PGW - PGG Wrightson

[babymonster]

it's out, no new surprises. may pull back a bit today?

[winner69]

Love the 'worthy of praise' comment

Nice

[Beagle]

No new surprises and outlook is cautious so market a little underwhelmed BUT they were extremely cautious last year and they did exceptionally well given incredibly tough operating conditions in the dairy sector which they previously said as circa 23% of their business so with the recent rebound in GDT auction prices and given how they performed this year I think trading cum a final divvy of 2 cps they're a good hold for dividend hounds like me.

First impressions, (have been very busy on urgent business this morning so haven't had time for a good look), but EPS is 5.2 cps so PE is 10..on that basis if they can make those earnings with dairy at the bottom of the cycle I see no reason not to hold.

[Fox]

~10% gross yield with a PE of 10. Sounds like excellent value on a stable company with good diversification in its industry. I doubt you will find many others like this.

[Snow Leopard]

Normalise the results and compare them to last years normalised results and you instantly spot that it is a Copy & Paste job.

As far as I am concerned EPS is really 4.7c, same as last year.

Not a growth stock per se, but hopefully they can at least keep up with inflation going forward.

My $0.557 current valuation from a few posts back may be a slightly optimistic but $0.523 is definitely good for the day.

Best Wishes
Paper Tiger

[winner69]

Normalise the results and compare them to last years normalised results and you instantly spot that it is a Copy & Paste job.

As far as I am concerned EPS is really 4.7c, same as last year.

Not a growth stock per se, but hopefully they can at least keep up with inflation going forward.

My $0.557 current valuation from a few posts back may be a slightly optimistic but $0.523 is definitely good for the day.

Best Wishes
Paper Tiger

Love that 'cut and paste' quote mate - financials are remarkably consistent with last year

That Pension Fund they have is a burden - love reading Note 19 to see how much progress they make in getting it in reasonable order. Last thing they would want is a share market crash with so much of the fund invested in equities.

[Beagle]

~10% gross yield with a PE of 10. Sounds like excellent value on a stable company with good diversification in its industry. I doubt you will find many others like this.

Agree and it definitely is hard to find value in this market. Its not a term deposit but I get what PT is suggesting.
I think the yield rewards investors well for the risk involved.

[Snoopy]

Love that 'cut and paste' quote mate - financials are remarkably consistent with last year

That Pension Fund they have is a burden - love reading Note 19 to see how much progress they make in getting it in reasonable order. Last thing they would want is a share market crash with so much of the fund invested in equities.

Am I right in saying that it is low interest rates, lowering the discount factor on future liabilities, that is doing the damage here? Somehow in a rising market, the value of pension plan assets dropped by 10%. Who are the fund managers that did that?

Did I read that expected Group contribution figure to the pension funds of $9.51m for FY2017, up from just $1.08m this year correctly? That is one hell of a hit on next years profit!

SNOOPY

[kiora]

Am I right in saying that it is low interest rates, lowering the discount factor on future liabilities, that is doing the damage here? Somehow in a rising market, the value of pension plan assets dropped by 10%. Who are the fund managers that did that?

Did I read that expected Group contribution figure to the pension funds of $9.51m for FY2017, up from just $1.08m this year correctly? That is one hell of a hit on next years profit!

SNOOPY

19 DEFINED BENEFIT ASSET / LIABILITY
2016 2015
$000 $000
Present value of funded obligations (73,417) (72,153)
Fair value of plan assets 52,702 57,498
Net defined benefit asset / (liability) (20,715) (14,655)
ESCT on committed contributions – short-term (2,642) –
ESCT on committed contributions – long-term (2,372) –
Total defined benefit asset / (liability) (25,729) (14,655)

Doesn't this indicate liability went up by $11m?

[winner69]

Am I right in saying that it is low interest rates, lowering the discount factor on future liabilities, that is doing the damage here? Somehow in a rising market, the value of pension plan assets dropped by 10%. Who are the fund managers that did that?

Did I read that expected Group contribution figure to the pension funds of $9.51m for FY2017, up from just $1.08m this year correctly? That is one hell of a hit on next years profit!

SNOOPY

I think it is a lot more complicated than that Snoops

Most of the increase you mentioned will probably go through as part of the Other Comprehensive Income stuff anyway

I just follow the state of these Pension Schemes out of morbid fascination more than anything else. If I was a member (all long serving staff and old retired people) I would be asking serious questions as to whether I would be getting my full entitlements in the future. Could be an issue to resolve if PGW is taken over. Not saying that it's anything like that knighted gentleman who cleaned out a pension fund in Britain but PGW like many companies are finding it hard to fully fund these defined benefit schemes - the problem just doesn't go away At least they are trying their best and making extra contributions (probably had a long contributions holiday in the past)

Some irony in current shareholders still paying the pensions of people who retired zonks ago - probably those people made the company what it is today so just getting what they deserve .....but I bet the trustees/company are hoping they die earlier than expected