The Kathmandu Holdings Ltd [KMD.NZX] 2010 Full Year Profit result out this morning is hard to fathom clearly because last years profit as disclosed in the 2009 Prospectus was a corrected pro -forma figure and this year profit figure has been impacted by IPO costs and associated listing costs.
The headline net profit of $25.2 million before IPO costs compares with the 2009 pro-forma net profit of $10.3 million. likewise the headline sales figure for FY 2010 was $245.8 million compared to 2009 $215.6 million.
Key Points
* Headline profit of $25.2 million compares well with $10.3 million (before adjustments for IPO costs and adjustments for comparison of 2009/2010)
*Missed most key prospectus forecasts.
*15 stores opened.
*Gross margins down.
*Dividend of 7c per share.
*Debt well down on last year (paid off from partial proceeds of IPO)
*Capital expenditure up on 2009.
Lets go by KMDs own preferred comparison though (hidden at the bottom of their release), which while hard still to get an accurate comparison year to year, because both 2010 and 2009 figures have been "adjusted" is probably the most relevant way of looking to see how they did in 2010.
2010 | 2009
Sales 245.8 240.0 5.8 2.4%
EBIT1 47.5 50.6 (3.1) -6.1%
NPBT pro-forma2 41.2 44.8 (3.6) -8.0%
1 Excluding IPO costs
So we can see that even with their own adjusted figures (which are not 100% accurate) that Kathmandu failed to hit key targets listed in their prospectus, only just beating last years sales figures by round $6 million.
The 2010 net profit then, along with other financial indicators in today's release make it hard to compare 2010 with 2009. For shareholders this means uncertainty on how well the company is accurately doing and they will only get some certainty in 12 months from now when figures can be more easily compared like for like.
On the year ahead and much like Briscoe Group Ltd [BGR.NZX] & The Warehouse Group Ltd [WHS.NZX] last week, CEO Peter Halkett concluded the 2010 profit release by saying that:
“Kathmandu is confident that given reasonable economic conditions there will be further improvement in profitability in the year ahead. The impact of the economic environment on consumer confidence, and cost pressures both domestically and internationally are a challenge, however given our market position and brand strength we remain well placed to continue our growth."
Unfortunately for shareholders Halkett seems to favour more store building over organic growth and this will come at the expense of higher capital costs, increased rental payments and possibly impact on gross margins as the company looks to focus on volume rather than quality.
Kathmandu @ Share Investor
Chart of the Day: Kathmandu Holdings Ltd
Kathmandu Holdings: Market Update Misleads
Kathmandu's 2011 Results Under Pressure from Jan Cameron
Kathmandu IPO: Prospectus Analysis
Kathmandu IPO: Jan Cameron lands a blow to IPO
Kathmandu IPO: What is it worth?
Kathmandu IPO: Retail Interest High
Kathmandu IPO: A tough mountain to climb
Kathmandu No.1 but IPO should get the Bullet
Download the detailed Kathmandu Value Cruncher Report - Requires free registration at Share Investor Forum to download
Download Kathmandu IPO Prospectus
KMD Investor Presentation to Macquarie
Discuss Kathmandu @ Share Investor Forum
Download KMD Company Reports
From Fishpond.co.nz
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c Share Investor 2010
Friday, September 24, 2010
Kathmandu Holdings Ltd: 2010 full year profit analysis
Posted by Share Investor at 4:08 PM 0 comments
Labels: Kathmandu Holdings Ltd, KMD, KMD 2010 Full Year Profit
Allan Hubbard Saga: No Longer Bothered by Botherway
The following is a meaculpa of sorts to Simon Botherway, a man entangled in what was perceived as a conflict of interest on his part over the Statutory Management of a couple of Allan Hubbards financial entities back in June 2010.
I wrote this back in June:
Mr Botherway and his SEC have been of course behind the statutory management of Allan Hubbard and his Aoarangi Securities, a crackdown which has apparently come out of the blue and inconsistent with the SECs track record in terms of the aforementioned bus ticket slapping.
