Quote Originally Posted by Maverick View Post
While the underlying profit is nicely up , just as anticipated, the earnings per share is only up 5.2% on last year. They seem to be always increasing the shares on issue.
fy17 -261 million shares ,eps.0888.
fy18-371 million shares,eps .0887.
fy19-414 million shares,eps.0933.
I`m very happy with the result as it was exactly where it should be but it is not as "amazing " as it first seems. To me its a great result as it indicates stability, predictability and steady as she goes over the industry.
Like all of the sector (especially the new boys ARV and OCA), it is a slow but sure journey that takes plenty of time. I`m happy ARV are doing just fine but the 5.2% underlying profit(per share) increase is not better than RYM 11%. Nor SUM 21% increase , although 5 months ago now.
If you use end of year shares on issue (rather than weighted average), I think you'll find that ARV have not increased shares on issue significantly since the end of the 2018 FY. (413.7 --> 413.9).
Yes, there was a big increase during the FY18 year, to incorporate their purchased expansion. Might only be a small %age increase this year, but should be a lot better in future as a result.
Also - I note the ROCE (on an underlying profit basis) has been steadily climbing each year for the last 5 - from 1.9% to this year's 7%. That's nice to see - the 'steady performance' is underpinned at a steady rate on increasing efficiency of capital.