HGH - Heartland Group Holdings

[winner (n)]

This is probably why Basil don't bother with questions at the ASM.

BusinessDesk review -

Sure, there were some questions, but they had to be submitted in writing and Ricketts read them out in a monotone drone before answering each one in the same unvarying rumble.

And no doubt some, like mine, got filtered out

To Heartland ASM are a necessary evil ....they must dread havingbto hold them ...even virtual ones. Maybe 'retail' shareholders becoming a necessary evil as well

[Basil]

Alas, the physical annual meetings where wine and over beverages flowed freely and tasty nibbles were in abundance are but a distant memory now...wherein you could ask any question you liked.

[lorraina]

If you want info at an agm best to approach the chairman, ceo or cfo, either just before the meeting starts, or after the meeting when they are looking to be seen talking to shareholders.
They do not like answering questions raised during the meeting.They see all questions as negative.
Last May I went to Dunedin for Silver Fern Farms agm. Had two very important questions to ask the chairman.
Both questions answered fully 5 minutes before the meeting started.Mission accomplished.
Never ask questions by email.Always phone.Reason being people talk more freely.

[winner (n)]

Alas, the physical annual meetings where wine and over beverages flowed freely and tasty nibbles were in abundance are but a distant memory now...wherein you could ask any question you liked.

Best question ever was one a few years ago 'Mr Chairman, look at yourself and the rest of the Board - all rather white and getting on a bit. Is that good?' ....might have even used the words fuddy duddys lol.

Poor old Geoffrey looked a bit astounded and muttered and stuttered through a non-reply

Pleasingly things have changed a bit since

Group / Bank Board now a few fuddy duddys but now a couple of younger males and a three women in the mix .... but ethnicity seems to be missing in the mix (shouldn't judge fromjust looking at the photos though)

Glas Ellie Comerford still hanging in there. No doubt she has 'influenced' a lot of that diversity change at Heartland. She's a good soul that Ellie

[winner (n)]

Interesting part of Annual Report --- more work needed I think

You cannot view this attachment.

[winner (n)]

HGH's Marac's motor vehicle lending has been strong for over 20 years.
[most probably more like 50 years.]
Most people need a car to get to work.No car,no work,no work no dough,no dough no life..

Went off the rails when they went into property loans eh

Wrote so much off (one story said over $100m) about the time of the GFC the risk officer was so stressed he had a breakdown and they had to search for him when his car with plates MARAC3 was found abandoned. found him after a few days

Aparaently Jeff drove the car with the MARAC1 plates .... he was the boss of course

[lorraina]

Think it was Brian Jolliffe and the board.
I remember speaking to former [pgc] Chairman Sir Miles Warren,when HGH was being formed.
"It took us years to understand motor vehicle lending,yet the board went head long into property developement lending without understanding it."
My statement about Marac motor vechicle lending remains correct.ie No issues for 20 to 50 years. 

[winner (n)]

We shouldn't overlook that 'Motor' is the segment that generates the highest profit

FY22 PBT for Motor was $67.8m out of Group PBT of $137.0m

And over the last 2 years Motor profit growth not far short of that seen by NZ Revere Mortgages and ahead of Aust Reverse Mortgages

Important part of the overall business

[lorraina]

From CEO this year's agm.
We anticipate some stress on our Motor loans, recalling however, that
during the GFC, Motor loans arrears and losses increased, but were absorbable. And it is
pleasing to see Motor growth is returning to levels pre- changes to the New Zealand Credit
Contracts and Consumer Finance Act 2003 and the Credit Contracts and Consumer Finance
Regulations 2004 (CCCFA), introduced on 1 December 2021

And from page 7 HGH's annual report;
"A shift in the Motor book towards higher quality loans."

[Basil]

We shouldn't overlook that 'Motor' is the segment that generates the highest profit

FY22 PBT for Motor was $67.8m out of Group PBT of $137.0m

And over the last 2 years Motor profit growth not far short of that seen by NZ Revere Mortgages and ahead of Aust Reverse Mortgages

Important part of the overall business

Thanks for drilling down into that mate.  A very pertinent point !

[lorraina]

Interesting noting HGH are up 7 cents ,..4% today.to close at $1.84.

[lorraina]

Currently $1.87.

[Left Field]

Change of auditors for HGH......quietly slipped into Friday's news just before Christmas.

Interesting.....

https://www.nzx.com/announcements/404196

[Ferg]

Interesting indeed if KPMG genuinely resigned.  That would be unusual.  What is not unusual is regular rotation into another of the large audit firms - can't have the auditors being too familiar with the client.

[Fiordland Moose]

It's par for course that when an auditor is unsuccessful in retaining an audit client after a tender that the announcement reads that it was a resignation. Sometimes there are non disparagement clauses, or joint approval rights around announcements. Helps firms save face. That said, you never know when a 'resignation' is an actual resignation.

By way of example, NZX/ASX listed Smartpay 'accepted' KPMG's resignation as auditor last month.  I've 'accepted' a few auditor resignations during my professional career, but shown the door would have been a more realistic description.