I think the following from the half year report may add a bit of clarity to the question of how much is owing for the purchase of Pure Hacking;
"On 1 August 2014, PS&C Ltd purchased 100% of the shares in Pure Hacking Pty Ltd for an initial cash consideration of $4,664,820. Further to this, 4,550,397 shares in PS&C Ltd were issued on 1 October 2014 at a price of 91.49 cents each and the current calculation of deferred consideration amounts to $9,531,518."
My understanding of deferred consideration is that $9,531,518 is the final amount provided for on the books BUT it may be more or it may be less than this figure depending on the performance of the business over a prescribed period of time. If the business performs better than forecast than the amount will be more, if the business performs worse than the amount will be less.
The deferred consideration amounts payable may be satisfied by way of an issue of shares at the Company's discretion.
At this stage there is nothing that suggests to me the dividend is not sustainable.
GLB
PSZ Price at posting:
76.5¢ Sentiment: Buy Disclosure: Held
