I thought he had shelved the idea of increasing his stake a few weeks back
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I thought he had shelved the idea of increasing his stake a few weeks back
That is just consolidating their holdings, not increasing the %.
With the company tax rate being lower than the trust tax rate, this could be as simple as a tax efficient holding structure. I am sure the Hill family dont need the dividend income stream for day to day living so retaining in a company makes sense.
Must admit Belg...MHI wasn't not one of my better portfolio holdings and it wasn't that big a portfolio holding about 4% which really is an useless holding if you are after cap gain. ..tentatively bought in during a mental implosion just after New Year 2010 thinking the good news at 68c + a possible dividend increase + the thought that the overall NZX market was going to keep rising up (a rising tide raises all boats)...however the plan went awry the NZX fell..nearly pushed the bail out button on many occassions but the tight trading pattern kept me in...not much else around + I had cash at hand then...
Didn't buy anymore on the recent 72c symmetrical triangle breakout because I'm so over MHI shares... it briefly paused at 80c giving me an "out"...reason:.. I'm now 99.5% in the market and I really need cash in a hurry to buy another share I'm interested in.....yeah made 12c/share + a couple of Dividends 1.5 + 2.5 = 4c/share and my brokerage didn't eat much cap gain ..so no disaster Belg made 16c/s (maybe 15c/s) on an outlay of 68c/s
But if MHI goes over 84c may be tempted to cull something else in my portfolio and re-enter if there is not much else around at that time..who knows
Partial takeover at 90c.
How much of the recent price rises can be attributed to people in the know?
90 cents not enough to have me running for the exits , but a vote of confidence for the stock that
Mr Hill wants more shares in his own comaany
But the price was 70 cents then... its moved a lot lately on little or no news while the markets in general have been moving sideways. I bought some more at 70 a while back and am now wondering if I should ditch some of them....
Why give him 50% control for only 90c.
Exactly CJ...and even more so when in august the CEO was quoted in the NZHerald that their movement then had nothing at all to do with wanting majority control.(or words to that effect).
Also makes you wonder why they want it. They have effective control now anyway with 45% so the only think they couldn't push through is something that requires 75% or something that only requires 50% but everyone else would vote against (which almost never happens)
Belg, with you on this one... but why are the ACC and the other fund selling some of their shares? I wouldnt mind knowing the rationale behind this. Also if they creep provisions are in place and they can purchase up to 5% of shares in any one year... that will seriously underpin the shareprice one would think. Interesting... the free float on shares will be even less once Durante have their 50.1%... Happy holder at this stage
Things going so well for MHI (todays announcement) nobody should sell into his offer eh
Yes, Winner, I would'nt be selling these shares anytime soon. This guy is a smart cookie and MHI is bucking the current gloomy retail forecasts. If they keep posting positive profit announcements and the US market picks up this share could easily hit a $1 plus , regardless of the buyback . I'm a happy holder.
a cynic would say he should have waited with the announcement.... :P
looks like they are having trouble getting enough acceptances at 90 cents. Can and will they raise their bid?
Agree Belg, got a letter in the mail today from Durante, signed by Sir M himself. Smacks of desperation...
Durante have received acceptances for 78% of the 9 million shares required to declare the Offer unconditional.
They claim to be "encouraged by the response and confident that the Offer will succeed".
We'll see.
Totally underwhelming response to this result and the ordinary dividend ........................I think everybody wants to know whether or not MHI reach their target and whats going to happen if they don't. Until then the shareprice is going nowhere.
Am I the only one that thinks having one family own a controlling stake is a huge negative?
I like this business and Michael Hill but it really does mean there can never be a truly independent board and any large decisions will be at the whims of the Hill family if they have 50.1%
Or am I missing something and they do not have voting rights on all of their shares?
I would impressed if anyone actually knows what this release means precisely. Good old NZX wondering why the retail investors stay away from the market yet they insist on allowing messages to the market to be in cryptic mumbo jumbo language. I cannot think why other than nobody can be bothered in redesigning the forms to make them useful!
