AGL - Accordant Group. was previously AWF Madison, Allied...

[percy]

From the notice of meeting;"AWF's underlying EPS could exceed 30 cents for the 2014/15 financial year. This compares with EPS of 20.7 cents reported by AWF in the 2012/13 financial year.Such an increase in earnings would allow significant headroom for a steady lift in dividends while providing for the Company to adopt an appropriate debt programme."
"The new opportunities which are expected to be created as a result of the Madison acquisition and the wider sector involvement available to the integrated AWF/Madison group is expected to significantly lift the AWF Group's attractiveness to clients.Any financial benefits in this respect have not been quantified in the above forecasts."
Very positive.Use of the word "significant" twice in the announcement is a very strong buy signal.!! lol.

I note the AWF agm is tomorrow.
I will again miss it.May I ask for a report from those of you who will be attending it.
Would one of you please ask whether they are on track to deliver the eps of 30 cents they referred to above. [notice of meeting to approve Maddison acquisition].
thanks in advance.

[stoploss]

I note the AWF agm is tomorrow.
I will again miss it.May I ask for a report from those of you who will be attending it.
Would one of you please ask whether they are on track to deliver the eps of 30 cents they referred to above. [notice of meeting to approve Maddison acquisition].
thanks in advance.

http://news.media.mdgms.com.s3.amazo...7ebe981a9edfad

[BlackCross]

Not much depth if I wanted out....In fact no depth whatsoever now the two small buyers have gone..

[macduffy]

http://news.media.mdgms.com.s3.amazo...7ebe981a9edfad

It's to be hoped that the Basin Reserve flyover wasn't one of the big infrastructure projects that AWF was looking to for its Wellington business revival.

[noodles]

I went to the AGM today. I think there were 2 keys themes:
1. The company is on target for underlying NPAT of $8mill. This is the target they set last year.
2. A capital raising of 8-10 million will be undertaken around October. Shareholders made it clear that they wished to participate.

Without a capital raising, the FY15 eps= 31c. At today's close of 2.40, it puts it on a pe of 7.84

If we include the additional shares issued as part of the capital raising, it would obviously change the pe. So lets assume $9mill raised at $2.20. This would equate to an extra 4090909 shares

.

Now the pe = 9.06

This is a HUGE discount to the average pe on the NZ market (16???)

[winner69]

even more huge than you think noodles .... some have the NZX PE at 18 to 19

[percy]

I went to the AGM today. I think there were 2 keys themes:
1. The company is on target for underlying NPAT of $8mill. This is the target they set last year.
2. A capital raising of 8-10 million will be undertaken around October. Shareholders made it clear that they wished to participate.

Without a capital raising, the FY15 eps= 31c. At today's close of 2.40, it puts it on a pe of 7.84

If we include the additional shares issued as part of the capital raising, it would obviously change the pe. So lets assume $9mill raised at $2.20. This would equate to an extra 4090909 shares

.

Now the pe = 9.06

This is a HUGE discount to the average pe on the NZ market (16???)

Thanks for your post.
I found the presentation very confusing.
Thought it was written by someone suffering bipolar disorder.
Talk of tough times,then set for record result.Increasing the dividend,then needing a capital raising??
Thanks for working through the eps.At 31cents they will beat the 30 cents target when Maddison acquisition was voted on.
Whatever way we look at it the fundamentals are very modest.ie low PE with high dividend yield.

[winner69]

Seems ridiculously cheap eh noodles

Market stupid? or does the historical baggage still hand around its neck

haven't really followed lately so don't know much

[noodles]

The CEO of Maddison also spoke. He said that usually temp is strong and perm is weak (or vice versa). However, both are currently strong. This has never been experienced by Maddison before.

So clearly the Maddison business is doing very well.

[zigzag]

I went to the AGM today. I think there were 2 keys themes:
1. The company is on target for underlying NPAT of $8mill. This is the target they set last year.
2. A capital raising of 8-10 million will be undertaken around October. Shareholders made it clear that they wished to participate.

Without a capital raising, the FY15 eps= 31c. At today's close of 2.40, it puts it on a pe of 7.84

If we include the additional shares issued as part of the capital raising, it would obviously change the pe. So lets assume $9mill raised at $2.20. This would equate to an extra 4090909 shares

.

Now the pe = 9.06

This is a HUGE discount to the average pe on the NZ market (16???)

The extra capital raised would be used to retire debt, so less interest to pay in the second half. This would also affect the PE. However I can't see the share price moving to much until the debt and capital raising issues are worked through. Capital raisings generally put downward pressure on the share price, so buyers will mostly hang off until there is more clarity.