It's that time of year again when the majority of companies hold their annual general meetings (AGMs).
It's an important time, not just because it's one of the few opportunities shareholders get to put the elected board of their companies under scrutiny but also because it is often an opportunity for companies to provide first quarter updates on business performance.
Here are three companies which have just held their AGMs and provided an update on trading conditions…
AGL Energy Ltd (ASX: AGK) shares sunk to a new 52-week low last week after the company hit shareholders with unexpectedly bad news during the AGM. The biggest negative surprise was the announcement by the energy generator and retailer that it would write-off $156 million in relation to the just completed $1.5 billion Macquarie Generation acquisition.
The size of the write-down was obviously a shock to shareholders and when coupled with the extraordinary fees paid to advisors in relation to the acquisition it casts serious doubt over the use of shareholder funds and the capability of management.
Excluding the write-offs (it's debatable whether you should!), the FY 2015 underlying profit guidance provided by management is for $575 million to $635 million. In comparison, the underlying profit result in FY 2014 was $562 million.
Toll Holdings Limited (ASX: TOL) share price fell abruptly on the day of its AGM after the leading transport provider issued a weak update on trading conditions during the first quarter. Management described trading as a "tough start to the year, with the first quarter weaker than expected".
The only positive was that despite the weak start to the financial year Toll retained its previous full year guidance for FY 2015 earnings to be ahead of FY 2014.
Bucking the trend set by AGL and Toll was growing legal services provider Slater & Gordon Limited (ASX: SGH). At the law firm's AGM the group announced that one of its UK acquisitions is on track to complete the integration process in early 2015. Management also reaffirmed guidance for revenue from Australian operations to grow to $270 million, while also guiding towards a $230 million contribution from the UK division and an overall EBITDA margin between 23% and 24%.