MHI
21/02/2011 08:30
RELINT
REL: 0830 HRS Michael Hill International Limited
RELINT: MHI: Ongoing Disclosure Notice (Leslie Wayne Peters)
DISCLOSURE NOTICE
Disclosure of Directors and Officers Relevant Interests
(Section 19T, Securities Markets Act 1988)
A. Disclosure obligation (tick box to note which disclosure
obligation applies)
Initial disclosure (complete Parts A, B, C, D, F, and G of this notice)
Ongoing disclosure (complete Parts A, B, C, E, F and G of this notice) X
B. Preliminary
1. Name Leslie Wayne Peters
2. NZX company code of issuer MHI
Name of issuer Michael Hill International
3. Name of related body corporate (if applicable) N/A
4. Position you hold in the issuer Director
5. Date of this disclosure notice 18/02/2011
C. Nature of relevant interest
6. Name of registered holder(s) of security (as required by regulation
6A(b) or regulation 7(b)) Funds under management
7. Class and type of security (as required by regulation 6B or regulation 8)
Ordinary Shares
8. Nature of relevant interest in security (as required by regulation 6A (a)
or regulation 7(a)) Non-Beneficial
D. Date (for initial disclosure)
9. Date of disclosure obligation (as required by regulation 6C) N/A
E. Transaction (for ongoing disclosure)
10. Date of last disclosure (as required by regulation 13) 24/02/2010
11. Date(s) of acquisition(s) or disposal(s) (as required by regulation 9)
18/02/2011
12. Number of transactions (as required by regulation 12(2), if applicable)
1
13. Nature or type of transaction (as required by regulation 11(1)(a))
Termination of management
of client account.
Control and voting rights over
shares relinquished.
14. Consideration (as required by regulation 10) N/A
15. Number of securities held prior, set out by class and type (as required
by regulation 8) 46,618,500
16. Number of securities subject to acquisition or disposal (as required by
regulation 11(1)(b)) 644,000
F. Extent of relevant interest
17. Number of securities held now, set out by class and type (as required
by regulation 6B or regulation 8) 45,974,500
End CA:00205814 For:MHI Type:RELINT Time:2011-02-21 08:30:13
Agreed! they are absolute crap,why can't they just simply state someone bought or sold such and such amount of shares and be done with it,simple small memo would do.
Not a fan of Mark Weldon at all,he's a puppy,licking heals.
From Sharechat news:
Partial takeover of Michael Hill unconditional
Monday 28th February 2011
Text too small?
The Hill family's partial takeover offer for jeweller Michael Hill International (MHI) has become unconditional, with acceptances exceeding the number of shares sought.
Late last year it was announced that Durante Holdings, an Australian company set up to consolidate the holdings of shares in MHI held by the Hill family through family trusts, wanted a controlling stake in the company.
Durante, a wholly-owned subsidiary of one of the Hill family trusts, owned 47.6% of shares in MHI when the offer was made. It sought to buy 5% of the shares it did not already own to take its holding to 50.2%.
Today, Durante said that as at 10.30am it had received acceptances for 12.14 million shares, more than the 10.03 million it wanted.
All the requirements of the offer, which closes today, had been met and was now unconditional, Durante said.
As a result of acceptances exceeding the number of shares sought, scaling would be undertaken.
------------------------------------------------------------------------
Maybe the shareprice may recover a bit now or maybe not!
Disc: Did not sell any of mine - Long term Portfolio
I reckon 92 was the breakthrough. Loving 93.
Can it be sustained or, more to the point, be built upon?
The RSI aint much, but macd all positive. Can anyone find an OBV please?
Fingers crossed. Cheers
OBV looks good. This indicator is available free on FinData.co.nz website, select products then charting, it is not the easiest to read but its free!
Sure was. Seven times MHI tried and failed to break the resistance at 91 cents, with the breakout finally coming over a week ago. Since then, this broken resistance has now become support (light green arrow) just as the book says it should.
It looks pretty good to me - had you noticed the recent Bullish Divergence?
I wouldn't place too much reliance on that, Scamper. As a longterm "Buy and Hold" MHI has appreciated at an average of 33% pa. Trading it using MACD signals would have returned just 5.8% pa. Only 1 in 3 MACD signals lead to profitable trades - now that ain't much!
MHI has been in a narrow 86 - 91 cent trading range for months. We should not be too surprised that this eventually broke to the Upside for the following reasons :-
(1) Trading ranges formed after an uptrend are usually a consolidation pattern in that 70% of them break to the upside.
(2) The OBV continued to rise even though the price did not. MHI was being accumulated.
(3) The RSI(14) (default value) had triggered a Buy signal and had made a Bullish Divergence.
http://i602.photobucket.com/albums/t...sPB/MHI511.gif
As usual, many thanks, phaedrus.
I not at all sure of the parameters and significance of divergences in the rsi. would love an explanation when you've time.
The obv sure is marvellous. thank you for the web site link, evander.
cheers, scamper.
That particular one came from Bulkowski's Encyclopedia of Chart Patterns. (A really good book!)
