Pushing boundaries at Ryman Healthcare?

Pushing boundaries at Ryman Healthcare?

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5 Responses

  1. Rainer Jager says:

    Thank you for your work, John.

    May I ask what you think of the capital structure? There has been talk of a capital raise / rights issue due to the relatively high gearing of Ryman. Can you comment on this, please?

    Also, how does the debt maturity structure look like?

    Cheers,

    Rainer

  2. John Wilkinson says:

    Ryman advised you:
    “We measure our investment property at fair value with the exception of land, work in progress and units not sold.”

    The John Flynn village certainly looks like WIP.
    If they took up some profit on the %age of completion basis, then maybe OK, but to take it all up is counting the chickens before they hatch.
    I note that Note 4 Income Tax, in the Annual Report, shows a substantial deduction from Profit before Income Tax Expense of Non-Taxable Income. This deduction is described as principally from the fair value movement of investment property. I am thinking that a lot of that could well be unearned profit.
    So they are straight up and down with the tax man, but are pulling the wool over the shareholders eyes!
    I also note, from Note 19. Key Management Compensation, that management get short and medium term incentives. I wonder how the unearned profit influences those incentives.
    The job is done when it is completed!
    Sock it to them John – good work.

  3. Donald Foster says:

    Congratulations John on an excellent piece of research.
    While I have no doubt that Ryman and it’s auditors are complying with whatever accounting conventions apply in such circumstances, to me as a layman, the longbow is being drawn here, particularly in current volatile market conditions, and Ryman should voluntarily disclose in a note to the accounts each year, the sort of information you have had to discover the hard way, with comparative figures also shown for the previous year.
    Why not put that to both the company and to it’s auditors, and if Ryman remains unwilling to disclose such material information to its shareholders, perhaps the directors could explain what their objection is.

  4. Ray Wilson says:

    Yes I agree we need the exact details of the results not something that can be eschewed to obtain a different outcome to suit a number of purposes

  5. neil parker says:

    Really appreciate this info, compliments to John for doing the research.

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