Pre or Post?

I've been giving the following question some considerable thought over the past few months: 'is it possible for TSI India to pay out a dividend to TSN and CX Partners once business is profitable prior to their objective (trade sale or IPO) i.e. within the next 12 months and if so, would this the best option for the company going forward?'.

But before I delve into this question, a quick recap of some business performance progress first to put this question into context/perspective.

* Gross recurring yearly revenue is increasing for TSI India as highlighted in company announcements.

* TSI India are rapdily approaching 100 million transactions per year in their business. Refer to recent Corporate Presentation.

* Based on the above, 100 million transactions per year x AUD $0.20c per transaction should be getting real close to AUD $20 million dollars in gross recurring yearly revenue for TSI India.

* Page 12 of the 2014 Annual Report highlighted..."the Group has only recently achieved cashflow positive levels of sales from business operations".

* Note that was approximately 16 months ago when only 1324 ATMs were on the market as at the end of March 2014.

* The 2015 Annual Report highlighted that TSI India's ATM business grew by 36% during the year with 1825 ATMs installed and operating as of the 31st March 2015.

* Since the end of March 2014, TSI India have been awarded two ATM contracts with two existing bank clients totalling 800 ATMs (September 2014) and another contract recently in the E-Kiosk space of 200 E-kiosks (July 2015), bringing that total to 400 made up of E-Kiosks/Bill Payment machines.

* TSI India will soon have 2300 ATMs online and 400 Bill Payment machines, which will bring that total to 2700 machines.

* Page 4 of the recent Corporate Presentation also highlighted that TSI India had $5 million net cash on balance sheet.

If the company was cash flow positive on just 1324 ATMs as at the end of March 2014, what are the books looking like not only as of today but in the near future now with cash injection of $8M investment from CX Partners (2nd tranche) to fund further growth medium term?

Based on the above, at what stage do others think TSI India could eventually pay out a dividend to TSN and CX Partners? Do you think it could be pre trade sale/IPO or post? Or will they just re-invest their profits back into the company? Interested to hear other peoples thoughts on this.

Tony

References:

http://www.asx.com.au/asxpdf/20140729/pdf/42r3364rknjtw8.pdf (2014 Annual Report)
http://www.asx.com.au/asxpdf/20150731/pdf/4306zrxry6xmb1.pdf (2015 Annual Report)
http://www.asx.com.au/asxpdf/20150515/pdf/42yl8x4cqbsnp7.pdf (Corporate Presentation)