HGH - Heartland Group Holdings

[nextbigthing]

Achievements for half year:

- Increase in profitability

- Strong growth in core receivables

- Return on equity (ROE) of 10.6%

- Amalgamation of Heartland New Zealand Limited and Heartland Bank Limited

- Announcement of a 16% increase in interim dividend to 3.5c per share

[winner69]

I reckon they will report H1 earnings as $25.8m which includes the $1m of non-recurring restructure costs they mentioned

Sets up a boomer H2 and I expect them to report $28.9m (+17%) for that half bringing FY to be $54.7m (+14%)

That's an eps of 11.5 cents on current number of shares so PE currently just over 10. Maybe the rerating down that often happens when capital restructuring takes place (more debt / less equity means higher risk for shareholders) is already underway in anticipation of the capital return.

I hope to be pleasantly surprised but doubt I will.

I give Simon a ring to find out what they did with the $200k - probably keeping it for a rainy day

So as expected - no pleasant surprises

[winner69]

No upgrade to FY16 guidance

[Balance]

No upgrade to FY16 guidance

Headwinds out there on requirements for bad debts provisioning - suspect HBL is keeping powder dry for the problems ahead as dairy sector problems bite.

[nextbigthing]

No upgrade to FY16 guidance

You're a hard man to please, the market seems very happy with the result, isn't that what matters?

Re FY16, they're just keeping it up their sleeves for now.

[iceman]

A pretty solid report with growth across all parts of the business. Steady as she goes.
Some of the highlights from preliminary browsing of the report :

# NPAT at top end of range as expected

# Strong balance sheet

# Household sector, particularly motor vehicle loans growing fast

# After recent negotiations, Harmoney facility has been doubled from $34.5m to
$70m. (The Harmoney stake now possibly quite valuable.)

# ROE continues to increase, now at 10.6%

# 16% increase in fully imputed interim dividend to 3.5

# Reverse mortgages in both NZ and Aus increasing.
Expect stronger growth in 2ndhalf

# Dairy loans 8% of loan books with an average
59% LVR PLUS other securities such
as personal guarantees. Low impairment charges
so far.

# Continued reduction of the legacy non-core property assets with no further losses attributable to this

# Current market volatility provides great opportunities for acquisitions !

Happy with this steady as she goes report

[percy]

CRACKER.Well done Heartland Bank.
ROE excellent at 10.6%.
Growth up 9%.
Increased dividend up 16% to 3.5 cents.Love them divies.!
The real pleasure was reading the outlook statement, as we know HBL deliver on what they say they will do.
Expecting underlying asset growth to continue across ALL divisions.
Higher growth in Consumer and HER loans.
Greater acquisition opportunities in current market conditions.
Continue to moniter capital position.
FY 16 NPAT $51-$55mil.

[Beagle]

But Percy how could you forget ??????...you forgot to say they're "well positioned"

[percy]

But Percy how could you forget ??????...you forgot to say they're "well positioned"

Thank you for reminding me Roger.
We certainly remain "well positioned."!!!!!!!!!!!!!!..lol.

[winner69]

Thank you for reminding me Roger.
We certainly remain "well positioned."!!!!!!!!!!!!!!..lol.

We are so well positioned we are expecting a 19% increase in 2nd half earnings over pcp - whoopee

And they only achieved 9% increase in H1

Heartland certainly firing up for the 2nd half - no wonder the share price is roaring ahead and back to former glorious heights