Sabine
I was alluding to the performance metrics. The words. “LYL's H1FY22 revenue announced today was $102.4 million, profit before tax $21.9 million, and NPAT $15.3 million.” say all that needs to be said, but I'll elaborate.
MET is NWH's best performing unit on a profitability/revenue basis. It made a 6% EBIT margin. I did not supply LYL's EBIT margin, because LYL presentation does not mention it, and neither doea the H1 Report. Reversing finance costs of $445,725 from LYL's profit before income tax expense derives $21,949,705+ $445,725 = $22,395,430. That is $22,395,430/$102,379,312 = 21.87% EBIT margin – heaps more than MET.
LYL's NPAT of $15,264,305 is $15,264,305/$102,379,312 = 14.91%.
LYL's style of business and the accounting thereof produces erratic results, so I am not suggesting that the H1FY22 results are typical. LYL does not enter into risky deals without getting a significant deposit, so even in years of low profit recognition, its cash flow is good. Unlike NWH, LYL as a business tends not to grow, but like MND. It does not dilute shareholders' wealth by issuing more shares – to wit (shares in millions):
............ 12/06 13/06 14/06 15/06 16/06 17/06 18/06 19/06 20/06 21/06
LYL....... 38.7 - 39.0 - 39.0 - 39.7 - 39.7 - 39.7 - 39.7 - 39.7 - 39.7 - 39.7
MND..... 88.7 - 90.9 - 92.7 - 93.2 - 93.7 - 93.9 - 94.1 - 94.3 - 94.5 - 94.8
NWH... 278.9 278.9 278.9 278.9 278.9 - 321.8 370.6 375.9 426.7 449.1
LYL is not be a good investment for many, mainly because it is too illiquid, but this is not a LYL subforum, so I'll not elaborate on other negatives. What I want to say is that for years I have watched both LYL, MND and NWH, and wondered why NWH does not make at least 5% NPAT margin.
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