Originally Posted by
Maverick
One would be forgiven to think HLG has had its run but the numbers in todays report, although not new, are stunning. Apart from the obvious headline of the huge profit increase, sales AND margins there are a few goodies in there too.
Storm lost 1.45 million before this massive profit so that makes the theoretical profit of 16.55 million NPAT.
The direction of HLG is very pleasing. Ridding themselves of Storm and large increase of capital spending in AU. AU glassons is still smaller than NZ Glasson but I suspect this year it will exceed NZ. Their margins over there are better too which is surprising.
So with the huge blue sky potential with the AU expansion, the shedding of storm, ever increasing online sales (which must be very high margin given the low extra overhead costs associated with it), proven store formatting and availability of them I`m thinking these profit levels are VERY sustainable.
While they keep to the script and continue with their well selected offerings then $6-$6.5 sp here we come, plus a divi or too along the way.