Simon Hull indicated in his re-election to the board spiel that his family trust that controls the company may sell down at some point in the future. But he will continue to maintain a close personal interest in the company nevertheless.
SNOOPY
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You might be interested in what chairman Ross Keenan said about Simon Hull, before Simon gave his own re-election spiel Percy.
Fast forwards to 45 minutes into the presentation.
http://www.awfmadison.co.nz/video-aw...ting-july-2017
"...but I always admire Simon for not dominating the boardroom as often in the early days people suggested that he did, but he didn't. Always being supportive but questioning too and certainly a major contributor to the board of the group."
Of course you might argue that Ross Keenan would say that!
SNOOPY
Minimoke may have a reputation on this thread as a portent of AWF doom. But I wouldn't agree with the point that increasing wages and automation will do away with the role the likes of AWF has in finding and hiring good people. That said, the sliding net profit margin does look to be an unwelcome trend. I don't really understand the nuts and bolts of the business enough to figure out why as the business gets apparently more sophisticated, AWF cannot earn the same margin by recovering their costs.
I agree with Percy to the extent that AWF is now a dividend play rather than a growth play. But the prospect of al 40% capital gain, while enjoying an 8% gross dividend yield at the end of it, certainly has my attention!
SNOOPY
At that time,so long as the present chairman is replaced,it may be worth re analysising the business.
Currently the share price is back to where it was 4 or 5 years ago,with the dividend under threat.
As an aside, it appears to me the way this sector operates has changed, and AWF, instead of being at the forefront of change, have been left behind.
Shall we just let teh charts do teh talking.
(not sure what the fuss with Census is - it was mainly on -line and a much smaller pool of people this year than previously. Watch for news on construction industry exposure and check they (Madison) haven't been hit by latest scam)
Snoops - where do you get your NPAT and EPS numbers from ....they seem to be different from what is in the Annual Report
I have normalised the NPAT earnings Winner as above. The figures above in bold should be those that appear in the annual report and my normalising adjustments follow. As for the 'eps' figures, these are simply the normalized earnings divided by the shares on issue at the end of the financial year. When new shares are issued during the year, I don't attempt to do a 'weighted average' adjustment because:
1/ Those extra shares will all be with us in the future, and it is the future 'eps' earning potential of AWF, while using like with like comparison metrics, that is of most interest to me.
2/ It is conservative from an 'eps' perspective to assume all shares issued during the year were on issue for the whole year.
3/ I am lazy.
SNOOPY
Snoops - that naughty debtor whoever it is owes $1.4m and is in liquidation
AWF have only provided $0.8m of this as being bad ...they reckon they’ll get the other $0.6m
Be a bugger if they don’t eh ...another $0.6m off the bottom line (be abnormal item eh Snoops)
Auditors believed the story that was spun last year ..even though the amount provided increased from $0.3m to $0.8m
Might not be too believing this year .....then again it might even be paid in full by mow and AWF can writeback the $0.8m to profit. That be good
Its one of the simplest businesses around. You simply hire out worker labour to hiring employers at a rate higher than your all up costs.
Two common reasons for business failure, aligned with cashflow:
- not enough worker labour to meet employer demand
- not enough employers demanding available working labour.