RYM - Ryman Healthcare

[tango]

Never mind. Shareprice is up.

Yes. That’s what’s important

I have been spoilt by some really good annual meetings

[Jaa]

Very poor governance and leadership from Ryman in trying to increase director's fees by 26% to $1.4 million after the company pocketed $14m from the government's wage subsidy scheme. They have shelved the plan for now after the Shareholder's Association voiced disapproval. Good on them.

They should return the wage subsidy money too. Ryman paid an increased final dividend in July and cash flows were up 12% to March 31.

Not good from one our largest companies.

[Mr Slothbear]

Very poor governance and leadership from Ryman in trying to increase director's fees by 26% to $1.4 million after the company pocketed $14m from the government's wage subsidy scheme. They have shelved the plan for now after the Shareholder's Association voiced disapproval. Good on them.

They should return the wage subsidy money too. Ryman paid an increased final dividend in July and cash flows were up 12% to March 31.

Not good from one our largest companies.

whilst I 100% agree about the directors fees and the directors really are both overly opportunistic and have bad timing I strongly disagree regarding wage subsidy. Ryman have incurred significantly higher costs due to covid and have been exemplery in terms of how they’ve managed things with lockdown etc.. you’ll note they’re the countries largest retirement village provider but have had no infections thus far. Mostly luck probably but a decent amount probably from good management.

I fail to see how an increased dividend should deprive them of something everyone has been entitled to. Hypothetically if they had a terrible business dur to poor decisions should they then be deserving of the wage subsidy because they couldn’t increase their dividend or had declining cash flows?

[macduffy]

Headline in BusinessDesk suggests that RYM will ask shareholders to reinvest dividends. "Paywalled" article.

[Mr Slothbear]

Thanks Macduffy thats some food for thought. Next divvy isn't till december. If that rumor came to fruition i'd have no problem reinvesting my dividend if it was at todays price.


https://i.stuff.co.nz/business/12243...opment---plans

Another artcle from the herald

[Brain]

Ryman Healthcare withdrew its motion to ask shareholders for an increase in director fees after opposition from the New Zealand Shareholders’ Association.
It is not appropriate at this time,” NZSA chief executive Michael Midgley told NBR.
“Come back next year and ask, and then we can see how the world looks – how the bottom line of the enterprise looks. Pure pragmatism is what’s called for. We’re not hearing this from other companies – everyone’s tightening their belts.”

[Jaa]

whilst I 100% agree about the directors fees and the directors really are both overly opportunistic and have bad timing I strongly disagree regarding wage subsidy. Ryman have incurred significantly higher costs due to covid and have been exemplery in terms of how they’ve managed things with lockdown etc.. you’ll note they’re the countries largest retirement village provider but have had no infections thus far. Mostly luck probably but a decent amount probably from good management.

I fail to see how an increased dividend should deprive them of something everyone has been entitled to. Hypothetically if they had a terrible business dur to poor decisions should they then be deserving of the wage subsidy because they couldn’t increase their dividend or had declining cash flows?

Costs are irrelevant to the wage subsidy scheme. I am sure their customers would expect nothing less considering the premium fees charged.

The criteria was simple, 30% loss or expected loss of revenue over a 30 day period with the stated purpose of protecting jobs. It was a high trust scheme to get money into the economy fast and to save jobs. Reliant on people doing the right thing.

If you need to call in an accountancy firm to go village by village to see how much corporate welfare you can grab and in the process deprive other far worthier businesses and causes you have lost the plot. To do so while increasing revenue, cash flows, profits and payments to directors and shareholders is morally bankrupt.

Here are just 5 of their 43 subsidiaries that I bothered to check.

BOB OWENS RETIREMENT VILLAGE LIMITED Wage Subsidy 151 $852,079.20
CHARLES UPHAM RETIREMENT VILLAGE LIMITED Wage Subsidy 151 $897,352.80
DIANA ISAAC RETIREMENT VILLAGE LIMITED Wage Subsidy 151 $874,716.00
EDMUND HILLARY RETIREMENT VILLAGE LIMITED Wage Subsidy 225 $1,343,973.60
RYMAN NAPIER LIMITED Wage Subsidy 136 $780,590.40

Legally it may be ok but it is clearly against the spirit of the scheme and a big black mark against their leadership team.

[Mr Slothbear]

Surprised no one has commented on this already. Tom brownrig moving into construction innovation role and looking externally for a new construction manager looks like its fairly strongly related to the recent building and consent issues they’ve been having.

shoring things up a bit with this move?

[kiora]

These Mr SB
https://www.stuff.co.nz/business/122...rement-village
Not easily fixed ?

[Dlownz]

These Mr SB
https://www.stuff.co.nz/business/122...rement-village
Not easily fixed ?

I'm not quite sure how you fixed walls bowing under the weight of the roof which are too heavy for the walls they designed.
Bricks have been put on wrong and overhangs are incorrect, foundations compromised it's truly a mess out there.
I have been involved with a few villages been built and this site is the worst one I have seen by far. Changed my mind about investing in ryman just due to the fact these house could be like matchsticks if a earthquake hit. I'd love to get there buildings earthquake rated.