The Mocka contingent consideration will hit the earnings...

The Mocka contingent consideration will hit the earnings statement. It is currently carried at 32m (up from 29m at the time of acquisition - so 3m was expensed in FY20 already). They will probably do 13.5m EBIT off 67.5m revenue in FY21 which should translate roughly to a rise in the consideration to 36m (so -3.5m or so).

@Klogg I imagine there would have to be some extra costs this FY1 they’ve certainly been hiring at a breakneck speed for some months now but even then it is very hard to get a half year figure any less than 40m (or 23c EPS, or 1.15x FY20) with the disclosed information to date. If they were to maintain their stated dividend payout ratio at the lower end, that would still be close to 15dps on my calcs- which is about a 4% half-year yield. Market seems to be forgetting that they are then cycling against a relatively bad H2 (given their closed store footprint for FY20), so further growth through to the end of FY21 is also likely. Whether consumer preferences etc change by then is anyone’s guess- but the supply chain initiative will have kicked in by then and the tailwinds from the flexible leasing portfolio and upsizing strategy still have some way to run.

At least in my unqualified opinion, seems like a bizarre reaction by the market to quite extraordinary results. Perhaps people did what I did and misread the 600bps for 60bps in the first look through.