PGW - PGG Wrightson

**Bjauck** · 20-10-2020, 10:22 AM

They noted a Rural and Lifestyle property uptick. Happy farmers; Happy Wrightson's. Good to see dividends are being resumed, all things remaining equal. Has it paid back the covid wage subsidy?

**Balance** · 20-10-2020, 10:28 AM

Originally Posted by Bjauck

They noted a Rural and Lifestyle property uptick. Happy farmers; Happy Wrightson's. Good to see dividends are being resumed, all things remaining equal. Has it paid back the covid wage subsidy?

Why would & why should PGW pay back the wage subsidy?

The company lost $5m in the half year to 30 June 2020 due to the lockdowns. Reason why they did not pay a final dividend.

**Bjauck** · 20-10-2020, 10:39 AM

Originally Posted by Balance

Why would PGW pay back the wage subsidy?

If I understand the release correctly, annual FY2020 Ebitda is forecast to increase.

**Balance** · 20-10-2020, 10:43 AM

Forecast profit increase is for F2021, actually.

Note reply above - they lost $5m in second half of F20.

**Bjauck** · 20-10-2020, 11:15 AM

Originally Posted by Balance

Forecast profit increase is for F2021, actually.

Note reply above - they lost $5m in second half of F20.

You are right. I had my reporting periods confused.

**Jantar** · 20-10-2020, 11:16 AM

Originally Posted by Bjauck

…. Has it paid back the covid wage subsidy?

I would hope not. They went 7 weeks without being able to operate as normal and to begin with they had no idea how long it would last. The options were to accept the subsidy or lay off staff. They chose the correct option in retaining staff.

**Snow Leopard** · 20-10-2020, 11:39 AM

Nice announcement 8c plus interim likely. A real wallet warmer.

**Norwest** · 20-10-2020, 05:19 PM

Originally Posted by Balance

Time to revisit your assumptions, Snoopy.

Big picture to me is still the same however - what price will Beijing pay to takeover PGW.

Think it is going to have to be closer to $3.50 now than $3.00.

I agree, they won't get my shares at $3.00

Originally Posted by Snow Leopard

Nice announcement 8c plus interim likely. A real wallet warmer.

Absolutely, will be looking forward to this warming my wallet next April like you say!

I like how it was written
"...it is the expectation of the Board that an interim dividend of not less than 8 cents per share would be declared..."

Potential upside for sure.