Thanks, the book looks interesting, I've always wondered if people were just making up the numbers or had done actual testing to find the numbers. I think I'll have to get hold of a copy of it.
I like the company and think it's well run but I'm not convinced it's a breakout. For the last 6 months the share price has been in a range between 86-94c, and for most of that time 87-93c. This recent rise just puts it back into the middle of the range and there doesn't appear to be any significant trades in the past few days. The report is good news and shows that the company is doing really well in Canada, almost breaking even now but the market as a whole appears to be trending down taking MHI with it. If the price breaks above 94 then it would be more interesting.
DISC sold a few days back.
It thought last year the final div was 2.5c this year 3c. I would have thought a similar 2.5c div was priced in so only the extra 0.5c was unexpected. Thus only pushing up the price by 0.5c potentially. Although the price has started to rise so maybe it will breach the 94c resistance level in the near future.
Another business I wouldn't go near for the simple reason that over the last few years inventory turns have been consistently falling. Happy to wait for the next growth phase.
I don't know belg old chum. You might be right. My thinking is that if you are manufacturing to retail yourself, then in todays retail and manufacturing world, you are making business that much harder for yourself. When retail spending declines where do you turn? Do you keep on opening more and more shops?
Arn't Billabong in this very position?
Have you guys looked into their Professional Care Plans (PCP) at all?
An excerpt from the 3 month update in October:
Given the revenue (not recognised in the income statement as yet...) for the September quarter was $5.4m, it looks like a significant contributor already even though it was only launched in October 2010. I'll be interested in the half year results to see the costs of sales - I imagine it will be quite good.Quote:
The figures stated above do not include revenue collected from the sale of Professional Care Plans (PCP), an initiative launched in October 2010. The revenue from these plans is carried on the balance sheet as deferred revenue and will be brought to income over the life of the plans (3 Year and Life Time).
The PCP programme has the potential to contribute materially to income. Initially, the rate at which this revenue is brought to income will be largely based on our research of similar programmes in North America. As we gain a better understanding of the Company’s actual experience, we will progressively refine the rate at which this income is recognised.
Because the PCP programme has been in place for less than a year the company is not in a position presently to accurately estimate the amount likely to be brought to income for the period covered by this trading update. The amount that will be brought to income at the half year and full year will be estimated at those times, and will be based on that overseas research and the data collected over the period in relation to use of the plans by our customers.
Quite impressive growth in the PCP front....almost $10m in the final 3 months. Still looking forward to seeing the margin they have worked out on that revenue stream through their model.
It does look like they are suffering quite a lot in other areas though...esp Aussie (relative to prior periods...still handsome profits I'm sure!). USA looks better. Market didn't like it much though...depth fallen away?
Looks pretty good to me Belg.
Operating cashflow up significantly, due to PCP.
Summary of Key Points (all values stated in NZD unless stated otherwise)
Operating revenue of $288.846m up 7.3% on same period last year
Same store sales were 1.7% up on same period last year
EBIT of $34.775m up 9.2% on same period last year
Net profit before tax of $32.337m is up 12.7% on last year
Net profit after tax of $26.297m is up 11.5% on last year
Revenue collected from Professional Care Plans of $14.411m for the period
Net debt of $10.728m at 31 December 2011 down from $49.163m last year
Operating cash inflow of $46.800m up from $21.040m last year
7 new stores opened and 1 closed during the period
Total of 245 stores open at 31 December 2011
Interim dividend of 2.0 cents per share up 33% on last year
Equity ratio of 56.2% at 31 December 2011
Those professional care plans are going to be tricky to value liabilities for. Will be interesting to see how it goes. I see the liability is written down to nil over 10 years, despite being "lifetime". Which is interesting in itself. I guess there will be plenty of takers investing in the lifetime care plan for the precious engagement ring, only to have it thrown back at them... lots of people prepared to pay for extended warranties they never use.
Liz, I think they are saying that for accounting purposes, after 10 years people won't bring their jewerelly in anymore and therefore they won't have a liability. I think they will still honor the lifetime plan, but as you say, people just won't end up using them. 1 or 2% of people might bring them in after 10 years?
PCP looks like a winner. Maybe not for the people buying into the plans though.
I've had an involvement with a number of warranty style schemes over quite a few years. The keys to success is typical retail stuff - price point and volume - and a good understanding of risk pricing (this isn't what retailers are good at so they usually need to involve someone else). As suggested, the claims tail on these schemes tend to die off quite suddenly at x point in time - x varying according to product and customer demographics.
