MHJ - Michael Hill International.

[Rawz]

Huge market share gains by looks of it .... amazing

Could see more than A$200m out of Canada in F23 .... massive growth

Buoyant market and big market share gains ....what a combo

I hope Pascoes dont expand into Canada and ruin the party lol

[winner69]

Huge market share gains by looks of it .... amazing

Could see more than A$200m out of Canada in F23 .... massive growth

Buoyant market and big market share gains ....what a combo

.... and I forgot about the expanding margins

[winner69]

I hope Pascoes dont expand into Canada and ruin the party lol

Rawz, when is the MHJ share price hit $2 .... on the ASX of course

[LaserEyeKiwi]

Lots of blue ocean in Canada still for MHJ:

Australia population: 26 million, MHJ Q1 Australian revenue: $71.6m AUD = $2.75c per capita

Canada population: 38 million, MHJ Q1 Canadian revenue: $30.9m CAD = $0.81c per capita

NZ population: 5.1 million, MHJ Q1 NZ revenue: $28.1m NZD = $5.51c per capita

(I’m not expecting NZ level of penetration, but getting anywhere close to the Australian level would be a reasonable goal)

[LaserEyeKiwi]

Spooky timing: MHJ announces it has received a $12 million payment for its finance book in Canada:

(the cash pile continues to mount)

http://nzx-prod-s7fsd7f98s.s3-websit...977/369228.pdf\

26 April 2022ASX AND NZX ANNOUNCEMENT Sale of Canadian Consumer Credit Book


Michael Hill International Limited (ASX/NZX: MHJ) is pleased to announce it has agreed to the sale of its in-house Canadian credit receivables to Canadian consumer credit provider, Flexiti Financial Inc. (“Flexiti”), with an effective date of 31 May 2022.


MHJ has partnered with Flexiti for the provision of third-party consumer credit across MHJ’s 85 store Canadian network, and in a global first for MHJ, offering long term credit applications on-line.
Cash sale proceeds currently estimated at approximately A$12m will be received in early June 2022, based on the 31 May 2022 book balance. This sale further enhances the Company’s balance sheet, while also strengthening its cash position.


Commenting on the sale, Managing Director and CEO of Michael Hill International Limited, Daniel Bracken said:


“This strategic partnership with Flexiti presents a significant opportunity to expand and enhance our Canadian offering, with access to a broader customer base. We look forward to enhancing this important relationship with Flexiti, which provides a further growth and productivity lever for our already highly performing Canadian business.”


This announcement is authorised for release by the Board. ENDS

[Waltzing]

more money in the BANK. with no cap ex in sight wonder what the balance sheet pile will end up at.

[LaserEyeKiwi]

This one-off $12 million payment will basically cover the dividend payment made during this half year.

Cash as a percentage of market cap at the next earnings will be over 25% (based on todays market cap of ~$500m), meaning the true (excluding cash) earnings multiple is going to be somewhere closer to 7-8x

[winner69]

Lots of blue ocean in Canada still for MHJ:

Australia population: 26 million, MHJ Q1 Australian revenue: $71.6m AUD = $2.75c per capita

Canada population: 38 million, MHJ Q1 Canadian revenue: $30.9m CAD = $0.81c per capita

NZ population: 5.1 million, MHJ Q1 NZ revenue: $28.1m NZD = $5.51c per capita

(I’m not expecting NZ level of penetration, but getting anywhere close to the Australian level would be a reasonable goal)

what is it like on a per store basis

[Waltzing]

lets hope they dont buy another chain.

[LaserEyeKiwi]

Down 5c so far today - very strange reaction.

Although that’s on less than $10k shares traded so almost no volume.