Trading Update and Profit Forecast
https://www.nzx.com/announcements/387403
I think its a highly credible result given the extreme length of lockdowns in Australia and N.Z.
FY22 was always going to be challenging and sales down only 6% given the length of lockdowns provides strong encouragement for the future.
At the mid point of the forecast $11.6m net profit this half is forecast to be down 41% on 1H FY21. This compares to WHS where their profit is forecast to be down 64%. eps at 11.6 cps is still 19.45 cps for the half year.
I think HLG will demonstrate the confidence it has in its strong balance sheet position, liquidity and its future outlook by declaring a dividend of 20 cps for the half year.
Looking through the current Covid challenges I am comfortable that HLG are in a great position to thrive when this storm passes.
Others may see it differently and that's their prerogative but I am happy to hold and enjoy the high dividends and strong growth to come in due course.