Australian (ASX) Stock Market Forum

ASW - Advanced Share Registry

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I was wondering why ROE and Robusta have not set foot in this small and excellent company. 80 cents is pretty expensive, but 1.1 is a bit outrageous......

Micro cap is the place where wonder can happen. Hold your breath!
 
frankbaozhu said:
I was wondering why ROE and Robusta have not set foot in this small and excellent company. 80 cents is pretty expensive, but 1.1 is a bit outrageous......

Micro cap is the place where wonder can happen. Hold your breath!
Click to expand...

Wonders did not happen. ASW reported half year earnings today and stock went down. There is nothing wrong with investing in this very well-run company, but valuation matters. ASW is a business within a niche. When it tries to compete head-to-head with computershare, it will have a hard time dealing with challenges it has not faced before. How the market ignored this fact and drove the share price recklessly high is beyond my understanding.

Now that the rosy projections were shattered, the market sentiment will move to an opposite direction. And it is possible it will go a bit too far. I am holding my breath!
 
Kicking myself a little for always letting this one out of my sights. The issue I've found over the years is that it's so thinly traded I've been unable to get in without a significant jump in the price. Below 70 cents I'd be happy to buy. At 90 cents, I'd take a pass. I sometimes think companies like this would be better off taken private to reduce the listing and compliance fees.

I'm not sure how well protected ASW is from other new registry start-ups. But in general I think the industry is going to see significant cost reduction because of electronic communications becoming the norm. Nearly 1/3 of their total costs are printing and postage fees! Surely it would be worth hiring a backpacker full time to phone up every holder of every company they are the registry for and ask them to 'switch to electronic communications'
 
steady as she goes: dividends over the last decade
1615004857145.png


and historical ..... Revenue ........ ................................ Operating Margin (%) .................. ........... Net Profit after Abnormals .....
1615005331264.png
 
Advanced Share Registry Limited (ASX: ASW, ‘Company’) is pleased to provide its Notice of Meeting and Proxy Form for the Company’s Annual General Meeting to be held on 19 November 2021 by virtual means.
As previously advised, the Company has determined that due to the restrictions on being able to travel to Western Australia for shareholders residing outside Western Australia, conducting the AGM virtually would provide a greater opportunity for participation by shareholders. Division of Capital At the AGM, Shareholders are being asked to consider and pass a resolution to divide the Company’s capital.

Each shareholder on the Record Date will receive 9 shares for every 2 shares they hold at that time, with any resulting fractional entitlements being rounded up.
The Board is encouraging all Shareholders to participate in the AGM by joining the virtual meeting online, lodging questions prior to the meeting and voting either by proxy or at the meeting online.

Stuart Third Company Secretary

Dear Shareholder
You are invited to attend the Annual General Meeting (AGM) of Advanced Share Registry Ltd to be held at 10:00 am on Friday, 19 November 2021, which will be held solely online. You will be able to ask questions and vote on resolutions both prior to and during the AGM. We are providing the Notice of Meeting with this letter, and advise that it will be available online at www.advancedshare.com.au and the announcement made on 21 October 2021 through ASX.

Recent changes to the law permit the Company to provide the Notice of Meeting solely by electronic means or by link to a web version of the Notice of Meeting. We have decided to maintain the Notice of Meeting delivery (either electronically or printed) for this year so that Shareholders could be better informed of the changes. For future notices, a hard copy will only be forwarded if you make an election to receive notices in hard copy only. If you would like to make an election to receive future notices in hard copy only, you can log in to your holding through the investor login at www.advancedshare.com.au and update your preferences accordingly.

Division of Capital The Notice of Meeting contains a resolution to divide the capital of the Company, increasing the number of shares available to be traded on the market. The Board has considered the impact of the division on shareholders and believe that it is in the best interest of the Company, its current shareholders and future investors.

The division of capital increases the number of shares on issue from 42,979,500 to approximately 193,407,750. The underlying value and market capitalisation of the Company is expected to remain the same immediately after the division.

