Seeka

[iceman]

At first glance:
* Forecasting NPAT for FY20 similar to FY 19 (ranging -9% to +22) but includes estimated $5.5m on COVID costs, $2.5m gain on orchard sales and
$5.6m one off deferred tax gain
* Net debt down $18.8 M
* A$ 26.5 million from sale of Aussie orchards to be used for repayment of debt and orchard development
* Aussie operation finally making a small profit
* Dividend reinstated in September 10c fully imputed
* Incredibly, access to labour still a big issue
* future growth being built in with new orchard development (NZ & Aus)

http://nzx-prod-s7fsd7f98s.s3-websit...299/328755.pdf

[bull....]

obviously got heaps of blowback about no dividend , else why would you say in june no dividend cause of market uncertainty and now announce one on a lower forecast. irrattic

[iceman]

bull they’re at the end of the shipping out of this year’s product so are in a much better position to know the COVID effect than they were back in June.
Only 6 million (20%) trays yet to be shipped and 2 m of that going this week and next

[BlackPeter]

obviously got heaps of blowback about no dividend , else why would you say in june no dividend cause of market uncertainty and now announce one on a lower forecast. irrattic

How terrible they didn't comply with your views. Unforgettable - expect them to be be b/s-ted for decades to come.

[bull....]

How terrible they didn't comply with your views. Unforgettable - expect them to be be b/s-ted for decades to come.

guess your enjoying the share price being down considerably from there june statement of no div.

[BlackPeter]

guess your enjoying the share price being down considerably from there june statement of no div.

Why would the recent share price drop matter to me except that it was a good opportunity to accumulate some more. Loved your regular down ramping ... as so often an outstanding buy in opportunity. I am sure you bought as well, didn't you?

I certainly enjoy that this was their best first half year in 5 years or so ... (though admittedly tax changes did help) - and yes, I will enjoy the divvie and the rising SP! All good - win- win - win!

[bull....]

Why would the recent share price drop matter to me except that it was a good opportunity to accumulate some more. Loved your regular down ramping ... as so often an outstanding buy in opportunity. I am sure you bought as well, didn't you?

I certainly enjoy that this was their best first half year in 5 years or so ... (though admittedly tax changes did help) - and yes, I will enjoy the divvie and the rising SP! All good - win- win - win!

got pretty close to my target 3.60 posted earlier but no i didnt buy only because i find there communication around dividends very irrattic

[peat]

i find there communication around dividends very irrattic

agreed ! not a massive issue of itself i guess - the poor communication that is, but to me paying steady divs is a big deal and so it can change my view.

[iceman]

I don't find it erratic at all. Clearly they had little idea in June how or if they could get all their perishable product to market in a timely and safe manner due to serious labour shortages/difficulties and COVID being rampant around the World affecting all their markets and freight routes.
They are now seeing all the product getting to market.

Perfectly prudent in my view.

In prior years the policy of slowly but surely increasing dividends has been followed, but this is not a normal year by any stretch of the imagination.

[bull....]

19/3/2020
Seeka cancels dividend
This decision reflects the uncertainty in the current business environment, the reported shortage of labour, and the lower forecast kiwifruit returns from Zespri rather than anything that has happened in the business to date

20/5/2020
Seeka provides market update and guidance

the effects and costs associated with COVID 19 have been significant together with very dry growing conditions in New Zealand and Australia lowering crop volumes. This being the second year of lower yields and volumes for Hayward in New Zealand.

The Company’s operational earnings are expected to be significantly lower through lower margins, additional costs and lower volumes in the current year.

17/6/2020
Seeka provides dividend update
Having reviewed the company’s forecast guidance and the current business environment the Board considers that it is prudent that no dividend be paid at this time.


So all of a sudden things are wonderful , yea right. ( lower returns next 6 mths ) I stick to my view they were pressured into paying a dividend by big s/h or growers otherwise there announcements to this year make no sense esp when zespri were saying what a great year it was.