing to mark to market on the shares ALF holds in NZL at the prevailing SP. and even if you don't think any performance fees will be payable going forward (ever), all you have to do is look at a broker report showing the ongoing (high margin) base management fees payable to RLM/ALF, and it puts its all in perspective.

This has the hallmarks of a pivot in strategy, away from traditional livestock business (which has been going very well) to a more predictable, higher margin, higher value rural investment/asset management focus. And no, no dividends, but why would you want to declare unimputed dividends when you have massive tax losses that you can utilise to buy other adjacent rural asset management companies and use the tax free cashflows to rip down debt and grow shareholder value? That is, in my view, unarguably the strategy that's been put in place.

No chance Waterman will be buying my shares that I recently purchased well below their entry cost (they want to make 2-3x their money over 5 years, and were very keen paying 75cps recently, so offering 71.5 is taking the absolute piss in my view) but I look forward to the shenanigans they may put forward in their unsolicited offer to get to 19.99%.

Thanks for the Reputation Comment:


you are one of ST'rs least respected contributers. thank god you don't invest my money.


Just so all can see your low down antics on this site.

[Rawz]

Good post and last ever at that from the great FiordlandMoose :cool:

[winner69]

Good post and last ever at that from the great FiordlandMoose :cool:




Oh no ….has Fiordland Moose gone for good?

Was muttering about fixing ATM machines on another site ,,,,maybe change in job/lifestyle will be good for him

All the best Moose

[Rawz]

Oh no ….has Fiordland Moose gone for good?

Was muttering about fixing ATM machines on another site ,,,,maybe change in job/lifestyle will be good for him

All the best Moose

still around inspiring our creative work

[Muse]

Didnt like the name - changed it to Muse

[clip]

Was it pronounced "Fiordland Muse" all along :ohmy:

[golden city]

Received the letter from waf wonder anyone would sell as the share price is already over the offer price ha

[golden city]

Waf hungry for more. Even buying on market at 72c

[Sideshow Bob]

Waf hungry for more. Even buying on market at 72c

Got another 2%. Up to 18.7%.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/ALF/418690/403537.pdf

[golden city]

Let’s see if waf is known in advance that on November are we expecting some kind of dividends

[Muse]

Got another 2%. Up to 18.7%.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/ALF/418690/403537.pdf

I sure hope with WAF's ~20% gobble together with the new MD's purchase that, together w/ normal course of business trading, doesn't breach the shareholder continuity test anytime soon and forgo the massive tax losses available. Likewise, that the pivot to asset mgmt doesn't breach the business continuity test for retaining tax losses. I presume not, and can't be bothered to check, but would be a pity if those tax losses were lost.

https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/income-tax-for-companies/losses-for-companies/carrying-company-losses-forward

@golden city I wouldn't count on dividends soon. I'd prefer it if ALF debt funded the acquisition of other rural asset firms and used the tax free cashflows to paydown debt. Then do the odd debt funded stock buybacks and capital returns, and when all that was done, maybe then start paying unimputed divvies.

Wonder when a director from WAF joins the Board.

[golden city]

I hope they could find good acqusition opportunties ,maybe getting back on rural estate agency business

[golden city]

Waf will be very happy almost accomplished what they wish for

[golden city]

We are starting the uptrend as not many shares on market

[WAIKEN]

Buyers are appearing now. The register has tightened with WAF soaking up most of the nervous holders.

[golden city]

We are ready to break the dollar soon I think

[golden city]

Let’s see if we will closed at 85c this week

[Sideshow Bob]

WAF going from 19.90% to 19.96%.....getting as close to 20% as they can.....

https://www.nzx.com/announcements/420487

[nztx]

Darn .. should have waited .. if you wait long enough some other sucker will be along chasing your shares for good dough ;)

Maybe they come along next week wanting all they dont already own for a buck a shot .. to help a mate out :)

[nztx]

Who cares about a skinny Dividend holiday with this mob, when there is an abundance of eager beavers now circling
happy to make the ALF experience prosperous without having wait for New Year :)

[mfd]

They've been pretty clear for a couple of years now - no dividends planned because they are sitting on a pile of tax losses and it would be inefficient to do so.

[nztx]

They've been pretty clear for a couple of years now - no dividends planned because they are sitting on a pile of tax losses and it would be inefficient to do so.


Tax Losses never stopped them paying dividends before.. why now ? ;)

[n908671]

They've been pretty clear for a couple of years now - no dividends planned because they are sitting on a pile of tax losses and it would be inefficient to do so.

Help me get my head around this.

Is the inefficiency because of the tax losses carried over, they will not pay tax on profits until these losses are used up. Therefore there will be no imputation credits attached to the dividends so shareholders get hit the full whammy tax on the dividends.

[Muse]

Help me get my head around this.

Is the inefficiency because of the tax losses carried over, they will not pay tax on profits until these losses are used up. Therefore there will be no imputation credits attached to the dividends so shareholders get hit the full whammy tax on the dividends.

You are on the right track.
In order to attach imputation credits, you must have paid tax / have tax paid income.
ALF is sitting on a massive pile of tax losses. Therefore, there is no tax to pay on its profit before tax, and thus can't attach imputation credits.
That doesn't stop the company from paying unimputed dividends. They are free to do so. Many do.
But the existence of those tax losses also provide a financial incentive for the company to potentially grow by acquisition, using sensible amounts of debt, as the cashflow from its operations will be quite strong (given it doesn't have to pay tax) and it can use those strong cashflows to quickly paydown any debt. I suspect that is why WAF has bought in. The nature of ALF's rural land management business is quite cashflow positive as well.

