Forecast 1sth operating profit of $35m, with stronger results forecast for the second half. Almost all of the income comes from recurring income streams.
from the statement
"Interest rate swaps Accounting standards require the recognition as a liability of interest rate hedging agreements to the extent that they are out of the money at balance date. The likely charge is approx. $25m (figures are after-tax). Investment Property Valuations - Non-Retirements FKP has sought external valuations of all properties held within the managed funds (FKP Core Plus Fund and FKP Core Plus Fund Two), and the majority of assets owned by the FKP Property Trust. It is expected that total writedowns will be approx. $25m. Investment Property Valuations – Retirements There is no reliable external evidence in the past six months as to the traded value of retirement portfolios of the size and quality of that owned by FKP. However, given trends in the valuation of other types of quality property assets, FKP believes it would be prudent to reflect an easing of the discount rate, and currently expects to value the portfolio on a discount rate of 12% (June 2008 11.5%). This would result in a non-operating charge of approx. $45m - $50m. Investment in RVG FKP will conservatively assume a movement in discount rates similar to that assumed on its own directly-owned assets, as well as reflecting the change during the period in the $A/$NZ exchange rate. Together with goodwill written off (previously advised) and interest rate hedges, there will be an impairment charge of approx. $20m. Development and Land Division Assets FKP is currently conducting a detailed review of the assets owned by its development and land divisions. Accounting standards require impairment charges to be taken on those assets judged to be worth less than their carrying value, whereas undervalued assets are not permitted to be written up to realisable value. Consequently, while FKP does not believe that any impairment has occurred in these asset classes as a whole, the write-down required under the standards is anticipated to be of the order of $50m - $55m. Other There will be a number of other smaller charges relating to items such as options expenses and redundancy payments, and losses on investments as previously advised to the market (total approx. $20m)."
Seems like a fairly good outcome to me.
What are others thoughts?
Also the MACD D line has crossed the signal line and the share price has broken through the 24period MA. This coupled with the parabolic SAR dropping below the current price, which with my newb (and probably crap) understanding of indicators is positive for an upward movement in the SP.
Please some one correct me if I am wrong. Unfortunately I dont have any money for this one at the moment... (crap)
FKP Price at posting:
30.1¢ Sentiment: None Disclosure: Not Held