I'm shocked
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very impressive as always
very prudent of them to not declare a dividend , we all know wage subsidies will end when vax levels reach a certain % so hlg wont be able to rely on these anymore when future lockdowns are announced
there profits were boosted by lower rental costs and wage subsidies but good to see sales doing well in line with other retailers
Top line sales growth for the year was very pleasing, as Winner has suggested, weaker in the second half than we would have liked due to prolonged Australian lockdown's.
I was expecting $37m so the effects of the lockdown's in Australia were greater than I thought.
Gross profit margin was 57.4% compared to 58.8% in FY20 so extra freight and logistics costs definitely a factor.
Total operating expenses as a percentage of revenue were 43.5% compared to 45.7% (a 2.2% reduction is very encouraging)
EPS 55.86 cps compared to 46.56 cps up 20%
Prudent to defer any decision on the dividend given they paid cash dividends during the year (including 15 cps deferred from the previous financial year) of 62 cps.
$7 is a PE of 12.5 on eps of 55.86.
As stated they expect the current year to be more challenging and I expect it will be a trough year in terms of earnings.
The top line growth proves this company could really fly when the Covid handbrake comes off but in the meantime I feel my previously stated position that its fair value at $7 and just a hold is validated by the results announced today.
Disc: Holding a moderate sized position for income.