Bedroom Furniture, page-63

This shows how dangerous it is to make predictions... All of my guesstimates were off the mark!

- Dividend payout ratio will be increased from 80% in 2018 to 100% (this move was flagged in the first half result, at that time most punters were expecting a Labor win and that franking credit refund will be axed)
The payout ratio was increased to 87%

- NPAT growth of between 5-10% for the full year (first half was around 8%)
NPAT growth is only 2.7%

- Final dividend of between $0.26 - $0.30 per share fully franked
Final dividend of $0.20

Things to look out for:
- Same store sales growth -1.1%
- Number of stores expected to be opened in FY2020, specifically in NZ
4 stores to be opened in FY2020, possibly more, 2 of them will be in Auckland
- How bedroom furniture is going (I noticed that the range has just been expanded recently)
Bedroom furniture is going well, range has been increased from 8 bedrooms to 12 bedrooms, mattress range reduced as it's not a major area of business for NCK as its margins is less than bedroom furniture.
- Any new category NCK is planning to enter.
No mention of any new category

Overall, I feel that this is a commendable set of numbers, the property strategy initiated not long after GFC has definitely put NCK in a relatively stronger position to withstand the downturn.

It is encouraging to hear that there might be opportunities to secure the properties of some of the existing stores.

Inventory control is excellent, with the benefits of the new DC in Keysborough, VIC, coming through. Although we are selling more case goods such as bedroom furniture (which we hold stocks of), the overall stocks held in DC has gone down.

The partnership with Kuka has delivered benefits in the form of reduced wait time for lounges ordered.

Considering all of the above, I have decided to do nothing, and continue to hold.