HLG - Hallenstein Glasson

[Snoopy]

Hi See weed,

I found the original of your Beagle quote and I noticed you had missed a bit in the middle out, which I have put back in.

Beagles Forecast........Had a look at HLG's imputation account and

they have enough in there at balance date $2.7m to impute the forthcoming 16 December dividend by 50% and seeing as they chose to not impute it

I am cautiously hopeful that they can FULLY IMPUTE the April 2023 dividend and am therefore forecasting this to be 24/0.72=33.33 cps gross. Add in the December 2022 unimputed divvy of 24 cps that's gross divvies of 57.33 cps inclusive of imputation credits in April, all receivable in the next 4.5 months = 10.2% gross yield at last Fridays closing price of $5.62c.

My question is, if there are $2.7m of imputation credits on the books at balance date, why would HLG management not pass these on to shareholders in the upcoming dividend? It seems very strange. I mean, the company has already paid the tax so it doesn't gain anything by not passing the imputation credits on. What possible reason could HLG management have for holding on to them? A confused SNOOPY?!?

[see weed]

Hi See weed,

I found the original of your Beagle quote and I noticed you had missed a bit in the middle out, which I have put back in.



they have enough in there at balance date $2.7m to impute the forthcoming 16 December dividend by 50% and seeing as they chose to not impute it



My question is, if there are $2.7m of imputation credits on the books at balance date, why would HLG management not pass these on to shareholders in the upcoming dividend? It seems very strange. I mean, the company has already paid the tax so it doesn't gain anything by not passing the imputation credits on. What possible reason could HLG management have for holding on to them? A confused SNOOPY?!?

You will have to ask Basil (Beagle) over on Stock Talk forum

[nztx]

Hi See weed,

I found the original of your Beagle quote and I noticed you had missed a bit in the middle out, which I have put back in.



they have enough in there at balance date $2.7m to impute the forthcoming 16 December dividend by 50% and seeing as they chose to not impute it



My question is, if there are $2.7m of imputation credits on the books at balance date, why would HLG management not pass these on to shareholders in the upcoming dividend? It seems very strange. I mean, the company has already paid the tax so it doesn't gain anything by not passing the imputation credits on. What possible reason could HLG management have for holding on to them? A confused SNOOPY?!?

but at 1.8.22 they also has tax receivable of $527K which will reduce NZ imputation credits available further

My thoughts are the dough is being made in OZ - no imputation credits here for Aussie tax paid

If NZ is not humming, little tax being paid in NZ, Prov Tax will be being reigned in for NZ

Why attach NZ tax credits when it may put imputation account in debit which with further tax refund
will all then need to be repaid to NZ IRD to keep Imputation account square or in credit by 31 March 2023 ?

From the 1.8.22 Annual Report -

OZ Net Profit before tax was $26.0 m
NZ Net profit before tax was $ 5.69 m

Hallensteins a further $2.9 m pre tax
and Property a further $0.447 m pre tax

Imputing a 42.0c Annual Div fully will swallow imputation credits of 16.33cps
or NZ $9.74 m in total on present shares on issue.

There may be something further in benchmarking of imputation credit %'s applied
or imputed as well to come into the equation.

It looks like HLG have all but chewed through their NZ imputation credits built up
until operations rebound on NZ turf. If they don't for a while then Aussie may remain
dominant Profit contributor, but Aussie tax paid means no NZ imputation tax credits
generated on operations across the ditch for Kiwi HLG holders ..

[Snoopy]

But at 1.8.22 they also has tax receivable of $527K which will reduce NZ imputation credits available further

My thoughts are the dough is being made in OZ - no imputation credits here for Aussie tax paid

If NZ is not humming, little tax being paid in NZ, Prov Tax will be being reigned in for NZ

Why attach NZ tax credits when it may put imputation account in debit which with further tax refund will all then need to be repaid to NZ IRD to keep Imputation account square or in credit by 31 March 2023 ?

From the 1.8.22 Annual Report -

OZ Net Profit before tax was $26.0 m
NZ Net profit before tax was $ 5.69 m

Hallensteins a further $2.9 m pre tax
and Property a further $0.447 m pre tax

Imputing a 42.0c Annual Div fully will swallow imputation credits of 16.33cps or NZ $9.74 m in total on present shares on issue.

There may be something further in benchmarking of imputation credit %'s applied or imputed as well to come into the equation.

It looks like HLG have all but chewed through their NZ imputation credits built up until operations rebound on NZ turf.

That is a very interesting possible explanation. We know provisional tax is paid 'in advance'. So what you are saying is that HLG has been paying provisional tax given a current 'prevailing outlook' based on projected profits for the year. Yet something has happened since balance date that would suggest profits in NZ for FY2023 over the full year are going to be much less than expected. Thus, come the square up of tax time at the end of the year, much of the provisional tax paid up to will be entitled to be refunded, thus reversing the 'positive imputation balance' that is in the NZ tax imputation account now.

I wonder if HLG is just being cautious, or whether this sales slowdown in New Zealand is real? If the slowdown is real, I guess we will hear about it at the annual general meeting next week?

SNOOPY

[see weed]

Beagles Forecast........Had a look at HLG's imputation account and I am cautiously hopeful that they can FULLY IMPUTE the April 2023 dividend and am therefore forecasting this to be 24/0.72=33.33 cps gross. Add in the December 2022 unimputed divvy of 24 cps that's gross divvies of 57.33 cps inclusive of imputation credits in April, all receivable in the next 4.5 months = 10.2% gross yield at last Fridays closing price of $5.62c. Also forecasting 24% sales growth for the year to $435m, earnings per share of 80cps forward PE only 7.

Just a reminder tomorrow, Wednesdays close is your last chance before 5pm, to buy into HLG to receive the big juicy 24c div

[nztx]

Just a reminder tomorrow, Wednesdays close is your last chance before 5pm, to buy into HLG to receive the big juicy 24c div

Less the 1/3 DWT skimmed off by the taxman before it lands

5% slim off with full imputation credits is easily digested but the full
rake off is slightly unpalatable, especially when the Gross yield
including tax credits gets fairly well knifed without the credits

[winner69]

Don’t forget today last day to get in on the action for the 24 cents divie ….and then another early next year

That’s if seeweed don’t beat you to the punch

[BlackPeter]

Don’t forget today last day to get in on the action for the 24 cents divie ….and then another early next year

That’s if seeweed don’t beat you to the punch

You can always pay 24 cents to get 24 cents ... and this even without shelling out brokerage fees ;

[see weed]

Don’t forget today last day to get in on the action for the 24 cents divie ….and then another early next year

That’s if seeweed don’t beat you to the punch

Beagle has already beat us to the punch he has twice as many as me.

[see weed]

You can always pay 24 cents to get 24 cents ... and this even without shelling out brokerage fees ;

A very good point. Buy a sh.t load now and get div and possibly lot more after div at possibly lower price from div strippers ready for next div 4 months later. but HLG is a hard one to trade, it not liquid enough but a good place to get better yld than bank while waiting