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30-06-2022, 07:26 PM
#681
Originally Posted by Snow Leopard
Is it important that those numbers are from the pro-forma stuff and the 'real' profit was a loss of $5M ?
Asking for a friend.
I don't follow HMY closely, and today was the first time I had dived into an actual result presentation since they listed.
The 19th January 2022 half year profit announcement on Stocknessmonster is titled.
"HARMONEY ACHIEVES CASH NPAT PROFITABILITY"
Granted this is only a half year result, so it probably wasn't audited. But quoting from the half year result presentation made on 28th February 2022, on the bottom of page 34, the bottom of the profit and loss statement presented, looks like this:
Profit Before Income Tax |
$1.624m |
Income Tax (@26.1%) |
($0.424m) |
Profit After Income Tax |
$1.170m |
Non cash and other normalisation adjustments |
$0.0 |
Movement in Expected Credit Loss Provision |
($2.730m) |
Share based payment expenses |
$1.467m |
Depreciation and Amortisation Expenses |
$0.714m |
IPO Expenses |
$0.0m |
Income Tax treatment of adjustments |
($0.154m) |
Cash Profit |
$0.774m |
If tax was paid, this would suggest to me that the profit was indeed real. One of the reasons I haven't been following this one was that, I thought the company was racking up massive losses while it grew, and it would take years before it got to the point of paying any tax. However, now I see HMY is actually paying tax, maybe I should give it more attention?
I can't explain why income tax only came in at 26.1% of profits. The income tax treatment adjustment to cash profits of $0.154m added back is an odd thing too.
If I add up all of the cash profit adjustments, excluding the income tax adjustment, I get:
-$2.730m + $1.467m + $0.714m = -$0.529m
Now examining the income tax adjustment in proportion:
$0.154m/$0.529m = 29.1%
That number is between the NZ company tax rate of 28% and the Aus company tax rate of 30%. So at least it sounds a ball park believable figure. Except the whole concept of a 'cash profit' sounds fictional to me. 'Positive cashflow' is a concept I understand. But 'cash profit' seems to be 'positive cashflow' with a 'taxation adjustment' which is not paid in practice, added back (?). I will have to leave it to the students of Harmoney to explain what is going on there.
I am not sure where that $5m pro-forma loss you mentioned comes in Snow Leopard. Could it relate to FY2021?
The blank slots in the above table, representing IPO costs that might apply to previous periods, and normalization adjustments of which there are none. This would suggest the HY2022 result is clean. No pro-forma adjusting required. Even if none of this answers the question of what happened to all the tax losses built up in previous years. Another one for the 'students of Harmoney' to answer!
SNOOPY
Last edited by Snoopy; 30-06-2022 at 07:53 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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30-06-2022, 07:34 PM
#682
Im going to buy more before Snoopy dives in and figures out what a high margin gold mine HMY is
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30-06-2022, 07:37 PM
#683
Originally Posted by Snoopy
....I am not sure where that $5m pro-forma loss you mentioned comes in Snow Leopard....
Hi Snoopy.
You are playing with the the pro-forma from the pressie. I read the the Income bit of the actual accounts in the HY Report.
I can throughly recommend it.
Cheers
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30-06-2022, 08:18 PM
#684
Originally Posted by Snow Leopard
Hi Snoopy.
You are playing with the the pro-forma from the pressie. I read the the Income bit of the actual accounts in the HY Report.
I can throughly recommend it.
Cheers
I never considered that Harmoney would not bother reporting their actual result in their half year presentation. I am astonished Snow Leopard. You are quite right and the truth is revealed for all to see on the statutory to pro-forma reconciliation on p11 of the half year 2022 report! It looks like the half year presentation is fiction. No tax was paid, and as you say the company made a $5.089m dollar loss for the period.
The excuse for this pro-forma stuff is that IF the peer to peer funder loans were converted to warehouse funded loans THEN the pro-forma profit would be indicative of what would happen. Except this isn't happening yet. So the real position is a $5.089m dollar loss as we head into recession with a loan algorithm that has not been tested in a recession? The market doesn't like uncertainty. So is it any surprise that the HMY share price has collapsed?
It is getting near bed time for this mutt. But Daddy won't need to read me a bed time story tonight, as I have just read the greatest work of fiction to be published in 2022 so far. How will I sleep having just read such an exciting and startling tall tale?
SNOOPY
Last edited by Snoopy; 30-06-2022 at 08:20 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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30-06-2022, 09:16 PM
#685
So is my forecast (post 391) of positive NPAT in the 2nd half of FY23 still in play? Not "cash NPAT"; actual NPAT. Except now the requisite tailwinds have possibly become headwinds...?
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05-07-2022, 08:15 AM
#686
Does this bit in the news mean anything to Harmoney
The latest data from credit reporting company Centrix showed all new household lending in May was down 33% on May last year and business credit demand was down 13%.
Last edited by winner69; 05-07-2022 at 01:25 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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05-07-2022, 01:21 PM
#687
2 or 3 weeks away until we see how the year washed up.
Cant wait to see that big juicy cash ebitda pro forma non audited industry specific PROFIT
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05-07-2022, 02:03 PM
#688
Member
Rawz, is it not end of August?
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05-07-2022, 02:29 PM
#689
Will get H2 and commentary in few weeks 👍
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06-07-2022, 10:20 AM
#690
Member
Doubled my holding at AUD0.71 I'm pretty comfortable buying at that level. My last purchase was just about NZD1.40
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