Adler Pelzer - comment

Capitalised Assets and R&D Costs of €17,6m added to €45.5m of CapEx = €63m, which does not begin to equate to the €87m of amortisation in the same 9-month period. This shortfall has been going on for some time and has become visible on the balance sheet. That the company creates some of its assets in-house is normal - for automotive tooling at any rate - and nothing new. We think it’s material asset sweating to effect refinancing. Management’s response on what was likely the final call ahead of concrete refinancing talks was very short.