It turns out that this is where things get really interesting in terms of Mr Botherway and his capacity as the a SEC board member. Stuff.co.nz has reported this morning that Mr Botherway has a conflict of interest of his own when it comes to his recommendation to send Mr Hubbard to Coventry:
A member of the Securities Commission (Mr Botherway) which recommended Allan and Jean Hubbard be placed in statutory management is also the brother of a businessman placed in receivership by South Canterbury Finance (SCF) last year. Stuff.co.nz
Allan Hubbard is the owner of SCF.
Mr Bothwerway only disclosed his conflict yesterday:
Commission member Simon Botherway yesterday declared he had a "potential conflict of interest" in the Hubbard case as the brother of businessman Jonathan Botherway.
Jonathan Botherway's hospitality empire collapsed in July 2009 after SCF, which was then owed $7.8 million, put him in receivership.
Simon Botherway would not comment yesterday and instead referred questions to the commission. Shareinvestor Blog, June 25, 2010
Well, it turns out stuff.co.nz and by implication myself, was wrong and wish to apologise to Simon for implicating him at all.
I am now aware of the facts over this perceived conflict and am now convinced that there is very little to it. My anonymous source assures me the following is accurate and I have no reason to doubt this source.
This is why:
* South Canturbury Finance did not put Mr Botherway's brother into receivership as is widely accepted in the majority of media reports.
Read the publicly available Receivers Report
* Botherway did not receive the anonymous letter of complaint (from an Aorangi investor to the Securities Commission) and has not actually seen it. Hubbard's supporters have claimed he has.
This apparent conflict has been the red hearing for Allan Hubbard supporters, and they have been using David Cunliffe, in parliament and on his own facebook page to go after Botherway. It has turned into a political muck-raking situation now for Labour in their pursuit of National over South Canterbury Finance but as we know the facts of the case in David Cunliffe's eyes are only as good as the information being supplied to him from Allan Hubbard Supporters. That information is clearly inaccurate at best and a complete fabrication at worst.
Cunliffe is of course using parliamentary privilege to divulge this stuff and he is clearly misleading the house.
Related Share Investor Reading
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Allan Hubbard Saga: 60 Minutes Interview, Sept 23 2010
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Allan Hubbard Statement on SCF Receivership
VIDEO: Sandy Maier - full news conference on SCF Receivership
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Thornton Report 2: Allan Hubbard Guilty as Charged
Allan Hubbard: Full TV3 Interview - July 16 2010
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Allied Farmers: Prosecutions should be on the cards
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c Share Investor 2010
Posted by Share Investor at 11:04 AM 0 comments
Labels: Allan Hubbard, David Cunliffe, Simon Botherway
Thursday, September 23, 2010
VIDEO INTERVIEW: Pumpkin Patch CFO Matthew Washington
Pumpkin Patch @ Share Investor
Pumpkin Patch Ltd: 2010 Full Year Profit Analysis
Long Term View: Pumpkin Patch Ltd
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I'm buying
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New Zealand Retailers ring up costs not tills
Discuss PPL @ Share Investor Forum
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From Fishpond.co.nz
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c Share Investor 2010
Posted by Share Investor at 8:20 AM 0 comments
Labels: BBC Business Video, Interview, Matthew Washington, PPL, Pumpkin Patch Ltd
VIDEO: Extended Ian Morrice Interview
Source: TVNZ
Share Investor Q & A: Questions to The Warehouse' Ian Morrice
Long Term View: The Warehouse Group Ltd
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The fight for control begins soon
Discuss WHS @ Share Investor Forum - Register free
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Buy Toughen Up: What I've Learned About Surviving Tough Times
Toughen Up - Fishpond.co.nz
c Share Investor 2010
Posted by Share Investor at 8:00 AM 0 comments
Labels: Ian Morrice, Ian Morrice Interview, The Warehouse Group, WHS