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

[Snoopy]

Results out and management claim they are disappointed but really things are better than they appear. Dividend maintained.

There is a $1.3m 'one off' adjustment mentioned in the Chairman's address. Later is mentioned a $0.3m provision due to a 'Christchurch problem'. This came about because of 'significant growth in key infrastructure projects' (!??!*!). The head contractor is not approving payment to a subcontractor and AWF is owed by the sub-contractor or something like that. Actual amount in dispute is $1.3m, but AWF says only $0.3m of that is the provision at risk. I am not clear if the $0.3m 'Christchurch Provision' is included in the $1.3m 'one off' provision or not.

I have searched through the Annual Report for FY2016. There is no further mention of the $1.3m adjustment referred to in the Chairman's address. I hope he is right and the benefits of this adjustment flow thorough to future years. But in the absence of further information, as an investor, I believe I should treat this as a 'normal business expense' that does not distort the result for this year.

The most disappointing sentence in AR2016, I think is in the strategy section (p11).

"While most staff, client and candidate experiences remain distinct between AWF and Madison...."

I'm sorry, what was the purpose of this merger again? Was 'zero synergies' one of those bullet points?

Also disappointing was the hint dropped on raising the final dividend at half year result time which didn't happen becasuse of the disappointing second half.

Nevertheless eps was 16cps (let's forget about this 'underlying profit' that management like to speak about). dps was 15.2cps.

At $2.30 I get a net yield of 6.6%, and a gross yield of 9.2%. You would have to be in some sort of financial trouble to want to sell out at those levels I would have thought. This still looks like a good 'bottom drawer keeper' for the income investor. I could make an argument for adding a few at $2.30, even if I hadn't bought most of my comfortable little holding at that price already!

SNOOPY

[percy]

The announced AWF Madison acquisition of Absolute IT appears to be a step in the right direction.
$15.3 mil for a business with revenue of nearly $65mil ,without knowing its profitablity, seems to be OK to me.
Well Snoopy I hope the AWF shares you brought from me start performing.!!..lol.

[BlackCross]

Good news...

Madison has been awarded a contract commencing on 20 October 2016 and running through to 30 June 2018. This major project will involve the recruitment of between 3,500 and 4,000 staff throughout New Zealand who will be responsible for all Census activities...

[Joshuatree]

Pretty well at a 2 year high on very good (for AWF) vol.

[percy]

I note AWF's CEO,Simon Bennett will be presenting at NZ Shareholders' Auckland meeting on Wednesday 26th April.

[noodles]

I note AWF's CEO,Simon Bennett will be presenting at NZ Shareholders' Auckland meeting on Wednesday 26th April.

Details here:
http://www.sharetrader.co.nz/showthr...l=1#post663250

[percy]

I note AWF's CEO,Simon Bennett will be presenting at NZ Shareholders' Auckland meeting on Wednesday 26th April.

Come on NZSA sharetraders.I sat up late last night waiting for reports.Up early this morning.Not a one.!!
Didn't Simon turn up at your meeting last night?
And if he did,did he have laryngitis.?
And then this morning a speeding ticket.!!!!.????????????????????

[forest]

Hi Percy, Simon did turn up. He started his presentation explaining that being so close to the result announcement he was unable to talk about resent trading/profits. He then went on to say that the aim for the foreseeable future is double digit growth. He said all this with a big smile on his face. The rest of the presentation was an overview of the 3 business units AWF operates.
So here you have it, he was unlikely smiling and thinking about a bad result at the same time.

[percy]

Hi Percy, Simon did turn up. He started his presentation explaining that being so close to the result announcement he was unable to talk about resent trading/profits. He then went on to say that the aim for the foreseeable future is double digit growth. He said all this with a big smile on his face. The rest of the presentation was an overview of the 3 business units AWF operates.
So here you have it, he was unlikely smiling and thinking about a bad result at the same time.

Thanks Forest.
Big smile on his face and aim for "double digit growth" "for the foreseeable future",goes a long way to explaining the speeding ticket.!
Must say I think shareholders are "well positioned" "for the foreseeable future".

[Joshuatree]

Thanks Forest, percy and noodles. AWF performing like this keeps me out of a job