SCY Chart

[blackcap]

They did not pay the full tax rate. Only paid 600K tax on NPBT of $4.7Mill.

Still a credible result. Even if it is all through the finance division.

Thanks noodles.. I did see that tax paid was very small. But the result is still after tax but yes tax may impact more in subsequent years. Yes a credible result and I am happy that their finance division is doing well. I guess by having a finance division it helps you weather out the tough years and also means you can sell product at cost? if people are going to buy via finance. So that gives a competitive advantage. Dividend not imputed either this time around but once they get to paying tax again maybe they will pass it on. I might look to accumulate a few more as funds arrive but am wary of retail as the whole sector seems to be suffering.

[percy]

They did have millions in tax credit.
Not sure what they have left before they need to pay tax ?
What you have to careful of is that they do not give away finance "profits" attracting or trying to stay in business.

[blackcap]

They did have millions in tax credit.
Not sure what they have left before they need to pay tax ?
What you have to careful of is that they do not give away finance "profits" attracting or trying to stay in business.

Yes indeed Percy, well said, however the conundrum is that without their normal business they have nor finance business. One could almost argue that SCY is a finance company with a novel concept of attracting borrowers....

[winner69]

The 2013 accounts showed tax losses carried forward of $11m odd. Goes back to their pre-receivership days

So a few more years of tax relief yet

[Snoopy]

Still a credible result. Even if it is all through the finance division.

Whre is the divisional result breakdown in the released results noodles? Or are you just looking at the cashflow statement?

Interest Received- Smithcorp Finance: $7.9m
Interest Paid - Smithcorp Finance: $2.9m

=> net positive cashflow from Smithcorp Finance $5.0m. That is rather a high proportion of the 'Trading Profit' of $5.5m!

SNOOPY

[percy]

Yes indeed Percy, well said, however the conundrum is that without their normal business they have nor finance business. One could almost argue that SCY is a finance company with a novel concept of attracting borrowers....

I think that is the correct way of looking at it.Farmers used to be the same before they had to sell their finance company to FPF.
They have very few problems with loans.Most hire purchase agreements are put in the wife's name.Welfare will assist with payments should Hubby leave the nest.! A lot of families always have something they are paying off.Smiths' have a reputation of working with people who face hardships,rather than against them.When Smiths went into receivership a great deal of people paid up their accounts trying to help Smiths.
Thanks winner69 for the up to date figure.It was amazing out come for Smiths.One of their auditors thought the way The Smiths City Group was structured, they could claim subsidiaries tax losses.The board then financed the cost of research and fees in claiming those losses. The rest is as they say history.

[winner69]

Whre is the divisional result breakdown in the released results noodles? Or are you just looking at the cashflow statement?

Interest Received- Smithcorp Finance: $7.9m
Interest Paid - Smithcorp Finance: $2.9m

=> net positive cashflow from Smithcorp Finance $5.0m. That is rather a high proportion of the 'Trading Profit' of $5.5m!

SNOOPY

Half year Finance profit was $1.84m out of $2.10m

[noodles]

Whre is the divisional result breakdown in the released results noodles? Or are you just looking at the cashflow statement?

Interest Received- Smithcorp Finance: $7.9m
Interest Paid - Smithcorp Finance: $2.9m

=> net positive cashflow from Smithcorp Finance $5.0m. That is rather a high proportion of the 'Trading Profit' of $5.5m!

SNOOPY

Yeah, just looking at the cashflows.

[blackcap]

Yeah, just looking at the cashflows.

I queried Rick on the divisionals with reference to the cashflows. He did say the cashflows are a little skewed in that there are timing issues with recievables etc and that it does not paint a complete picture. But admitted that most of the profit came from the finance division. Annual Report should provide further detail.. out soon according to Rick.

[percy]

There are actually three arms to Smiths City.We know the retail and the finance arms,but have not mentioned their third arm,property.
The property arm retains ownership of Colombo street,ChCh store.The property arm has also achieved good property development profits.These have been achieved by buying a property,upgrading it,openning either a Power Store or Smiths city,then onselling the property.New owner has a great listed retailer as tenant.Development margin gained by Smiths City.
Now I was thinking if they don't buy an existing Auckland furniture retailer they may start developing their own sites.Have done it very successfully in the past. Gore,Invercargill,and Gisborne come to mind straight away.
Blackcap.If you see them doing it in Wellington or Auckland you know they will make good money.