Joyce : cheap, but not simple

When you first look at Joyce, the first impression is that it is an interesting company, at a cheap valuation.
But, when you look into more details, you realise that the story is not that simple.

First, on valuation, difficult to deny that the stock is cheap.
If you exclude the impact of Lloyds (now in the process of being sold), the stock has a PE of 9.6 (based on FY 6/20 results) and a yield of 5 %. That is cheap if you consider their 2 remaining businesses (kitchen related KWB and bed related Bedshed) had a regular growth of their sales and profit during the last 2 years. They do not seem to have benefited from jobkeeper payment according to what I read so far.

So what are the problems/risks ?
- Llyods disposal is not yet finalised (expected to be done this month),
- the company had major changes in its management recently with the resignation/departure of the CEO, the CFO and the chairman,
- Joyce is now ready to do more acquisitions, while the last one (Llyods was not a success), so not sure how the market will look at their next acquisition (unless it looks an obvious one for them, at a good price),
- difficult to read into their strong cash flow from operation, as it looks inflated both by the chance in accounting standard and the fact that it takes KWB at 100 % (while they own just 51 % of KWB).

Overall, I think Joyce is an interesting company. The fact that directors have been buying quite aggressively on the market is probably a sign that Llyods' disposal should be finalized.