The division allows for future growth in value to be attained by existing and future shareholders at a lower entry cost to the investment. Whilst past performance is no guarantee of future performance, the Company has been able to continue generating income in the current environment and increasing profits. It is intended that shareholder value will be maintained through the continued payment of ordinary dividends at similar pro-rated as currently exists.

For example, a 2c dividend declared under the current capital structure would be declared as a 0.444c dividend under the new capital structure. The Board encourages Shareholders to participate in the meeting online and through voting via proxy, and we thank you for your ongoing support of the Company. Yours faithfully

DYOR

( i hold ASW )

HUH ?

ASW is currently roughly $1 a share ( $1.045 at the close ) and they want to split it to a ( roughly ) 25c new share

now split BKL ( i hold ) ( currently $101.00 ) by 5 into a $20 share ( which management is firmly against ) yeah i can see the logic

i also hold APE which DID a split into 5 back in 2012 from a ( roughly ) $10 share into a ( roughly ) $2 new share ( tonight closed at $14.99 )

but split to a share of LESS than $1 ( for ASW ) ( after spending YEARS of around 60c to 70c )

but keep watching maybe confused punters will unload the NEW shares for sub 20c

CAUTION i doubt the share ( after the split ) will be liquid enough for many to trade
 
Hey divs4ever, I stumbled over this one turning over rocks the other day, I like the business but I cant get my head round the risks to the business. I guess low switching costs but also some stickiness with customers. Do you think there is much catastrophic risk from potential legislative change or merging of ASX and registry responsibilities into a single organisation in the future?

I always ask myself why a business will still be round in 10 years time, not sure I have much conviction in the case of $ASW, inverting, what could destroy the business in the next 10 years? Loss of customers to bigger companies? Change to structural setup of clearing house and registry businesses into single unit as above? Seems like significant disruption is possible, will that be a negative or a positive??
 
ASW did a cost-cutting a while back since they do not have a big business and computers/internet help a lot they found , they could move to a smaller cheaper premises BUT leased out the original office for extra revenue

apart from being a tiny landlord , they are a share registry , so are highly dependent on the stock market and listed companies ( using their service ) , now ISX and NSX are trying to implement a clearing service to compete with CHESS , but since the NSX has struggled for years to survive i can't see ASW being scooped up in a takeover move to rival the ASX or Computershare

i kept my cash exposure small ( especially since this is an illiquid share )

BUT they MIGHT be protected by the ACCC , considering the share registry industry is dominated by 3 major players but the ASX and NSX have plenty of small caps listed ( who probably need to save pennies )

and that is what surprised me about the coming share split , why would they incur the extra fees to CUT the share price to the 20c-25c range surely they don't want/need the extra liquidity ( when they process them themselves ) surely they don't predict the market cap. will drag it into a major index without a cap. raise ( so LICs and ETFs are mandated to buy stock )

now a real left-field curve-ball MIGHT be Western Australia secedes from the Commonwealth ( been threats of that for decades , but not much activity ) and ASW gets a boost from that ( if WA run it's own stock exchange .. surely it would become the size of the NZX or bigger , depending on who listed )

a small cash-efficient business even the board of directors only has 3 people ( and total staff less than 10 people according to Commsec )
 
Agree about the share split, its insanity, the stupidest one I have ever seen proposed. Zero benefit & not insignificant cost.

WA seceding is not a risk IMO. Simply wont ever happen.

So question remains, what might happen to cause ASW to go out of business in the next 10 years? Disruption in the entire clearing/registry/broking business sector seems a possible risk to me.

Why they will be round still in 10 years, if there is no disruption to the entire sector then as a small, nimble, profitable business with a reasonably long history, they should survive.
 
Agreed, the proposed share split is stupid. The Directors' reasoning is lame. If they want to increase the trading volume then focus on increasing the business. ASW seem to cover the micro/small cap companies along with Automic. How about the Directors get more large cap companies as customers. There's little in the way of competition as Link/Computershare are hopeless (from a shareholder POV).
 
