Correction to M2 dividend forecast

After talking to management of M2 Group, we have discovered that their policy of paying out 70% of net profit as dividends relates to the reported net profit rather than the underlying net profit as we'd assumed in previous articles: M2 finds life in Dodo on 18 Oct 13 (Buy – $6.02), M2 takes a breather on 29 Jan 14 (Buy – $6.08) and M2: Interim result 2014 on 20 Mar 14 (Buy – $5.99). Guidance for 2014 is for a reported net profit of $60m–70m, which implies fully franked full-year dividends of 23.3–27.1 cents and a fully franked...

After talking to management of M2 Group, we have discovered that their policy of paying out 70% of net profit as dividends relates to the reported net profit rather than the underlying net profit as we'd assumed in previous articles: M2 finds life in Dodo on 18 Oct 13 (Buy – $6.02), M2 takes a breather on 29 Jan 14 (Buy – $6.08) and M2: Interim result 2014 on 20 Mar 14 (Buy – $5.99).

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