When you do your sums, don't forget that central admin costs...

When you do your sums, don't forget that central admin costs were about 11% of EBITDA, with the accounting business 40%, so the rest of the business is 49%, and not 60% after including that. Looking at NPAT, you have 4.5 going out of 10.7. So the NPAT of the residual is 6.2m. The legal business lost 3.1m and admin cost 3.3 at the bottom line.

My rough guess for of share value now would be based on the following:
1. Small business at 13 x 9.5 NPAT (covering all admin but not legal losses) = $123.5m,
2. 80m sale proceeds net of CGT at 50% discount and some business broker fees, minus $10m net debt (assuming about $5m cashflow generated since the financials) to get $70m net cash.
3. The legal business I would value at zero to Reckon without knowing much as there are losses that might equal its prospects.
So a total of $193.5m / 113.3 = $1.70 per share. Various assumptions made.

Plenty that can go right or wrong to impact the val. The NOV deal could increase earnings, the growth rate could go anywhere, admin costs could be cut once obligations to access group cease, the legal practice group's prospects could change, or other.

They might be able to pay out $47m or so fully franked just from the sale. That would be a good initial payout, and then buyback shares with any excess. No point paying out unfranked divs IMO.

NOV is doing something - will be interesting to see if that has anything to benefit RKN.