PGW - PGG Wrightson

[Left Field]

In case you missed it.......Snoopy's recent  reaction to Winner's post #41 above ....

"It was you who taught me to look at the cashflow more critically Winner. I get the idea that directors don't like to cut dividends. And often, although earnings drop, the cashflow might still be there to support the dividend. So directors can 'look through' the down periods, keep the dividend steady, and 'wait for things to come right'. Unless of course things don't come right! And you have the case of 'borrowing to pay a dividend' ending the company in 'deep doodah'.

If you look at the 'financing cashflow' for PGW over FY2025, then you will see that around $7m of borrowings have been repaid and $25m in new borrowings have been taken out. This net $18m accounts for the lions share of the cashflow deficit for the year, Furthermore over FY2025, we have the company retaining (14.0cps- 2.5cps=)11.5cps of earnings (a total of $8.7m), which explains how the 'cash deficit' has been paid for. So if the cash deficit has not been used to fund dividends in this year, where has the cash gone?

I don't think you need look any further than the 'GoStock Animal Assets' on the balance sheet going from $53m to $81m. And of course, that money 'borrowed from the banks' has been lent out to farmers at even higher rates in the form of highly profitable 'animal lending transactions'. I submit that the cashflow deficit that you have highlighted has been 'strategically deployed' in this case, not 'frittered away'. So it is actually a 'good thing'. If you look back at your graph between 2HY2023 and 1HY2025 and you see the it was cashflow positive, this was at a time when farmers were pulling back on their spending (shelves did not have to be restocked as much) and the GoStock balance was reducing. This was a dark time for PGW.

In summary, I think your assessment of the cashflow position at PGW, and implying it should be more positive is looking at the benefit to the business upside down. It is the negative cashflow balance that is a sign that PGW is doing really well. As a shareholder, I am really hoping negative cashflow continues."

SNOOPY

[Left Field]

Interesting move by PGG Wrightson.....

https://www.thepost.co.nz/business/360792196/pgg-wrightson-scoops-rd-facility-ditched-global-agrichemicals-giant-bayer

[Left Field]

Nice to see an upgrade today.....

( ps started collecting after post #34 above......now a cautious  2% of my portfolio and SP ahead by over 7%. Plan to slowly add over time for a dividend yield stock as long as Cod's "rising channel" continues.)

Healthy bounce back after going ex-div..... market factoring in a good year.

1 year TA looking good.....however reliability of PGW over the long term (say 5 yrs)  is still questionable.
Happy to be up over 20% already.

[Left Field]

PGW afternoon upgrade should help the trend mentioned in Post #47 above to continue..... nice one PGW...... should help SP climb, especially if another upgrade follows.

https://www.nzx.com/announcements/460555

[Iceman]

14/10/2025 13:28
HALT
PRICE SENSITIVE AND THIRD PARTY
REL: 1328 HRS PGG Wrightson Limited

HALT: PGW: PGG Wrightson Limited ("PGW") Trading Halt of Securities

Memorandum To: Market Participants From: NZX Product Operations Date:
Tuesday, 14 October 2025 Subject: PGG Wrightson Limited ("PGW") Trading Halt
of Securities Message: NZ RegCo has approved a trading halt application
from PGG Wrightson Limited ("PGW"). Trading in PGW's securities and were
halted at 1:11pm on 14 October 2025. PGW's trading halt application will
be released shortly. Please contact NZX Product Operations on 64 4 496
2853 or productoperations@nzx.com with any queries ENDS
End CA:00460624 For:PGW Type:HALT Time:2025-10-14 13:28:39

[lorraina]