The problematic aspect of these schemes is that they tend to perform worst exactly when the retailer doesn't want them to - recessions. Bad economic times encourages customers to make claims. In good times more of them opt to ignore the problem and just buy something new. But properly priced, if you are prepared to take sometimes lumpy returns (profits can disappear just because a numbers guy told you so and 1 person in 100 will fully understand the math), they can add a nice source of cashflow.
Even a mispriced scheme can still work OK because you are getting the cash years before you need to spend it. Because Michael Hill plans to be opening hundreds more stores in the future, temporarily free cash is quite useful, even if the warranty subsequently only breaks even or makes a small loss. Better yet, if the warranty makes money, they achieve a Buffett style "free float".
Do you realise how far-flung your influence is, Belgarion?
I make it ~ 13% increase since your post.
Is MHI still "squarely undervalued" at 100 cps? Cheers.
Great post Halebop. I think this PCP looks like a high margin operation.
Scamper - yes. Still undervalued...
MHI has a scalable business model that just got so much better with PCP really taking off.
To think these guys eventually want 1000 stores...if they perform as they always have (check out some of their presentations for 6 monthly growth stats....increased every half since ages ago) it can only mean one thing over the long term.
http://www.stocknessmonster.com/news...=NZSE&N=220491
Are they allowed to do this? They did not disclose to the market that they were buying 5% back before they launched their conditional offer (it's not shown on ASB Sec in any case).
What of those people who sold recently before the offer? This has obviously taken the market by surprise.....
Opps, just noticed this announcement references back to 14 January 2011 (original offer for partial takeover). It's odd that it took so long for it to come through and it still looks strange!
In any case, explains the volume over the past couple of days. MHI looking good.
Have been looking at MHI’s half yearly results, hoping to make sense of their “Professional Care Plan” (PCP) numbers. There isn’t much to go on;
Revenues up very strongly in the half year results $14.411m, only $1.466m of which was recognised due to a 3 to 10 year expected exposure period.
The balance sheet now shows $21m in deferred revenue – cash will have shown a similar increase although this would have already been deployed elsewhere.
The cash benefits show through on aggregate cash and borrowing balances, which have improved markedly in the last 18 months due to higher operating cash-flows and profits.
The workings of the PCP are vague. It appears commissions or sales incentives are expensed as there doesn’t appear to be any recognition of deferred acquisition cost. When you pay for commissions and other sales expenses but the benefit of that sale extends beyond the current reporting period you may opt to defer recognition of that expense until the revenue is also recognised. If this is the case current profits on PCP are understated (or ”conservative”) i.e. If you imagine there is a 10% or 20% commission but only a 10th of revenue is recognised then there is no benefit to profitability in the current period. I’d be interested to get a clearer explanation of the mechanics of this line of business.
The balance sheet is interesting. In a decade or so Deferred Revenue and proceeds from the balancing cash receipts are likely to make up 30-50% of the balance sheet. Investors might consider they then effectively own a warranty insurer with a retail arm. Assuming the PCP is priced correctly, all that free cash will have largely paid for store expansion while profitability will probably have left the company debt free to boot. I’d hope not but perhaps they might be tempted towards corporate activity? In light of the Hill family’s recent “creep” for control perhaps the corporate activity will be privatisation?
Pricing the PCP correctly is the tricky part. The lifetime PCPs are effectively a liability with a very long tail. Even 10 years might not be enough time to know if the they are making money on them. While this might make lots of money, the risk profile of this revenue stream is very different from a retailer of jewellery.
Overall I view current performance and recent historical trends favourably. Would like to see a few more store openings but let’s face it the retail environment has been more hostile in recent years, I can also recall a share trader debate on MHI growth rates several years ago, with more conservative pundits using rates as low as 4ish%. I questioned this at the time because the time period used to generate this average was not typical of long term performance. Looking back now simple average NPAT growth for the last 7 years has been 14.3%. “Owner Earnings” have continued to be tremendous - $144m over 7 years, paying for increased dividends, organic growth and debt reduction.
On the negative NZ domiciled investors have lost imputation credits on their dividends. For a company that has delivered benefits to shareholders for years it appears they could have tried a bit harder to look after local shareholders. The franchise sale and aggregate benefits aren’t quite being evenly shared, albeit the bottom line has improved. The Hill family hold their shares through an Australian registered company, thereby capturing the Australian franking benefits.
A few basic measure snapshots follow – some components for 2004 and 2005 should be viewed with a pinch of salt as reporting requirements changed in 2006 and so I estimated a couple of missing parts (Notably Cost of Goods Sold and Wages). Occupancy Ratio is operating leases (mostly Rent) expressed as a percentage of sales (Haven’t shopping centre owners done well?)
