Summerset expects NZ$98M profit for December, decides to return COVID-19 subsidy
Summerset (NZX: SUM) revealed its market guidance on 16th of December, 2020. It was disclosed by Summerset that the expected profit for December 2020 is between NZ$96M to NZ$98M.
The firm has also decided to pay back the subsidy of COVID-19 wages, which is $8.6M, as received this year from the government. This repayment of subsidy has been factored in as the underlying profit guidance.
A firm was considered eligible for the COVID-19 subsidy when its revenues fell by as much as 30%, and also when its retirement unit sales became zero. There was an underlying profit of NZ$45.1 M recorded for the first half of the financial year 2020.
It was further reported that after careful monitoring by the Summerset Board, it was decided that it was the time to return the subsidy. The business prospects for Summerset are positive and it is in quite a strong position marketwise.
It was further revealed that no forecast has been provided for the net profit IFRS in NZ. This is because the main element of this measure of profit is not available until after an independent valuation process is complete.
The Net Profit after tax for NZ IFRS is different from the underlying profit. Here the directors provide the underlying profit measures to help investors figure out fair-value movement components. Underlying profit is a benchmark that a firm uses from time to time.