Ann: Sale of Retail ICT and Sprout Business, page-40

Here is my take back of the envelope.

166m shares on offer. SP = .84. ICT special dividend + FCs = .64 leaves $.20*166m = $33m. Business will hold $35m cash + Artisan if valued at SLA multiple of 28 = $28m. After the sale and dividends = $63m / 166m = $.38 vs $.20. That is today. VTG has a multiple of 5 and this is where the market has not adjusted from the ICT GP margins of 26% vs 74% for Artisan?

Now if you assume the $35m invested into 30+ new outlets or acquisition (each store GP averages 70%+). What valuation should this translate to? As I suggested earlier I think the market has not correctly valued the Artisan business model in recent trading.

Happy to have an analyst pick up any errors in this back of the envelope review.