Request for trading halt: PGG Wrightson Limited (NZX Code: PGW)
We request a trading halt be applied to our quoted ordinary shares (PGW) under NZX Listing Rule
9.9.1(a) and set out below details of the request as per the rules of NZX.
We would like the trading halt to commence immediately.
Reasons for trading halt, including impact of event on fair orderly or transparent markets: At
today's annual meeting of shareholders, shareholders voted against the re-election of
independent chair, Garry Moore, and independent deputy chair, Sarah Brown. A third director,
Meng Foon did not stand for re-election. Accordingly, the board now comprises only three
directors and does not currently meet the NZX Listing Rule requirements to have at least two
directors ordinarily resident in New Zealand, nor does it have the minimum four directors required
under PGW's constitution. The company is considering the implications of this and seeking
specialist legal advice and arrangements to appoint additional directors. Pending working
through these matters the company wishes to maintain an orderly market, as two of its largest
shareholders voted against the re-elections without outlining reasons for doing so.
How long we want the trading halt to last and why: The earlier of two business days, or when a
further market announcement is made regarding the appointment of additional directors to
rectify these governance compliance requirements.
The event we expect to happen that will end the trading halt: When additional director
appointments have been made with relevant announcement to the market.
Other information necessary to inform the market about the trading halt or that NZ RegCo
has requested: Not applicable.
We confirm that we are not aware of any reason why the trading halt should not be granted.
Yours sincerely
Julian Daly
Company Secretary

[Left Field]

Wowza ....... watch this space.

[BlackPeter]

Quite funny communication of the two largest shareholders. For sure - anybody with this holding would have communicated any issue re the NZ directors well prior to the ASM, identifying as well a potential solution, instead of just throwing the company under the bus?

But I guess this probably is just next phase of Agrias attempts to control the company. Always a problem if you are dependent on people who have problems with the good character test?

Will be interesting to see whether they find another solution looking as well at the retail shareholders ... but to be fair - I excluded PGW from my shortlist after the first Alan Lai attempt to come back.

[Tim nice but dim]

So PGW have appointed another director but it seems that will require a shareholder vote at some point. Is it likely same for the same outcome when another vote is cast.

Below from Google search, Hope it's correct.


"The general process for director appointments
Shareholder vote:

Shareholders typically have the right to vote on appointing directors at a company meeting. This is often done by a resolution with one vote per share, according to the Companies Register.
Constitutional or shareholder agreement rules: The company's constitution or a separate shareholder agreement will outline the specific rules for director appointments.

Board appointments: While shareholders usually have the final say, the board can sometimes appoint a new director first, subject to shareholder approval."

[Left Field]

So PGW have appointed another director but it seems that will require a shareholder vote at some point. Is it likely same for the same outcome when another vote is cast.

FWIW I've now sold all my PGW. (Thankfully at a small profit.)

Will now watch from the sidelines as the Board factions fight it out.

[Left Field]

Nice upgrade

https://www.nzx.com/announcements/464501

Mr Nichol said "PGW is pleased to advise that, based on current trading performance and prevailing market conditions, we are revising our market guidance for the financial year ending 30 June 2026. PGW now expects to deliver an Operating EBITDA of approximately $64 million, up from our previous guidance of above $60 million. This compares to Operating EBITDA of $56.1 million for FY25.

[Left Field]

latest result.... doesn't get much attention on this thread.

https://www.nzx.com/announcements/468034

I'm happy to be out of PGW and watching from the sidelines. These results seemingly OK but free cash flow is a concern..... clearly seen as a cash cow by key stakeholder Agria,  but a possible dividend trap for us mere mortals.

" PGW recorded an operating cash outflow of $49.9 million for the first six months of the financial year. This represented an $18.9 million higher outflow versus the prior comparative period of $31.0 million.


Interest-bearing debt was up $64.0 million from 31 December 2024 to be $170.7 million."
 

[winner (n)]

latest result.... doesn't get much attention on this thread.

https://www.nzx.com/announcements/468034

I'm happy to be out of PGW and watching from the sidelines. These results seemingly OK but free cash flow is a concern..... clearly seen as a cash cow by key stakeholder Agria,  but a possible dividend trap for us mere mortals.

" PGW recorded an operating cash outflow of $49.9 million for the first six months of the financial year. This represented an $18.9 million higher outflow versus the prior comparative period of $31.0 million.


Interest-bearing debt was up $64.0 million from 31 December 2024 to be $170.7 million."
 



You really need to add anther $12m of lease payments to give a real

operating flwo - yes an outflow of $61m