Was it ever not that for the dedicated followers ? ;)
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I thought you were paying for the growing aussie business and got the flatlining nz business for free?
" flatlining nz business"
does that say something about the the two economies.
Great business making high returns on equity.
My basic analysis of the annual report numbers:
https://recastinvestor.substack.com/...nstein-glasson
Once again nice work Recaster. I like the new P&L layout which shows the lines in between sales and EBIT. The analysis of the movement in equity is also a nice summary.
The only thing I query is the dividend in the last year. I can't get the 38c for the last year to reconcile to these figures: https://www.nzx.com/instruments/HLG/dividends
Plus I think you are using the net dividend values. Ordinarily a yield is calculated using the gross dividend value, which is the net dividend plus imputation credits. The yield should be pre-tax which makes it independent of each individual's personal tax position and rate, and therefore comparable between taxpayers as well as companies and industries. Some industries typically have low rates of imputation credits resulting in greater DRWT deductions, therefore we should be looking at pre-tax dividends.
One last notable thing about HLG is the lack of external debt. Liabilities for HLG are made up solely of trade liabilities as well as IFRS items which includes the liability side of the ROU assets. Zero external debt can be interpreted two ways: 1) either an inefficient use of capital for those who focus on return on equity, and/or 2) a low risk entity with no exposure to changes in interest rates, but also has headroom available to borrow for expansion if needed.
Thanks Ferg. Appreciate the corrections and pointers.
Have updated the dividend figures to reflect the stock exchange summary. I was using the annual report notes to the accounts which omitted the final dividend.
Have made a comment about the zero interest bearing debt. Thanks for the pointer.
My analysis was a bit of a rushed job on this company I fear! :-(