Ann: MSV declares fully franked special dividend, page-2

I've been wondering how it could be a good idea to buy back 10% of the company (currently $10 mill) and pay a special dividend ($1.7 mill) with only $4 mill in the bank. Here's my best guess:
- The business is low capex so any new business is payed for with short term finance cashflow and doesn't require much up front investment, just a contract and a short term cashflow loan. Therefore holding a pile of cash does very little for them.
- They are expecting to generate at least $20 mill NPAT in the next 12 months while they pay $1.7 mill to shareholders and ~$10 million in buybacks over the 12 months.

That being said it's hard to believe they aren't able to (don't want to) invest that money back into the business. But I suppose it's good that they are able to fund growth without raising significant cash and there is no monetary ceiling to their growth profile. On the contrary, extra cash has little correlation with growth so no snowball effect of profit.

Either way I see a company that positively does not want to dilute it's shareholders and gives generously to them.