Event non-ATF Mobile

Time for Face-off (AGMs), Companies Under Focus - Tabcorp, Qantas, Crown, Carsales, JB Hi-Fi

  • October 22, 2019 05:18 PM AEDT
  • Team Kalkine
Time for Face-off (AGMs), Companies Under Focus - Tabcorp, Qantas, Crown, Carsales, JB Hi-Fi
Annual General Meeting (AGM)

Annual General Meeting is a mandatory gathering of a company’s shareholders in most of the jurisdictions. If interested, the shareholders can attend the meeting to gain insights from the management related to the company’s performance and strategy.

The companies usually schedule AGMs on a yearly basis and present their achievement for the past period. At the AGMs, the eligible shareholders vote on the resolutions put forward by the management.

Further, the resolutions may include dividends, appointment of directors, compensation of executives, corporate restructuring plans, etc. It provides opportunities for the shareholders to ask questions or express concerns related to the company.

Let’s discuss five stocks with upcoming AGMs:

Tabcorp Holdings Limited (ASX: TAH)

In October 2019, the gambling and other entertainment services provider had reported on the appointment of Mr David Gallop AM to its Board as a Non-Executive Director, dependent on regulatory and ministerial approvals. Mr Gallop is a well-known figure in the sports industry with senior positions at the National Rugby League and Football Federation Australia.

It is expected that the company would announce more additions to the Board in FY20 to complement its Board with necessary skills and experience.

In September 2019, the company had notified that the 2019 Annual General Meeting (AGM) is scheduled on 24 October 2019 in Sydney, NSW. Besides, the company also reported that investigation in the Cambodian matter from 2009-10 was closed by the Australian Federal Police.

In the year-ended 30 June 2019, the company reported strong growth in revenue and profit, and declared fully franked dividends worth 22 cents per share for the whole year. Due to multiple transactions including closure of Sun Bets business in the UK and acquisition of Tatts Group, the results from the prior year were restated to reflect Sun Bets as a discontinued operation.

capital management

In FY2019, the company reported NPAT of $362.5 million, up from $28.7 million in the previous year (including discontinued operations). Reported revenues from continuing operations were $5.48 billion for the period.

On 22 October 2019, TAH last traded at $4.840, down by 0.616% relative to the last close.

Qantas Airways Limited (ASX: QAN)

Recently, the air transportation services provider had notified on the level of foreign relevant interest in QAN. As of 3 September 2019, foreign investors potentially held the relevant interest of 35.78% in the issued share capital of the company. Therefore, the company is in a position to qualify for the recognition in the MSCI Global Investable Market Indexes.

In late August 2019, the company had reported convening its 2019 Annual General Meeting on 25 October 2019 in Adelaide, South Australia.

In the year-ended 30 June 2019, the company adopted AASB 15 Revenue from Contracts with Customers from 1 July 2018, and the results for the previous year were restated to reflect the change for comparison.

During the year, the company generated statutory profit before tax of $1.27 billion, down $87 million compared to the previous year. The fuel costs soared higher by $614 million compared to the previous year. Its international business is more prone to the fuel headwinds with relatively more competition, resulting in a slow recovery from fuel costs headwinds.

However, the fundamentals of the international business were strong, increasing revenue propelled strong earnings. The company also returned to double-digit profit growth in the second half compared to the prior corresponding period.

Net Debt

Net Debt (Source: Qantas Group FY19 Investor Presentation)

According to its Annual Report, the company’s net debt at the year-end was $4.7 billion that was below the lower end of the net debt target range of $5.2 billion to $6.5 billion. It generated $2.8 billion in operating cash flow, lower compared to the previous year due to lower working capital benefits and timing of option premium outflows.

On 22 October 2019, QAN last traded at $6.530, down by 0.153% relative to the last close.

Crown Resorts Limited (ASX: CWN)

Recently, the international casino and gaming entity had reported on the tax dispute with the Australian Taxation Office (ATO) before the Federal Court and the Administrative Appeals Tribunal. The tax dispute is related to the taxability of the company’s financing for investment in Cannery Casino Resorts in North America for the financial years ended 30 June 2009 to 30 June 2016.

Further, the company and tax office had reached an agreement to settle the dispute and issues related to financial years ended 30 June 2015 to 30 June 2018. The terms of the agreement are confidential, and the settlement is not material to the company’s current and future financial results.

In September 2019, the company had notified that the Annual General Meeting is scheduled on 24 October 2019 in Victoria.

Consolidated Financials

In the year ended 30 June 2019, the company had recorded revenues of $2,929.2 million compared to $3,083.1 million in the previous year. Expenses for the period were down to $2,326.8 million compared to $2,441.9 million in the previous year.

Further, the company’s share of profits of associates and joint venture entities increased to $13.3 million compared to $6.6 million in the previous year. Finance costs were down to $36.6 million from $76.1 million in the previous year.

Consequently, the net profit after tax was down to $402.9 million for the period compared to $573.2 million in the previous year. Other income for the period was $0.2 million compared to $172.5 million in the previous year. Previous year’s other income included gains on disposal of CrownBet, Ellerston, and foreign operations.

On 22 October 2019, CWN last traded at $12.150, down by 0.246% relative to the last close.

carsales.com Limited (ASX: CAR)

Recently, the online automotive advertising services provider has announced that its Chief Financial Officer – Mr Andrew Demery has resigned after spending five years with the company. He had overseen numerous favourable changes to the business, and the most recent project was the implementation of a new global ERP and Salesforce platform.

Further, the company has confirmed that Mr William Elliot would be working as Acting CFO while the company conducts a search for a replacement. Mr Elliot is the current CFO of International & Head of Commercial Finance.

In September 2019, the company announced that the Annual General Meeting of Shareholders is scheduled to be held on 25 October 2019 in Melbourne.

Operational Performance

In the year-ended 30 June 2019, the company achieved growth in the business amid challenging economic conditions on consumer sentiments. The domestic conditions in the period were unfavourable with new vehicle sales adversely impacted by economic uncertainty, tightening credit availability and falling property values.

carsales.com Limited

However, the company delivered growth amid unfavourable conditions in the domestic market due to diverse revenue streams, new products and entry into new markets. The industry-wide headwinds included changes to lending regulations for dealers, challenges in sourcing new car stock from Europe, and reduced spending on advertisements by carmakers.

On 22 October 2019, CAR last traded at $15.070, up by 0.133% relative to the last close.

JB Hi-Fi Limited (ASX: JBH)

In September 2019, the home consumer products retailer notified that the Annual General Meeting is scheduled to be held on 24 October 2019 in Victoria.

The company also released its 2019 Annual Report for the period ended 30 June 2019. In the Chairman’s and Group Chief Executive Officer’s Report, it was stated that FY2019 was a strong year for the company with record sales, profits and dividends, all reporting increase over the previous year.

In FY2019, the company achieved sales of $7.1 billion, up by 3.5% over the prior year. Earnings Before Interest & Tax (EBIT) increased by 6.4% to $372.8 million. Net profit after tax for the period was up by 7.1% to $249.8 million. The total dividend for FY19 was up 10 cents per share to 142 cents per share.

Outlook

In FY2020, the company expects total sales of the group to be approximately $7.25 billion. The total expected sales include $4.84 billion from JB Hi-Fi Australia, NZD 0.24 billion from JB Hi-Fi New Zealand, and $2.18 billion from The Good Guys.

On 22 October 2019, JBH last traded at $34.620, up by 1.11% relative to the last close.


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