Boardroom

[Nick]

BOARDROOM LAUNCHES SHARE REGISTRATION SERVICE IN HONG KONG

http://info.sgx.com/webcoranncatth.nsf/V...600351855/$file/Boardroom_LaunchesShareReg_HK_Press_Release.pdf?openelement [Press Release]

Most of us here should be familiar with this company !

(Not Vested)

[valuestalker]

BS looks rock strong.

[freedom]

BS looks rock strong.

seriously?

I only saw the entire asset of the company is intangible....

[Herodot]

Im vested. Accounting & Share registry is a rock solid business.
But Boardroom had no growth in the last years - thats why the stock price has no fantasy.
However they acquired a fast growing share registrar company (newreg pty) in australia last year, there is favorable due intelligence written by the australian competition commission http://w3.boardroomlimited.com/public/sg...Feb-4b.pdf and the numbers provided in the other documents also look good.
I think australia is favorable because of the many mining companies IPO.
The acquistion boosted Boardrooms profit by 30%, and the australian division is still growing. My view is that these developments are overlooked by the market yet, as the share price has not moved.

[mrEngineer]

woah. the intangible asset or goodwill increased tremedously from FY2011 to FY2010 due to purchase of new subsidaries. However I find it strange when the payout of cash was 20M but the goodwill increased by 40m. Anyone can share some light on the goodwill accounting?

[camelking]

woah. the intangible asset or goodwill increased tremedously from FY2011 to FY2010 due to purchase of new subsidaries. However I find it strange when the payout of cash was 20M but the goodwill increased by 40m. Anyone can share some light on the goodwill accounting?

The accompanying note to the cashflow statement only explains the increase of around 20m..but the goodwill has increased by 40m.
The annual report should have more information on the movement of goodwill.

For the case of 20m cash insulting in an increase of goodwill of 40m, it is possible (No, I am not saying this is the case here). May be the company's fair valued balance sheet is negative say -20m.
So, u could have a goodwill of 40m if u pay 20m cash
Another possibility is cash + shares acquisition which u won't see the impact in cashflow...you will see it in statement of equity changes which is NOT the case here too.
The combination is many....it could be shares,balances receivables and etc..
Hope it helps...

[bluechipstamp]

However they acquired a fast growing share registrar company (newreg pty) in australia last year... The acquistion boosted Boardrooms profit by 30%, and the australian division is still growing. My view is that these developments are overlooked by the market yet, as the share price has not moved.

If NewReg is so good, why did BoardRoom (& GKGoh) attempt to sell it away initially?

However I find it strange when the payout of cash was 20M but the goodwill increased by 40m.

Page 5 of FY11 result gives u the answer.

The acquired subsidiaries already has an existing goodwill of 21.6m on their own. NewReg was only 33% owned back in Jun 2010, so its assets are not consolidated, but it is now since it's 100% owned.

[camelking]

However they acquired a fast growing share registrar company (newreg pty) in australia last year... The acquistion boosted Boardrooms profit by 30%, and the australian division is still growing. My view is that these developments are overlooked by the market yet, as the share price has not moved.

If NewReg is so good, why did BoardRoom (& GKGoh) attempt to sell it away initially?

However I find it strange when the payout of cash was 20M but the goodwill increased by 40m.

Page 5 of FY11 result gives u the answer.

The acquired subsidiaries already has an existing goodwill of 21.6m on their own. NewReg was only 33% owned back in Jun 2010, so its assets are not consolidated, but it is now since it's 100% owned.

Oh, i missed it...

40m plus of goodwill..
Potential for impairement........two layers of impairement at NewReg and Boardroom level.... IF impaired, the P&L will take a hit although it is non-cash in nature...hahahaha

[freedom]

I noticed the company had a huge jump in profit from its Singapore operation with almost flat revenue. anyone knows what's the reason?

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is it the gain on re-measure investment in its associate? accordingly, they wrote up their goodwill?

[mrEngineer]

I doubt it is possible to write up your goodwill based on IFRS. But would be interesting if this occurs.

Anyway, I wonder how to value a company like Boardroom with such high goodwill figures. If you remove the goodwill, you will have tremendous ROA figure. At the same time, Boardroom is not heavily leveraged and could pay off most of it liabilities with its operating cash flow. Maybe it will be a good idea to value it with free cashflow.