||EPS - Basic
||Market Cap (m)
|Real Estate Investment & Services
HML Holdings Share Discussion Threads
Showing 401 to 420 of 425 messages
|OK, thank you Graham|
|Shanklin, think it has always been in their offices|
|Good to see them have it in one of their own conference rooms rather than wasting money having it in central London|
Many thanks for your views and info from the recent meeting, I would have loved to have attended.
I agree that the profitability could be misleading with a private business (although the figures above HMLH state are NORMALISED whatever that means) but I think the price to sales ratio is directly comparable. Say if HMLH doubled margins (and their margins aren't great) by selling insurance it just highlights what a low margin business they've paid top dollar for.
The AR does contain numbers for contributions from acquisitions for the part year after the deal completes and also hypothetically had they been owned for the full 12 months. In the case of MLPL it states:
'If the acquisition of the shares of MLPL had been completed on the first day of the financial year, group revenues for the period would have increased by £438,000 and the group profit attributable to equity holders of the parent would have increased by £12,000. The business of MLPL contributed £116,000 to the Group’s revenue and increased the Group’s profit by £9,000 from the date of acquisition to the year-end date'
I would ideally like to see the next year as well but it suggests profitability isn't transformed.
Their acquisition policy has lead to a balance sheet stuffed with goodwill and intangibles leading to a negative NTAV.
I am though heartened by the investment in the new business team which has picked up £600,000 in new management contracts (saving 800,000 in acquisitions costs :-)) They would imo be serving shareholders much better if they aggressively pursued this route of growth and spent the acquisition money on buybacks or increased dividends.
As an aside it was mentioned by yourself or DS that it had been an aspiration to ultimately achieve 20% op margins in the future. Was margin improvement discussed at the meeting and is the current stalling of margins at 6 to 7% a temporary consolidation?
|Take the last acquisition that I have reasonable data for - MLPL
Price Paid £720K T/O 555k Normalised PAT 40K So we have P/S Ratio of 1.3 and PE of 18
HMHL P/S Ratio 0.7 PE of 9.3.
I'd say that was overpaying for companies that don't have the same systems in place as HMLH.
You'd never see a quoted car dealer paying pretty much double it's own ratios to acquire and integrate a single dealership.|
|Thanks Martin, although it hasn't really satisfied my concerns that they are overpaying for their acquisitions, some of which the purchase price appears to have been well above the 1-1.25 P/S ratio mentioned by DS.
If they are indeed adding value (op margins for HMHL's last 4 years have been fairly static at 6.2 - 7.2%) then it suggests the companies purchased are even more expensive.|
|Sorry I was talking about the acquisitions and how the company demonstrated they were earnings enhancing.|
|They report eps not adjusted eps. The broker estimates are adjusted eps. Hml need to be quoting adjusted eps to be consistent so as to not confuse investors.|
|'Management stated that they were ( even though they appeared not in the statutory reporting process)'
Buffetteer - are you able to expand on the above?|
|The directors got the message about adjusted eps being quoted in the results. It remains to be seen if they took on board much of the shareholder friendly requests PIs had . They are not communicating themselves well enough to the market and this attract a low rating rather than being a poor business.There was much discussion about whether acquisitions were earnings enhancing . Management stated that they were ( even though they appeared not in the statutory reporting process).
I would be surprised if earnings don't beat forecasts this year .
Only have 2% market share. Most are tiny - ripe for further consolidation .
Trade is good and there are plenty of opportunities for growth. A competitor was bought by Savills recently too.|
|How was the presentation Martin?
Was the walk through of one of the acquisitions informative? I'd love to have my fears allayed about them overpaying.|
I am 99.9% certain you are comparing apples and oranges. The 2.7p is an unadjusted number whereas the 3.4p is an adjusted one.
After yesterday's AGM, I would be surprised if we do not see adjusted EPS numbers provided, hopefully not just in the notes to the accounts. Not that it was raised yesterday, but a history of the adjusted number going back say 5 years could also usefully be provided.
All IMHO. Cheers, Martin|
|Given HML typical publish headline EPS, pre any adjustments and on a undiluted number of shares, the comparable number for last year in theory is 2.7p. If that's going to 3.4p this year then these are indeed cheap.
A slightly more generous yield might help attract investors in, which would be useful given that this doesn't have the feel of something which naturally attracts growth investors in|
|P.S. Nice to see an AGM statement.|
Assuming 3.4p is a forecast adjusted EPS number, this is lower than last year's 3.7p+, as per your post 244.
HMLH have been increasing this number for some years, so I imagine this forecast is very conservative, HMLH will almost certainly beat it and is indeed very good value at current levels.
|Today's AGM statement is short, sharp and very encouraging:
"The business continues to perform well with a positive start to this year. Management remain confident that trading remains in line with expectations."
Being in line with 3.4p EPS (and a 0.4p dividend) makes this good value at 33p imo.
OT : davidosh, sorry I can't attend, hope it goes well.|
|We now have 17 attending which is excellent compared to the previous years where just two or three have attended. The directors will be providing a presentation and showing us how the business model works by walking us through at least one of the acquisitions done a few years ago.|
|OK have sent email to mellomeet|
|OK have sent email to mellomeet|