Proactiveinvestors Australia LandMark White Limited Proactiveinvestors Australia LandMark White Limited RSS feed en Wed, 19 Jun 2019 07:24:20 +1000 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - LandMark White downgrades FY19 guidance on deteriorating conditions ]]> LandMark White Limited (ASX:LMW) has downgraded its FY19 earnings guidance last provided at its annual general meeting (AGM) in November 2018 by 17-18% citing tough market conditions.

The original FY19 guidance was based on the market outlook at the time and included preliminary assessments of the impact of the Taylor Byrne acquisition.

LandMark noted that changes in trading conditions combined with greater clarity of the impact of its acquisition of Taylor Byrne and review, by the board, of preliminary first-half results require a revision to the FY19 guidance previously provided.

The original FY19 guidance was for revenues of $56.8 million, EBITDA of $7.1 million, NPAT of $4.0 million and EPS of 4.8 cents.

The updated normalised full year FY19 guidance represents a 3.1% decline in revenue, 18.3% decline in EBITDA and 17.5% decline in NPAT.

Taylor Byrne acquisition completed October 1, 2018

On 9 October 2018, LandMark entered an agreement to purchase 100% of Taylor Byrne Holdings Pty Ltd.

Taylor Byrne is a valuation and property consultant firm with 25 offices across Queensland and New South Wales.

At the time the acquisition was set to increase LandMark’s revenues by 50% and further diversify its earnings generated from its Australia-wide branch network providing agricultural product and services.

Fall-out from banking royal commission blamed

LandMark said that during the December quarter it experienced a significant reduction in valuation instructions from the first-tier lenders.

This was a direct result of tighter regulation of credit from APRA as well as the adverse impact of the lenders reaction to the Banking Royal Commission.

The negative sentiment on housing prices across major centres also resulted in weaker loan volumes and hence valuation instructions.

Expecting a bounce back in activity

LandMark noted that in previous property cycles, it has seen similar periods of reduced valuation activity.

These are traditionally followed by a resurgence in sales-driven activity as buyers return to market seeking under-valued opportunities, or borrowers taking advantage of refinancing options.

It also noted that a sharper drop in property prices can lead to banks being more cautious and circumspect with their current lending portfolios, also leading to an increased demand for valuations.

Tue, 29 Jan 2019 08:29:00 +1100
<![CDATA[News - LandMark White to acquire property valuer Taylor Byrne ]]> LandMark White Limited (ASX:LMW) has entered an agreement to acquire 100% of leading residential property valuation firm Taylor Byrne Pty Ltd.

The consideration of $10.3 million represented 4.5x normalised FY18 EBITDA and will be paid in $5.15 million cash and 8.58 million shares.

This is expected to be earnings-per-share (EPS) accretive in FY19 with the full effects anticipated to be realised in FY20 of 1.8 cents.

Strategic benefits from the acquisition

Taylor Byrne has 26 offices across Queensland and New South Wales broadening LandMark’s geographic footprint, which in turn supports growth in market share.

The two companies see substantial strategic benefits from a combination of the two businesses, both in terms of national scale and capability, leading to revenue growth opportunities.

Margin improvement through internalising work that was previously contracted to third parties within the combined business is another important benefit of the acquisition.

Progression of LandMark’s previously stated growth strategy

LandMark’s CEO Chris Coonan said: “In line with our previously stated acquisition strategy, we have continued to evaluate opportunities for growth.

“We are conscious of the benefits of expanding a geographical footprint, and Taylor Byrne is an ideal fit for that goal.

“We eagerly look forward to delivering the benefits of additional scale, capacities and sustainable earnings growth for our shareholders, and continuing to provide LandMark’s personalised and streamlined service for our existing and new clients.”

Wed, 10 Oct 2018 08:38:00 +1100