Choosing to be in England in the depth's of an English winter :eek2: Hope you've grown extra thick fur in advance :)
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Retirement s sector cash flow reporting doesn’t really tell the full story even though all tout how wonderful their Operating Cash Flow is
Sale proceeds in Operating Cash Flow but the spend on building things to sell (correctly) shown as Investments
Recast cash flows look like this -
Operating Cash Flow from day to day activities............. -$23m
Proceeds from sales of ORAs .......................................$80m
Buying and building things........................................ -$71m
Actual Free Cash Flow ............................................. -$14m
Paid Dividends .................................................. ...... -$14m
TOTAL CASH OUT .................................................. . -$28m
FUNDED BY INCREASED BORROWINGS ........................$20m and $8m less in Bank
That’s how I see the money go round anyway ...still say nice that a ‘growth’ company borrows to pay a divie.
That "growth" company THL have been borrowing to pay dividends for a long time now...haven't looked in a while, how's that working out for them ?
Posted April 2019... Net debt was $84.4m as at May 2017, and now $288.1m as at November 2019, with a 'prudent' (they say) gearing level of 31.8% (net debt to debt plus equity), this is already ahead of where sum were picking debt to be at the end of FY20 less than a year ago... well OCA certainly does have stunning rates of growth when it comes to borrowing.
No worries cause the Share price and dividend are up and its a new decade
Tj - That gearing of 31.8% is 56% if you include what’s been borrowed from residents.
I think this is an interesting slide of OCA explaining the reduced care fees while changes are being made to their brownfield sites.
There was a pretty hefty increase in realised gains on new sales in H1 ....from more sales and importantly from a higher average
That’s good
Somebody had to say something as thread not on front page
That fancy new hire they made late last year with decades of experience http://nzx-prod-s7fsd7f98s.s3-websit...073/307805.pdf at a cost of many hundreds of thousands of dollars per annum, apparently has heaps of new idea's about how care standards can be lifted significantly higher yet and apparently according to a "little birdie" has been given free rein to make whatever changes she likes irrespective of cost and with no regard to getting an acceptable return on investment whatsoever. I would be thrilled if I was a resident and quite concerned if I was a shareholder.
As previously warned, with this company residents come first, second, third, fourth and fifth and then its management and staff and then shareholders come a long and distant last.