Attachment 3897Attachment 3898Attachment 3899Attachment 3900
Damn, one of my picks for this year,but still a whole year to go yet haha.
Interesting quarter by quarter sales growth by country (included the pcp stuff)
Country / sep qtr growth / dec qtr growth ......from same qtr last year
Au. +14%. +6%
Nz. +9%. +1%
Ca. +30%. +20%
Us. +11%. -5%
So growth slowed a lot in dec qtr but heck still growth
Obviously ebit margin down if ebit $s remain about the same
Have faith .....remember sir mike said if you can't stand the ups and downs don't own our shares
There seems to be growth in sales but margin must be down quite a bit. There ebit is supposed to be in line with last year but they are adding $3.6mil from the PGP revenue and I would have thought a good portion of this 3.6mil is pure profit. So stripping that out there is an increase in sales but the profit from the sales is going to be lower than last year.
I do like the company especially the PGP part of it and Michael doesn't try to spin crap but just states the facts. However I think I'm going to have to sell out for now.
If you brought after the last quarterly review and extrapolated sales into earnings, you would have expected a better earnings result (significantly more). Given those earnings did not eventuate, I think it is an appropriate time to sell as your purchase decision was invalidated.
DISC: Do not hold MHI.
Sales slump probe in store for Hill chain
http://www.nzherald.co.nz/business/n...ectid=10858647
Jewellery firm will analyse unexpected drop in trading to identify any oversight.
Michael Hill Jeweller will conduct an analysis to make sure the worse-than-expected trading the firm experienced over the Christmas period was no fault of its own, says chief financial officer Phil Taylor
Must be feeling a good excuse has to be given to shareholders .... might need to revert to the old 'market conditions were tougher than we thought' ... 'but we are well positioned for when market conditions improve'
However can't hide the fact that sales growth slowed quite a lot in the December quarter .... and ebit margins shrinking is a bit a worry .... maybe Phil needs to a bit of analysis on that
Maybe MHI might consider set up some stores in China where the big money is
Retailing can be like that,it can be tracking along nicely up to xmas,then for some reason the pot just doesn't boil, so to speak.
You can do everything right,but the spending goes elsewhere.
I was a retailer for 15 years and sometimes the market just gets tired,but will revive at a later stage.
They along with Pascoes dominate their field,it would be of real interest to know how Pascoes and stewart dawson(and Farmers) traded,but alas they are private.
Jewellery firm will analyse unexpected drop in trading to identify any oversight.
The Warehouse.....
You know the few times I went into the warehouse over xmas the jewellery store was never busy,in fact lucky if they had 1 person looking,max 2 people behind the counter,hmmmn nope don't think it's the warehouse.
I would by jewellery from michael hill but not the warehouse,my girlfriend is a fairly frequent customer of MH,she wouldn't buy jewellery at WH.
Kizame to much house brand junk at high prices. People have finally woken up to this.
Mrs Hoop is a frequent customer of MHI especially when they have their promotions.
A drop in activity from MHI in November December got her and her friends talking about shopping around
Not much happening anywhere.... so lets try the Warehouse at the Base (Hamilton)...
Good range of stock ...Great deals.. ..the quality was just as good as MHI.. The staff were knowledgeable, friendly, easy to talk too....
Bottom line November/December....The Warehouse got a $$$couple of grand from Mrs Hoop..MHI got nix.
Disc: Dont have shares in either MHI or WHS
EDIT: Yes Kizame.. the Warehouse has a poor image when thinking quality...My kids laugh at me when I say I'm going out to party at the Warehouse...some wouldn't be seen dead in the place less alone shop in it
Interesting Hoop,thanks for your reply.But they got a fair bit of my girlfriends xmas spend so(MH)... Time will tell.
The specialist retailer has been in this game for a long time and are quick to spot(usually)changes in trends or buying patterns,PLUS having international stores where trends begin they should have their fingers well on the pulse,so I still think a finicky xmas trading period worldwide.(maybe; hedges bets)
You can't beat going to a real jeweller .....beats the mass produced stuff lie michaels stuff ....and sometimes cheaper ....even for the stuff the jeweller makes him/ herself
Yeah ...Overall Xmas trade didn't seem that flash in America going on media reports.... but NZ was pretty good... I Agree, MHI is a competent, large enough company to analyse their Market ... fine tune its market strategies and bounce back.....its their competitors that now should be watchful...there's nothing worse than being in the same room with a pissed off gorilla.
