SUM - Summerset Group

[RTM]

The solution is easy for Taxinta - just ban aging

Are u thinking about an injection at 65’ish?
Yikes....very close.

[allfromacell]

The relatively slow new build sales were also touched on by Rob who said the second quarter is tracking at around the same pace as the first, he doesn't expect this year to be as good as the last one. He mentioned it being harder to sell a lot of the current inventory as yes the units are complete however the villages are still half under construction but has confidence they'll have no issue selling in-time.

2-3% of the total units was quoted as currently unoccupied and up for sale which is a pretty low. Management seems to have everything under control.

[Beagle]

Company was confident of profit growth this year. Early days for Q2 sales, not even through the first month yet. He motioned a lot of changes with sales staff.
Sales pattern changed a bit because of the type of units they're currently building, multi level at Ellerslie and at Hobsonville.
All good, no worries.

[lawson]

Good solid feel to the outlook. Had a good chat with Julian Cook, Scott Scoullar CFO, and Directors Anne Urlwin and Dr Andrew Wong after the meeting. I have a good sense that this is an excellent company with a very solid pathway of growth in the years ahead. No concerns to report. I am sticking with my forecast of $100m underlying earnings this year, 44.5 cps. Forward PE of approx. 15.5 seems very reasonable considering their track record of growth and the strength and integrity of their leadership team. Couldn't be happier to hold a good sized stake in SUM long term.

http://www.sharechat.co.nz/article/8...for-growthhtml

Good summary of what was said at the meeting.

Thanks for the feedback as I wasn't able to attend always interesting to hear from those who did.

[iceman]

Good solid feel to the outlook. Had a good chat with Julian Cook, Scott Scoullar CFO, and Directors Anne Urlwin and Dr Andrew Wong after the meeting. I have a good sense that this is an excellent company with a very solid pathway of growth in the years ahead. No concerns to report. I am sticking with my forecast of $100m underlying earnings this year, 44.5 cps. Forward PE of approx. 15.5 seems very reasonable considering their track record of growth and the strength and integrity of their leadership team. Couldn't be happier to hold a good sized stake in SUM long term.

http://www.sharechat.co.nz/article/8...for-growthhtml

Good summary of what was said at the meeting.

Thanks for the feedback Beagle and allfromacell. Much appreciated.
This is a great stock to be invested in for the foreseeable future.

[Beagle]

Thanks for the feedback Beagle and allfromacell. Much appreciated.
This is a great stock to be invested in for the foreseeable future.

Missed catching up with you and Couta1 this year.
You know the hound, (who loves his food) was busy gleaning all the info he could when he didn't even get time to get a look in at the refreshments ! That would be a first lol
Very impressed with how carefully they are treading in terms of their proposed expansion into Australia. New Construction risk committee headed by Anne Urlwin who has significant construction expertise. Construction fraud a key risk area they are targeting, (lesson for FBU there !). I tryed getting a gauge from Anne where the development margin might be headed this year but she couldn't shed any light on that and said it depended on market forces and sale prices but did say they were happy with where it was.

Julian seemed a little more upbeat than last year. Dr Andrew Wong a very likeable and charismatic chap, head of Ascot Hospital. Chatted to him a bit about the future direction of age care technology. Sensors on medicine cabinet doors so they know if people are taking their meds or not, moving to full digital healthcare system...sophisticated software programs can manage by exception patient anomalies and concerns.
Scott Scollar a good solid numbers man. He's the engine behind driving decisions around pricing. CFO and deputy CEO. Not a natural charismatic leader though. Hope Julian sticks around for many years to come.
Rob Campbell the consummate Chairman, well supported by a VERY capable board in my opinion. He's getting old though.
Growth will be lower this year than last. I'm sticking with 20-25% growth in underlying profit giving about $100m.
Build rate could ramp up significantly in 2019 or 2020 as they expand here and proceed to expand in to Australia. What's not to like ? Frankly I can't think of anything !

[percy]

Great work.
Thank you for sharing.

[LAC]

Thanks for the updates above from those that attended, great to hear all good from management. My 2nd largest holding at the moment but think by year end will be my largest. These are the ones I place in the drawer n never look at for the next 20years

[Ggcc]

Reading the dominion how the Lower Hutt development has cost 50 million more due to neighbours who apposed the scale of the village. It has mentioned that the increase will be passed onto the residents who bought into the upmarket village. Interesting how I always have maintained increasing costs to retirement villages will always mean increasing costs to residents.

[Beagle]

https://www.stuff.co.nz/business/103...rement-village
Link
Just one other comment from the meeting, not sure if it's in the official announcement doc's released to the NZX or not.
Market for hiring construction staff and project managers has changed / improved since the full extent of the FBU fiasco has become clear.
One presumes anyone that's any good want's out.
My thought: I hope SUM are very careful and selective with anyone they hire from FBU.