JYC

[galumay]

Joyce Corporation has come into my area of interest recently, thinking about taking a position. My initial thoughts are in the decision journal,

H1 19, a solid H1, growth a litttle slower than i expected, but the core business is strong and resiliant.

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Why will this business be around in 10 years? -Because people will still want new kitchens and bathrooms. Lindy effect - been around for 130 years

[galumay]

FY2020 Solid result for JYC, divested the auction business and built the balance sheet.

[galumay]

H1 2021, fantastic result, driven by JK & JS spending no doubt, but still very impressive numbers. Expect it to flatten off for H2. Great to see they did the right thing & returned JK payments.

[galumay]

H1 2022, a reasonable half especially once adjusted for JK in PRP. Revenue up slightly, NPAT also up once Jobkeeper backed out for PCP.

[galumay]

An outstanding year for $JYC, somehow they seem to have fared better than many other businesses this year in terms of margins.

[galumay]

Another pretty good result for JYC H1 2023, something a bit funny with the earnings but I think thats a function of the sale of the KWB property and the 51% ownership.

[galumay]

Another good year for JYC, another business that has the red flag of fiddling with financials though. NPAT and therefore EPS dropped slightly from PRP, but headline reporting in the 4E is for "normalised" earnings which show a rise in NPAT. Will be interesting to see Mr Market's reaction, my guess is most people just see the reported rise in earnings.

The good news is that the cash conversion has been very strong with FCF running ahead of NPAT significantly, this is increased further by the sale of investment properties which in turn has fuelled a big jump in dividend.

Outlook is cautious with a soft start to FY 2024.

[galumay]

Very good half for JYC,