Most probably losing out to on line jewellers.I note on lineAustralian retailers saw sales increase 27% while traditional retailers it was 2.6%.
Expect would be same here and Canada.
WHS would be looking at loss slimmer margins,as their rents and overheads would be a lot less per square metre than MHI.
Nothing like having a chat with the jeweller as he designs a piece just for her ... so he says. Online would never take experience away.
Should hear what the KKK ladies say about Michael's 'jewellery' over the lattes - would say he don't get much business
WHS been pushing jewellery (and most other things) on their website and daily specials and all that ... might get some traction from that seeing not many people in the actual stores.
Is there a chance that MHI are factoring in a decrease in raw materials (gold and silver) which they may have on their books (thats if gold and silver prices come down this year)
wonder how mhi online sales are going .... prob up more than the bricks and mortar stores eh percy
Would think they are up between 20% and 35%.If not they should get www.estaronline.com to do their web site.
Think that you should has a " Disc " in there, when you mention www.estaronline.com Percy :-))
Thanks Janner.
As a matter of record/"Disc" Percy and a number of Sharetrader's more astute posters have shares in www.estaronline.com, and none as far as I can remember hold any MHI.
Astute indeed :-))
Agree with you.!!!
A fantastic example of what can be achieved by a great business man.
I also think the issues of mall rents and internet competition,retail spending etc are very real.
To other posters may I apologise for what I thought was fun between Janner and me.No disrespect was meant.
Oh !!.. Must be careful how I word this..
Agree with you Sparky that Sir Michael Hill is an ethical man..
It is the concept of a public company owned and run by a Family that always worries me.. Yes it is ok as a new company ..
That is how most begin..
As they get larger the " Family " usually do not have the expertise to cover all ...
Rakon have not brought much if any " New Blood " into their thinking..
The same could also be said for Murdoch.. Hill.. Rhineheart..
Would I... Have I.. Invested into any of them ??.. No !!..
Sure many have made money from them.. Many more have made greater .. Investing else where..
Family controlled companies are better left to their own devices IMO..
haha.. Agree with you also Percy..
As we all scramble to not besmirch Sir Michael Hill...
It is your " issues " that I am trying to highlight.. The world is changing so fast today that it is almost impossible for one " Family " to comprehend and give well reasoned responses to..
Sparky ... To take the heat of of percy.. It was I that linked MHI and Rakon ..
With as I have already said .. No disrespect to Sir Michael..
It is just that one should be very aware of " Family " business's.. Madoff.. and the one from the South Island ( how quickly one forgets their name. Not being invested ).. Are good examples.. Ross... etc..
There has to be independant oversight.. And not with the same " Professional Independants ".. i.e. .. Muggeridge et al..
MHI... a family business.. Not with my money..
It was nice to see they have increased the dividend by small amount.
What are peoples thoughts now on MHI
Did I read there is disappointing retail results in general in Australia
Results not out until August
Been a bit of selling off lately - as long it was not Fisher Funds, if it was, would a good time to buy more:)
[QUOTE=Jay;412755]What are peoples thoughts now on MHI
Im expecting a solid 5%+ sales result with slight increase in margin, they are swimming in cash due to insurance upsell so maybe even some returned to us long term holders...mind you wishful thinking as I did liquidate most of my profits in MHI and bought SNK...jenkins!
Most have mine have gone due to the recent decline (for a very nice profit) - and retail not looking so good again, well not in Aus and possibly here, also thought I read they were expecting flat results.
Still sitting on most of the cash from the sale, but did buy a few EBOS and considereing FRE and/or FPH - all for the long term portfolio.
Close enough Boofters? Or did you mean 5%+ on same store sales? Because then it is disappointing. I am happy enough with this. Good progress being made in tough times.
MHI
09/07/2013 13:20
QUARTER
REL: 1320 HRS Michael Hill International Limited
QUARTER: MHI: 12 months trading update to 30 June 2013
Michael Hill International Limited
12 months trading update to 30 June 2013
Note that the below figures represent 11 months accounting adjusted sales
results plus Junepreliminary sales figures prior to final accounting
adjustments. The below figures are unaudited.Same stores and all stores
revenue figures stated below include the Professional Care Plan (PCP)
revenues brought to income during the period based on an estimated pattern of
recognition.
