Ann: MGP exceeds Full Year Earnings Guidance, page-2

So pleased they reported in time. Comfortably above guidance and unless there is an industry downturn, on track for beating the unchanged guidance for 2018/19. Somewhat reminiscent of HFA (now NGI) that made a large acquisition in 2007 and with the trainwreck of 2008 fell to 6c and because it was reporting losses while it wrote off goodwill and repaid debt, it has taken nine years to get to $6. MGP has had to write off software assets and depreciation and acquisition expenses this year, but none of these are cash items except for the one-off acquisition costs. I get the feeling they are pretty upbeat about what they are finding out about Linear, both in its fit and in the synergies available.

No real capital requirement going forward, so I’d expect a dividend in the second half, possibly to be announced (as payout policy not the rate) with upgraded guidance in November.

I can see this edging up to 30c as more people discover it. Its trading at 1/20th of the Hub rating.