HGH - Heartland Group Holdings

[percy]

The divie policy is juicy mgt speak ... Why didn't they just say: We will be paying dividends when it is prudent to do so. ... Still, the special divie is welcome but why is it special?

Special as it signals that shareholders who put up the money for the PGC recap three years ago are finally going to receive a return on that capital.Most of the shareholders at the agm are retired,on fixed income, so dividends are very welcome.
It is special as it signals the company is on track.Also on track to start paying regular dividends.
It is special as it not an interim, or a final dividend.
Just reassuring to shareholders,who will benefit from the extra cash just in time for Xmas.
I like dividends as it is a simple discipline to remind directors who owns the company,and who they are answerable to.

[Under Surveillance]

It is special as it signals the company is on track.Also on track to start paying regular dividends.
It is special as it not an interim, or a final dividend.

Thanks for your reports, percy. Love your enthusiasm.
Seems unlikely they'll pay an interim in March 2013? Maybe a 2c final in September 2013 if they lob into the projected $21-24M NPAT range for the full year to June 2013? At first blush $21-24M for FY 2013 suggests little progress on FY 2012, but 2012 was puffed up with tax windfalls.
How do you translate the dividend policy in a practical sense? Would you reckon we might see average payouts in the formative years around 50% of NPAT?

The policy is as follows: Heartland willdetermine dividends (both interim and final) based on its net profit after tax,subject to maintaining a prudent level of capital for its needs. Heartland’scapital needs will vary from time to time, depending on a range of factors(including regulatory and credit rating requirements, general economicconditions, current and expected growth and the mix of business). A keyobjective is to ensure an appropriate balance between maximising shareholderreturns, and protecting the interests of depositors through prudent capitalmanagement.

[percy]

The agm renewed my enthusiasm.You try to think ahead,and I have posted too much on HNZ,and you think to yourself,what have I got wrong,what can't I see? Then at the agm I could see I hadn't got it wrong.
Talk of March/April 2013 divie,then regular interim and final divies.So, not long to March/April.The amount concerns them.Once they start paying a certain figure shareholders/the market will expect them to keep paying that amount.The chairman kept on that they were being offered a lot of opportunities,and wanted to keep capital, incase they went ahead with these.I took it they didn't want to buy another business,pay a divie,then find their ratios were weakened.They willn't do that. He repeated that they were looking at a number of opportunities.I get the feeling they are close on something,or some things. So what will they pay? No idea,sorry.Although, we think there is no improvement in NPAT,you are right that tax windfall puffed up the 2012
result,so the $21-24m is a great improvement.I would hope that we would see a payout of 50% of NPAT for divies,but it will be a long way off I would think,but that would depend on cash required for acqusiitions.They are still a small company to be a bank.
I get the feeling they know where they are going and exactly how they are going to get there.Chairman Irvine said something along the lines,we have done the work,watch us perform once we get that bank licence.He was "full of enthusiasm",in fact rearing to go.!!! Watch the share price perform then.!!!
I did ask if they were looking at F&P Finance.Brushed me off a bit by saying yes,but it has been for sale on and off for about 12 years now,but yes amongst a lot of opportunities.

[blobbles]

Good work Percy, the F&P Finance question was one I wanted answered too. Sounds like a definite maybe!

[percy]

Good work Percy, the F&P Finance question was one I wanted answered too. Sounds like a definite maybe!

Couldn't help myself.????!!!!
I would think they would need to raise a lot of capital to do it.
I have no idea,but feel it is more a maybe not.

[POSSUM THE CAT]

Percy got emailed by IRG about a 6month offering of some sort at 4.6% for Heartland check IRG web site for more details I was not interested in looking

[winner69]

The Press have again let down their readers [again] with such poor coverage.
Pity they thought it was so important to report the old girl and retired [20 or 30 years ago] diary farmer,who thought they were at the PGC agm.!!!!
Luckily the HNZ presentation is available on NZX site under announcements.

Prob the way the reporter saw it Percy .....hard to report and write a story about the enthusiastic believers and those pissed off ones.

Good photo on stuff ....the head table looks very mature ....and male ....doesn't it

The reporter did say the share price went up 2 cents after the meeting ....that's good news

[percy]

Prob the way the reporter saw it Percy .....hard to report and write a story about the enthusiastic believers and those pissed off ones.

Good photo on stuff ....the head table looks very mature ....and male ....doesn't it

The reporter did say the share price went up 2 cents after the meeting ....that's good news

Pissed off ones were at the wrong meeting.
It was the HNZ agm,not PGC agm, so any fool would have understood the "facts"they quoted were wrong. It was just the chairman's good manners that allowed them to continue.
The reason I brought a computer was because I found their reporting simply does not cover the facts.I have attended countless number of agms.and other than Neil Beriss, and Alan Williams, a number of years ago,the press's business reporters are poor.I put this down to them not owning shares,and have very little business sense,.I wrote in an earlier post I thought I was bias.This is not the case.I listen to what is being said,and have followed shares long enough to know the implications of what is said.In HNZ case they made it very clear what they planned to do.They have kept to that plan.I would have realised where I was wrong, if I had been.I knew what I was listening for.
The only disappointment was the standard of cloth and shoes.Did not seem to be the old North Canterbury"old boys" with their wonderful suits of fine tweed and highly polished brogue shoes.
The company scectary Anna-Lisa Strain was missing from the photo as she is overseas at present.
You note the reporter said the company shares went up 2cents.What he should have reported was what the chairman said would happen to the shares once they received the banking licence.[Note I did mention it in an earlier post]

[percy]

Percy got emailed by IRG about a 6month offering of some sort at 4.6% for Heartland check IRG web site for more details I was not interested in looking

I think we would agree it is better to have shares in a bank,rather than lending money to a bank.

[Xerof]

Percy, to be fair, not everyone has added to their portfolio at lower prices, as you and indeed others have done as well. There will be a significant body of holders still well under water with long term holdings originating from PGC, and Reporters will always seek out the hard luck story, rather than print any hubris or explanatory statements issued by the Chair.

I get the impression you think I am still 'down' on HNZ

i said at the time Kerr had to bail out, that the fog had lifted for HNZ, and before that my stance proved to be correct - price dropped from 88 to 45 for HNZ, and god help the holders of PGC and PGW. they must have deep pockets. Since then, other than saying the fog had lifted, and good luck to holders for the future, but personally I wouldn't be buying, I have not made comment.


my recent comment wrt IT was simply implying that if they only had Sovereign as a mainframe accounting system, then a significant amount of capex will be required to bring them into the 'banking'scene. Sovereign doesn't cut the mustard in my experience with it. I said I didn't know for sure if they (still) did or not, but it's not for me to find out

i still hold the view a banking license is moral hazard in this case. Whilst their loan portfolio mix remains as it is, the most appropriate regulatory regime is NBDT. I also see the Credit Rating as a problem for RBNZ - one downgrade and they become 'junk' rated. Not saying that will happen, but it is a risk for the Authorities to sweat on. So why would they?


this is my view, and I could be wrong. I wont lose any sleep either way, as I dont own any shares. My original concern with this whole sorry episode is now finally in the hands of the appropriate authorities. I only hope their investigations are exhaustive.....

Regards
Xerof