Indeed! I only regret not pulling the trigger and topping up. Will be interesting to hear plans for FY 17 and behond.
Those plans include seeking alliances with European / North American retailers.
There was a good article in The Australian about the years result (not that brilliant) and I liked this bit -
That’s the spirit of adventure for you: blazing new trails and scaling new peaks. The trouble is, Kathmandu’s sales (and share price) tend to stumble at high altitude and Briscoe won’t be a benevolent Sherpa if it comes to the rescue.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Those plans include seeking alliances with European / North American retailers.
There was a good article in The Australian about the years result (not that brilliant) and I liked this bit -
That’s the spirit of adventure for you: blazing new trails and scaling new peaks. The trouble is, Kathmandu’s sales (and share price) tend to stumble at high altitude and Briscoe won’t be a benevolent Sherpa if it comes to the rescue.
Shareholders rejected equivalent of $1.80 kindly offered last year - guided by some pie in the sky valuations $2.10 to $2.41 (add say 10% to get current valuation)
Current KMD share price just over $2.00 seems OK
But BGR shares much higher now - that $1.80 would be $2.40 now (all other things being the same)
So Xavier still has a lot of work to do to justify KMD Board telling you to reject Rod
Last edited by winner69; 22-09-2016 at 07:04 AM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Shareholders rejected equivalent of $1.80 kindly offered last year - guided by some pie in the sky valuations $2.20 to $2.40 (add say 10% to get current valuation)
Current KMD share price just over $2.00 seems OK
But BGR shares much higher now - that $1.80 would be $2.40 now (all other things being the same)
So Xavier still has a lot of work to do to justify KMD Board telling you to reject Rod
Last time I looked analysts had KMD at about NZ$2.10. Will be interesting to see what they have it at in the next week or so.
I think Xavier's done pretty good. What will be important now is whether he and Ben Ryan, who both have decent oversea's experience, can finally turn KMD into a truly international company. To be fair, Rod Duke has no experience at that - he is a big fish in a very small pond and his first attempt to go ex-NZ failed.
I agree with the line of thought that Duke won't stay for long as a SSH. He can't afford to buy them outright now, he's already got $1.2M in divvie coming and he'll probably downsell after Nov 14th, provided KMD stays above $2 (which I think it will).
So KMD had a good year and improved profits by $13m to $33m....but still have some way to go to get back to $40m which must be a number in some analysts working
I had a look at where the $13m came from (ir changes in key items from F15 to F16) which is shown
below
Reasonable revenue growth and a bit of margin expansion was good and lead to $14.4m increased margin.
Rents were up $5.3m (probably a necessity to survive) and they reduced other costs by $8.5m
So a fair chunk of the improved NPAT came from cutting expenses (forced) - as they say 'they saved their way to prosperity', not always a sustainable strategy
Looking forward and $40m profit one would have to think that they have squeezed what they can out expenses and to some degree margins - so the future looks like it depends on top line sales growth without stuffing other things up.
Will be interesting to see what happens
Market not impressed so far with the result
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
One other thing that fell out of the numbers I was playing around with was that in spite of the good vibes etc NZ sales in H2 were about the same as the year before
It was Australia that saved the day for KMD this year
Not often do we appreciate Aussies saving our bacon
Pity NZers were reluctant to buy more this year
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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Originally Posted by winner69
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