[blackcap]

You are on the right track.
In order to attach imputation credits, you must have paid tax / have tax paid income.
ALF is sitting on a massive pile of tax losses. Therefore, there is no tax to pay on its profit before tax, and thus can't attach imputation credits.
That doesn't stop the company from paying unimputed dividends. They are free to do so. Many do.
But the existence of those tax losses also provide a financial incentive for the company to potentially grow by acquisition, using sensible amounts of debt, as the cashflow from its operations will be quite strong (given it doesn't have to pay tax) and it can use those strong cashflows to quickly paydown any debt. I suspect that is why WAF has bought in. The nature of ALF's rural land management business is quite cashflow positive as well.

The problem with companies that pay unimputed dividends, is that they have to pay the RWT amount to the IRD in cash. Effectively giving away cash for nothing. It is a losing situation in the NZ tax regime. It would be better for them to return cash via other means, like a share buy back or as Muse has pointed out, grow by acquisition. Or do what SKT did and pay back capital.

[golden city]

Share price performing better after acquisitions of shares

[nztx]

Cockies still smiling sweetly through the storm clouds .. or showing signs of getting nervous ? ;)

Have to watch out for mysterious double or triple whammies that happen to just sneak up from
behind out of nowhere ..

hopefully not the sound of sh*t hitting multiple fans .. ;)

[golden city]

It looks like the share price could breakout anytime

[WAIKEN]

My target price is 1.50 by 31.12.24

[thedrunkfish]

My target price is 1.50 by 31.12.24
Interested as to how you came up with that figure?

[golden city]

EPS currently at 11.59c and it is growing average over 20% in the last a few years if it kept going $1.50 is very reasonable

[percy]

Positive for ALF.
https://www.nzx.com/announcements/424986

[golden city]

Yes very positive in deep

[WAIKEN]

I believe we will see ongoing value accreting moves from the astute boards of ALF and NZL
ALF has some clever shareholders in our top 10

[golden city]

Yes they are surprising me by every move at present

[nztx]

Positive for ALF.
https://www.nzx.com/announcements/424986


NZL: "Let's grab the opportunity to get out of a tight spot" ? ;)


Will Performance fees payable to ALF also reduce by 25% ?

Do they get a chop out of the sale performance as well ? :)

[percy]

NZL: "Let's grab the opportunity to get out of a tight spot" ? ;)


Will Performance fees payable to ALF also reduce by 25% ?

Do they get a chop out of the sale performance as well ? :)


Read the announcement....Good deal for ALF....
I put the link there for you to use.

[nztx]

Read the announcement....Good deal for ALF....
I put the link there for you to use.


Sure .. Interim dividend on the way in July you reckon ? :)

Or buyback ? they might recall some of golden's stash for cash :)

That might surprise ..


Alas .. a bit of a SP sneeze / whimper today on that announcement for ALF

[percy]

Sure .. Interim dividend on the way in July you reckon ? :)

Or buyback ? they might recall some of golden's stash for cash :)

That might surprise ..


Alas .. a bit of a SP sneeze / whimper today on that announcement for ALF

With their huge tax losses it would make no sense paying a divie.
I would think they will look to reduce debt.

[golden city]

It is going to be a 5m profit year so eps will be around 18c so 1.50 per share valuation is very reasonable

[nztx]

It is going to be a 5m profit year so eps will be around 18c so 1.50 per share valuation is very reasonable


Share Buyback might see double that SP - just cancel 1 out of every 2 shares :)

Easy way to double EPS too, even if no-one sees a dividend

then Split shares again .. followed by a rinse & repeat .. very tax efficient


Poor old ALF might even reach $5 a share on that pattern .. who wanted a dividend anyway ? ;)

[blackcap]

I think ALF are ok with this. I have recently come on board again. I see the previous board were effectively rolled by Swasbrook and co. They are clever Auckland money people and have nothing with farming per se from what I can see.

However setting up NZL and the subsequent management company was a stroke of genius. Out of thin air a management company valued at $5m? was generated. Alf effectively have a portion of this.

Out of the 2 investments, ALF is the one to be long, NZL the one to be short. (Just my humble opinion)

[percy]

I think ALF are ok with this. I have recently come on board again. I see the previous board were effectively rolled by Swasbrook and co. They are clever Auckland money people and have nothing with farming per se from what I can see.

However setting up NZL and the subsequent management company was a stroke of genius. Out of thin air a management company valued at $5m? was generated. Alf effectively have a portion of this.

Out of the 2 investments, ALF is the one to be long, NZL the one to be short. (Just my humble opinion)

ALF own 100% of the NZL management company. NZRLM.
• On 27 March 2023 Allied Farmer’s acquired the 50% of NZRLM not already owned, having exercised its call option on 19
December 2022. The purchase price was $8.3m as determined by an independent valuation undertaken by PwC in accordance
with the terms of the call option agreement. The purchase price was satisfied by the payment to the vendors of $6.55m of cash
(funded by a loan from Heartland Bank), and the transfer to the vendors of 1,800,227 NZL shares owned by Allied at their 20-day
volume weighted average price prior to completion date of $0.9721 per share, being a total of $1.75m.
• Allied Farmers' total acquisition cost for 100% of NZRLM is $10.8m ($2.5m for the initial 50% in December 2020, and $8.3m for the
remaining 50%), compared to the PwC valuation of $16.6m. Coupled with the return on investment to date, this has been a
significantly value accretive investment for Allied.