Ann: Trading and Strategy Update, page-5

"I would imagine the div will be under pressure while they finish the reorganisation. I will wait before I re-enter. JMT"

You don't think the share price already reflects a re-basing of the dividend, along with the earnings?

Even if EBITDA falls by, say, a further 15% in FY2015, to ~13m, it would leave the stock valued at under 4x EV/EBITDA. (EV of $67m Mkt Cap less $15m Net Cash, after the capital return, so EV of $52m).

Companies involved in the distribution of consumer products are never great businesses, but this one isn't too bad, and its management has a track records of prioritising shareholder returns (as opposed to using blowing shareholder capital on ill-considered empire building strategies).

In that context, EV/EBITDA of 4x (corresponding to EV/EBIT of just 5.7x... the company doesn't make significant use of leases and is capital-light, so the depreciation expense is modest) doesn't sound like anything close to being fairly valued, let alone overvalued.

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