10.5% yield p.a. over next 3 years, PE~ 12, 50% cash backing

The sale of the investment property for $25m (assuming settlement in September) means they'll be able to pay a 5c special div for the next 3 years, on top of forecast operational divs of 5.5c this year. Plan is to use some of the funds to grow the business so that in 3 years time operational cash flows replace the special div, so all going well it will still be a 10.5c+ dividend after the initial 3 year period.

Kitchen Connection is the main change to the business with JYC now owning 57% and that business growing strongly. Does about $28m revenue and $2.2m PBT each year. Will add 2 Kitchen Connections stores each year and 2 BedShed franchised stores each year. I'm not a huge fan of BedShed but I like Kitchen Connection, good growth, should have some tailwinds with low interest rates, good brand name, very good customer satisfaction levels. Remaining 43% is owned by Kitchen Connection management.

Second half will be stronger than first half. Normalised NPAT I get $2.1-$2.4m this year. Assuming the property sale goes ahead and the shareholders approve the special div strategy then the 10.5c dividend each year should give the share price good support.

Someone has been buying up anything on offer around $1 since the property sale and capital strategy was announced.