Whats up with Geneva Finance - GFL Today?- Could not see any announcements earlier - but 0 shares traded today from what I can see.......
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Whats up with Geneva Finance - GFL Today?- Could not see any announcements earlier - but 0 shares traded today from what I can see.......
GFL is pretty thinly traded at the best of times. I note the controlling shareholder increased their shareholding recently which will (I expect) reduce market liquidity even further:
https://www.nzx.com/announcements/355822
Reading between the lines in their 29 June announcement, I guess no mention of dividend must have been read to mean No Final Div, usually paid around early - mid July
But then out pops today's release at 4.55pm:
https://www.nzx.com/announcements/356104
"The board have resolved to declare a final dividend of 1.50 cents per share. The dividend will be payable on 29th July 2020. The ex dividend date will be 23rd July 2020 and record will be 24th July 2020."
Been a long time since anyone has posted on this thread.
Like all finance companies high interest rates have affected their NIM and profit.
This caught my eye.It was from their 27th September presentation.GFL own Quest Insurance.
Financial Overview (Quest Insurance)
Review of March 2023
• Gross written premium up 30% to $39.3m
• Pre-tax Profit down 6%
• Cash on hand increased up 27% to $31.7m
• 5-year revenue average growth rate 51% per annum
• Strong solvency position at year end
Yesterday they announced their interim result.Not flash but was what I expected.
https://www.nzx.com/announcements/422642
Quest Insurance Group Limited (Quest) reported a pretax profit of $3.2m, up 27.1% on the prior period. The good result was driven by continuing the prior year’s premium growth momentum. Premiums were up $3.5m (+18.5%) for the period. The higher interest rates benefited investment income of $0.9m, up $0.7m on last year. Quest operating costs including direct costs were up $1.3m mainly due to investment in staff and IT.
Disc.I have a modest holding.
Upcoming vote for Geneva Finance as to whether or not they move to the USX:
https://www.nzx.com/announcements/433323
And in other news they have shut down the loss making activities of Stellar Collections, debt litigation & debt factoring to focus on the core activities of lending and insurance. FY24 result was to expectation with a couple of one-offs negatively impacting NPAT for the year:
https://www.nzx.com/announcements/432076
Interesting to see insurance is jumping ahead of lending in leaps and bounds. I am picking 8c NPAT contribution just from insurance in FY25; FY24 was impacted by a one-off tax subvention payment to utilise tax losses from the business units being closed.
Add that to the other initiatives over the past 12 months and at 20c this is trading on a forecast P/E of under 2. Throw in a dividend policy of 35% and the forward yield also looks good.
The upcoming shift from NZX to USX will not as you point out change GFL's liquidity..
However the announcement has created a great deal of liquidity,with the share price collapsing.
USX investors such as myself are certainly loading up the truck.
Clearing the decks of the two poor performing businesses ,cutting costs including NZX fees .should see GFL progress into a great little earner.
Your "PE of under 2 and paying a dividend" has me really excited.
I went to check GFL out on Sharesies and there is a big sell only banner on it.
Suppose Sharesies don’t want to manage the unlisted bit