Something itched at me over that result, and I figured it out over the weekend.
https://www.nzx.com/announcements/326966
(a) H1 profit result = -500k.
(b) Forecast FY profit result break even = 0m.
(c) So forecast H2 profit result = +500k. (-500 + 500 = 0)
(d) So forecast H2 profit result is an
increase on H1 profit of $1m.
(e) H1 revenue is 3m.
(f) Forecast FY revenue = 7m
(g) So forecast H2 revenue is 4m (3m + 4m = 7m) an increase on H1 revenue of $1m.
=> So the H2 forecast is for an extra $1m profit than H1 ... on an extra $1m revenue than H1?
Well, all things are possible, but that would appear to require some significant change between H1 and H2. I've checked this carefully, but I'm only human and would be pleased if someone tells me where I've made a mistake?
And if the FY result is instead another loss, as that maths might seem to imply is possible, will shareholders be happy? Well, we find out easily enough as presumably 2 out of the 3 not-new directors must offer themselves for re-election at the AGM, since the
last annual report stated (p13) "One third of the Company’s Directors (rounded, if necessary, to the nearest number) are required to retire and may stand for re-election at every Annual Meeting, with those Directors to retire being those who have been in office longest since they were elected or deemed to be elected."
Shareholders are happy if they vote 'yes' or abstain on the vote, and unhappy if they vote 'no'. That's why the system exists. Directors offering themselves for re-election is the main method shareholders retain control of a company surely.
Well, I'm sure everyone is hoping that the full year result will be a good one anyway, and then obviously everyone is happy.
Just my own ponderings as always. Disagreements welcome. Interesting that nobody much has posted here since the last result and nor has there been much trading in the market.
Are shareholders happy?
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