Wednesday, August 16, 2017

Retail Holdings (RHDGF) reports increased first half earnings

Seeking Alpha:


Consolidated revenue from continuing operations for the first six months of 2017 was up 10.2% from prior year, to $256.2 million, a record for this group of companies.

All of the Company's operations reported revenue growth, with revenue in local currency increasing 26.0% in Singer Bangladesh, 4.8% in Singer India, and 13.5% in Singer Sri Lanka.


Evidence suggests that both Singer Sri Lanka and Singer India gained market share during the first half of 2017, as competitors were less able to meet these challenges than were the Company's operations.  I believe that both Singer Sri Lanka and Singer India will show much improved results in the second half of 2017 as the recent initiatives to boost revenue, improve margins, reduce S&A expense and shrink the balance sheet, bear fruit.  Singer Bangladesh should continue to report strong results. 

"The Company continued to make strong progress in its strategic program to monetarize the underlying value of the Company's assets. Additional shares were sold in the public markets during the first half of 2017 for Singer Bangladesh, Singer India, and Singer Sri Lanka. I anticipate further placements in these markets in the second half of 2017.

"Retail Holdings paid a distribution of $2.00 per Share to Shareholders of record on May 5, 2017; a further distribution of $1.00 per Share will be paid to Shareholders of record on November 17, 2017. This bring the total distributions paid to Shareholders since inception of the program in 2007 to $18.75. The Company anticipates making further distributions in 2018 and later years.

So this is performing just as hoped. Management will continue to liquidate the underlying holdings and distribute to shareholders. The kicker is the underlying holdings continue to perform well and could gain value which would be a nice bonus for shareholders. 

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