"Despite revenue being down current WIP assets are up by 12%...

First 27 Last

Share
Profile

Follow
tim8wilson

534 Posts.

27

27/02/19

15:41

Post #: 37589059
Share
Originally posted by tim8wilson: ↑

The impairment is effectively recognition that Shine over paid for Emanate (based on 20-20 hindsight). Of course this is based on the assumption that the market conditions for mining and resources will remain the same. On a long enough timescale its likely this sector will eventually pick up again, after all mining is a large part of the Australian economy.

A few additional points:
I joined the analyst call this morning. It was mostly a verbatim read of the presentation pack. One point of interest was regarding acquisitions - they're in no hurry. I'd consider that a positive. Also the priority for acquisition is confirmed to be in family law.
Having has some more time to absorb the numbers it's of note that while financial costs (cash) have doubled, they have significantly paid down debt. The have paid down 11% of borrowings since the 2018 full year report. This is in spite of Carr and Co purchase being funded from debt. Notably ACA acquisition was paid from working capital and NOT debt - which is great and was not my expectation.
Despite revenue being down current WIP assets are up by 12% (non-current WIP is flat)
While the dividend has (technically) increased from last year note that it is unfranked, whereas last year's dividend was franked. As a result in real terms (depending on the impact of franking credits on your tax) the dividend may actually be seen as flat (i.e. not an increase) from the perspective of the shareholder.

That said -contrary to DannyBoyLIAC - my preference is for Shine to retain capital and not increase the dividend; at least until the borrowings are further reduced and dependent on capital reinvestment opportunities available to Shine.

Expand

"Despite revenue being down current WIP assets are up by 12% (non-current WIP is flat)" should read up 12% from FY18 report (i.e. 30 June 2018)
SHJ Price at posting: 63.0¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

CXM

'Taking money from the market': Garbage giant cleans up as this week's Hot Stock tip

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

There are more pages in this discussion • 23 more messages in this thread...

First 27 Last

Add SHJ (ASX) to my watchlist

(20min delay)
Last 87.5¢		Change -0.020(2.23%)		Mkt cap ! $144.2M

Open	High	Low	Value	Volume
89.5¢	89.5¢	85.5¢	$9.663K	11.13K

Buyers (Bids)

No.	Vol.	Price($)
2	6500	85.5¢

Sellers (Offers)

Price($)	Vol.	No.
88.0¢	3339	1

View Market Depth

No.	Vol.	Price($)
1	28	0.840
3	5177	0.825
1	1	0.820
1	7723	0.800
1	936	0.750

Price($)	Vol.	No.
0.850	56508	9
0.865	1155	1
0.890	14633	1
0.900	10402	3
0.940	30000	1

Last trade - 15.16pm 26/11/2024 (20 minute delay)

SHJ (ASX) Chart

"Despite revenue being down current WIP assets are up by 12%...

Top Stories

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

'Taking money from the market': Garbage giant cleans up as this week's Hot Stock tip

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

Buyers (Bids)

Sellers (Offers)