@Buttons7, I agree with you that Tom Kent probably accepted a...

@Buttons7, I agree with you that Tom Kent probably accepted a valuation at the low end when originally selling his business (TKSR) to ENA for $2.5m. However, I also think it was a brilliant enabler; without the listing, TK wouldn't have been able to attract some very strong underwriting talent (given the equity component of their pay structure).

ENA now has an EV of around $12m ($22m MC - $8.2m proceeds from sale - $1.7m existing cash in hand). That's possibly a little high on a revenue multiple for FY22, but looks cheap on a FY23e and FY24e basis. But, most importantly, the sale (and $6.2m cash proceeds plus $2m shares in PSI) provides optionality. It means that they can push the growth lever a little harder on ENA Aus while remaining CF+, but without tapping the markets (equity or debt) to service working capital / upfront expansion investment requirements.

What I find intriguing (great) is that the market is voting to back TK, TL and the team to execute on the multi-year opportunity that lies ahead. I don't subscribe to the theory that the market is always efficient but it is often a good starting place and the share price held up ok today...

Onwards and upwards.