Full Year Reports 15-16

[galumay]

CCP  Fantastic result, share price rocketed thru $15 on the back of better than expected results across the board. Really illustrates the value of under promising and over delivering by management. I will need to re-assess the IV and re-rate CCP.

NVT Another solid year, happy with the result. Quoting one of the investors I most admire, Klogg from ASF & HC, here is his summary of NVT this year,

"- UP: "Equivalent full time student units (EFTSU) grew by 0%, 2% and 0% globally for each semester respectively in the year compared to pcp. Excluding these transitioning colleges EFTSU grew 2%, 4% and 11% globally for each semester. Average fee growth was ~5% across the Division."
Inflation is so low throughout the world, yet NVT can grow fees by 5% a year without any issues...

- SAE: Strong revenue growth, EBITDA growing by the same amount. Some operational leverage not showing here as a result of:
"SAE announced the proposed closure of four sub-scale colleges."

- A reversal of negative working capital structure shown in the closure of two large UP agreements, ultimately effecting cash flows:
"Operating cash flows of $125.8m for the year ended 30 June 2016 were down by 11% on the prior year (FY15: $141.8m) principally due to increased payments for teaching and marketing only partially offset by higher customer receipts. "
This is also shown in the "Deferred Revenue" line, which decreased by $8m ($272m from $280m the previous year)

- DRP back in play: " The Navitas Dividend Reinvestment Plan (DRP) will again be offered at no discount to market."

- Dividend amount maintained at 19.5cps. They're capping the dividend to the amount they can pay out with required franking credits. I like this, as it forces them to re-invest the remainder at higher ROC (21.6% currently, as listed below)

- Not sure if these are significant efficiencies, but overhaul of IT systems:
"An overhaul of the Group’s core IT infrastructure is being pursued to enable faster decision making, powerful analytics, efficient processes, and improved operations. This includes the global upgrade of learning management systems, and the continued rollout of Navigate, a Navitas student management system. "
(Navitas have a good track record in this area, as has been discussed in previous webcasts)

- Even though the competitive advantages are maintained and shown through ROC, the Incentive targets were not met:
"Whilst Navitas achieved an increase in EBITDA during the year, the growth in EVA by the Group fell short of the target set by the Board. As a result the Group’s return on capital employed for the year to 30 June 2016 fell to 21.6% "
(If I ran a company that achieved an ROC of 21.6%, I'd be happy to pay bonuses - Rod has high standards it seems)


Guidance seems to indicate a similar result next year. However, once the UP closures are completed, I can only see them increasing earnings..."

[galumay]

Summarising the rest of the AR's for the SMSF, (green for a good report, red for bad.)

ADA New entry, good AR, nice growth, stong outlook - market hated it and  am down about 17% in a flash!

AHZ As a speccy AR not really relevant, we have built our position and look to profitibility in 2018

ANZ

BRG I was happy, sustained growth in all major metrics, nothing negative, ANZ sales a bit flat but US building strongly, market didnt like the results and they dropped hard for a couple of days, back up over $8 now. All good.

DDR Reports Jan so this was half yearly. Acquisitions bedded down now, great numbers, all good.

DWS Really strong performance, all my calculations have it north of $2. Has had a nice run into and past the AR.

ICU Recovered well, now healthy profit, revenue and cash flow. Price didnt do much - I pushed it up 23% buying a trading parcel but not much other action.

[b]MND[/b] Had a strong run up in SP into the AR, result was not good - but totally in line with expectations, but market smashed them. back to where we were 6 months ago.

MXI Seems to have turned the corner, much better year with some muted optimism for 2017. Price has responded well, finally in the black on this one

NVT Covered in previous post, all good, steady as she goes.

NWH Finally turned around, very healthy balance sheet now and debt being reduced, good order book, wotst behind them, now in the black on this in the SMSF having averaged down.

QBE A crap year, market hated the fact that last year it looked like they had turned the corner, this year they went backwards.

RCG  was very happy with the AR, Mr Market didnt like it at all, price got hammered for a few days, almost back to previous highs now so all good.

RFG Announced a very popular acquisition that provides strong vertical integration the day before releasing a very positive AR, price shot up and looks like a really good company now.

SGH Just awful, my worst decision in the SMSF, a total disaster! Good learning tho'

SXE Steady result, looking for longer term recovery and growth. All good.

TGR Going well, de Costi integration showing value, salmon prices strong. doing well.

TNE Half yearly

UOS Another solid year in australia's most under valued company. All good.

WES Shit year for Target & Coal.

WPL Probably a better result than expected given the horrors of oil!

WPP Another one that ran hard up into the AR, result was soft and market hammered them, still in the black but one I will look to exit I think.