MHM Automation - MHM

[nztx]

Share price zoom zoom upwards from around 16c 11 months ago (March 2020) to lofty the 71c today

Sell a Building

Report Interim Dec 2020 results today:

https://www.nzx.com/announcements/367771

"Financial Performance

Sales Revenue (excluding wage subsidies) of $24.7m for the six months was down 4% on the prior period, mainly due to declining Stainless revenue following the closure of our New Plymouth stainless site. Travel restrictions due to COVID impacted certain Automation project deliveries and the subsequent timing of revenue recognition. Our Automation sales revenue was 85% of group sales for the period.

Operating EBITDA of $1.46m was an increase of 63% on the restated prior period of $896k. The table above shows the impact of the discontinued business. Automation EBITDA of $1.56m was 54% up on the prior period. We are continuing to drive improvement in margins of our automation projects. During the period the warranty provisioning for automation was increased by $347k, due to an increased number of completed projects which are now in a warranty period (typically 12 – 24 months).

The pre-tax profit of $565k was 3% up on the prior year. This includes $245k of cost relating to the closure of New Plymouth vs the comparative that included $260k for the Milmeq acquisition adjustment.

The after tax profit for all operations was $372k which was 17% down on the prior period, this included a $97k loss from the discontinued operation in the current period."


May even make a cool $1 million for FY who knows ..

but wait a moment .. where dat profit/loss on New Plymouth building go ?

"The sale price of $3.95m was more than the $2.1m book value. The gain on sale will be reflected in our full year results for 30 June 2021."

Okay so + 2.8 cps (before tax etc) GAIN out of the Naki Sticks & Mortar sold off - for second half glossy
Report Sheet

Maybe need to sell another building next year to prop up things in 2022 ..

Dividend still elusive - like hen's teeth

No much change in Position really .. or was there ?

More Bicycle pump needed moving forwards to maintain the 70 score on the mediocre mediocre ?

Maybe 2022 see more positive Loot on page from rebrand and basket of 'good businesses' cobbled
together .. among the collection of other dead, declining & raft of other net cost centres ..

[percy]

It would appear three poor businesses do not make one good one.

[nztx]

The Automation wheels appear to be spinning furiously, but the Bottom Line
before one-offs appears to be decidedly stubborn & stuck refusing to move much..

Perhaps Colin "The Fix It Man" might be able to put his finger on something long awry and
bring in a new hatchet to fix a few wrongs & prune some wood from the canopy.. ?

[percy]

The Automation wheels appear to be spinning furiously, but the Bottom Line
before one-offs appears to be decidedly stubborn & stuck refusing to move much..

Perhaps Colin "The Fix It Man" might be able to put his finger on something long awry and
bring in a new hatchet to fix a few wrongs & prune some wood from the canopy.. ?

Jucy,Moa,Smiths,and MHM....Think Colin will need to do a lot of fixing.

[nztx]

Jucy,Moa,Smiths,and MHM....Think Colin will need to do a lot of fixing.

Indeed .. what a curious collection he appears to have on his plate ..

[samansoft]

despite good financial result why this stock keep declining

[nztx]

New Thread Title needed here -

MHM Automation (MHM)


Special Div 1.50 cps no imputation announced today on favourable trading report

http://nzx-prod-s7fsd7f98s.s3-websit...727/354210.pdf

[whatsup]

Indeed .. what a curious collection he appears to have on his plate ..

He's not the only one who has " bought " into dud companies over the last couple of years that have gone nowhere if not backwards !!

[Sideshow Bob]

He's not the only one who has " bought " into dud companies over the last couple of years that have gone nowhere if not backwards !!

He has at least got an earn out from the Big Chill sale to put a bit more in the piggybank - plus of course the Mercer divvy.

At least Mercer appears a little more positive, albeit pumped up by the one-off property sale

[nztx]

He has at least got an earn out from the Big Chill sale to put a bit more in the piggybank - plus of course the Mercer divvy.

At least Mercer appears a little more positive, albeit pumped up by the one-off property sale

probably the size of things too - next 12 months will show how well all the hope translates into bottom line

this one has a vast trail of past wealth destruction, legacy losses & Cap raises etc with a non existent Imputation
bank for a while ahead .. most of any distributions are likely to have the IRD full 33% DWT deduction ticket attached