Revenue from sale of goods and services for the 12 months to 30June 2013:
The following figures are in NZ dollars Last Year This Year
% Var
Australia same stores 319,731,519 321,273,889 0.5%
New Zealand same stores 108,049,715 109,228,722 1.1%
Canada same stores 52,095,668 51,136,868 (1.8%)
United States same stores 10,826,840 11,044,664 2.0%
Total same stores $490,703,742 $492,684,143 0.4%
Australia all stores
331,018,099 355,100,461 7.3%
New Zealand all stores 109,110,440 110,501,371 1.3%
Canada all stores 55,124,222 63,600,526 15.4%
United States all stores
11,998,659 12,337,271 2.8%
Total all stores $507,251,421 $541,539,629 6.8%
Exchange rates used for the 12 months:
Australia 0.78 0.80
Canada 0.80 0.83
United States 0.80 0.82
The following figures are in local currency Last Year This Year %
Var
Australia same stores AUD 248,592,841 257,140,948 3.4%
New Zealand same stores NZD 108,049,715 109,228,722 1.1%
Canada same stores CAD 41,840,248 42,189,547 0.8%
United States same stores USD 8,638,925 9,094,341 5.3%
Australia all stores AUD 257,365,032 284,318,778
10.5%
New Zealand all stores NZD 109,110,440 110,501,371 1.3%
Canada all stores CAD 44,264,994 52,509,541 18.6%
United States all stores USD 9,576,257 10,158,838 6.1%
Revenue from sale of Professional Care Plans for the 12 months to 30June
2013:
The following figures are in NZ dollars Last Year This Year % Var
PCP revenue collected $26,955,284 $33,072,435 22.7%
PCP revenue brought to income $6,025,417 $11,965,854 98.6%
Sales in the fourth quarter were difficult for the Group with flat sales
growth in the key Australian market and negative growth in the other three
markets for the quarter.
The year finished slightly up for the Group in NZD and all markets finished
with positive sales growth in local currency on a same store basis and it was
pleasing that these sales were achieved on a higher margin. The contribution
from new stores opened during the year resulted in revenue lifting by
6.8%.The directors are satisfied with the performance over the past 12 months
especially given theongoing challenging environment.
Cash flow remains strong and our Professional Care Plan product continuesto
deliver good cash flow to the business andis now also contributing solidly
tothe Group's results. The revenue from these plans is carried on the balance
sheet as deferred revenue and is then brought to income over the life of the
plans (3 year and lifetime plans).
It should be noted that PCP revenue is brought to account to the current
period based on estimated use of plans over their lifetimes. The amount of
PCP revenue included in the above revenue numbers is based on existing
estimates and these estimates will be subject to review as part of year end
accounts preparation.
The full year results for the 12 months ending 30June 2013 are due for
release to the NZX on the 16th August, 2013.
Sir Michael Hill 9July 2013
Chairman
Close enough Boofters? Or did you mean 5%+ on same store sales? Because then it is disappointing. I am happy enough with this. Good progress being made in tough times.
MHI
09/07/2013 13:20
QUARTER
REL: 1320 HRS Michael Hill International Limited
QUARTER: MHI: 12 months trading update to 30 June 2013
Michael Hill International Limited
12 months trading update to 30 June 2013
Note that the below figures represent 11 months accounting adjusted sales
results plus Junepreliminary sales figures prior to final accounting
adjustments. The below figures are unaudited.Same stores and all stores
revenue figures stated below include the Professional Care Plan (PCP)
revenues brought to income during the period based on an estimated pattern of
recognition.
Revenue from sale of goods and services for the 12 months to 30June 2013:
The following figures are in NZ dollars Last Year This Year
% Var
Australia same stores 319,731,519 321,273,889 0.5%
New Zealand same stores 108,049,715 109,228,722 1.1%
Canada same stores 52,095,668 51,136,868 (1.8%)
United States same stores 10,826,840 11,044,664 2.0%
Total same stores $490,703,742 $492,684,143 0.4%
Australia all stores
331,018,099 355,100,461 7.3%
New Zealand all stores 109,110,440 110,501,371 1.3%
Canada all stores 55,124,222 63,600,526 15.4%
United States all stores
11,998,659 12,337,271 2.8%
Total all stores $507,251,421 $541,539,629 6.8%
Exchange rates used for the 12 months:
Australia 0.78 0.80
Canada 0.80 0.83
United States 0.80 0.82
The following figures are in local currency Last Year This Year %
Var
Australia same stores AUD 248,592,841 257,140,948 3.4%
New Zealand same stores NZD 108,049,715 109,228,722 1.1%
Canada same stores CAD 41,840,248 42,189,547 0.8%
United States same stores USD 8,638,925 9,094,341 5.3%
Australia all stores AUD 257,365,032 284,318,778
10.5%
New Zealand all stores NZD 109,110,440 110,501,371 1.3%
Canada all stores CAD 44,264,994 52,509,541 18.6%
United States all stores USD 9,576,257 10,158,838 6.1%
Revenue from sale of Professional Care Plans for the 12 months to 30June
2013:
The following figures are in NZ dollars Last Year This Year % Var
PCP revenue collected $26,955,284 $33,072,435 22.7%
PCP revenue brought to income $6,025,417 $11,965,854 98.6%
Sales in the fourth quarter were difficult for the Group with flat sales
growth in the key Australian market and negative growth in the other three
markets for the quarter.
