ALF - Allied Farmers Limited

[percy]

They described their finance operation as plateauing.

My understanding (and I could be wrong) is the banks don't want to lend money for this kind of activity under the present climate. Nothing to do with ALF's health. Based on this, if they can secure further funding, then the financing of livestock transactions will continue increasing.

Thank you.

[percy]

They described their finance operation as plateauing.

My understanding (and I could be wrong) is the banks don't want to lend money for this kind of activity under the present climate. Nothing to do with ALF's health. Based on this, if they can secure further funding, then the financing of livestock transactions will continue increasing.

Thank you.

[Vaygor1]

December 2019 ASM Commentary

I had to retrieve the notes I took down during the meeting before writing the following which is not in any particular order:


Company performance to the end of October (with 2 calendar months remaining in H1) was described as "heartening".

The plateauing of financing livestock transactions (refer my previous post) was described as a risk. ie the plateauing may not eventuate.

ALF have increased their number of agents to 66. Relationships between the agents and the farmers is paramount and succession planning is important to the Board and senior management.

The MyLivestock App continues its path of continuous improvement as is normal and required of apps. Improvements/changes in system architecture should be complete by end of January, user experience and functional improvements will then follow.

FMEL (Bobby calves, meat exporting) business has expanded with a 2nd processing plant in operation now (I can 't remember the location - Morrinsville?).

Strong Red-meat payout from the US currently.

USD-NZD exchange rate not unfavourable for ALF in comparison to last year.

Dairy stock prices are firm. If anything was said about dry stock pricing I missed it.

M Bovis, while suppressing farmers' desires to transfer and move around stock, also provides opportunities for the agencies who have the know-how in dealing with it and complying with the authorities on the matter. Lesser impact on the sector than originally thought and not as bad as (at least initially) portrayed by the press.

Ongoing growth in the areas of recruitment, acquisition, Northland, and South Island. ALF focussed on growth, actively looking regarding acquisition, but not at any price.

Strong balance sheet.

They describe the Sector as challenging, but describe ALF as well positioned with immense opportunities, very bright future, exciting times ahead, future as optimistic.

Dividend payout of 2c/share fully imputed (at an imputation rate of 28%) announced, to be paid in January 2020.

Referring to the Slide 5 of the presentation....

Attachment 10868

... equity stated as $6million (Double last years stated equity) but this figure "excludes assessed value of investment in subsidiaries or increase in value of rural fixed assets".

If including the worth of ALF's ownership in various sale yards around the region (some they own, some they partly own, some they lease), I put ALF's equity at over $0.60 per share.

[forest]

Great summary, thanks Vaygor.

[blackcap]

Thanks for that Vaygor. Totally appreciated here.

[golden city]

Thanks very much for that

[golden city]

Director reducing

[Vaygor1]

Director reducing

... from 129,563 (post consolidation) shares down to 95,557 = 34006 shares at the market price on the day equates to about $24,500 worth.

Not a lot on the overall scheme of things. Maybe a few home renovations needed? One never really knows, but it is always nicer to see a Director buying rather than selling.

[golden city]

Only small money but doesn’t like insider reducing

[golden city]

How does the tax will effect Alf