There's nothing in the Microequities presentation that wasn't in the shareholder update two weeks earlier.
The full year outlook is for still revenue of $36m and EBIT $2.2m. With a market cap of under $11m that's a PE ratio of 5 -- say 7 with some allowance for the tax they'd be paying if they didn't have a huge tax credit. (Reported EPS is likely to be 6.8c due to the one-off tax credit, so the pro forma PE ratio will be just 2.2.)
They're expecting to pay a dividend for the year. The debt must be pretty much zero now, so looking at the cash flow they could probably pay 1c in September or October, but 0.5c seems much more likely. (I'd almost prefer they kept the money for use in acquisitions, but paying a dividend should help the share price along, which may allow for scrip-based acquisition options.)
As well as growing existing services they're moving into motor vehicle rehab and income protection and pre-employment; they have a 15% organic growth target. And they're talking about an acquisition and alliances and partnerships. I'm hoping they won't get too ambitious here, and we won't see a repeat of the Corpore experience.
KKT Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
