Ann: Nick Scali Limited FY22 Investor Presentation, page-2

There is a lot to like in these results.

Obviously supply chain issues and COVID related store closures especially in NZ have had an impact on sales and increased freight costs have had a slight impact on GP %, but overall I thought the result was pretty good.
If you compare this result to other companies that have been impacted by supply chain issues such as say GUD that reported the other day, then this result looks positively great.

The Plush purchase appears to be tracking well. I did some back of the envelope numbers ( see below) based on what was said in their presentation and it even just annualising sales based on 2022 and then allowing for the dramatic decrease in the Cost of Doing Business they are predicting, then its contribution to profit for 2023 should dramatically increase.



I don't know if their CODB figure includes the depreciation cost on leases ( AAS16) , but assuming it doesn't and then further assuming the increase in depreciation on right of use assets from 2021 to 2022 is all to do with Plush and then annualising it, would give a figure of around 11.6mill.
Deduct that off 32.9mill and you have an EBIT of around $21mill, which is a pretty good ROI on their purchase price in the first full year of ownership.

The big unknown for the overall combined ( Plush + Nick Scali) result in 2023 obviously is sales. The sales orders for Nick Scali are up 28% for July and presumably Plush are up as well, but of course we don't know at this stage how supply chain issues will affect the conversion into sales over the full year.

If one was to allow for an overall increase of say 10% in sales (so assuming that the 28% doesn't last for the full year) and a maintenance of the 2022 GP % for each business into 2023 and building in the improvement in Plush under Nick Scali stewardship, it is not hard to arrive at a profit after tax for 2023 of in excess of $100mill, which as course would represent a significant percentage increase on 2022.

Needless to say "Do your own research".