The year finished slightly up for the Group in NZD and all markets finished
with positive sales growth in local currency on a same store basis and it was
pleasing that these sales were achieved on a higher margin. The contribution
from new stores opened during the year resulted in revenue lifting by
6.8%.The directors are satisfied with the performance over the past 12 months
especially given theongoing challenging environment.
Cash flow remains strong and our Professional Care Plan product continuesto
deliver good cash flow to the business andis now also contributing solidly
tothe Group's results. The revenue from these plans is carried on the balance
sheet as deferred revenue and is then brought to income over the life of the
plans (3 year and lifetime plans).
It should be noted that PCP revenue is brought to account to the current
period based on estimated use of plans over their lifetimes. The amount of
PCP revenue included in the above revenue numbers is based on existing
estimates and these estimates will be subject to review as part of year end
accounts preparation.
The full year results for the 12 months ending 30June 2013 are due for
release to the NZX on the 16th August, 2013.
Sir Michael Hill 9July 2013
Chairman
[QUOTE=blackcap;415899]Close enough Boofters? Or did you mean 5%+ on same store sales? Because then it is disappointing. I am happy enough with this. Good progress being made in tough times.
Yeah I reckon this is a pretty good result. What it shows me is their new store opening process becomes qucikly cashflow positive and that free cashflows being generated are substantial.
Im happy to hold 66% of my portfolio here for another 12 months, interesting to see also MHTL is collaborating with the Japanese golf tour, will we see asian expansion of the MHI brand?
Hi CJ, I think it is a bit simplistic to have a view on retail and tarnish everyone with the same brush. As in any industry there are those that perform well and those that do not. MHI have shown themselves to be proven performers and continue to grow revenues and profits in what is difficult retailing conditions. The US and Canada expansion is still ongoing and by all accounts going well. The following figures show that All stores (not same stores which was flat) revenues are growing rather well. Canada in particular grew by 15%.
Australia all stores
331,018,099 355,100,461 7.3%
New Zealand all stores 109,110,440 110,501,371 1.3%
Canada all stores 55,124,222 63,600,526 15.4%
United States all stores
11,998,659 12,337,271 2.8%
Total all stores $507,251,421 $541,539,629 6.8%
p.s data from latest MHI announcement to market
Aussie PMI is terrible.
http://www.businessinsider.com.au/au...ing-pmi-2013-7
Well the banner on the way out of Auckland airport is a masterpiece.
The bride showing off her wedding ring and answering the question "where did you get the ring?" Michael Hill.
Just asking as it isn't a stock I follow. They do look to be doing well given the current environment.
interesting. I would have though you would be looking at sectors which are currently in a growth stage and trying and timing of the growth in the retail cycle. Hard to do I admit so was wonder if you had seen something that made you start looking at MHI and Pumpkin patch. I note WHS and Briscoes has done well over the past year so I wonder if this is a sign people are starting to spend more, even if it is at the bottom end of the market.
Just asking as it isn't a stock I follow. They do look to be doing well given the current environment.
interesting. I would have though you would be looking at sectors which are currently in a growth stage and trying and timing of the growth in the retail cycle. Hard to do I admit so was wonder if you had seen something that made you start looking at MHI and Pumpkin patch. I note WHS and Briscoes has done well over the past year so I wonder if this is a sign people are starting to spend more, even if it is at the bottom end of the market.
Another solid result from MHI.
Still adding stores which guarantees future growth
Can't complain about this chart in a pretty classy presentation
Yeah I agree Winner. Have held onto these for a few years now and have no reason whatsoever to complain. Their revenue in Canada is increasing at a fast rate and in difficult conditions in NZ and AUS they have done exceedingly well. To increase profits by nearly 10% and seemingly no impediment to continuing to do so this one will remain firmly fixed in my portfolio.
I'm very happy with another positive result.
.....whats up here?
http://www.stuff.co.nz/business/9190420
This is not anything new. Has been known by quite a lot of ppl for a long time now. So no immediate dent in the shareprice... Maybe holding it back until there is some certainty?