PRELIMINARY PROFIT ADVICE HALF YEAR ENDING 31 DECEMBER 2021
Advanced Share Registry Limited (ASX: ASW, The Company) advises that the
estimated pre-tax operating profit for the half year ending 31 December 2021
is to be approximately $1,460,000 (2020: $2,286,548, 2019: $1,338,646).
In comparing the results from 2019 and 2020 to the current estimate, the
Company notes the abnormally increased corporate activities that occurred
during the half year ended 31 December 2020 which drove the results for that
period, as well as the COVID-19 assistance received, which permitted the
Company to maintain its workforce during the initial lock down period.
The expected results for the half year ended 31 December 2021 are the result
of corporate actions returning to more regular levels of activity and normal
trading throughout the period.
The Company continues to monitor its expenditure whilst uncertainty remains
in the current market, as well as adding to its services for its clients which will
provide additional income sources.
Stuart Third
Company Secretary


==========================================================================================

DYOR

i hold ASW

a rather illiquid stock , but has been a steady earner for me since July 2013

did a recent share split , i will be watching to see if this is a buying opportunity ( but will have to plummet to hit my target price )
 
well a share split ( in theory ) is to

A. make a stock more affordable ( like to pressure on BKL to split five or ten ways , so small retail folk can buy a few ) and ASW recently over $1 , just before the split ) doesn't seem to fit that narrative

B. to make the share more liquid , but gee i have a hard time seeing ASW as a trader's toy

i guess time will tell , but one consolation is i have seen worse decisions made elsewhere ( when those companies were struggling for cash )
 
ASW came back later to , at the finish

$0.265
Today's Change Up $0.015 (6%) which still surprised me

  • Volume Number of securities traded in the current trading day 120,639
  • Trades 5
  • Value $32,275.120
not exactly a flurry of activity , either
 
Advanced Share Registry announced fully franked distribution of A$0.005 per security for six months ended 31 December 2021, with record date of 4 February 2022 and payment date of 8 February 2022. The Company's distribution reinvestment plan will not apply to this distribution .

DYOR

i hold ASW ( my 'new share ' av. is 13.8c a share )

i guess i was wrong about the share split trivializing the div. as well
 
PRELIMINARY PROFIT ADVICE
YEAR ENDING 30 JUNE 2022
Advanced Share Registry Limited (ASX: ASW, the “Company”) advises that the
pre-tax operating profit for the year ending 30 June 2022 is estimated to be
approximately $2,390,000 (2021: $3,436,671, 2020: $2,143,369).
The Company is pleased with the anticipated full year result when considering
the unusual trading conditions that have been the hallmark of the 2 previous
years during the COVID-19 pandemic. To illustrate the impact of the abnormal
trade on results, Table 1 below shows the marked increase in turnover and
subsequent return to more normal trading in each of the half years from
December 2018 to the estimated 30 June 2022.
When COVID-19 first affected businesses across the Australia towards the end
of March 2020, the Company experienced an initial decline in activity similar
to most businesses. However, the extended lockdowns saw an extraordinary
increase in securities market activity, both in trading by investors and
corporate actions by companies seeking to raise funds during this period,
which provided an abnormal boost to the 6 months to 31 December 2020
along with the Company’s eligibility for government grants during the period.
Heightened trading and corporate activity continued through the 6 months
from January to June 2021, by which time the Company had ceased to be
eligible for government grants, resulting in a further period of increased
profitability.
The half year to 31 December 2021 saw the return to more normal trading and
corporate activities where income was more comparable to the December
2019 half year which has continued into the current period to June 2022.
Despite this, the Company’s measures during the COVID-19 period to improve
efficiencies and reduce costs where possible have continued to benefit the
Company into the current year.
The profit margin for the Company has improved leading to a higher estimated
profit compared to that achieved for the year ended 30 June 2020. An increase
in revenue by 4% over the 2020 annual revenue has seen the Company’s
estimated 2022 pre-tax profit increase by 11% over the 2020 result.
24 June 2022 – Preliminary Profit Advice Year Ending 30 June 2022 2
It is expected that the Company’s gained efficiencies will continue to be realised as the economy enters the
next phase of uncertainty with rising interest rates and inflation as the restrictions relating to the pandemic
continue to be wound back.
The Company intends to pay a dividend out of profits for the year ending 30 June 2022 and will advise the
amount and date for payment of the dividend once the Company has considered the final results for the year.
Stuart Third
Company Secretary
==================================================================================
DYOR
i hold ASW
a rather illiquid stock , but has been a steady earner for me since July 2013
 
