MTS buys HTH and what the Boss says, page-9

Has anyone got any idea what a bannered store is and what an un-bannered store is, beyond the obvious implication of the sign at the front of the gate?

Is this ever explained in MTS's accounts?
Are these 'banners' franchises?
What is or are the basis for the franchises? What 'hold' has MTS over the HTH banners.

The HTH acquisition comes with a hell of a lot of staff, in absolute terms. ~1600 but that represents only 1,33 employees per store?  MTS gets by with a lot less staff.

Clearly there'll be a huge amount of market sharing the same market slice, & demographic so opportunities to rationalise the structures as are there, as well as a duplication of distributions centres.

Which distribution centres MTS has being rationalising in their own group since before the wagon wheel last dropped off!

Rationalising at some considerable expense, under exciting names like 'project diamond', and 'project mustang' and 'mission impossible' & the like Whether these will glove in with the MTS "Transformation Plan" and the "New Channels" incubators remains to be seen.

( Reading Metcash accounts is like reading the Hardy Boys, with all the special code names...the Board seems to be pack of frustrated Boy Scouts & a bevy of Brownies - thrilling stuff! )

It would be great if the ~4% estimated EPS accretion could be better detailed. Turnover at $970 in a MTS - hardware metric would be about $30 m EBIT (Hardware Segment profit) MTS has averaged a cost of debt at ~ 9% over the last few years, so that debt will cost about $7.65 m and that leaves $22.35 before tax available to shareholders at just a notch or two above the one - minus after tax cost rate, so say + $16.09 m available to shareholders.

That current estimate to MTS's existing NOPLAT $16.09/ $246  = 6.5% accretive.

They talk of ~4%.  so say 6.5 X 7/12 = 3.8 % for the period

My back of the envelope stuff... what is theirs?

---------------------------------------------------

Could MTS decide, are they going the conglomerate route, or not? They had a perfectly good auto dealership, they gave away last year?

---------------------------------------------------

No indications as to whether MTS would be interested in a Masters mega store or two, too, at this stage, while they are at it.

A clue?

This must be a further temptation?