Ann: Sale of Retail ICT and Sprout Business, page-55

Interesting that there is institutional buying.

I am changing my sentiment from sell to hold at this share price level and shareholder activity, however the cash position is not as good as some posters have it IMO.

At year end there was $38M cash and $24M receivables and $21M inventory.
less $4M in divs
Current Assets of $83M
However there is also $62M in payables + $7M in bank debt + $3M tax payable
Current Liabilities of $72M

Other current assets and liabilities are difficult to discern which business they belong to. I guess the provisions relate mostly to the ICT business and likely employee leave. They amount to $9M.

I am ignoring the lease liabilities as they are offset by right of use assets. The cash on hand is largely offset by liabilities.

The business has been generating cashflow of $10-$12M per quarter so there may have an additional $7-9M after tax.

I think with the $110M there might me another $10M nett cash max by transaction date. So maybe $45M left to grow the Artisan business. Probably less - considering NSW lockdown in particular.

Refer to the Proforma Balance only has $35M in it (FY21). This tells the story of what is likely left in the business after the transaction if it occurred 30th June 2021.

Not sure how much overhead opex will be required for the Artisan business going forward but expect cash burn for a while.

I am of the opinion that we tell Telstra to bugger off or come back with a fair offer.