Surprised by the performance of this stock since they announced this special dividend and interim dividend : it has increased in straight line, by 58 % (including dividend) since 17/1/24. There has been also several days when the volume of transactions has been significant, which is not frequent for MYG when there is no news.
Still not easy to make sense of what they announced : - stability of their interim dividend at 1c, meaning that NPAT was probably flat if they maintained their payout of 33 % (like for H1 24), - decrease of their cash by 4.7 m$ between June 24 and Dec 24. As discussed before in this thread, the cash decrease is probably due to the payment of the final dividend (around 1.8 m$) and the return to a normal working capital.
At the same time, the company indicates an " exceptional financial performance and its confidence in its ongoing growth". This does not seem in line with a NPAT which could have been flat during H1 25, unless the NPAT was impacted by major negative one off (like provisions).
If we exclude the impact of the final dividend and the estimated increase of the working capital during H1 25, it seems that their net cash has increased by around 6 m$. As their H1 24 underlying free cash flow* was around 2.9 m$, I don't think they were able do double the underlying free cash flow during H1 25. So, there is probably some exceptional elements to explain the net cash increase during H1 25.
* excluding the working capital impact.
MYG Price at posting:
$1.12 Sentiment: Buy Disclosure: Held
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