JYC - Joyce Corporation

[System]

Joyce Corporation Limited (JYC) is a franchisor and owner of retail bedding stores. JYC's main operations are Bedshed franchising, Bedshed stores, and investment properties in Australia.

http://www.joycecorp.com.au

 

[Newt]

Price on JYC has run up 50% in the first quarter this year after many years of lack lustre performance.

Reading through recent announcements seems to have been sold operating conditions combined with sale of an industrial property allowing increased dividends for next 3 years. Presumably future success depends on continued franchise growth.

Would be good to know if funds have started buying this year.
Looks like directors have been topping up.

 

[galumay]

Another little business I have held for a while now, another solid year with pleasing results for the FY released today.

 

[galumay]

Very good results out for JYC for H1 2021, surprisingly strong growth. I guess JK & JS has allowed everyone to upgrade the kitchen & bedroom!

Also great to see another business with integrity - returned the JK payments it received.

 

[galumay]

Trading update today, very positively received by the market. The tailwinds continue for now.

 

[divs4ever]

Joyce Corporation returns record $13m profit, boosts dividend​

Joyce Corporation (ASX:JYC or “Joyce”) is pleased to report its results for the Financial Year Ending
30 June 2021.
_________________________________________________________________________________
Highlights
• Group Revenue of $111.2m up 30% compared to prior year
• EBITDA of $24.3m increased by 46% on Financial Year 2020
• Record Group Net Profit After Tax of $13m
• Net Profit After Tax attributable to Joyce shareholders a record $7.6m compared to a loss
of $1.1m in the prior year
• Earnings per share1
increased by 71% from prior year to $0.27 per share
• Year End dividend of 10 cents per share, fully franked, resulting in record full year franked
dividend of 17 cents per share
• Debt Free as at 30 June 2021 with Group Cash of $19.9m
_________________________________________________________________________________
Joyce CEO Dan Madden said that a combination of strong operational performance and successful
execution of the Company’s expansion strategy had enabled Joyce to capitalise on robust market
conditions, resulting in record revenue and profits for the 2021 financial year.
“Our business has been particularly resilient to the COVID-19 pandemic. Both KWB Group and
Bedshed have benefited from a lift in Australian consumer spending as Australians, unable to travel,
elected to spend an increased proportion of their disposable income on their homes, but this only tells
part of the story,” Mr Madden said.
“With an overriding focus on organic growth, we have been able to continue expanding KWB and
Bedshed into New South Wales. The KWB Group expansion in NSW has been hugely successful with
four stores opening during the year, giving KWB a footprint that extends across Queensland, South
Australia and New South Wales. KWB has great organic growth potential in untapped locations
including in Victoria and Western Australia and a ‘capital light’ business model with strong margins and
excellent cash flow, establishing it as a core asset for Joyce Corporation.
“When coupled with strategic decisions, such as keeping Bedshed’s supply chains active during the
early stages of the pandemic, and developing Bedshed’s e-commerce platform, we have gained market
share with both of our Group’s businesses, and Joyce has emerged stronger as a result.

courtesy of Bell Direct

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

DYOR
i hold JYC ( free-carried )

that 36c a share i paid in January 2013 is looking like a good bet now

( but would be surprised if the 10c divs can continue for long )

 

[galumay]

Also a happy holder, though not for as long as you. Its just such a well run little business, one for the bottom drawer.

 

[divs4ever]

i went for a road trip ( bus and rail ) to Perth in 2012 and spotted WA was a state with a big future , not the only WA winner i bought after that trip , but nice to see i got it mostly correct

 

[galumay]

Yes I lived in WA for a while, have picked some good little businesses over there to add to my portfolio. You do have to watch it though, there are more cowboys and rogues there per head of population than any other state!! I skippered luxury boats for the likes of Alan Bond when I was over there, saw things that would make your toes curl.

 

[divs4ever]

i live in QLD , and will trade you a Christopher Skase , i would have added Clive Palmer but he might a have spare slot in his litigation calendar ,

maybe QLD is just tidier , with their 'wondrous opportunities ' when they unravel ( just don't trip on the lumpy carpet )

but heck most of the states , have gone crazy .. have added ZIM ( operating in Zimbabwe ) and KSL ( operating in PNG ) in the last two months , the geo-political risk seems to have evened out ( and NOT in a good way )

but wild antics aside WA hasn't managed to triple-tangle itself in red and Green tape yet

 

[galumay]

An outstanding year for JYC, somehow they seem to have fared better than many other businesses this year in terms of margins.

 

[finicky]

Looks undervalued to me with today's rise so far, assuming it can sustain this level of profitability, or even if you work off lower fy20 - fy21 earnings. Whereas if I think it might regress to median earnings in fy17 - using CommSec's stats over 10 years - it is slightly overpriced by my reckoning. But it has had those stronger and rising earnings for 3 consecutive years now, inclusive of fy22. They have kept the shares listed admirably low. Including it in my wishlist anyway.

Not Held

 

[galumay]

Another good year for JYC, another business that has the red flag of fiddling with financials though. NPAT and therefore EPS dropped slightly from PRP, but headline reporting in the 4E is for "normalised" earnings which show a rise in NPAT. Will be interesting to see Mr Market's reaction, my guess is most people just see the reported rise in earnings.

