Well I have had fun watching the MPG thread over the past few days.Funny as a play,but even funnier was today's announcement from MHJ.....lol.
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Well I have had fun watching the MPG thread over the past few days.Funny as a play,but even funnier was today's announcement from MHJ.....lol.
Well Mark Waller at Ebbos admitted to being an accountant,nothing dour about him.
So in any industry there is diversity.
On the MHI thread perc.. !!! I think you are really a Peter's man at heart.
I think you LOV those baubles also... :-)))))
Shame global domination didn't work out
So come home and consolidate in these parts of the world
https://stocknessmonster.com/announc...hj.nzx-313377/
Market doesn’t seem to like recent announcements. Reading between the lines even normal trading hasn’t been to brilliant either
All that and a bad market not good as share price sinks below 120
From 144 back down to 118 due to one off costs impacting a single year of reporting while the group itself is moving steadily... exacerbated by the selloff one could see the ~20% dive a big fat overreaction.
The market really enjoyed the solid results they posted earlier this year... this is including the $12m EBIT loss courtesy of the US operations which they are looking at either cutting out or downsizing.
At the end of the day the bottom line will benefit greatly.
I always liked MHI as a scaleable business model but was surprised they didn't do things differently with the US and Emma & Roe (and exit the US earlier):
- US : They spread themselves too thin for effective marketing. Why didn't they concentrate on one state, and once that model was refined, roll it out across the rest of the states?
- E&R : This has been unprofitable from the beginning and even on contribution margin level. Why would you roll-out hoping for scaleability? Poor performance IMO.
The recent announcement shows that on a normalised basis (excluding the anticipated $20m restructuring hit), EBIT will be down c. $5m year on year. No explanation was given which gives a lot of uncertainty?
The other challenge for me, and a key indicator if MHI can survive the retail model is if they can obtain same store sales increasing at least at the rate of CPI. It's one of their KPI's in their annual report and they didn't meet this or give any reason to believe they are even looking at this.
Disc: Don't hold.
As they said, increased losses from their US operations.
"The key contributing factors were the deterioration in the performance of the US
and Emma & Roe businesses, which underpinned the Company’s strategic actions recently announced"
Theoretically by disregarding the fat losses from the US business ( which hopefully wont be there next year ) from this half you would be seeing a sizeable increase in earnings.