MHJ - Michael Hill International.

[Rawz]

Very good result, not sure how much the wage subsidies of $14.7m from NZ, Aus and Canada lifted the profit to $39m? Because that number is outrageously high.

In the entire NZX MHJ has to be one of the best bets for a 2 year investment. Looks like we are past the non- performing store closures. It's onwards and upwards from here.
And all through the store closures phase they have posted continued same store growth. Margins increasing even with them absorbing the increase in price of gold. Margins can still increase another 200bps to get back to historical levels of just under 65%.

The best part for me is: "I’m encouraged by the strong start to H2 with same store sales for the group of +11% for the first eight weeks"

Going forward the dividend is going to have to be more than 1.5cents or they will end up with a truck load of cash on the balance sheet.

[Moneyman]

Employee benefits will be grossed up for Jobkeeper top up payments. The employer in AU the employer pass on the full benefit to the employee so wages costs higher offset by subsidy income.

[MauroNZ]

Figures do not make sense to me.
Operating revenue ie sales $319,884
Employee benefits $80,562 ...25.18% of sales..I would think they should be approx 15%
Occupancy costs $11,374 or just 3.55%.I would think they also should be about 15%plus of revenue.

Percy is that based on passed percentages?.

[Beau]

Intentions to return to dividends of what would be ~10% gross at current prices once risk of shutdowns is over.

Great result under very trying circumstances, bit down on dividend but cash on hand as you say to help get through. Looking solid for future and increased dividends.

[winner69]

Figures do not make sense to me.
Operating revenue ie sales $319,884
Employee benefits $80,562 ...25.18% of sales..I would think they should be approx 15%
Occupancy costs $11,374 or just 3.55%.I would think they also should be about 15%plus of revenue.

Percy - most of 'lease' costs show up in depreciation and finance oosts

Not quite clear as to how they treat this but occupancy costs as how you and I see them are somewhere between 10% and 15% of sales

[winner69]

Figures do not make sense to me.
Operating revenue ie sales $319,884
Employee benefits $80,562 ...25.18% of sales..I would think they should be approx 15%
Occupancy costs $11,374 or just 3.55%.I would think they also should be about 15%plus of revenue.

The people costs % is about the same as last year - for the full year they have been 29% to 30%

THE $80,562 is what they paid staff - Jobkeeper subsidies $17m show under Other Revenue - so they recovered some of the down time.

MHJ people costs have always been much higher than other retailers. WE've discussed before and one bright spark said that it may include the jewellery makers wages (production as opposed to selling ....or managing ha ha). I have no idea if this is true but seems a reasonable explanation.

[winner69]

Percy ...occupancy costs (including leases) were $28m by looks of it.

[sb9]

Deleted, not relevant.

[Rawz]

MHJ touched a low of $0.68 today. Lucky whoever got a few at that price. Has since swung back to $0.71.

Should get a Q3 trading update within the next 2 weeks.

Hoping to see:
- Margins over 63%
- Same store sales up over 10%
- Online sales continuing its 100% pcp growth

Have been accumulating and MHJ is now my biggest holding

[Habits]

MHJ touched a low of $0.68 today. Lucky whoever got a few at that price. Has since swung back to $0.71.

Should get a Q3 trading update within the next 2 weeks.

Hoping to see:
- Margins over 63%
- Same store sales up over 10%
- Online sales continuing its 100% pcp growth

Have been accumulating and MHJ is now my biggest holding

I like the company, always have. Michael Hill should be sir