HLG - Hallenstein Glasson

**winner69** · 24-04-2019, 01:54 PM

Originally Posted by Beagle

I think point 1 has been discussed at great length already. Briefly recapping I think they did very well in a more challenging environment of a materially lower exchange rate and consumer confidence.
Why wouldn't admin savings be enduring ?

Quite often Admin is where you stick stuff thats nots directly concept related and often that stuff contains some 'lumpy' items ....and often you reduce Admin expenses for a particular period by deferring some spend

Half year Admin looked good being $2m less than pcp (H118) but that period was heaps higher than prior periods. And H119 was about thw same as H218 which suggests that H118 had some 'lumpy' stuff in it.

Just going by numbers H219 Admin likely to be about $12.5m which would be slighty up on H218

Whatever huge savings in Admin costs made for a good story - don't let me make you think otherwise.

**winner69** · 24-04-2019, 02:10 PM

Hey Beagle me old mate

Not many pictures in the Report was there but did you notice that Free Cash Flow was $6.0m and they paid out $14.2m in juicy Dividends and the cash pile that not long ago was well in excess of $20m is now less than $10m

**Beagle** · 24-04-2019, 02:15 PM

You could be right mate and there could have been extra admin costs related to dealing with the Strom exit last year.
Good idea we have a look at the big picture to see whether there's any economies of scale with their growth in recent years and increase in online sales.
Admin costs as a percentage of gross sales
2016 $21.1m / $223.5m = 9.44%
2017 $22.6m / $239m = 9.46%
2018 $26.5m / $277.6m = 9.55%
2019 estimate $25m / $285m (increase in second half sales estimated at $3m) = 8.77%.

Pretty constant as a percentage of sales until this year.

Big investment in new and refurbished stores in the first half.

**Biscuit** · 24-04-2019, 03:38 PM

Originally Posted by winner69

Hey Beagle me old mate

Not many pictures in the Report was there but did you notice that Free Cash Flow was $6.0m and they paid out $14.2m in juicy Dividends and the cash pile that not long ago was well in excess of $20m is now less than $10m

Their cashflow account is still a beautiful thing. Paid for expansion out of previous years cashflow and dividends out of this years with $1M left over. Not too shabby and no fudging or ambiguity.

**pg0220** · 24-04-2019, 04:28 PM

Originally Posted by Biscuit

Their cashflow account is still a beautiful thing. Paid for expansion out of previous years cashflow and dividends out of this years with $1M left over. Not too shabby and no fudging or ambiguity.

Agreed. Also good to see that their RE account movement was in surplus as well.

**King1212** · 24-04-2019, 07:32 PM

The most beautiful is zero bank debts....money from sales....cash! I love buying companies that have zero bank debts

**Beagle** · 24-04-2019, 07:45 PM

No B.S. intellectual property or goodwill on the balance sheet either. Just a really nice clean and tidy operation that's been in business for many, many decades.

**winner69** · 06-05-2019, 12:22 PM

Rod from Briscoes says market still challenging

Does mention the increased wage bill though

http://nzx-prod-s7fsd7f98s.s3-websit...126/299290.pdf

**couta1** · 07-05-2019, 08:49 PM

Originally Posted by King1212

I can bear the risk..as HGH has zero debts..good cash flow. With interest remain low and HGL dividend is around 9pct....happy with the dividend keep flowing..rather than put the money on the bank

I think you mean HLG otherwise your on the wrong thread anyway you cant have too many HLG.