In 2017 ACU paid $25m for MVS and in 2018 paid 4.6c / share (80m...

In 2017 ACU paid $25m for MVS and in 2018 paid 4.6c / share (80m shares) dividend on $42m rev and $5.6m Ebitda. So >10% ebitda / rev.

2019 saw an IT hack break momentum and we are now…. here.

ACU is now fully integrated, national, way more diverse and has building cash at bank with no loans. Final contingent payments for acquisitions recently paid.

At last Q we looked to be on a run rate for > $55m rev. Maybe $4-5m Ebitda so <10%. But better and on a good tack. The June Q should be stronger and could return >$1m cash. Return to div seems likely finally.

A 1c dividend ($2.2m) in 2 halves would be something like a 12.5% return fully franked on present SP. To equate this into average div yield of 4% would require a SP of 25c ie $2.2m div / 0.04 = $55m market cap / 220m shares.

To do it another way, $5m Ebitda x 9 = $45m + $4m EOY cash = $49m / 220m shares is 22c.

Or 20x NPAT of $3m = $60m / 220m shares = 27c

Lastly ACU is ripe for acquisition given level of undervalued-ness but holdings are super tight in the T20 so nobodys giving it away under 20 is my read.