HLG - Hallenstein Glasson

[winner69]

At bit of a look at this company:

https://recastinvestor.substack.com/...n-holdings-788

Question

If you include Dividends in Operating Cash Flow why don’t you also include the Lease Liabilities that are reported in Financial Cash Flows ….after all they are essentially rents paid as part of day to day operations

You like the word collapse eh

[Rawz]

At bit of a look at this company:

https://recastinvestor.substack.com/...n-holdings-788

Thanks Recaster, a good read

[BlackPeter]

At bit of a look at this company:

https://recastinvestor.substack.com/...n-holdings-788

Personally I think that you would need a time window of more than two years to provide any meaningful trend and analysis (particularly for) a cyclical like HLG. You have some nice words for the company (sure, not undeserved), but not sure how to form this judgement based only on the 2020 to (not yet) 2022 reports.

Not sure either whether your recommendation to reduce dividends and to put the money instead into growing Glasson AUS can be justified based on the analysis you provide. Putting more fuel into a straw fire does not generate sustainable heat. How do you know (based on your analysis) that Glasson AUS is not currently peaking?

[percy]

At bit of a look at this company:

https://recastinvestor.substack.com/...n-holdings-788

Thanks for sharing your excellent research.
Yes plenty of growth still to come from Australia,not only from increasing store numbers,but also from their online channel.

[nztx]

Thanks Recaster..

but I'm intrigued as to how all those lost retail days will translate into future comparable
trading periods where less days lost.

Sure economic conditions have changed, interest rates, competition, exchange rates, supply chain, freights
and inflation all added in.

I would believe that there remains further upside possible, and HLG are specialists in their
game with long history of delivering.

The last published accounts continues to demonstrate the precise footwork and resilience of HLG

[winner69]

Thanks Recaster..

but I'm intrigued as to how all those lost retail days will translate into future comparable
trading periods where less days lost.

Sure economic conditions have changed, interest rates, competition, exchange rates, supply chain, freights
and inflation all added in.

I would believe that there remains further upside possible, and HLG are specialists in their
game with long history of delivering.

The last published accounts continues to demonstrate the precise footwork and resilience of HLG

Boomer of a start to the year - first 8 weeks sales up 68% on last year - last year had all those retail days in this period - and its 68% up on sales which no doubt would have included a lot of online sales

That 68% increase in sales has about a $15m favourable profit impact - pretty good boost to profits (v last year) eh

[Recaster]

Question

If you include Dividends in Operating Cash Flow why don’t you also include the Lease Liabilities that are reported in Financial Cash Flows ….after all they are essentially rents paid as part of day to day operations

You like the word collapse eh

I could be wrong (often am :-)) but my reading of Note 4.1 bottom of page 17 of the financial statements is that the lease liabilities in the financing cash flow are a capital item; "payment for lease liabilities principal ..." [$23.762m]

I therefore concluded that rentals were already included in operational payments.

Yes, 'collapse' is my go-to word, lol!

Cheers.

[Snow Leopard]

I could be wrong (often am :-)) but my reading of Note 4.1 bottom of page 17 of the financial statements is that the lease liabilities in the financing cash flow are a capital item; "payment for lease liabilities principal ..." [$23.762m]

I therefore concluded that rentals were already included in operational payments....

I suggest you find a few texts on IFRS16 and how the accountants of the world like to obfuscate things.

[Recaster]

I suggest you find a few texts on IFRS16 and how the accountants of the world like to obfuscate things.

Yep, looks as though I made a mess of that. Quite complicated.

As far as I can see from Note 4.1 there are two components in lease liability payments in the cash flow statement; interest for the period and lease payments made.

Adding these two together equals the lease payments under financing in the cash flow statement in both 2021 and 2022.

They should be in operations not financing IMHO.

Thanks for pointing that out and do you agree?

[Rawz]

Lease liabilities are so dumb