Nick Scali Limited

ASX:NCK

Nick Scali Limited

ASX:NCK
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$13.50 (-1.8%)
Last close price
#118
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8
Held by
31
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Reports (5) My Report Forum Investors
Forum Topics NCK NCK Management

Pinned straw:
Remorhaz
Added 12 months ago

In todays AFR:

Nick Scali founder cashes out $50m via UBS


Expect only the finest in Christmas presents this year from Anthony Scali, the founder and CEO of ASX-listed furniture retailer Nick Scali

Street Talk understands UBS has underwritten a sale of $50 million worth of shares on Scali’s behalf, in his first selldown in nearly five years

The parcel of 4.6 million shares represented 5.7 per cent of issued capital. The trade was underwritten at $11 – or a 5.3 per cent discount to last close

Scali last sold shares in the company in 2018 at $7 apiece. He would be still its largest investor with 8 per cent ownership

It comes after the company posted record revenue – $507.7 million, up 15.1 per cent – as well as after-tax profits – $101.1 million, up 34.9 per cent – for the 2023 financial year. Its shares have risen 24 per cent over the past 12 months, and the latest trading update showed a slowdown in orders but was better than consensus expectations

It listed at $1 a share for an $81 million market capitalisation in April 2004. The company was capitalised at $948 million on the ASX as of Wednesday’s close


DISC: Held in SM & RL
Solvetheriddle
Added 12 months ago

I agree with the general sentiment on this stream. there is , i suspect, a bit of building pressure as the family ages and calls on capital from various angles. i would be surprised if there is anything nefarious in this sell down. one point to keep in mind is that AS spoke on a podcast a few months ago where he was quite constructive on a UK entry. that would entail an issue and have to be funded by the family. maybe that is also in the back of his mind. just speculating. disc held

16
Rick
Added 12 months ago

@Solvetheriddle I think you might be right about the UK expansion and the family needing to stump up being a possible reason for the sell down. Something I need to keep in mind too. I wouldn’t want to miss out on it, although participating will come with significant risks.

13
Bear77
Added 12 months ago

Anthony Scali, the MD of NCK, is not the founder, he's the son of Nick Scali, who was the founder. And the Scali family have been reducing their position, as the business grows, last sale around 5 years ago I think. That is to be expected, and better to do it when the business is going really well than when it is struggling, both from their point of view and ours - I am a NCK shareholder IRL. I think ARB and NCK are the best run consumer discretionary companies on the ASX - and I hold both. Not too fussed about this. They still have plenty of shareholder alignment.

19
GazD
Added 12 months ago

Agree,


just added to my position IRL. Even with the potential for short term pain a PE of 9.3 on a business of this quality seems like an opportunity. Especially based on director sales. I would sell too if I had that much cash invested.

13
Rick
Added 12 months ago

I think the Scali family block trade announcement yesterday was a good opportunity to top up. Intraday lows were more than 10% lower at around $10.40. A bit extreme when you consider the block trade was underwritten by UBS at $11 per share. I’m not saying it will happen again, but the last time the family lightened off their holdings in 2018 at $7 per share, the shares went on to more than double within 3 years. The family still holds 8% of the business, so there’s still a lot of skin in the game.

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Disc: Held IRL (13%), SM (17%)

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