HLG - Hallenstein Glasson

[Waltzing]

"Undoubtedly one of the most attractive annual reports I've read all year in more ways than one "

yes the balance sheet page for current assets is riveting!

Im out for the afternoon testing some law of maths relating to carbon fibre under tension and the thread descends into a fight over tax payer funds. or did that get ignored?

Reminds me of the muldoon years.. tax this, tax that, trade tariff this , apply for import this and that...

oh i miss those fire side chats and that laugh....

sorry sorry, back to the special dividend. Dont worry when im back in sweden i cant post in the middle of the day...

I know i should have taken that writing job after all and worked on my gram ma.

[Beagle]

I can't speak for others but I know I've heard more than enough already of some people's sanctimonious grandstanding saying companies should pay the wage subsidy back.
Blind Freddy can tell you that the Govt set this scheme up to pay for some of the cost of keeping people employed during the lockdown, (in the case of HLG while the shops and websites were closed). Maybe these people would have been happier seeing mass layoff's ?

[winner69]

I can't speak for others but I know I've heard more than enough already of some people's sanctimonious grandstanding saying companies should pay the wage subsidy back.
Blind Freddy can tell you that the Govt set this scheme up to pay for some of the cost of keeping people employed during the lockdown, (in the case of HLG while the shops and websites were closed). Maybe these people would have been happier seeing mass layoff's ?

Yes, companies were acting as de facto WINZ offices during the lockdown .....got the ‘benefit’ paid through the employer
....and most still had a job at the end of it

Very efficient

And Kiwisaver, Student Loans etc etc were collected as well.

But not really a good look paying out huge divies so soon after.

[Waltzing]

could MR B please point to the more interesting parts of the report other than the current assets page please ?????

winner (n) does have a point i sssuuupppooose....

[nztx]

Yes, companies were acting as de facto WINZ offices during the lockdown .....got the ‘benefit’ paid through the employer
....and most still had a job at the end of it

Very efficient

And Kiwisaver, Student Loans etc etc were collected as well.

But not really a good look paying out huge divies so soon after.

Seen ACT Leader's comments on MOED suddenly discovering Kid's scoring a Covid-19 Wage Subsidy allowance Windfall ?

All Legal & Good on them too

Let's face it the T&C on the first Wage Subsidy were so open & done in such a hurry that just about anyone could have driven a fleet of tractors through it & still legally & quite happily qualified ..

[Balance]

result without the little disruptions would have been ? anyone want to stammer out a number? Mr B thinks enough to increase the Div. Stats for Xmas will be very very interesting.

Did we know this already?

"The first eight weeks of thenew financial year have seenGroup sales grow +10.71% onthe prior year, this has beendriven predominantly byonline sales as physical storegrowth has been slower,particularly in CBD locations."

Potentially another $30m of sales and $10m of NPAT if the momentum is carried through for the rest of the financial year.

[Beagle]

result without the little disruptions would have been ? anyone want to stammer out a number? Mr B thinks enough to increase the Div. Stats for Xmas will be very very interesting.

Did we know this already?

"The first eight weeks of the new financial year have seen Group sales grow +10.71% on the prior year, this has been driven predominantly by online sales as physical store growth has been slower, particularly in CBD locations."

As Balance has alluded too above, this is the most interesting part of the annual report. (I fixed your grammar for you)

[winner69]

As Balance has alluded too above, this is the most interesting part of the annual report. (I fixed your grammar for you)

Jeez ...another $10m npat will take Total npat to nearly $40m

That’s an eps of 66 cents (and that’s includes $8m or so of depreciation ...non cash)


Huge divies coming up

[Waltzing]

MR B thanks for fixing my gram ma. I found that gem in the PDF and did a cut and paste.

Im very very surprised at this and is why we are still holding as we usually sell when we see a shooting sky rocket...

im having kittens not selling, it goes against my natural finger keyboard movements for retail.

I thought we werent supposed to mention you know what... at this time.

[Beagle]

I have never felt more comfortable holding HLG which is why my stake is twice the size its ever been before and I am a very happy and comfortable holder. FAR more likely to go to > $7+ than < $5- in my carefully considered opinion. Then there's the dividends and oh my goodness...they really are going to be quite something.
The resiliency of HLG in these extraordinary times has been truly eye opening and to be honest I see the company in a whole new light.

I still don't think the market has woken up to how this company is performing, the level of cash on the balance sheet, the very strong growth in online sales and the fully imputed dividend of 24 cps in December.

Balance yesterday suggested possible extra sales of $30m and extra profit of $10m and I haven't dared to consider how much better it could be this year than last before but I think he might be right. Another 2% gross margin due to the much better exchange rate this year compared to last could itself add ~ $6.5m and another 10% in sales another ~ $5m, total $11.5m. Then there's the lower cost of servicing growing online sales through efficient distribution centers, less logistical, freight and supply chain challenges and costs compared to last year and all this off a base where they started the year with a whopping $50m cash in the bank and no debt.
Its early days for FY21 but I think going close to $40m its quite plausible which is 67 cps and rather embarrassingly the company has such incredibly strong liquidity I think its quite plausible they could pay out over 60 cps in dividends and potentially the whole 67 cps in fully imputed dividends. Oh my goodness

More embarrassing could be when the market starts to accord HLG with a fair PE of about 14, (same as Briscoes), to partially reflect their prospects. 67 cents x 14 = $9.38 ! Surely a 50%+ share price increase in the next year couldn't happen, or could it

It still blows my mind that this company in the first 8 weeks of this year with Covid and (with lockdown's in Victoria and Auckland until quite recently), is making sales at nearly 11% more than last year before anyone had ever heard of Covid !! The brand power of Glassons is really starting to shine and I seriously doubt that the market has yet accorded HLG with a share price that reflects Glassons excellent prospects in the years ahead. If they reinvigorate Hallensteins performance as well...WOW, we'll really be cooking with gas then !