HGH - Heartland Group Holdings

[KW]

Note to Heartland re their outstanding collections for motors, they may want to do a walk around of the Auckland International Airport long term car park for ex-Ubers ....

"the estimated number of non-NZ citizens who departed long-term increased from 4264 in December 2023 to 6357 in December 2024 (+49%)."

[Pierre]

I'm tuned in for the 11am conference call. It will be interesting to see if Tomlinson shows up or if Andrew Dixson is left to carry the can alone.

[winner (n)]

No mention of NON STRATEGIC ASSETS ...hmmm

[Basil]

I'm tuned in for the 11am conference call. It will be interesting to see if Tomlinson shows up or if Andrew Dixson is left to carry the can alone.

My bet is Mr Tomlinson will not make an appearance. His hollow words at the annual meeting to the effect of, we know the last years results are not good enough and we need to do better are still fresh in my mind.

[Basil]

No mention of NON STRATEGIC ASSETS ...hmmm

That's a separate lot of special pain to come that's waiting in the wings.
Notice in the announcement that the auditors are most of their way through the process. Guess who forced them to make these new write-downs?

[winner (n)]

Andrew Dixson mumbled through the analyst briefing ...totally unconvincing performance

Going to cover a lot through half year announcement

2028 still seems to be on lol

[Pierre]

I don't feel particularly reassured following the conference call at which Tomlinson was conspicuously absent.

TRA has been operating in the same economic environment as Heartland but with a markedly different outcome.

HBL has been operating as an extremely loosely run finance company with little evidence of any normal banking discipline in its operations.
And I'm not convinced their proposed changes to credit management are going to be very much better, but time will tell.

Fortunately, the Reverse Mortgage business is going well and has a strong runway ahead. It's a cash intensive operation though, so I hope it can continue to be funded from bank deposits in Oz rather than a call on shareholders.

What will the dividend be for this half? Probably should be zero, but they will probably throw a couple of cents per share to pacify the justifiably upset shareholders.

[snapiti]

crickey Heartland continue to appear to be making up their own rules when it comes to write downs, I believe in a continued manor to make it supposedly easier to stomach their terrible loan book.
So if I read correctly they currently write off car loans when over 365 days due and are shifting to 180 days, will that tells me, given the economy in the last 365 days and that heartland over that time continue to give 100% financing to vehicle loans that there is a heap more loan write off's coming 

[winner (n)]

I lost count of how many times legacy and pre-2020 was mentioned in analyst call

Jeez that's 5 years ago

What's happening now almost criminal and a lesson in how not to run a bank

In spite of the reassurances I betcha there's 'hidden' / 'unknown' problems in Oz.

[lorraina]

"There are known knowns, things we know that we know; and there are known unknowns, things that we know we don't know. But there are also unknown unknowns, things we do not know we don't know."
Author: Donald Rumsfeld.

[Basil]

As I said after the annual meeting, management do NOT impress me. Leanne Lazurus especially. She sees no issues whatsoever writing new 5 year motor vehicle loans on zero deposit in a rising unemployment market. Nothing has been learned from past mistakes. The current group CEO was there all the while during the process of helping them create the mess they're in. 

Reverse mortgage business is the one and only part of the business I like.

[Minimoke]

As I said after the annual meeting, management do NOT impress me. Leanne Lazurus especially. She sees no issues whatsoever writing new 5 year motor vehicle loans on zero deposit in a rising unemployment market.

Nothing has been learned from past mistakes.

Reverse mortgage business is the one and only part of the business I like.

That seems insane. Are customers being charged significantly more for the vehicle to cover this risk?

[LoungeLizard]

This has been coming down the line for a long time, truth be told. Management arrogance and economy with the truth. Cavalier decision making. Contempt for the smaller investor. Expansion during a recession. Grandiose visions without doing the homework. I could go on and did. Heading towards 90c. Sad day for investors but the real shame is that there is no acceptance that Management took their eye of the ball. They are still playing investors for idiots. Shameful.

[KW]

"There are known knowns, things we know that we know; and there are known unknowns, things that we know we don't know. But there are also unknown unknowns, things we do not know we don't know."
Author: Donald Rumsfeld.

"It aint what you dont know that gets you into trouble, is what you know for sure that just aint so". Mark Twain

Don't buy shares in a downtrend, in the belief the market is wrong and you are right. 

[ValueNZ]

I warned at great length after attending the annual meeting and also several times subsequently, the first half would be an absolute shocker.

Honestly the caliber of management in terms of risk management is, as previously articulated, very poor.

I am not surprised by this appalling bad update. Plenty more pain to come as they try and realise their so called non strategic assets.

Bloody great call Beagle.

Good work sniffing that one out in advance