10% gross dividend coming, page-12

I try to keep ahead of the brokers with my own spreadsheet on all valuation measures.

My own estimate of net debt at 30 June is $43.4M:
* $52M net debt as at 31 Dec 2011 (note this INCLUDES all upcoming vendor payments);
* Minus my estimated half year operating cash flow of $12M (normally weighted to 2nd half);
* Plus half year dividend payment of $3.4M

I know this is imperfect as I can't know all the fine details of all cash items, but it is better than using the last public balance sheet.

This converts to gearing of 28.5% (updated from my previous 27%). For a company with minimal capital expenditure needs, and good cash flow (at around 18.4% on equity), this is very comfortable IMO, and should steadily decrease.

My comments on past acquisitions is that these were strategically important as they have resulted in ASG being one of the very few Australian IT companies to be able to offer a full suite of services. They also increase the probability of winning that next big contract which will lead to a re-rating IMO.