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

[Snoopy]

AWF Madison mentioned in respect of the current IRD woes

https://www.stuff.co.nz/business/ind...ts-were-a-joke

"Madison may be unable to give them written confirmation of their hours or pay - or details of where they would work or what they would do - even after they start an assignment, because those assignments may vary and be "short term"."

Welcome to the 21st Century IRD staff. IRD have too many workers, so reducing the employment conditions sounds an excellent 'market' way to get some to leave.

Ben Chipping, employee aged 27 "It is outrageous considering some people have mortgages that depend on their jobs, and children."

Well Ben, less ability to pay mortgages equals less demand for houses equals lower house prices. This is exactly the kind of thing that your generation asked for! As for the children, they can be rented out. There is many a rich family willing to pay a pittance for a young housekeeper. Good discipline for that upcoming generation too!

It all sounds like a white middle class crisis to me. It is an international world now. I bet all of those Madison employment contracts look gold plated compared to those who work in dangerous conditions deconstructing ships in Mumbai!

SNOOPY

[winner69]

"Madison may be unable to give them written confirmation of their hours or pay - or details of where they would work or what they would do - even after they start an assignment, because those assignments may vary and be "short term"."

Welcome to the 21st Century IRD staff. IRD have too many workers, so reducing the employment conditions sounds an excellent 'market' way to get some to leave.

Ben Chipping, employee aged 27 "It is outrageous considering some people have mortgages that depend on their jobs, and children."

Well Ben, less ability to pay mortgages equals less demand for houses equals lower house prices. This is exactly the kind of thing that your generation asked for! As for the children, they can be rented out. There is many a rich family willing to pay a pittance for a young housekeeper. Good discipline for that upcoming generation too!

It all sounds like a white middle class crisis to me. It is an international world now. I bet all of those Madison employment contracts look gold plated compared to those who work in dangerous conditions deconstructing ships in Mumbai!

SNOOPY

Love it when you get really angry Snoopy .....usually you post in a considered well thought out sedate way but jeez there appeared to be some emotion in this post.

Whatever if what was reported is the basis of a AWF Madison contract that contract is ****e .....and might put their pool of workers off dealing with them

[percy]

Big full moon.
Affects hounds.!

[winner69]

Big full moon.
Affects hounds.!

Hadn’t thought of that

[Stranger_Danger]

"Madison may be unable to give them written confirmation of their hours or pay - or details of where they would work or what they would do - even after they start an assignment, because those assignments may vary and be "short term"."

Welcome to the 21st Century IRD staff. IRD have too many workers, so reducing the employment conditions sounds an excellent 'market' way to get some to leave.

Ben Chipping, employee aged 27 "It is outrageous considering some people have mortgages that depend on their jobs, and children."

Well Ben, less ability to pay mortgages equals less demand for houses equals lower house prices. This is exactly the kind of thing that your generation asked for! As for the children, they can be rented out. There is many a rich family willing to pay a pittance for a young housekeeper. Good discipline for that upcoming generation too!

It all sounds like a white middle class crisis to me. It is an international world now. I bet all of those Madison employment contracts look gold plated compared to those who work in dangerous conditions deconstructing ships in Mumbai!

SNOOPY

Spoken like a true baby boomer lol.

[traineeinvestor]

New house is great thanks Peat.
Old house should have been settled today.
Just hope MEL don't go much higher before I buy them back,and a few extra .
Even considering some AIR and SPK,as I think all three have the capacity to pay increasing divies..

ps Could not remember that Octopus's name.!

Paul the Octopus is sadly no longer available for share picking contests.

[winner69]

Hey Snoops


Your never said anything about AWF profit figure .... was $5.1m a real surprise (v your forecast of ~$7m or had we conditioned you to a number like what was reported)


I see from the Balance Sheet that borrowings have increased as well in spite of that fantastic cash flow

[Snoopy]

Hey Snoops

Your never said anything about AWF profit figure .... was $5.1m a real surprise (v your forecast of ~$7m or had we conditioned you to a number like what was reported)

Did you notice that $5.048m net profit included a $170k contribution 'not paid' to the Absolute IT founders as an earn out payment? This is further explained under note F7

"During the year 31st March 2018, Absolute IT's earnings for the 52 weeks to 1 November 2017 were less than that which was estimated by the directors on acquisition date. Accordingly on 1 November 2017, the group settled the contingent consideration liability for $3.25m, with the balance of $0.170m being settled as a fair value gain through profit and loss."

IOW from an operational perspective this was a one off bonus. My calculation of the operational NPAT puts things back to under $5m!

$5.048m - 0.72 ($0.170m) = $4.926m.

Rather curiously Chairman Ross Keenan said in AR2018 p3

"Absolute IT delivered a result that was above our expectations."

So does that mean that after Absolute IT was acquired, the board lowered their expectations so that the division could deliver above the new expectations? It is hard to make sense of this stuff sometimes.

Yet it is all historical Winner. The profit was what it was and next year will be better. I liked this bit from AR2018 p7

"We are targetting double digit EBITDA growth through execution and improvement initiatives impacting cost and revenue to create sustainable value for our shareholders."

Over FY2018 EBITDA worked out at $11.549m. So Simon Bennett is telling us at least $12.704m (the smallest double digit rise of 10%) for FY2019. That is better that FY2015 and FY2016!

Of course there will be more shares by then as a result of the DRP. It looks like the number of shares got bumped up by:

$773k/ $1.90 = 407k

as a result of those 'great investors' (like Simon Hull and myself) fully participating half of their shares ( ;-P love the new meaning of 'full participation') to really shore up the capital base of this company. How does that relate to the number of shares on issue now?

407,000 / 32,555,000 = 1.25%

So not too much of a dilution. Maybe 2.5% for the year if we include a similar effect the upcoming interim dividend

I see from the Balance Sheet that borrowings have increased as well in spite of that fantastic cash flow

Perhaps you forgot to offset any bank loan increase with the increase in cash on hand at balance date?

	Bank Loan Borrowings	Cash on Hand	Net Bank Debt
EOFY2017	$33.500m	less $1.225m	equals $32.275m
EOFY2018	$36,000m	less $6.269m	equals $29,731m

I also saw that the floating bank interest rate paid was down to 3.48% (AR2018 note C8) which struck me as astonishing low for a corporate. The previous year, FY2017, they were paying 4.74% (still pretty low)! Bank interest paid was $1.297m over FY2018. If bank interest rates returned to FY2017 levels then the interest bill would rise by 36% to $1,767m. That would wipe approximately $470k x 0.72 = $338m off NPAT

SNOOPY

P.S. Sorry to delay my reply, but wanted to keep things 'under the radar' while I acquired a few more shares - it took nearly a month on market to complete a smallish order! I didn't want other sharetraders - such as yourself - suddenly deciding to buy some from under my nose at bargain prices!

P.S.S. Average holding price now $2.20, so still under water!

[percy]

[QUOTE=Snoopy;723525]
"We are targetting double digit EBITDA growth through execution and improvement initiatives impacting cost and revenue to create sustainable value for our shareholders."

I can not remember AWF meeting target/projections for the past 5 years,or more.Just does not happen.
Different this time.?
Take care,they are at risk of becoming a serial underperformer..
The current share price is where it was 6 or 7 years ago.

[winner69]

Hope they haven’t been supplying labour to Ebert Construction

That Auckland Manager they sacked was pretty good Ar drumming up business up Auckland way