Broker Data, page-13

Just be careful on assuming 80% payout ratio as this could be anything e.g.

- if they manage the $1.92m NPAT, they won't have enough cash to pay $1.5m dividend
- if 80% payout ratio is on Statutory NPAT then writing off Goodwill at the 1H16 result will result in a loss this year therefore no dividend

They could pretty much pay anything or nothing and still be in accordance with their capital raising investment presentation.

I think this is a period of transition for the company and mgt on getting use to being a listed company, considering external shareholders, assessing potential M&A. The new CFO appears to have an extensive background in the corporate action side of things which should result in some deals being done which is half the reason for listing in my view. FY17 guidance will therefore be absolutely key in share price performance.

They do need to get their shareholder communication in order for a number of reasons:

- they need a high share price to make earnings accretive acquisition if they plan on using script
- if they want to raise further cash from shareholders
- I thought they had their act into gear with their January update however the share price performance since then suggests otherwise

Anyway, FY17 is key in my opinion