The 2019 yearly results demonstrate CUP was heading in the right direction well before the Count Financial transaction.
Although unspectacular, the solid 2nd half and YOY performance places the core accounting practice in good stead for the year ahead and the integration of the much bigger entity and the raft of older practices exiting the industry over the next 3 years.
The dividend payout ratio is a conservative 60% (2cps) and franking credit levels for the future will be sufficient to cover future divs of10c (fully franked) with paying an extra dollar in company tax.
I don't for a moment underestimate the massive task at hand over the next year or 2 but if management can successfully integrate the newly acquired entity and future tuck-ins and its partner/owner/driver model, the share price is quite likely to be a multiple of its current level, as will the dividends paid from free cash flow.
I for one will do my best to allow patience to be my friend, and keep the gyrations of the wider market out of my consideration.
