When we upgraded Reckon to Speculative Buy last August, we felt the sum of its three businesses was greater than the whole. It seems management agrees with us, and today it has announced plans to spin off its Document Management division to existing shareholders. As 85% of the division's revenue comes from overseas, primarily the United Kingdom and United States, the new company (Newco) will be listed on the AIM market of the London Stock Exchange rather than the ASX.
Document Management business to be spun off
Shareholders will also be able to invest further in Newco
Boosts earnings and cash flow of remaining businesses