SSG 0.81% $1.23 shaver shop group limited

Ann: SSG - Q3 Trading & FY17 Earnings Guidance Update, page-16

  1. 1,252 Posts.
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    http://www.stocknessmonster.com/news-item?S=SSG&E=ASX&N=465833

    p32 - not exactly sure of the details tbh but the following is from the prospectus

    "Income tax payments. Shaver Shop has received a private tax ruling from the ATO in respect of claiming income tax deductions for part of the purchase consideration paid for the buy back of franchise stores. The tax ruling confirms that part of the acquisition purchase consideration related to the termination of franchise licences is to be claimed as an income tax deduction in equal portions over a 5 year period following the date of acquisition. Accordingly, whilst Shaver Shop pays tax at the corporate rate of 30%, income tax payment cash flows for each period are reduced by the allowable deduction in respect of franchise store buy backs as prescribed under the private tax ruling."

    I sold out to buy another stock but still reckon it's probably decent value on balance. However, it is pretty risky since recent Daigou buying can easily disappear as we saw with BAL, it is a cyclical business and Aussie store roll-outs are limited due to the size of the market.
 
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