SUM - Summerset Group

[cyclist]

underlying profit down

Indeed, and it will be interesting to see how the market interprets that.

I have only read the media release so far, but I am very happy with what I am seeing. As couta has alluded to, it looks like we can expect some decent results in the second half. Very tempted to top up at these levels.

[Beagle]

Underlying profit down to $9.4m compared to $10.0m in pcp. Cash flows down 15%. Expenses up significantly. Company anticipates good sales in the second half.
Inability to maintain tight control of expenses in a flat sales environment would be my #1 concern with this result and is not an encouraging sign for future profitability regardless of future sales momentum. #2 Company claims development margins are expanding but my perception is that's best described as "very, very slowly"..

[blocker3]

I think that the market has well and truly factered in the results before today

On the positive side, Net profit after tax of NZ$15.3 million, up 42% on 1H13.

[winner69]

I think that the market has well and truly factered in the results before today

On the positive side, Net profit after tax of NZ$15.3 million, up 42% on 1H13.

And the company worth a lot more on paper than 6 months

[winner69]

Underlying profit down to $9.4m compared to $10.0m in pcp. Cash flows down 15%. Expenses up significantly. Company anticipates good sales in the second half.
Inability to maintain tight control of expenses in a flat sales environment would be my #1 concern with this result and is not an encouraging sign for future profitability regardless of future sales momentum. #2 Company claims development margins are expanding but my perception is that's best described as "very, very slowly"..

Development margins - at this rate of improvement the 17% target in 3 to 4 years. Is that your concern

The green line on their chart getting steeper so maybe 2 years

[blocker3]

And the company worth a lot more on paper than 6 months

Yip and I now see that a big boy is looking to "BUY"

Lastly winner69 a great read in relation to the ASX that you posted.

Thank you

[Beagle]

Development margins - at this rate of improvement the 17% target in 3 to 4 years. Is that your concern

The green line on their chart getting steeper so maybe 2 years

I need to spend more time analysing this but first impressions are of a very disappointing result, especially with substantial expenses expansion in a flat environment (expenses $21.4m v $18.1m).
The company explanation for higher expenses is "higher operating costs for newer villages and opening of care facilities"

Based on last years result they're on a PE of 29, Ryman on a PE of 33. Both over-priced and SUM looking especially so even after the dramatic correction in the SP from $3.45 only 6 weeks ago.

Okay after reviewing development expansion more closely, that looks okay.

Disc Glad to be out at $3.55 average and not looking for a re-entry opportunity anytime soon.

https://nzx.com/companies/SUM/announcements/253730

[cyclist]

Yip and I now see that a big boy is looking to "BUY"

Can you please explain. I'm not seeing anything in the depth. Thanks.

[blocker3]

Can you please explain. I'm not seeing anything in the depth. Thanks.

I see it on my depth

unusual

[Beagle]

Roger, what is your take on their implicit forward guidance re sales over the next 6 months. Looks pretty good to me.

Looks good to me but really needs to be with a flat first half.