ALF - Allied Farmers Limited

[percy]

Any one going to agm on Tuesday. I am planing to go

Well golden city it looks as though we are all relying on you to report the meeting for us.!

[golden city]

Looking good with dividends

[Vaygor1]

Looking good with dividends

Yes, correct Golden City.

Dividend the same as last year. 0.2c fully imputed (Gross dividend of 0.278 cents/share).

I note in all caps on the presentation notes the wording "On track to be significantly ahead of first half of last year". My understanding is ALF are well ahead now of where they wanted to be by 31-Dec-2018.

I believe the Board indicated at the ASM the 030 Bonds (totalling $300,000) would be fully repaid to bond-holders in March 2019 as ALF would not be seeking extension. $250,000 was paid in September 2018.

This means the amount repaid to 030 bondholders plus the amount paid for the gross dividend for the current financial year will total almost exactly $1 million, or 0.62 cents per share.
A part of this is likely to be funded through ALF's banking arrangements I would think. By all accounts the banks are very comfortable with ALF's position. More prudent to pay a lesser interest rate to a bank than the bondholders' rate.

Presentation notes also state "Finance subsidiary ahead of plan". Not much was said about the finance side at the ASM I understand. My belief is ALF's financing vehicle helps ALF in its capacity as an agent to fast-track the contract process, expediently secure the financial side of a livestock transaction, and provide peace of mind for the livestock seller when forward contracting. All without having to pay some other crowd to do it, while waiting for approval.

Possibly more to add later.

[golden city]

Are you in agm vaygor

[blackcap]

Yes, correct Golden City.

Dividend the same as last year. 0.2c fully imputed (Gross dividend of 0.278 cents/share).

I note in all caps on the presentation notes the wording "On track to be significantly ahead of first half of last year". My understanding is ALF are well ahead now of where they wanted to be by 31-Dec-2018.

I believe the Board indicated at the ASM the 030 Bonds (totalling $300,000) would be fully repaid to bond-holders in March 2019 as ALF would not be seeking extension. $250,000 was paid in September 2018.

This means the amount repaid to 030 bondholders plus the amount paid for the gross dividend for the current financial year will total almost exactly $1 million, or 0.62 cents per share.
A part of this is likely to be funded through ALF's banking arrangements I would think. By all accounts the banks are very comfortable with ALF's position. More prudent to pay a lesser interest rate to a bank than the bondholders' rate.

Presentation notes also state "Finance subsidiary ahead of plan". Not much was said about the finance side at the ASM I understand. My belief is ALF's financing vehicle helps ALF in its capacity as an agent to fast-track the contract process, expediently secure the financial side of a livestock transaction, and provide peace of mind for the livestock seller when forward contracting. All without having to pay some other crowd to do it, while waiting for approval.

Possibly more to add later.

What you have said was pretty much confirmed at AGM. Looking to repay bonds. (question was asked from floor). Livestock finance helps agents fasttrack contract process and or gain contract where none could otherwise be found. 13% was the interest rate mentioned, the security is the livestock and or other collaterol.

Dividends may be increased in future if balance sheet is shored up a bit more and when bonds are repaid. Although problem I have with that is that imputation credits are going to run out. Would rather not pay tax if need to and suggested a share buy back.

They are ahead this year, but did say they have no idea on the second half as you are probably aware there are 2 segments to the business.

They also did acknowledge that the FY18 result was not that great as the 400k one off is not recurring and corporate costs the year before were flattered by some smoothing process.

Gary Bluett was given a farewell speech by the board and a shareholder on the floor thanked him and was almost moved to tears saying the sacrifice he had put in for the company.

I may post more as more comes to hand and when I have more time.

[percy]

You are doing well.
Glad you made the trip and are sharing with us.

[Vaygor1]

Are you in agm vaygor

No Golden City. I am in a time zone 5 hrs behind NZ.
I do know others that attended who have since reported back to me.
Also I referred in my post to the presentation notes available via the NZX.

Refer: https://www.nzx.com/announcements/327435

Vaygor

[golden city]

First half guidance achieved looks solid

[NeverQuestion]

First half guidance achieved looks solid

Next stop the Moon!

[golden city]

Looking good now after a long consolidation period