FINAL DIVIDEND ADVICE

Advanced Share Registry Limited (ASX: ASW, The Company) advises the Board has determined that a fully franked dividend is to be paid in light of the anticipated results to 30 June 2022 as announced on 24 June 2022 and after reviewing the financial statements which are currently being prepared and subject to auditor review.
The dividend will be $0.005 per share, fully franked at the tax rate of 25%, and contains no conduit foreign income.
The timetable for the payment of this dividend will be:
Ex Date 16 August 2022
Record Date 17 August 2022
Payment Date 19 August 2022


Stuart Third
Company Secretary

==================================================================================
DYOR
i hold ASW

quirky !!

but i ain't complaining
 
PRELIMINARY PROFIT ADVICE
HALF YEAR ENDED 31 DECEMBER 2022
Advanced Share Registry Limited (ASX:ASW or ‘Company’) advises the estimated
pre-tax operating profit for the half year ending 31 December 2022 will be
approximately $1,220,000 (2021: $1,518,941).
The Company has seen market conditions slowing when compared to the last two
years. For example, in terms of new listings (IPOs), the number of IPOs in
calendar year (CY) 2022 was 89 compared with 202 in CY 2021. Of the 89 IPOs,
59 were in the first half and 30 in the second half of CY 2022. Such slowdown in
corporate activity is indicative of the general market decline. Whilst this has had
an impact on our bottom line, this has not been to the same extent of the general
market decline. This is a positive aspect for our cost-effective operation. Client
retention has been good, and we continue to attract new clients and listings.
It is also worth noting that more shareholders are electing to receive notices and
reports electronically thereby reducing recoveries for handling and
administration costs of manual reports. The more electronic conveyance of
information is a positive from an environmental viewpoint and it has also freed
up our staff to focus on shareholder engagement assistance and online
conferencing.
ASW has been subject to the same inflationary pressures as the rest of the
economy with increases to operating costs over the period. ASW has invested in
some significant equipment purchases over the past year designed to drive down
operating costs. This has resulted in increasing the Company’s depreciation
charge to profit.
The Company is continuing to invest in developing strategies to open new
avenues of revenue as well as reducing costs to align with client expectations.
ASW has solid foundations and a strong balance sheet to drive its growth
strategies in this market.
The Company is intending to pay a dividend for the half year and will announce
the amount and date in due course.
Stuart Third
Company Secretary

===================================================================

DYOR

i hold ASW

has been a solid little bottom drawer stock
 
INTERIM DIVIDEND ADVICE
Advanced Share Registry Limited (ASX:ASW) advises the Board has
determined that a fully franked dividend is to be paid given the anticipated
results to 31 December 2022 as announced on 23 January 2023 and after
reviewing the financial statements currently being prepared and subject to
auditor review.
The dividend will be $0.005 per share, fully franked at the tax rate of 25%,
and contains no conduit foreign income.
The timetable for the payment of this dividend will be:
Ex Date 3 February 2023
Record Date 6 February 2023
Payment Date 8 February 2023
Stuart Third
Company Secretary

==========================================================================================

DYOR

i hold ASW

a rather illiquid stock , but has been a steady earner for me since July 2013
 

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