IFT - Infratil

[Ggcc]

Personally I don’t mind complicated books on a business with an appreciating share price. From personal experience accountants are great a putting books together and terrible at running a business, other than their own.

[macduffy]

These days it feels more they gamble and ride on market hype. Sure - their assets are all rather essential and they do have a value, but that's often little earnings and plenty of market hype. Buy them early and try to flog them off before the bubble bursts. Admittedly - it often worked for Infratil, Z energy springs to mind - and if Tilt works out as well, than this will be in my view another master piece in speculation.

I prefer to see those examples as astute investments, taking positions in companies, adding value and on-selling.

Disc: Holding since the IPO - no complaints!

[Ggcc]

I prefer to see those examples as astute investments, taking positions in companies, adding value and on-selling.

Disc: Holding since the IPO - no complaints!

Still no complaints from either you or me as the sp keeps ticking up

[bull....]

nudging resistance at all time highs , only matter of time to charge on higher esp with billions in fire power available now thanks to tilt sale on potential purchases

[LaserEyeKiwi]

I watched the earnings stream today. Seems pretty clear to me that they will be issuing a profit upgrade as soon as the Pacific Radiology deal closes (due to close by end of month).

just like I said: Profit upgrade following closing of pacific radiology transaction:

On 19 May 2021, Infratil issued guidance for the year ended 31 March 2022 for Proportionate EBITDAF of between $470 million and $520 million (excluding Tilt Renewables and Pacific Radiology). Following completion of the Pacific Radiology acquisition, this has now been increased to between $505 million to $555 million, which includes a 10-month contribution from Pacific Radiology.

https://www.nzx.com/announcements/373139

[NZSilver]

Cheers laserEye, you are on to it!

[maclir]

just like I said: Profit upgrade following closing of pacific radiology transaction:



https://www.nzx.com/announcements/373139

So $42m annualised. Not bad for year one, let's hope the Infratil magic wand does its thing in out years.

[Ggcc]

Just went to their meeting tonight in Napier.
Very interesting. Firstly they made it very clear that any money coming from the sale of Tilt would be put back into the business or a share buyback, rather than buying more new businesses outside their industry they are currently invested in. No mention of a special dividend. Historically they said it took a while before people saw the value in CDC and only recently have people seen the value. CDC is currently valued at its future pipeline value. So expects to grow its profit this year by roughly 15% and expects 40% there after when running at full capacity. It is 30% of Infratil’s portfolio and growing rapidly. So CDC might be a 5 billion dollar version of Tilt in a few years

There was a lot of talk about carbon emissions and that the cost currently around $37 per tonne at market value and that the new climate commission report was sent to the government today and results should be out within the next couple of days regarding how New Zealand would need to reduce carbon emissions by 2050 to zero and that the new cost will be higher. They mentioned that the market should try to fix this and not the government by introducing no new legislation. ie the quitting of gas exploration in Taranaki resulting in Huntley power station which uses coal to power for the people. Or something similar to that. Also it was mentioned by Tim Cook that we should have finite carbon credits rather than infinite. I believe Tim Cook is involved with the climate commission.

Vodafone is currently doing really well and is in the process to simplify stuff for the end user and it will help their customer service team Greatly. They say they still have a way to go, but that they are on the right path.

The new acquisition is good with roughly 20% share in New Zealand and not really having a presence in Auckland yet so room for expansion. They expect all areas of this to expand as rehabilitation will be very important for organisations like ACC and people alike with the people over 65 to grow by 25% in the next few years.

Retire Australia had a few obstacles with covid but seems back on track with some growth in the pipeline.

Wellington airport is running at 90% of pre covid. They repaired the runway one year early, and saved 2 million from being able to do it quicker due to fewer/no flights.

Long road I feel will become a Tilt story and I feel that is where they will put the majority of funds (was not mentioned and just my personal opinion). Joe Biden has said he wants America fully green by some unimaginable date, I can’t remember when, but they want to spend $100 billion per year to make it so. Long road is currently valued around $130 million, but that is valued without future pipeline included in that valuation unlike Tilt. They believe they would get a heck of a lot more for long road now than that when including their pipeline. Let alone in 5 years time when they will be expanding rapidly with (expected) multiple contracts. They might sell that for 2 billion US in 5 years time who knows.

Anyway there was more, but those were the points I took from this meeting. Loads to digest. Great canopies as well.

[Blue Skies]

Thanks Ggcc, great summary & much appreciated.

[kiora]

+
18.8 % compounding return since listed 1994?
20 % over last 10 years
An initial investment of $100 now worth over $10,000

$45m? in cost savings in Vodafone in last year, simplified the business by eliminating 1500 different offerings
Retire Aus building Care suites, sales of units very high but need to build ahead more
Galileo built a good team up from 1 to 25 ? and ready to implement
If any share price weakness likely to introduce a share buyback that will underpin SP