Quote Originally Posted by blackcap View Post
Am I right in thinking that this puts them on a PE of NPBT of about 6.5? In that sense even 8.5 cents could be very cheap. A profit of $2.2m before tax would net a NPAT of about $1.55m which on the amount of share outstanding is about 1 cent per share. They could easily pay a dividend of .5 cent from that....

I do not know if there are tax losses to be utilised or not but if they do pay full tax then I'm presuming the divided will be imputed....
I looked into the tax losses yesterday and made the following observation,
last financial year the company payed $182th income tax on a NPBT of $1.574mil.

If I understand the tax situation (and I am not an accountant) right the tax rate was this low (11%) because some tax losses from NZ Farmers Livestock could be transformed to off set ALF tax.
ALF has increased its share holding in NZ Farmers Livestock which as I understand it will make the transfer of tax losses from NZFL more likely. ALF might not pay any tax for a long time as the group have unrecognised deferred tax assets as at 30-June 2016 of over $48mil.