The good news is that the cash conversion has been very strong with FCF running ahead of NPAT significantly, this is increased further by the sale of investment properties which in turn has fuelled a big jump in dividend.

Outlook is cautious with a soft start to FY 2024.

 

[divs4ever]

Bedshed Operations and Trading Update


Joyce Corporation Ltd (ASX: JYC or ‘‘Joyce Group’’, ‘‘Group’’ or ‘‘Joyce’’) is pleased to provide an update on its Bedshed operations.

Key points:
• Two Bedshed stores in the key market of Sydney – Alexandra and Castle Hill – will convert from franchise operations to Company-owned stores.
• The transition, to take effect over the coming weeks, will give Bedshed direct access to the high potential Sydney market as it drives strategy to grow its footprint in NSW.
• Bedshed delivered record Black Friday sales as trading performance strengthened following a slower start to the financial year.
Bedshed Sydney stores to transition to Company ownership Bedshed has entered into agreements with two franchisees to acquire the stores in Alexandra and Castle Hill in Sydney.
These stores are in prime locations in suburban Sydney and will be critical in spearheading Bedshed’s growth in the Sydney market, where the business is under-represented and sees significant opportunity.
The cost of acquisition for Bedshed is approximately $1.5m which includes stock acquisition costs of approximately $1m.
The remaining balance is attributed to other acquired tangible assets such as store fit-out and equipment. Joyce Corporation CEO Dan Madden said that by bringing the stores under company control, Bedshed will have better access to market information as well as direct access to earnings and revenue upside from the two highpotential locations.
‘‘Through our initial e-commerce store, and the establishment of two franchise stores in suburban Sydney, we have established a strong presence from which to grow Bedshed’s brand and operations in Sydney.
Having direct ownership of these stores will give us greater control over the NSW strategy and important market intelligence to support future growth opportunities in Australia’s biggest retail market,’’ Mr Madden said. ‘‘Importantly, this is a relatively small capex commitment and is consistent with the capital-light nature of the business in the Joyce Group.
Our strong balance sheet and cash position gives us the flexibility to make these decisions and we will continue to refine our approach, in line with our overall strategy.’’
The Bedshed network currently stands at 42 (including 6 Company Stores following these acquisitions), following the successful opening and positive early trading of the new Jindalee franchise in Queensland in August 2023.
This positive momentum will continue with the opening of the Toowoomba store scheduled in coming weeks. Bedshed Trading Update Bedshed generated record revenue from its recent Black Friday sales campaign, as trading conditions strengthened following a slower start to the financial year.
Mr Madden said the Black Friday result confirmed that while consumer spending is easing in response to higher interest rates, there is still an appetite for people to buy homewares and other goods to improve their homes when there is a strong value proposition for doing so. ‘‘As higher interest rates take effect on discretionary spending, we continue to observe some pressure on revenue and margins. Joyce Group has a robust business model, strong brands, loyal customers and a very strong balance sheet, all of which position us to grow sensibly in a difficult market, and quickly capitalise as market conditions improve.’’

ENDS

i hold JYC ( bought January 2013 @ 36 cents )

just an interesting little small cap. that paid divs. when i bought them , who knew ( when retail has been 'dead ' for years now )

 

[Knobby22]

My pick for the month.
No real interest and I may end up in the gutter looking at my phone.
Tip based on technical reasons with which I am not a maestro. -it keeps going up!

See chart:

 

[galumay]

Odd price action with JYC last 2 days, a steady climb over the day yesterday, up nearly 10%, then a very strong push in the last hour or so today to add another over 12%. On fairly small volume, so not sure what that suggests.

Gone from just under $3.75 to $4.30, hitting a high of $4.35.

 

[divs4ever]

Odd price action with JYC last 2 days, a steady climb over the day yesterday, up nearly 10%, then a very strong push in the last hour or so today to add another over 12%. On fairly small volume, so not sure what that suggests.

Gone from just under $3.75 to $4.30, hitting a high of $4.35.

well i don't know what the price action suggests

but the price tells me , i have another ten-bagger in an unlikely place ,
a take-over ( or M&A ) move in the wind perhaps an annoying part of my other gems have gone that way

maybe they have gotten a lot of extra sales from the recent floods in WA , sounds flimsy but cannot think of any other reason Joe Public would know

they are due to report in late August ( the prelim. )

 

[galumay]

Thats what concerned me @divs4ever - takeover or M&A, annoying having to find a new home for capital when its released from such a great investment, not to mention the tax implications.

 

[divs4ever]

Thats what concerned me @divs4ever - takeover or M&A, annoying having to find a new home for capital when its released from such a great investment, not to mention the tax implications.

yes am in theory ( depending on outcomes ) awash with that problem

CSR , PSQ , is LNK still up for grabs , SRX , , i am sure there are some other small holdings under threat

have finally parked the cash from selling QVE rather than take the deal

now sure some M&A has been a windfall crystallization of woofers , but some like API i was slowly building nice positions ( and i lost some gems as well )

 

[systematic]

Well done you guys for getting in and holding in there so long. I look at a lot of untraded systems and Joyce has consistently appeared in many of them over the years. It flags very well to this day.
I note that it's been the best 10 year performer in the specialty retail sector, doubling the total return of the next best performer (Nick Scali).