ALF - Allied Farmers Limited

[mfd]

https://www.nzx.com/announcements/378136

Fantastic result at first glance, 63% increase in EPS despite the rights issue. Only includes 6 months of NZRLM, although the results from it are probably juiced a little from the initial flurry of farm purchases.

Currently trading on a PE of 8.5.

[golden city]

Very good progress with cashflow from operating activities over 4million dollar no need raise additional funding for growth

[percy]

I was so impressed with the result and outlook I brought some ALF shares.

[golden city]

Good on you Percy the engine just started

[nztx]

Remember - twice as many shares on issue over last year to spread dividend across

that's likely to be based on cash earnings too - after removing income creation by book entry,
shares in a circle & one off job effects ..

Report does specify update 'if ANY Dividend or Capital Return"

Will the Div Yield still stack up better or slide to worse than NPH currently records ?

The smart money onboard now may even decide that no-one will get any dividend at all
given the one off NZLM one off revenue items present

[percy]

vRevenue and other income A1 21,661 20,061
Cost of sales and operating expenses A1 (18,594) (18,425)
Depreciation and amortisation A1 (827) (784)
Net interest income B7 241 247
Profit before tax 2,481 1,099
Income tax (expense) / benefit A2 95 119
Profit after tax 2,576 1,218
Total comprehensive income 2,576 1,218
Profit attributable to:
Shareholders of Allied Farmers Limited ('Allied') 2,021 767
Minority shareholders of NZ Farmers Livestock Limited ('NZFL') 555 451
Basic Earnings per share (cents) 7.02 4.30

Note last line eps increase from 4.30 to 7.02.

[mfd]

Remember - twice as many shares on issue over last year to spread dividend across

that's likely to be based on cash earnings too - after removing income creation by book entry,
shares in a circle & one off job effects ..

Report does specify update 'if ANY Dividend or Capital Return"

Will the Div Yield still stack up better or slide to worse than NPH currently records ?

The smart money onboard now may even decide that no-one will get any dividend at all
given the one off NZLM one off revenue items present

Earnings growing much faster than number of shares, and potential for more shares being issued has now faded away as they are kicking out enough cash to fund their own growth.

I expect a small dividend and happy for them to keep the rest to fund further growth. They've previously given out equivalent of a cent or two, 2c would be a payout ratio of 28% of earnings and give us a 3% yield.

[percy]

"We are pleased with the growth of our livestock lending business, with the loan book expanding by an
additional $1.6 million to $5.2 million, largely made possible following the successful capital raise in late
2020. In addition, this business concluded a successful first year introduction of a new seasonal store lamb
financing facility (Lamb Plan) which we expect to grow over coming seasons."

That growth was 44.44%.I expect further growth.While they are achieving that sort of growth I do not mind if they do not pay a dive in January.

[Lola]

vRevenue and other income A1 21,661 20,061
Cost of sales and operating expenses A1 (18,594) (18,425)
Depreciation and amortisation A1 (827) (784)
Net interest income B7 241 247
Profit before tax 2,481 1,099
Income tax (expense) / benefit A2 95 119
Profit after tax 2,576 1,218
Total comprehensive income 2,576 1,218
Profit attributable to:
Shareholders of Allied Farmers Limited ('Allied') 2,021 767
Minority shareholders of NZ Farmers Livestock Limited ('NZFL') 555 451
Basic Earnings per share (cents) 7.02 4.30

Note last line eps increase from 4.30 to 7.02.

It would be interesting to know if there were any significant one off expenses relating to the Rural Property investment eg Legal, and how they have been treated in these accounts. Regardless , its an impressive result even though not impressive enough to stop NZTX taking a dour view...as anticipated.

[nztx]

Earnings growing much faster than number of shares, and potential for more shares being issued has now faded away as they are kicking out enough cash to fund their own growth.

I expect a small dividend and happy for them to keep the rest to fund further growth. They've previously given out equivalent of a cent or two, 2c would be a payout ratio of 28% of earnings and give us a 3% yield.

Shares on Issue Growth was 50% - wasn't it ?

What's the bet the Cash Divie will be 1.0 cps with imputation credits for next January ?

Remember ALF's resident goose only lays a small golden egg - and just once a year


No dividend from the Muddy Boots Management Outfit either for 2021, but plenty of Revaluation Hike Up's
on the turf recently added to the stable .. Good luck with eating the revaluation gains .. you're just stuck
firmly in place for the longer term up & down ride ..