Boparan - comment - 26Q4

Gunstones seems to be falling off a cliff. Management cites a lack of pricing power and apparently "challenges exacerbated during seasonally lower activity quarter". The private office is taking over Gunstones, to be consolidated in Q127. Otherwise, Boparan Q426 results this morning are strong. Revenues have been pushing ahead in Q3 already, but despite lower margins, EBITDA outperformed our Expectations by a significant £8m after pensions. Working capital shows an inflow, CapEx is controlled, and the company drew £12.9m from its £25m asset financing facility. The call is at 12.30 pm today.