Sector rotation taking place out there - PGW has to be one of the best stocks for investors to switch from yield sensitive stock (like the utilities) into.
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[QUOTE=Snoopy;873241]There was talk in the interim report of ramping up the 'Go Livestock' funding of sheep and cattle. Perhaps the additional borrowing headroom is associated with that?
I failed to spot that Snoopy, so thanks that provides some reassurance that debt is not increasing without a tangible matching asset which has happened in the past. Happy to remain a collector of nice dividends however would prefer to get a lesser dividend while that balance sheet is strengthened.
This was asked on the analysts call today about why the increase in dividend given guidance. They answered it in a diplomatic way, but I think Snoopy is right when he said whilst Agria are on the board they will pump as much dividends as possible.
Anyone have any insight into the auditor resignation?
I recall something at the AGM was said about the current person at KPMG, who was doing PGW's auditing, retiring. In FY2007 KPMG replaced Price Waterhouse Coopers as auditors at PGW. So KPMG have been PGW's auditors for fourteen years, a marathon stretch. I suspect rather than bring a new KPMG bod up to speed, it was mutually agreed that now would be a good time to transition to a new auditor. I don't think there is anything more sinister than that with this change.
SNOOPY
Say EBITDA going to be $56m
Allowing for the $2m impact of change in accounting guidance in line with what they said previously
https://announcements.nzx.com/detail/375948
Market consensus by the few analysts covering the stock was $46m. Shows how far out of touch the market is with this stock.
Looking forward to yet another nice dividend comes Sept.
Meanwhile, the agribusiness sector is on very good heart when it comes to farm profitability, protests against government interference notwithstanding.
in the Herald this morning
Analysts at Forsyth Bar expect seven companies to make a loss: Auckland Airport, Air New Zealand and Tourism Holdings as well as A2 Milk, Refining NZ, PGG Wrightson and Synlait Milk.
Can't be right .....can it
https://www.nzherald.co.nz/business/...YOK5EE5BJ2ZPY/
Seems unlikely given the announcement only a couple of weeks ago.
Half year results to 31 Dec 2020 :
Operating EBITDA** of $42.1 million (up $7.4 million or 21%)
Net Profit after Tax (“NPAT”) of $18.0 million (up 41%)
Guidance provided on 21 July :
Wrightson Limited* (PGW) today announced that following strong trading over the second half of the fiscal year it expects its full year to 30 June 2021 Operating EBITDA** to be around $56 million.
So Snow Leopard is expecting an EBITDA of $13.9m in the second half to produce a loss of $2m NPAT?
Let's wait for his reply - will be very insightful!
From that 2H EBITDA of $14m subtract the DA & the I and see what you get, add back a little T
My working were based on 2020FY & 2021HY accounts and the then forecast $57m.
Would be more than happy to be proved overly negative.