MCP mcpherson's limited

Ann: Divestment of Home Appliance Business, page-9

  1. 106 Posts.
    lightbulb Created with Sketch. 13
    Pat_ey

    This is how I looked at it. Company had $36.4 M net debt end of FY17. Assuming a repeat of FY17 divs in FY18 then 8.2 M in cash will be drawn to pay H2 FY17 div and H1 FY18 div. So all else equal that takes net debt to $44.6M. Proceeds from sale = $28 M. So that takes Net debt down to $16.6M. Balance will be $5M at close FY18. So that means $11.6 M will be funded from OFCF all else being equal. Comparing apples with apples FY17 OFCF net of dividend payments was about $15.5M by my calcs. The difference can be explained by expected lower earnings in FY18 (based on earnings guidance) and also the benefit of an unwind of working capital in FY17 which looks to have been a $4 to $5 M benefit based on movement in receivables (down) in FY17. I expect they wont have that benefit this year and may face a headwind on other WC fronts investing in inventory etc. So I guess I dont think you could objectively say free cash has fallen off a cliff.
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
32.5¢
Change
-0.005(1.52%)
Mkt cap ! $46.78M
Open High Low Value Volume
33.0¢ 33.0¢ 32.0¢ $5.837K 17.81K

Buyers (Bids)

No. Vol. Price($)
4 46507 32.0¢
 

Sellers (Offers)

Price($) Vol. No.
32.5¢ 39245 1
View Market Depth
Last trade - 16.10pm 28/07/2025 (20 minute delay) ?
MCP (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.