ALF - Allied Farmers Limited

[percy]

Net profit up 120.1%.
eps growth 100%.
eps..97
PE 9.69.
Lower borrowing costs.
Can't ask for more.
Well done ALF.

[stones]

Great result!!!!

[Fatboyj]

Any chance there will be a divvy announced?

[stones]

Any chance there will be a divvy announced?

I would have thought a divi be announced alone with the results. However I may be wrong

[Leftfield]

Great result - well done holders (Disc added to my portfolio LY and v happy.)

[freddagg]

Any chance there will be a divvy announced?

No dividend. I think their books are still a bit fragile to be paying dividends yet.

https://www.nzx.com/files/attachments/264753.pdf

[blackcap]

No dividend. I think their books are still a bit fragile to be paying dividends yet.

https://www.nzx.com/files/attachments/264753.pdf

NTA still only 1 cent per share so it would be a bit "imprudent" to declare a dividend. Great result though and a very low PE, though looking forward to more difficult trading conditions in FY18

[Vaygor1]

A Tip-Top result for sure. Any increase in NPBT of 52% can't be all bad.

I am a little disappointed (and a little surprised) that no dividend is forthcoming yet. However, in the vast majority of cases a resumption or commencement of dividend payments is normally signalled at the AGM which in ALF's case is due later this year.

Dividends do get a mention in the last bullet point of the Bond Extension announcement earlier today whereby the $1M bond is extended at reduced interest rates from 30-Sept-2017 until 30-Sept-2021. One of the conditions of the bond is:

"ALF shall not reduce its equity capital by way of share re-purchase or other means without bondholders approval, provided however that ALF may pay, in relation to each financial year of the term of the Bond, an interim and/or final dividend of up to 51% of the Net Profit After Tax for that interim and/or full year period."

So the bondholders (who I think are predominantly [exclusively?] board-members anyway) have a bit of control for the next 4 years over any dividend payment by limiting it to 51% of NPAT, unless they authorise otherwise.

This announcement is the 1st I have heard on any potential dividend constraint. If this was in force over the last 12 months (which it could have been I conject), this years NPAT result of $1.554 million limits ALF's max dividend payout (without requiring bondholders approval) to $787k. A limit that would be exceeded if a 1/2 cent dividend was paid.... 161.5 million shares x $0.005 = $807k.

[dgrizz72]

Thanks Vaygor, great insight as always

[Fatboyj]

Market not liking these stellar results. Disappointed no dividend?