A truly splendid result.
Printable View
Splendid in comparison with what they did last year. In real terms 'net margin' and 'return on shareholders funds' at SCY are well under half that achieved by 'The Warehouse' as a comparative example.
Now, how does the five year average dividend valuation for SCY stack up? The dividends declared over the last five years are as follows:
-----
2012: 1.0cps, 2.5cps
2011: 1.0cps, 1.0cps
2010: 1.0cps, 1.0cps
2009: 1.0cps, 1.0cps
2008: 1.5cps, 3.0cps
-----
That equates to an average dividend of 2.8cps. SCY does not pay tax because they are sitting on a large pile of tax losses. So in this instance, because the shareholders do pay tax on receipt of SCY dividends, the gross income for shareholders is the amount of the dividend paid.
2.8c/0.08= 35c
That may look low with buyers in the market at 50c. And if SCY can keep churning out results like they did this year then 50c is probably a more accurate valuation. But can they?
SNOOPY
I think one thing Smiths City has done well is recover from the Christchurch earthquake quickly. Their store in the centre is now up and trading, even as a grand redevelopment is planned, while rivals like Harvey Norman across the road show no signs of reopening. In addition the secondary stores at Upper Riccarton and Belfast have allowed Smiths City to continue tradiing through a visible platform right through the earthquake season. But as the competition comes back, then Smiths City will have to outmarket their rivals to maintain this momentum.
Also how much of the 'trading income' they declared for FY2012 was in reality interruption of trading insurance payouts, rather than real sales?
SNOOPY
Not only have Smiths City recovered well from the Christchurch (big) earthquake but of course they are "disproportionately" represented there, in that Christchurch forms a major part of their business. Seems they have captured a big chunk of the business in furniture/appliance replacement via insurance payouts.
Just took advantage of my Shareholders Xmas discount. Havn't been into the shop in Colombo St since it reopened, was pleasantly suprised at the range and variety of stock considering the smaller foot print.
Impressed with the quality of the sales staff and the product knowledge, quite happy to look in manuals and product books instead of pretending that it was the perfect product for me. Also felt they were listening to me rather than adding up their commission.
Pricing was pretty competitive I bought some kitchen items that were good quality and pricing less than Briscoes, Farmers or Stevens on sale. Checked out garden products similar to Bunnings prices.
Looking at appliances also comparable to NL HN and reasonable range, will probably take advantage of the discount on appliances by the end of this week.
Hope you put on the never never ..... financing is where they make their money
Cash is king, sometimes.......
Today's announcement that Smith's will end their finance company funding from FPF [F&P finance for 30 years] to ANZ is no surprise.What was a surprise was that they were paying 10% for their funds.New finance is from ANZ [National Bank have supported Smiths well] at 6%.Smiths will use the savings to remain competitive in their HP deals I expect.Must be no love lost with FPF as they are charging Smiths $1.4m break fee.!!!Bet Craig Boyce will be looking for a new whitware supplier.May cost FPA a huge "slotting fee" for Smiths to stock FPA appliances.Does $1.4mil sound fair?
Percy who in there right mind wants F&P appliances anyway. May be some of the reason for the split. They did not want to have to stock F&P appliances.