No surprise here. I also don't see farmers changing their spending habits in the current environment.
Farmlands and Wrightsons carparks in the Bay are still pretty quiet.
Share price overvalued?
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No surprise here. I also don't see farmers changing their spending habits in the current environment.
Farmlands and Wrightsons carparks in the Bay are still pretty quiet.
Share price overvalued?
Even though FY guidance down from that previously given pretty solid H2 forecasted with ebitda about the same as last years…..even though H1 was down 24%
Things must be getting better
Guidance of $50m vs market consensus of $53m - so steady as she goes.
Cancelling the interim dividend however is unexpected. Not going to be popular with the dividend income investors who have funds invested in discretionary & non discretionary brokers' accounts (eg. Craigs & Forbar).
And not so popular with some on the board?
"❖The PGW Board has by a majority determined PGW will reinvest capital back into growing the business by suspending the interim dividend to avoid adding debt in the face of rising interest costs"
Tensions?
Good or bad for the company?
So here is the reason for the major shareholder wanting Board changes, purely motivated by their own needs, not what is best for PGW. I'm happy to be out of PGW
"Distributions
Given the current challenges faced in the sector and broader economy and the impacts these have had on our business, the PGW Board has determined not to pay an interim dividend. The Board considers that this is an appropriate and prudent measure to take at the present time. At a broader level the PGW Board is also assessing its ongoing dividend payout ratio given the need to strike the right balance between sustainable distributions for shareholders whilst retaining sufficient earnings in the best interests of the company to allow it to effectively execute upon its strategy.”
You forgot to mention that late last year PGW reduced their EBITDA guidance to $52m, so $50m is a second downgrade. What did you say about downgrades coming in threes? It would come as no surprise to me if the new $50m EBITDA guidance for the FY2024 year was not met. You also have to remember that traditionally most of the profit comes in the first half. So it wouldn't surprise me if PGW only breaks even on a NPAT basis for the year.
I was predicting an interim dividend of no more than 4c. So with rural conditions softening, it is no real surprise there is no interim dividend.
So am I selling out? Quite the reverse. I topped up my holding this morning. Looking through the next business cycle and averaging across the dividend stream, I reckon I am going to get a 10% gross yield. That is far too tasty a prize to leave on the table. Next plan is to free up some of my bank deposit money to buy some more.
SNOOPY