A: Thanks for the question.

The brokers think that the deal (sale of its accountants practice management business to MYOB) will be supported by the market. After repayment of debt, they forecast Reckon may pay a special dividend of around $1.00 per share.

After that, the remaining business should generate around $15m in EBITDA.

Like them, I am neutral on the stock, leaning towards a medium term sell. Not convinced about the growth prospects of the business that remain post sale.

 

Regards